paye and self assesment

Hi ,

I have recently qualified as a taxi driver and am looking to see where my tax credits will go , I want to remain in my paye employment and drive the taxi at the weekends, I understand the tax credit's regarding the taxi and the 40/40/20 credit back on the car.

At the moment I pay 1000 a month in tax in my PAYE job and I am wondering in I can pass some of my taxi ( self assesment ) credits onto my PAYE account

I have been told by a pal that form 11 on the revenue site might be the way to go but I cant make head nor tail of it

any help would be appericiated ..........

If you are already paying tax in your PAYE job then any additional income after allowing for expenses & the taxi write off (capital allowances) will be taxed at your marginal (highest) rate of tax. So if, say you are already on 41% at work and if you earn an additional €1,000 from the taxi after all expenses/allowances, then that will be charged to tax at 41%. Ther may also be PRSI at 3% and Health Levy at 2% depending on total income.

If, however, your taxi business results in net expenditure, i.e. expenses exceeding income, then that loss is allowable against your PAYE income at your marginal rate . The reverse of the first scenario in other words.

You would need to register as self-employed with Revenue. Form TR1 is the item you file to register. The annual tax return is a Form 11. It would be helpful, to get a proper understanding of how the tax system works when you have a self-employment, to engage the services of an accountant. The cost is tax deductible and will save you tax in the long run.

Best of luck with it.

cheers Graham, this good info is much appericiated