Self employed tax query

I

iwsf

Registered User
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I read this forum and also checked the revenue.ie website but cannot figure out the tax system here.
I am a PAYE worker and have all our tax allowances under my name.
My wife started a small part time business last year and earned in the region of €4000 for 2008. This is the gross income as i did not include the expenses.

My questions are :
which form do i need to fill up and return before the end of the month ?
Regarding the % of taxed she needs to pay ? Is it calculated separatly or as a couple ?

Thank you in advance
 
Hi iwsf, a Form 12 should be completed by PAYE employees who have small sundry other sources of income.

If you have significant other non-PAYE income you become a "chargeable person" and are required to file a Form 11. Here is an extract from the Revenue regarding their definition of a "chargeable person":

"Section 14 Finance Act 2005 amends the definition of a "chargeable person" for Self-Assessment purposes. An individual who is in receipt of income chargeable to tax under the PAYE system but who is also in receipt of gross non-PAYE income of €​
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50,000 or more from other sources, such as trading, professional or rental income etc. but where this income has been reduced to nil or to a negligible amount because of deductions, losses, allowances and other reliefs, is regarded as a 'chargeable person'. An individual who is a 'chargeable person' for the purposes of Self-Assessment Income Tax should complete a Pay and File Income Tax Return Form 11 or Form 11E."

Regarding your query of whether she is taxed separately, this will depend on whether you have chosen to be jointly assessed or separately assessed. The default position for married couples is joint assessment so if you have never contacted the Revenue about this, the chances are that you are on their system under joint assessment (provided they are even aware that you are married). Joint assessment means that your own income must also be included on your wife's income tax return.​

 
If you go to www.revenue.ie and search for the term "Pay and File Guide 2008" you should find a link to a pdf document that explains how to complete the relevant forms.
 
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