Advise re best form of payment for work done

M

Mars39

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I am a PAYE employee on €24k a year. Normally would be on a higher salary but when my last contract finished I took this position so as to have some income coming in. Since then, a friend has asked me to help her out for her start up company and I will get €12 an hour. What is the best way for (a) me to receive payment for this and (b) for her also re her books? It will be maybe 150-200 a month. Do I need to set myself up as a company to invoice her? Thank you in advance.
 
Issue your friend an invoice for the hours worked (weekly or monthly as agreed between you) X €12. On the invoice quote your name, address and PPSN and do not charge VAT.

Enter the gross amount received on Form 12 for your 2009 / 2010 tax return in section "8 - Employments/Offices/Pensions not subject to PAYE deductions"

Tax and any PRSI or levies due will be calculated when the reconciliation is done.
 
Thank you so much for this. I really appreciate it. This thread can be closed now
 
Are you sure that is correct ?

I thought this income would be entered under section 10 on form 12 "Income from a Trade or Profession"

section 8 is only for certain limited circumstances
Irish employment not subject to PAYE [215]
This section refers to Irish employment income which does not fall within PAYE, e.g. certain employees in foreign embassies in Ireland
 
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