Additional Income

F

Fifitrix

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I currently earn €36,000 per annum and am a single person who is a home owner. I have been asked by a previous employed to carry out some administration work for them as they have downsided and have no one available to do it.

I reckon it will be about 15/20 hours a month with the work being done in the evenings. It is work that I have done before and while not very specialised I am the only ex employee who knows how to do it.

My questions are:
What would be a fair rate to charge?
How do I calculate how much I will come out with?
Also how do I sort out my taxes as they want to do it through the books? Can I do this online with my PAYE Self Service?
I am not sure if it is relevant but I also have a rental property so I had to complete one of those I think its call no.11 forms last year - is this where I put the extra income?

Any help would be greatly appreciated.

Thanks
 
Are you currently employed PAYE or are you in a position to become self-employed and charge them as a consultant?

[this may change your life moment - it did mine]

I'm not sure whether or not you can be PAYE in one job and consultant in another.

Equally I'd checkwhat your current contract says, especially if your old employer is a competitor, about working for another company.

Points to ponder perhaps.

ONQ.
 
Hiya ONQ,

Thanks for your reply.

I am PAYE worker and plan on staying that way. There would be no conflict of interest between the current company that I work for and my present employer. However, I am not planning on telling my current employer as I dont consider it relevant.

Thanks

Fiona
 
Fifitrix said:
... I am PAYE worker and plan on staying that way...
Click to expand...
I believe that is your simplest plan.

As I see it you have two choices in relation to getting paid :-

  1. Emergency tax with your old employer, who probably has all your details on file (Pain in the short-term, lots of tax deducted)
  2. Submit a monthly invoice with your name, address & PPSN and invoice the hours you work at an agreed hourly rate. This may cause confusion as you cannot legally charge VAT. Due to being below the VAT threshold, you do not legally need to register. (Gain in the short-term, gross amount paid, no deductions)
As regards rates, your current rate of pay (assuming a 35 hour week) is around €20 / hour, so I'd suggest €30 / hour as an opening bid.

With regard to tax returns, you will have 2 employments in case 1 above, and you will have non-PAYE income in case 2 above to be filled in on your Form 11 next year.
 
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