Half self, half paye

billy-bob

Registered User
Messages
115
I went back to full time employment in July last year, but obviously I still need to file taxes for the first half of the year. Since I've already paid tax on my paye earnings, I'm not sure on how I file for the year.

Do I put in my self-employment earnings plus my paye earnings, work out the total tax payable on the full sum earned in the year, subtract tax already paid per p60 and then pay the balance (less prelim tax paid last year)? How do I make it clear that about half my earnings are paye?

Also, I would assume that the only expenses and credits I can claim will be for the first 6 months, even though I did a bit of freelancing later in the year. I suppose I can claim expenses in pursuit of that freelance work, but no tax credits, as they would have been swallowed up by paye?

Finally, since I'm now in full time employment, my tax bill for this year (prelim tax due) will be 0, I'm just wondering if this will raise alarm bells, should I attach any notes to my return?

Apologies for the length of the post.
 
The form 11 allows you to list self-employed income along with PAYE income. Yes, you work out the total tax payable on the combined sum, subtracting what you've paid via the PAYE system. The self employed income you declare should be after deduction of allowed expenses. Your tax credits are fixed, irrelevant of how much or how little you earned, so yes, you may find that you owe tax at your marginal rate, and PRSI and levies of course, on your self employed income.

You may by all means attach notes to your return, but the situation you describe would not be unusual.