Navigate Non-Employer Income Tax in Ireland with Portobello Spring
Maximise Your Savings: Navigate Non-Employer Income Tax in Ireland with Portobello Spring
Navigating the intricate landscape of taxation can be challenging, especially when dealing with income from sources other than your employer. This blog aims to demystify the complexities surrounding non-PAYE income in Ireland, shedding light on self-assessment for PAYE taxpayers, coding in, and the process of making a tax return.
Self-Assessment for PAYE Taxpayers:
As a typical employee, you’re likely accustomed to the Pay As You Earn (PAYE) system, wherein your employer deducts taxes directly from your salary. However, if you have additional income from non-employer sources, self-assessment comes into play. Self-assessment means taking charge of evaluating the tax you owe.
Maximise Your Savings: Navigate Non-Employer Income Tax in Ireland
When to Self-Assess as a PAYE Taxpayer:
- If your non-PAYE income exceeds €5,000 in taxable net income (after accounting for losses, capital allowances, and other reliefs) in a year.
- If your total gross income from all sources reaches or exceeds €30,000 in a year, irrespective of the tax owed after deductions.
Being a chargeable person, in this context, means you’re obligated to self-assess your tax liability.
Earning Non-PAYE Income without Self-Assessment:
Thankfully, there are scenarios where you can earn non-PAYE income without diving into the intricacies of self-assessment. If your non-PAYE income meets the following criteria:
- Net taxable income is under €5,000 (after considering losses, capital allowances, and other reliefs).
- It is either coded against PAYE tax credits or fully taxed at source.
- Your gross income from all sources is less than €30,000.
Even though you’re not a chargeable person for self-assessment, you’re still required to inform Revenue of this income.
Maximise Your Savings: Navigate Non-Employer Income Tax in Ireland
Coding In
Coding in involves incorporating non-PAYE income into your tax credits, streamlining the taxation process. If your non-PAYE income is below €5,000 and you meet the criteria mentioned earlier, coding in ensures a more seamless tax compliance experience.
How to Make a Self-Assessment Tax Return
If you find yourself meeting the criteria for self-assessment, the process involves accurately reporting your non-PAYE income, considering losses, capital allowances, and relevant reliefs. This ensures a transparent and compliant declaration of your tax liability.
Where to Apply
Wondering where to begin? Contact us to book a free consultation on the process to be tax compliant.
Maximise Your Savings: Navigate Non-Employer Income Tax in Ireland
Understanding the nuances of tax on non-employer income in Ireland is crucial for maintaining compliance. Whether you fall under the self-assessment bracket or not, staying informed and proactive ensures a smooth and transparent taxation journey. For personalised advice and support, consider consulting with our tax experts at Portobello Spring. We’re here to guide you through the intricacies of Irish tax regulations, ensuring your financial peace of mind.
Disclaimer:
The information in this blog post is intended for general informational purposes only and should not be construed as professional advice. It is your responsibility to seek professional advice tailored to your specific situation.
Let us help you make the right moves for your business by contacting and joining us
Join our newsletter now and get insights on the latest developments going on in the accounting, tax, incorporation, immigration and company secretarial world. Or, contact us by writing in your query in the contact form given below.
Leave a Reply