Claiming expenses on additional income.

[Finchy0410]

I’m currently working as a PAYE worker, but am looking at doing some contract work in my free time. This additional work would require the use of internet and mobile phone.

When I declare this additional income to Revenue, can I as a contractor, claim my full mobile phone bill and internet bill against tax paid on the additional income?

Thanks for your help.

 

[Setanta12]

No, only that part of those expenses relating to the income.

 

[Finchy0410]

No, only that part of those expenses relating to the income.

Thanks for the reply Setanta12.

So just to clarify, if I was doing contract work in say January, I can only claim my phone bill for that month and 1/12 of my internet bill?

 

[Setanta12]

Worse than that my friend, you should only claim for those calls relevant to the income and the part of the internet bill thats also relevant.

So if you know you only had 1 telephone call, that's all you can claim for. But of course, if you had to have the phone for customers to call you can claim more. When it's not really possible to apportion between business and private usage, a reasonable guess will do ...