Which is more advantageous - self employed or employee

[pator]

For some extra work that I do I have the option of being an employee and have tax deducted or being an independent contractor and making my own annual returns. Which is better ?

(its all legit and cause of unique nature revenue is happy to go with either)

 

[capall]

Depends ,if you have no business expenses then less hassle for you to just go PAYE route.

 

[Domo]

As stated above, it really depends on a lot of things -
The amount of the self-employed income
Whether any expenses can be claimed
Whether you would rather have PAYE deducted, or pay tax in a lump sum at a later date - giving cashflow advantage.

You should really seek professional advice.

 

[pator]

As stated above, it really depends on a lot of things -
The amount of the self-employed income

Whether any expenses can be claimed

Whether you would rather have PAYE deducted, or pay tax in a lump sum at a later date - giving cashflow advantage.

You should really seek professional advice.

1. The amount is not huge approx €8 -9 k

2. I get flat rate expenses for travel and cost incurred, so presumed can't claim ??

 

[Domo]

If you are self-employed your flat rate expenses should be declared as income, and then you should claim a tax deduction for the actual travel costs incurred (if using a car, need to keep detailed records to claim this).

If you are PAYE, again you will be taxed on flat rate expenses paid (I assume round sum allowances rather than Revenue limits), and you can then claim the expenses incurred based on Revenue limits if using a car, or actual expenses incurred.

What expenses are you paying?
What expenses will you incur other than travel?

 

[xeresod]

Don't forget, as PAYE you will get the PAYE credit of €1,760 which you won't be entitled to as self-employed.

 

[Domo]

If he'a already an employee, and this is extra work he will get PAYE allowance anyway - you can't get two PAYE allowances.

 

[Joe1234]

The revenue have quite strict rules regarding the difference between an employee and a contractor. The choice may not be for the OP to make. As Domo has already stated, professional advice should be sought.