IT Business total Newbie

[ft5j60j]

HI there I work in IT Mon - Fri but to be honest I do alot of Foxiers lately and have done so over the last few years, Im just wondering should I look at registering for Tax, this way I can charge people VAT, what are the down sides to declareing what I earn to the Revenue in relation to my Full time job??

Also would I be able to write off alot of expenses to this my own company,

IE If I bought a car would I be able to write some of it as a company expenses and the diesel ?/

Broadband costs

Office Costs

How much money would you need to earning from my company to be able to write off the above expeneses???

 

[z107]

this way I can charge people VAT

That's a bad thing. You are essentially becoming an unpaid tax collector for the goverment.

It depends on how much money you'll be earning as to how to structure it (register for vat etc).

What is a 'Foxier'?

 

[ft5j60j]

some months id get 1000E+ other months id only get a couple of hundred

 

[ft5j60j]

am I wasting my time ?

 

[jpd]

You should be declaring the earnings on a self-assessment basis - you should be paying tax on them at your marginal rate. Not sure what, if any, expenses you can offset against these earnings.

The VAT issue is not linked to the tax assessment question. I think there's a threshold limit for VAT declarations. There's more information on the revenue site www.revenue.ie about this.

 

[ft5j60j]

fair enough I suppose

 

[podowd]

Do you have a company or are you considering setting one up?? If you do not have a company then you should be declaring this income on your annual tax return and you should notify the revenue that you have self-employed income by completing a TR1 form. If you have legitimate business expenses you can offset these against your income when calculating your taxable income. Hard to say what you can & can't claim for without knowing more about your business and whether they are justifiable as a business expense.

Regarding the VAT you are probably not earning enough to be obliged to register for VAT so you should only do so if you are incurring expenses that you could reclaim the VAT on. Your self employed income will not affect your PAYE earnings in any way but if you are earning over €32k in your full time job all of your self employed income will be taxed at 42%.