Tax on Nixers?

G

grotty

Registered User
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56
Hi,

I'm a programmer and I was thinking of looking for a few small website, e-commerce sites to get some extra cash together. I was just wondering from a tax point of view, would this be extremely difficult?





Anyone have any idea?
 
Thanks clubman,But I was thinking more along the line of not becoming an employee for the second/third/fourth companies. More that I would produce the site, bill them and send what ever documents & tax to the revenue people.
 
Tommy McGibney's [broken link removed] might be of interest to you. also contains a wealth of information on starting/running a business. I'm not sure how simultaneous income from employment and self-employment is treated from a tax point of view but I'd imagine that this has been covered here on AAM in the past in case that's of any use.
 
The guide is a great basic start- thanks very much. Seems like such an awful amount of work to go to though. I suppose there is a reason why they like to make everything so difficult!
 
ClubMan said:
What work in particular and who is "they"?
Click to expand...

A lot of people dont bother paying tax on nixers. Very unlikely you'll be caught.

Yeah yeah I know thats bad financial advice but in reality if its a small most dont pay the tax
 
The Revenue wheels might grind slowly but they sometimes grind exceedingly fine......
 
This queries outlined in this thread are to do with business-to-business transactions. Whatever about the wisdom of evading tax on business-to-consumer transactions, (which is not in any way recommended, due to the severity of Revenue interest and penalties whenever such a scam is uncovered), doing so in respect of business-to-business transactions is plain daft.

For a start, no business worth its salt will pay a supplier without being furnished in the first instance by a proper invoice, which would be expected to denote the supplier's PPS or tax reg number. This provides an obvious paper trail from the records of the customer to the supplier which can readily be followed by Revenue or any other authority. Secondly, if the supplier is unwilling or unable to furnish a proper invoice in respect of work done, they may have no legal right to get paid, as any contract between supplier and customer would be tainted by illegality.
 
So in essence as a sole trader you've got to pay 42% (ie. the high rate of income tax) on all so-called nixers ? assuming you retained a normal paye job that uses up the lower tax bracket.

If that individual registers for vat - can vat invoices be offset against that 42%, ie;

Invoice €1,000 + vat = €1,210
less 42% on your annual return ?
 
VAT is a sales tax and you should never think of VAT paid to you as being actual income.

If you invoice 1000+VAT. upi pay the 210 vat back to the revenue at the end of the current VAT period (every 2 months). You are only liable for income tax on the 1.000. And yes, if you're in the 42% bracket, that means you only get to keep about €500 of the total invoiced amount (because you're also liable for PRSI as well as income tax).
 
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