Working from home.... Tax/PRSI Question

[newbie2009]

Hi there,

I am hoping to start a second job from home with an internet company, and to be honest, I havent got a clue how to go about sorting out the tax/prsi side of things.

I work full time in an office during the day, but would hope to earn a few extra bob doing this work in the evenings.

Does anyone have any advice about how I sort the tax/prsi side of things.

many thanks

 

[FENERO]

Hi newbie2009,

The first thing is to decide whether you wish to operate as a sole trader or as a limited company. You might find this useful:

[broken link removed]

If the amounts involved are only small, the chances are that just operating as a sole trader will be best for you. If this is the case, you need to register for income tax with the Revenue using a TR1 form - this is downloadable from www.revenue.ie

Once you are regsitered for income tax, you are required to file an income tax return each year before 31st October. If 2009 is your first year of trading, your first income tax return will be due on 31st October 2010 (extensions to this deadline are available if filing online).

I would also suggest that you register for Revenue On Line Service i.e. ROS. This will enable you to keep track of your tax payments and returns online. You can regsiter for this at www.ros.ie but you will need to complete the Form TR1 and complete your income tax registration first.

What is the nature of the business may I ask? And what do you expect your turnover to be? You need to be aware of VAT compliance issues that may arise.

 

[mathepac]

... If the amounts involved are only small ...

less than €3,174 per annum, declare them for tax on your year-end return (Form 12) and don't bother with sole-trader registration, as it's extra hassle.