Tax Liability for contract work while employed

D

DorothyD

Guest
I was wondering if anyone can help me with this or should I just go to an accountant? I recently did a piece of freelance/consultancy work while in full-time paid employment. I did the work in my own time and it had no relevance to my employment. I now need to invoice the people I did the work for and have no idea whether I need to include VAT and how I should treat it for tax purposes. The amount is fairly small, less than €3k, but all the same I need to discharge any obligations I have and have to go through the correct channels for invoicing etc.

Any advice would be great, even if it's just to go to an accountant or Revenue. I've tried a few sites (including this) for info but cannot find answers.

Thanks, D
 
I am amazed you haven't found the answer here as it has been covered multiple times.

You cannot charge VAT if you not registered.

You will need to declare the income on your tax return for the relevant tax year under non-PAYE income.

You will be liable for tax and the Revenue may also deduct PRSI from the gross amount.
 
Thanks mathepac. I clearly need to look a little longer and better - I'm new to the site but will be a bit more thorough in the future!

Thanks for the details.
 
You are obliged to register for and charge VAT if you make more than €35,000 in respect of the supply of services in the year. See:

[broken link removed]

My reading of this is that, if you only made €3k, you don't have to charge VAT. However, as mathepac says, you are liable for normal income tax/PRSI etc on the money.

Sprite
 
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