PAYE worker - How to pay tax on part time earnings as musician

[danfpk]

Hi,

I recently joined a covers band (last year) and we play from time to time in pubs, and sometimes the odd function.

This is very much part-time, "weekend warrior" work, and most of us have day jobs.

The amount earned in a year will be pretty small -Certainly less than the Chargeable person limit of €3,174 per year - probably more like 1.5K over a year as an upper limit.

Pubs and individuals typically pay cash in hand, as is the norm with many musicians, and it's easy to get into a comfortable state of ignorance to the tax man obligations.

But I appreciate that tax is supposed to be payed on extra income, and it's the right thing to do, but I am still not 100% clear what I should do.

So, I would like to know what is the best way to deal with or declare extra earnings.
There are the points I'd like clarification on, if anyone could shed some light it would be great:

If I earn less than the amount stated above, do I even need to submit any form?
If so, is it the Form 11 or Form 12 ?
Do I calculate an amount of tax and submit a cheque
- or after submitting the form - do they just amend my Tax credits for the coming year.
It October 31st this year (2013) - the deadline for last years (2012) earnings (measly as they were)?

Also, I know seeing an accountant might be advisable, but then given the amount of earnings, I'm not sure it's worth it - their fee would probably be as much as or more than the post tax earnings I would make?

Any advice appreciated.

 

[dereko1969]

Revenue IT 10 leaflet will have a lot of the information you need

http://www.revenue.ie/en/tax/it/leaflets/it10.html

Revenue tend to go in blitzes after certain areas of work that tend to be paid in cash, so who knows if musicians will be next in line. The amount of tax you would pay would be rather small in comparisons to the penalties you could face. You should be able to write-off some of your expenses against your income also ie strings/new guitar/lycra shorts etc!

 

[T McGibney]

Also, I know seeing an accountant might be advisable, but then given the amount of earnings, I'm not sure it's worth it - their fee would probably be as much as or more than the post tax earnings I would make?

.

Absolutely no reason why basic advice should cost you a massive sum. Accountant fees are tax deductible against self-employment income and in most cases good advice will actually save you money.