Working from home: Tax, PRSI, implications

N

November

Registered User
Messages
17
This is my first time post so Mod, please move if I am not in the right forum!

My situation is as follows:
I was made redundant in January this year and have been claiming Job Seekers Benefit. I contacted my previous employer about doing some contract work (from home) for them and they have agreed. I am not sure what I need next.

I need to head to the SW office today to "sign-off", will it be okay that I don't have any letter of employment? Do they care as long as they are not giving me money?

I am hoping to make €10,000 between October and year-end, i.e. I will be submitting invoices for this amount over a 3-month period. Is this outside taxable income for 2008, can I just lodge and spend the money?

How do I make personal PRSI payments as someone who is essentially self-employed?

In the past I have heard of people setting themselves up as "companies"? Is this an option?

I worked for 10 years with my previous employer, and it was great having all of this handled at source!

Any advice would be greatly appreciated. Thanks in advance!
 
File a TR1 form with tax office to register as a soletrader from when you sign off. say register from 01/10/08 for example your 2008 tax return will include income from self employed from oct to dec less expenses plus job benefit from jan to oct. if the job benifit is from from jan to oct overall yearly tax bill will be small. prsi calulated when doing tax return
 
Thanks papervalue

I looked up that TR1 form and think that I can manage it myself (plus found alot of other usefull material on the revenue website). It is just a bit daunting starting off, and certainly don't want to skip my tax obligations.

Should I add VAT to invoices (at 21%?), my ex-employer (Ireland-based) is VAT exempt so presume that I don't?
 
I knew that vat limit is around 37k requiring people to register. No need to register now, see what kind of income you would get next year before registering, i say you would be still under limit.

Repost about vat issue later if it becomes an issue.
 
November said:
Should I add VAT to invoices (at 21%?), my ex-employer (Ireland-based) is VAT exempt so presume that I don't?
Click to expand...

One cannot presume that the VAT registration status of another individual or company will also apply to another individual or company even if they appear to be doing the same thing. If you expect to be under the registration threshold of €37,500 (services) sales in a rolling 12 month period then you are not obliged to register. If you expect to exceed the registration threshold then you are obliged to register unless you qualify as an "exempt" activity. If in doubt as to whether your activity may be VAT-able, contact your local Revenue office.
 
Thanks Graham, I will only have one client (my ex-employer) and they are VAT exempt so I wont be adding VAT onto the invoice (because they will not need to pay it). Will ask them to send me a copy of their exempt form for my records too?
My next worry is that do I need to get all this done (as in registered and returns submitted) by 31st October???
 
You don't have to submit your return for 2008 income until 2009. You would have to submit your TR1 now though. That said, I was very late submitting my TR1 and there was no problem. Still, it should be no problem for you to submit the TR1 now and then you worry about the actual 2008 return for October 2009.

Sprite
 
Thanks for the reassurance! Should have known that! Just got concerned that it would like like I was evading tax, will tackle the TR1 today and might be back on here with more questions at the weekend!
 
You must log in or register to reply here.
Back
Top