Reporting shadow economy activity (tax evasion)
Are you doing nixers (also known as moonlighting)?
What does the term 'nixer' mean in the context of tax and social welfare?
The term 'nixer' generally refers to part-time work that an individual undertakes and the income from which is not reported to relevant authorities such as Revenue.
You work on a part-time basis and your employer has told you that your wages do not have to be "put through the books". Is the employer correct?
No. Wages, even from a temporary or part-time job, must be put through the books for tax, Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).
You are in full-time PAYE employment and also have a part-time job. The employer in respect of your part-time job tells you that your wages do not have to be "put through the books" as you are working only part-time. Is the employer correct?
No. Wages, even from a temporary or part-time job, must be put by the employer through the books for tax, USC and PRSI purposes.
You are in full-time PAYE employment and have a small business selling goods at markets, exhibitions and through the internet. Is the income from that small business taxable?
Yes. Tax is payable of the profits from that business.
You are a skilled worker in full-time PAYE employment and, unrelated to that job, you also do some 'moonlighting' cash jobs. Is the income from this 'moonlighting' taxable?
Yes. The moonlighting is a business and the profits from that business are fully taxable.
Can you pay the tax due on your side-line business via your PAYE job?
In some instances, yes. Those instances are where the profits from that business are less than €5,000 per year (and the gross income is less than €30,000 per year). The tax due is collected from you by reducing the tax credits that are normally off-set against the wages from your PAYE job.
Next: Hidden Economy Monitoring Group (HEMG)