What tax should I pay on grinds?

[Doublglaze]

I have started giving grinds.

I'm a fulltime teacher and therefore on the highest tax rate.

I would like to know how much tax I owe on monies received from grinds: whether in addition to paying 41% tax, I also owe PRSI, levies or whatever.

In addition, I give some of my grinds in the students' homes - about four to six miles return journey from where I live. How much can I legitimately claim in travel expenses?

Let's say, I give a grind in my own home for €30. What will be my net income on that grind after I have paid up my Revenue dues?

Also, what would be be net income per €40 grind if I were to travel two miles to a student's house and two miles back?

Would the manner of calculating the tax I owe change if I were to give €4000 worth of grinds by year end (thus - I think?- putting me into the self-assessment category -?- as opposed to PAYE)?

 

[mathepac]

An additional €4k p.a. income not taxed at source puts you into the self-assessment category.

 

[Joe_90]

Taxation of Grinds

Hi,

As a self employed person you are taxed on the gross income less expenses wholly & exclusively incurred for the trade/profession.

In other words the cost of the travel is deductable. This is not to be confused with travel expenses received by an employee. A full time selfemployed person will have an annual motor expense ie. petrol, motor tax, insurance and servicing. You are entitled to a small proporation of this annual allowance.

You are also entitled to a deduction for any expenses incurred. Stationary ect.

Your gross income less expenses is assessed to 41% Income Tax 3% PRSI 4% Health Levy & 2% Income Levy effectively 50% Tax.