Tax/VAT on freelance work

[aislingocon]

Hi
I just have a query about Vat/Tax in relation to freelance work. I am in full time employment paying tax at higher rate.
I have the option to do some design work on a freelance basis. The hours & pay will vary but I imagine it won't be more then 1,000-2000 extra a year. Do I have to have a Vat no. to invoice the client and do I have to pay tax on extra earnings?

 

[Graham_07]

Do I have to have a Vat no. to invoice the client

Not on amounts as low as this. VAT registration thresholds for services now over €35,000 pa

do I have to pay tax on extra earnings

Yes, on the PROFIT from the work, at your marginal rate. So if you have expenses on this work make sure and keep a record of them.

 

[aislingocon]

Thanks for your reply, just re paying the tax, is this something I do myself at end of tax year, ie tax returns?

 

[Graham_07]

You'd need to register for self-assessment with Revenue on form TR1. www.revenue.ie has all the data.

 

[aislingocon]

Thanks amil, just checked this out. Think I've got my head around it now.