Tax on infrequent part time work

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suzyann

Registered User
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Hi
I work full time and pay tax at the higher rate in respect of my full time job .
In my spare time I qualified as a beautician and is more of a hobby for me - but I hope to do infrequent part time work at evenings and at weekends for individuals - The extra income I anticipate to make from this casual work would be in the region of under 5,000 euro per annum - Do I need to pay tax on this at the higher rate ?

Thanks
 
I assume that you will be self-employed for this other income. Therefore you will have to register for this, and pay tax as a self-employed individual on this additional income.

You will pay tax (and PRSI) at your marginal rate of tax - which will be the higher rate of tax of 41%.
 
Following Domo's post, you will be able to deduct expenses "wholly and exclusively" incurred in the opeerating of this additional part-time business. They would include any beauticians supplies, equipment ( at 12.5% pa ), advertising etc. It is important to keep receipts for all such expenditure in case of Revenue Audit. The Tax/PRSI is then calculated on the Net Income after relevant expenses.
 
thanks for the information - i knew I would have to pay tax but wasnt sure at which rate but given that it would be higher rate - nearly half of what I would earn from this it seems not worth my while .
 
Unfortunately any additional income is taxed at your marginal rate and yes, between tax, prsi & health levy you would lose some 41%tax +3%prsi +2%health levy = 46% of the net income. You may not incur prsi if you have already exceeded the prsi cut-off point but even then you still lose 43% . Best of luck anyway whatever you decide.
 
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