Taxation of couriers (4.1.7)

[Sailorboi]

Hi All,

Question for 2018 tax return regarding Taxation of couriers (4.1.7 pre-2019 changes). Basically as a motorcycle courier my friend was entitled to a flat rate deduction of gross income of 45%. The remaining amount which was taxable deductions were made by the employer and recorded with Revenue.

The non-taxable amount was never recorded on the system and to reflect this in “My Account” would it be correct to enter this under “Emp/Off/Pen not subject to PAYE”.

I know the question might be why record it all but it is needed for other reasons.

Thanks,

 

[cremeegg]

The simple answer to your question is, no. The gross earnings are subject to PAYE so to record them as 'not subject to PAYE' would be incorrect.

The correct gross earnings should be recorded with the allowable deductions.

If this is not possible through 'my account' it might be worth considering submitting a Form 11

 

[dublin67]

I've had a look at the Tax & Duty Manual to which you refer (which is currently withdrawn for some reason best known to the Revenue) and from my reading of it this should not require to be included on the return. Accordingly the amount on which PAYE was operated are the tax emolument and the 45% of the income is an expense. My feeling is that if you included the 45% of the income as an expense, and it was allowed, then a double deduction would be taken as the taxable earnings (i.e. the 55% of gross earnings) has already been deducted.

The TDM does state "Any courier wishing to join the voluntary PAYE scheme should contact his/her Inspector of Taxes." Accordingly it may be prudent to contact the Revenue in any event.