PAYE or self employed

[henry]

I am a full time company employee. I have been approached by another company to do some work in my spare time. Agreed fee for this is EUR 22K per annum.
I can decide whether I want to be treated as an employee of the second company and pay income tax under PAYE or declare the income myself at year end.
My inclination is to declare the income myself at year end. I would have some allowable expenses which would reduce the EUR 22k that would need to be declared. Also, my feeling is that I would also pay a lower PRSI and health rate using this method.

Am I correct in my assumptions ? Would this method be acceptable ? Any other comments ?

 

[shane55]

You might find my thread "Self employed or PAYE" of interest. The reality of the situation legally is that neither you nor your employer can decide if you are self employed or an employee for convenience. There are guidelines laid down by revenue to determine an individuals status which depends on the reality of the actual working relationship. you might find the booklet below helpful;

[broken link removed]

 

[henry]

Thanks Shane55, I had a look at your thread. Interesting.

Having had a look at the Revenue criteria, I think that I can be called self-employed in relation to this new position. I would remain a PAYE worker for my current job and become self employed for the new job.