Sole Trader

B

Bryan99

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Last February I began working for a care agency. This is in addition to my current 9-5 job. I have worked one or two Saturday nights a month and have been paid for this via cash and cheques. I have earned approximately €3,500 through this agency to date. The agency owner does not take tax details and reckons it is our responsibility to register with the tax office.

My tax details, as an agency worker, are not yet registered. In other words the tax office is only aware of my earnings in my 9-5 job.

The agency owner advised me to register my services to the agency with the tax office, as a Sole Trader. This will have the added bonus of allowing me to claim expenses, he reckons.

My questions are:

How will this affect my personal tax credits in my 9-5 job?
What expenses can I claim (the person who advised me reckons I can claim wear and tear on my car and petrol expenses)?
When do I need to register by to avoid penalties?
What documentation/records should I be keeping?
What rate of tax should I be paying on my earnings through the agency?
 
Bryan

I think you need to firstly figure out are you an employee of the care agency or a self employed individual providing services? in which case you can then move to answer your questions
Take a look at the following which revenue use a guidance in identifying whether someone is employed or self employed page 3 to 7

[broken link removed]

In term of timeline you need to act quickly - if you are self employed you will need to have registered back in February
Let me know what your conslusion is and we can answer your other questions
 
From my reading, I am a self employed individual providing a service. I only commenced this kind of work at the very end of February. I did not receive my first payment till mid-late March.
 
Hi Byran,

When you say:"This is in addition to my current 9-5 job", is this a regular PAYE job for an employer or is it something else?

aj
 
This is a regular PAYE job for my employer, where I have worked for a number of years.
 
Bryan99 said:
My questions are:

How will this affect my personal tax credits in my 9-5 job?
What expenses can I claim (the person who advised me reckons I can claim wear and tear on my car and petrol expenses)?
When do I need to register by to avoid penalties?
What documentation/records should I be keeping?
What rate of tax should I be paying on my earnings through the agency?
Click to expand...

Hi Bryan

I will try to answer your questions for you
If your 9to5 jobs is using up all your credits you will have no credit left to use against a tax liability in respect of your self emplyed income
You can claim all expenses of a revenue nature that are wholly and exclusively incurred for the prupose of your services
you will need to register with revenue ASAP as you will need to complete a tax return for 2006 by october 2007
you should keep a record of all your receipts and payments for 6 years
you will pay income tax and prsi at 47% assuming you have already exceeded your standard rate cut-off

have a read of this revenue publication:
[broken link removed]
 
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