HOW TO PROVE GENUINE SELF EMPLOYMENT.

[OLUMUYIWA]

We were told by Revenue office that as our business is a new start-up, we do not actually need to file any tax returns to Revenue until October 31st 2014 . We were also told that we can make monthly payments voluntarily , just so that when the final assessment comes , the tax liability will not be too huge.


How does one convince Home office when we apply under S-S that the self-employment in Ireland was genuine , when our Tax/PRSI payment was only voluntary?

Is it possible to just pay the PRSI monthly ....will this count as evidence of self employment ? Or do we have to pay both tax and PRSI voluntarily ?

I was hoping a notice of final assessment from tax office and an Accountants letter declaring total tax payment will be our sure bet to convince of a genuine self employment . But as we are not even due to file till October 2014, i am not sure anymore if we can still engage an accountant to do anything now ...or can we still engage an accountant ?

[357mag]

Want to go this route myself, good luck to you both.

[Brigid from Ireland]

You started work as a self employed person in 2013. The tax/prsi is therefore due in October 2014.

BUT the full amount due may be calcuated and paid from January 2014 onwards. The revenue have no problem with early payment of tax due and will issue all relevant documents about six weeks after you send the full amount due for payment. The amount is calculated on a yearly basis (Jan first to Dec 31) so in January you can calculate and pay the full amount for the previous year and will get proof of having paid from Revenue.

There is a minimum amount you need to take as income from the business in order to be liable to pay prsi - last I checked it was five thousand euro per year, you can check to see if it is still that amount - I would recommend you declare at least this amount as profit,otherwise you get no prsi paid and this will hurt you.

Both spouses should ensure that they are paying prsi, either as employed or as self employed, as prsi provides cover for many benefits in life.

[Jellybean105]

I am also self-employed and I'm planning on getting a resident card for my husband.

On the EU1 form it says:

Agreed tax assessment from the revenue commissioner for the last financial year (if applicable)
OR
Letter of registration for self assessment (income tax) from the revenue commissioner

Copies of receipts issued for sales or services in the last 6 months
Bank statements for the last 6 months

Does this mean I just need to register for self assessment as it has not been a year since I started. On the tax registration form, do I need to fill in the income tax section for that?
Also, my transactions are online and fullfiled elsewhere so which receipts can I show? Should I print off transactions?
Bank statements show the income coming in from the online source.

[Brigid from Ireland]

You need to register for self assessment. E-mail or phone revenue and they will send you the necessary forms. They will ask for the date you began self employment in Ireland. You are liable to pay tax in Ireland from that date.

Revenue will send you a letter confirming that you are registered as self employed in Ireland.

Then you must keep a record of work completed and income earned. So if you are getting contracts by e-mail these are proof of work completed and the contract will have the amount you are to be paid. Then when you are paid you lodge the money to your bank account (better to use an Irish bank account if you can) and then you do up the usual income/costs profit statement for revenue. You need to show the money going through your bank account as proof because your bank accounts can be asked for, as proof that you are definitely working and you say already you have the bank statements so that is done already. Then in January you can calculate the tax due and pay it in Ireland and then you get your letter confirming you have paid tax in Ireland as a self employed person.

If you are already self employed in another country (such as the UK) then you may need to contact the tax office there and tell them you have registered with Ireland and close/finalise your tax obligations there.