Tax Advice on Extra Income

T

ToddyOB

Registered User
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Hi all,

Looking for a bit of advice on the following.

I am in a good full time job (c.80k). However, I'm about to begin a 2nd 'job' - online learning - I have been asked by an third level institution (UK based) to design an online course. It's essentially a one off job - which may require some occasional updating, but not much I hope. Depending on the uptake of this course, I could earn anything from 5k-100,000k annually.

My question is, at what level is it worth considering putting this side venture through a ltd company - or are there any tax benefits to be had going down that route in Ireland?

Also, as the work is wholly online - and the earnings will almost solely earned through online sales globally i.e. sales in other countries aside from Ireland - and I'm being paid by an English institution - does that affect the Irish tax liability of those earnings in any way? I'm a full time resident in Ireland - so any work involved will be done in Ireland, but online etc

Apologies for all the questions - and appreciate any and all advice.

Toddy
 
The key question is what do you want to do with the extra income?

If you want it to pay down debt in your own name then sole trader is fine.

If you don't need the money and intend to put it into a pension then the ltd co is a better bet as the allowable limits are higher.

Go and talk to an accountant to set out a plan for yourself and the income. You may have a VAT issue in that you will have to charge it and the UK company may not be able to recover it.
 
Thanks @Joe_90

However, I'm not a sole trader. I'm a full time PAYE employee of a semi state company - so can't change to sole trader either. Can my earnings be taxed under the UK tax system, given that's where the payments will be issued - even though I'm not a resident there? As mentioned, all earnings arising from online earnings through an English institution etc

Thank you
 
ToddyOB said:
Thanks @Joe_90

However, I'm not a sole trader. I'm a full time PAYE employee of a semi state company - so can't change to sole trader either. Can my earnings be taxed under the UK tax system, given that's where the payments will be issued - even though I'm not a resident there? As mentioned, all earnings arising from online earnings through an English institution etc

Thank you
Click to expand...

Yes you are a sole trader.

The fact that you also have a PAYE job is irrelevant - a sole trader tradesman who does a job in your house can also have a PAYE job flipping burgers if he wants...!

You're carrying on your sole trade from Ireland and exporting a service to the UK, so you'll be taxed here on any profits. Go and talk to an accountant.
 
If you set up a company,
I don't think there is a vat issue as its B2B
http://www.revenue.ie/en/tax/vat/guide/supply-of-services.html#section3

If you are being paid in STG, depending on where you the euro/STG X rate is going, I would wander up to Newry and open an Stg account there with a debit card.
I have one with UB here and in Newry
This is not an offshore non res account, you are just keeping it in Stg.
Revenue don't have an issue with this, they get annual reports of debit/cc foreign usage!
 
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