Tax treatment of spouse additional income (Sole-Trader or additional PAYE?)

[SpiderBaby]

Hi,

I'm jointly assessed and currently the sole income earner. My wife was just offered some low hours part-time work but we've just learned it's a 'Contract for services' not a 'Contract of service' and so she'll have to invoice them. Given her taxable non-PAYE income will not exceed €5000 (after credits deduction) can I just declare the additional income under her tab in Revnue/MyAccount online somewhere? (I can see where I could add in her extra income but a lot of the reasons seem to be for other types of income.)

Trying to avoid setting her up as a sole trader and her having to complete income tax returns but maybe that's the only option? (Or is there some advantage to doing this that I'm not aware of even with the low income amount?)

Thanks

 

[Brian O'Brien]

According to the Form12:
An individual with a PAYE source of income and with net assessable non-PAYE income (including income subject to DIRT), of €5,000 or
more is regarded as a ‘chargeable person’ for Self-Assessment and must file a Form 11 for that year

So if her income less expenses (not income less credits) is less than €5k there is no requirement to submit a Form 11.

 

[T McGibney]

My wife was just offered some low hours part-time work but we've just learned it's a 'Contract for services' not a 'Contract of service' and so she'll have to invoice them.

Sounds dodgy tbh.