Charging VAT for one off job

S

sman

Registered User
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Hi,

I have been asked to do a small job for a relative for which he will pay me. He will be getting a grant to get the work done and so will need a receipt and VAT receipt to prove he paid me for it. I will do the job for far less than he would pay a professional company to do it and will be every bit as good as it is what i work at anyway. I dont mind paying VAT on the job(VAT will be approx 150) but how do i go about paying the VAT? Do i need to get registered somewhere? also do i also need to pay income tax on the money i get paid minus the VAT? Again, how do i go about this? I dont want to break any laws as i presume i would be by doing a 'cash job' but dont have a clue how to find this stuff out. Thanks
 
If you are not registered for VAT, you cannot charge VAT. Unless you invoice out work in excess of 35k (I think) per annum, there is no necessity to register.

You will of course have to declare the income on your From 12 year-end tax return and you will be taxed on it retrospectively and you may be liable for 5% PRSI as well.
 
Cheers guys. so i dont need to worry about paying VAT on the job. I'll get him to suss out what is required as a receipt by whoever he is getting the grant from. I think it is the Enterprise board. Would a signed sheet of paper from me declaring the service provided and the amount paid suffice?
 
He may need you to obtain and produce a tax clearance certificate before an invoice from you can be accepted for grant purposes. You will not be able to apply for a tax clearance certificate unless you (1) have registered as a self-assessment taxpayer, and (2) your tax affairs are in order.
 
ubiquitous said:
He may need you to obtain and produce a tax clearance certificate before an invoice from you can be accepted for grant purposes. You will not be able to apply for a tax clearance certificate unless you (1) have registered as a self-assessment taxpayer, and (2) your tax affairs are in order.
Click to expand...

Only (2) might apply in this case. To quote from revenue site :

"Apart from situations where a person is legally required to produce a Tax Clearance Certificate, Revenue is also prepared to issue a Certificate to any customer whose tax affairs are in order."

Emphasis mine.

There is no requirement to be a self-assessed tax-payer specified anywhere on the Revenue site.
 
mathepac said:
Only (2) might apply in this case. To quote from revenue site :

"Apart from situations where a person is legally required to produce a Tax Clearance Certificate, Revenue is also prepared to issue a Certificate to any customer whose tax affairs are in order."

Emphasis mine.

There is no requirement to be a self-assessed tax-payer specified anywhere on the Revenue site.
Click to expand...

Well if you dealt with tax clearance cert applications as often as I do (as opposed to reading websites), you would know that the Revenue won't issue tax clearance certs (except for certain categories such as Standards in Public Office purposes) unless the applicant is self assessed, and that they insist that Form Tr1 be filed in such cases before tax clearance certs issue.
 
sounds to me like he has two options: 1) pay me from his own money for the job and forget about the grant 2) go to a professional company and pay over the odds for a less flexible and far more expensive service but get it paid for through his grant - Net result: he's restricted to a less flexible service, grant authority needs to stump up more cash, my plans to pay off my holiday is in tatters.... Is nothing ever easy
 
Have you got an answer from the enterprise board on what they need?
If you need to register for self assessment you can complete your tax returns yourself through ROS and it's not too onerous (you would have to declare this income anyway).
 
ubiquitous said:
Well if you dealt with tax clearance cert applications as often as I do (as opposed to reading websites), you would know that the Revenue won't issue tax clearance certs (except for certain categories such as Standards in Public Office purposes) unless the applicant is self assessed, and that they insist that Form Tr1 be filed in such cases before tax clearance certs issue.
Click to expand...

Are you sure you are right? I know somebody who was granted a 4 year scholarship to do a PHD . She only works afew hours a week and is paid through PAYE. She has to send in a tax clearance cert every year before she gets her scholarship cheque.
 
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