Tax on Second Income

Hi There,

Apologies if this is in the incorrect forum! A good friend has just opened a new business and has asked me to help out some evenings / weekends. I have no problem helping out but want to ensure it is done above board and all payments are "official".

I currently work 37.5 hours per week for €30K, with bonus and overtime this generally is increased to €35K. The extra work would be menial so I would not expect to earn more than €80 per week at it.

Can anybody tell me what the likely tax implications would be of taking on this extra work?

Apologies if this is not clear, please let me know if you need any more info from me.

Thanks,
DubShelley.

If the extra income is not taxed at source, probably at emergency rate, then you will need to declare it on your Form 12.

The standard rate cut off for a single person is €36,400 so you will have practically all of this used in your main employment. So €1400 will be taxed at 20% (if you allocated it to your new employment) with the balance at 41%. No PRSI or Health Levy.

I'm pretty sure that as a PAYE worker you can request that Revenue adjust your tax credits certificate to reflect assessable non PAYE income of up to circa €3,000 per annum.

If the OP's working as a contractor, this might be a better option.

Alternatively, if the OP's going to be "an employee", he/she should just apply for a second tax credit certificate.

Apply for a second tax credit - to do this you will need your new employers paye registered number and company address . ( download form 12a and send to tax office )

Send in a short note with this form and tell them that you require an additional tax credit certificate with the following :
1. Tax Credits = € 0.00
2. Standard rate cut-off = € 1400.00

Or you can leave your current employment as is , and ask for the following :
1. Tax Credits = € 0.00
2. Standard rate cut-off = € 0.00

This will ensure you avoid emergency tax rates