J
Jana
Guest
Hi all,
I hope someone can give me advice on this:
I'm gonna be soon employed as a classical PAYE worker, but I’d also like to work as a self-employed freelance translator. As I understand it so far, I should go to the Tax Office, fill out the TR1 to register to the income tax and possibly also VAT.
I am not sure what information I should put on invoices then (I don’t want to ask the client as I would look unprofessional). In the first (above mentioned Czech) case, I’d just put on my name, address, Czech trade cert.no., no VAT payer. I'm not sure what would be the equivalent of the Czech trade cert.No. on the Irish invoice when one doesn't pay VAT.
It is also possible (anyone any idea?) that they will require that VAT No. from me although I’m not obliged to have it as my income will be low. So I don't know whether to register for VAT or no (I dread all the paperwork and want to know if it’s really necessary or if it’s something that one definitely needs when dealing with foreign clients.)
3) (Well, I am also not sure whether the income to reach the threshold for VAT registration is calculated only from self-employment or from self-employment and employment.)
I hope someone can give me advice on this:
I'm gonna be soon employed as a classical PAYE worker, but I’d also like to work as a self-employed freelance translator. As I understand it so far, I should go to the Tax Office, fill out the TR1 to register to the income tax and possibly also VAT.
1) I have a potential client in the Czech Republic, a translation agency, for which I would work over the net and then would be sending them invoices. When I met the client, I mentioned that although I live in Ireland I have a Czech trade certificate for translation. (There’s an ID No. of this certificate that you put on invoices, plus you state you’re not a VAT payer, otherwise you also add your VAT No.). However, I realized that I fall under the Irish tax system, so I shouldn’t really be working on the Czech certificate, but rather from the Irish position (even though I will be paid in Czech money coming to my Czech account).
If I work on the Czech trade certificate, I will be taxed in the Czech Republic which as I was told wouldn’t matter because on the basis of bilateral agreements for Avoidance of Double Taxation, they would deduct the taxes here and I’d pay them only once. I forgot to ask whether this relates also to the PRSI and Health contributions (?). If I start working on the Czech certificate (which might be more convenient for clients – everyone is always more cautious when dealing with someone from abroad), not only am I taxed, but I also have to pay the Czech PRSI & Health. Basically, the Czech state would see me as if I was living there.
I’m afraid I’d have to pay PRSI & Health again to the Irish system from the same income (?). And if this is the case, do you think it would still be worth it for me to work this way (more attractive for potential clients) although I’d be losing some money?
2) Second option is that I do not use my Czech trade certificate and I will work for Czech agencies over the internet from a position of an Irish sole trader. If I work on the Czech trade certificate, I will be taxed in the Czech Republic which as I was told wouldn’t matter because on the basis of bilateral agreements for Avoidance of Double Taxation, they would deduct the taxes here and I’d pay them only once. I forgot to ask whether this relates also to the PRSI and Health contributions (?). If I start working on the Czech certificate (which might be more convenient for clients – everyone is always more cautious when dealing with someone from abroad), not only am I taxed, but I also have to pay the Czech PRSI & Health. Basically, the Czech state would see me as if I was living there.
I’m afraid I’d have to pay PRSI & Health again to the Irish system from the same income (?). And if this is the case, do you think it would still be worth it for me to work this way (more attractive for potential clients) although I’d be losing some money?
I am not sure what information I should put on invoices then (I don’t want to ask the client as I would look unprofessional). In the first (above mentioned Czech) case, I’d just put on my name, address, Czech trade cert.no., no VAT payer. I'm not sure what would be the equivalent of the Czech trade cert.No. on the Irish invoice when one doesn't pay VAT.
It is also possible (anyone any idea?) that they will require that VAT No. from me although I’m not obliged to have it as my income will be low. So I don't know whether to register for VAT or no (I dread all the paperwork and want to know if it’s really necessary or if it’s something that one definitely needs when dealing with foreign clients.)
3) (Well, I am also not sure whether the income to reach the threshold for VAT registration is calculated only from self-employment or from self-employment and employment.)