Tax on part time hairdressing business.

[4400kevin]

Im asking for advice on behalf of my wife on how to pay tax on money earned from part time hairdressing.I am a plastering contractor and my wife is an empoyee of my company earning around €400 per week.The plastering trade like most others has slowed down recently so we have converted the garage into a mini salon and she hopes to work evenings and perhaps weekends.I would like to know what she must now do to remain tax compliant?

Thanks.

 

[papervalue]

Im asking for advice on behalf of my wife on how to pay tax on money earned from part time hairdressing.I am a plastering contractor and my wife is an empoyee of my company earning around €400 per week.The plastering trade like most others has slowed down recently so we have converted the garage into a mini salon and she hopes to work evenings and perhaps weekends.I would like to know what she must now do to remain tax compliant?

Thanks.

may thing is to register so she is in the system

www.revenue.ie/en/tax/vat/forms/formtr1.pdf

link above to tax registration form(unlikely to register for vat)

main thing is keep record of income and expenditure and separte bank account for it.

once a year file tax return with her paye/ your paye and her parttime business

depending what way your tax credits/bands divided, want to save some money for future tax

give us here an estimate of your salary her salary and how credit/bands divided and we can give you indication whether business taxed at lower or higher rate of tax

 

[4400kevin]

Thanks for the reply.On average I would have a wage of 500 per week and herself 400 per week this is a take home amount If she made 100 per week form the hairdressing it would be a great help.

 

[papervalue]

Thanks for the reply.On average I would have a wage of 500 per week and herself 400 per week this is a take home amount If she made 100 per week form the hairdressing it would be a great help.

Should be all at lower rate. File the tr1 and keep records.

The profit on this will be income less any expenses eg any cost to provide service

Hope it all goes well for her

Towards end of her first year get estimate of profit and someone on board here will estimate any tax due

 

[contemporary]

Thanks for the reply.On average I would have a wage of 500 per week and herself 400 per week this is a take home amount If she made 100 per week form the hairdressing it would be a great help.

how many €100's a week would you have to make to cover the cost of the renovation and then the cost of the equipment & supplies, insurance, rates, electricity

Sounds a bit of a false economy to me.

 

[4400kevin]

I should of stated 100 euro clear after materials,esb etc.The renovation work was all done by myself at very little cost, and as for a false economy well 400 per month to start off with would be great and after a year or so it could be a good earner.

 

[contemporary]

I should of stated 100 euro clear after materials,esb etc.The renovation work was all done by myself at very little cost, and as for a false economy well 400 per month to start off with would be great and after a year or so it could be a good earner.

€400 a month after bills is a start but you didnt start that initially , dont forget about the CGT aspects of running this business from home if you ever decide to sell up in the future