Additional Income - ?taxable

[Peachie]

I am a full time permanent and pensionable public sector worker working in the HSE. In 2007 I did some private sessional work. The employer for this private work required that I produce a Cert of Tax Clearance before taking me on. I did so and did some sessional work for which I got paid €1400.
At the beginning of this year I submitted my Med 1 form. The tax office got back to me saying I couldn't submit that until I submitted tax returns for 2007.
I didn't think I would have to declare my additional income as I incurred various expenses in the course of the work and used the rest of the money to attend a professional conference. Do I have to outline all of this for the tax office or can I just return my Form 11 without declaring the €1400?

 

[ClubMan]

You are supposed to declare all income. You may have become a (self) assessable individual as a result of having non PAYE income over a certain amount. You probably need to make the self assessed returns for the relevant years. You should probably get professional advice.

 

[Black Sheep]

As the amount is only €1400 less expenses he should not need to be self assessed.
Complete a form 12 for 2007 to include your extra income and include the Med 1 form with it

 

[mathepac]

...
At the beginning of this year I submitted my Med 1 form. The tax office got back to me saying I couldn't submit that until I submitted tax returns for 2007.
I didn't think I would have to declare my additional income as I incurred various expenses in the course of the work and used the rest of the money to attend a professional conference. Do I have to outline all of this for the tax office or can I just return my Form 11 without declaring the €1400?

As previously posted, you are legally obliged to declare all income for taxation by the Revenue.

In declaring income earned outside of the PAYE system, you may be entitled to claim certain expenses incurred by you in the execution of these non-PAYE duties.

To figure out which expenses and how much of them are allowable against the additional income you will need to talk to a tax professional.

In relation to on-going professional training costs incurred by you, some portion of these may also be allowable against tax, but I'm not sure about conference attendances. Again you will need professional advice and receipts if you can claim.

The Revenue may also levy PRSI against your additional income.

Any tax consultant fees are allowable against additional income in subsequent years (you claim these costs in the year they were incurred, not against the tax-year the consultant does the work on) e.g. tax adviser works on your 2007 return in calendar year 2008, you claim this cost against tax-year 2008).

There is no need to register for self-assessment IMHO.

HTH.

 

[ubiquitous]

Any tax consultant fees are allowable against additional income in subsequent years (you claim these costs in the year they were incurred, not against the tax-year the consultant does the work on) e.g. tax adviser works on your 2007 return in calendar year 2008, you claim this cost against tax-year 2008)

I would disagree strongly with this interpretation. If you have income from a business or trade in a given year, and incur compliance costs after the year end in respect of that income, then there is generally no problem in accruing such costs against that income. In fact this is a fundamental principle of accounting and as such is generally recommended practice.

 

[Domo]

Originally Posted by mathepac
Any tax consultant fees are allowable against additional income in subsequent years (you claim these costs in the year they were incurred, not against the tax-year the consultant does the work on) e.g. tax adviser works on your 2007 return in calendar year 2008, you claim this cost against tax-year 2008)

It will depend on whether you are preparing accounts on the "cash" basis or "accruals" basis - either are acceptable

 

[mathepac]

I would disagree strongly with this interpretation. ...

As is your entitlement, and I stand corrected on the technicalities - but I am posting from the perspective of a tax-compliant PAYE worker with additional incomes and who has dealt with compliance costs as described in my original post, based on the professional advice I paid for.