Taking on additional freelance consultancy work

G

GeorgeOrwell

Registered User
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5
I have a full-time job and pay tax as a normal PAYE worker. I've been offered some occasional additional freelance consultancy work from a firm in New York.

It will only be occasional and piecemeal, and certainly won't be a reliable source of income I can live on. The company in NY will pay me by a wire transfer on a monthly basis, if I do any work for them in that month.

Should I set up a separate bank account for this money? Do I have to declare it to Revenue? At most it will be around €200 a month.

Any ideas, or can it just go into my normal bank account as an occasional payment, like income from ebay sales, Saturday jobs or whatever?

Many thanks
 
It can be paid into your ordinary bank acount, but you will need to keep a separate record of it in order to make a tax return for the tax year end. If income was to be no more than 200 a month you could include it on your Form 12. With a deduction for your relevant expenses it possibly won't amount to more than 1500.00, if this work was to continue on an ongoing basis Revenue may request that you register for self assessment (they will then charge you levies on income earned).
 
You can view one online at www.revenue.ie look up forms. Don't be put off by the amount of pages (it has to cover everything). It's pretty straight forward. If you hit any problems just post a message and I'm sure someone will steer you in the right direction.
 
Again, thanks. This work is due to begin next week, and it's by no means regular, so I assume I list all income from it, minus expenses in Form 12 in 2009, to cover this tax year.
 
I've just had a quick look at this year's Form 12, I guess the section on Seafarer's Allowance, and Retirement Relief for Certain Sportspersons.

In the meantime, I guess noting the payment and date in an excel spreadsheet will be enough?
 
Just a few things.... (I'll let advisor in all his knowledge give you the details)

US Tax
Double Taxation Treaty
Maybe Form 11....
 
Iceman,
How presumptuous of you to suggest that advisor is a "he"!!!!!!

I'm almost sure Form 12 covers details of US tax etc and revenue will automatically calculate double taxation, as I said to OP he is a year off making return and to repost if he has any further questions at the time.

Feel free to correct me if I'm wrong!!!
 
My sincere apologies Advisor!! How can I ever make it up to you?!

Personally I'd imagine that Revenue would constitute the above instance as being a trade and therefore consider the individual as a self-assessed person. Meaning that the individual would have to submit a Form 11 and would be liable to preliminary tax etc... if applicable.

The point I was trying to make about the US Tax was that the individual in this case would be liable to prepare a US Tax Return as it is US source income.
 
For his first return if the income was going to be as small as he reckons it will, Revenue would accept a Form 12, they would then take it from there as to whether individual needs to register for self assessment. If income was ongoing he may then need to register but certainly for the first year there shouldn't be an issue with Form 12. As for his US tax return etc., you've got me - maybe he should check with askaboutmoney.usa!!!
 
Thanks everyone. I did my first piece of work for them on Tuesday, and when I get paid, I'll be able to assess how small it's going to be over the course of the year.

I guess the answer is to work on the assumption that Form 12 will be OK, and if I fill it in as honestly as possible, there shouldn't be an issue.

A less honest person would just squirrel it away in the bank account. Would, um, anyone notice?
 
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