Tax Returns for your Nixer or Side Job
Have you recently picked up a nixer or side job? If so, you will need to submit a tax return.
Our certified accountants help many people with nixers to file their income tax returns in an easy, cost effective way.
We work with individuals across Ireland such Tradespeople, Beauticians, Grinds Tutors, Taxi Drivers, Fitness Instructors and many others, to ensure they are tax compliant.
What is a Nixer?
The term "Nixer" simply refers to a second or side job that you might undertake in addition to your primary source of income. Typically, these are additional jobs that you work on in your free time, like selling crafts on Etsy or teaching fitness classes after work.
There are endless possibilities for nixers in today’s economy, some of the most common being:
- Taxi Driver
- Beautician
- Fitness Instructor
- Music Teacher
- Dog Walker
- Etsy Shop Owner
- Hobbyist
- Coaching
- Photographer
- Personal Trainer
- Blogger
- Event DJ
- Tutor
- The list goes on and on
Will my Second Job Affect My Tax Return?
Yes. No matter the job or the pay, any money you make outside of your primary source of income must be reported to the Revenue Commissioners.
How much tax you will owe on that income depends entirely on how much extra money you bring in. If you are juggling a few different nixers, you will need to make sure they are all registered with the Revenue Commissioners.
What expenses can be written off from my Side Job?
If you’re working more than one job, there is a wide range of “Allowable Deductions” that can be used to offset your income tax return. These deductions do not get applied automatically to your return, and not everyone with a nixer is eligible for the same deductions.
That’s where we can help.
Our expert accountants investigate and uncover the deductions you are eligible for, apply them, and file your tax return – all for a low fee starting at just €249 (incl. VAT).
While your deductions will vary depending on your work, here are some of the common nixer expenses you might be able to claim for:
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Accountancy Fees
The fees you pay to a professional accountant or financial advisor may be deductible. For example, hiring the accountants at Tax Return Plus to file your tax return counts as an allowable expense.
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Materials
If your Side Hustle requires you to purchase materials, equipment, protective clothing, etc., these expenses can be written off as deductions.
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Phone Bills
Most people find that paying for and maintaining a separate phone is expensive and unsustainable, meaning their personal mobile doubles as a work phone. The time you spend on your phone for your side hustles is tax deductible; however, there’s no need to stress over the math – as part of our tax return service, we identify this percentage for you.
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Motor Expenses
Some nixers like taxi driving or making deliveries might require you to use your own car or van, and these expenses can add up fast. Luckily, some of the running expenses, such as motor tax, insurance and servicing can be claimed as tax relief. Others however, like travel expenses to and from your home/office, are not deductible.
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Insurance Costs
Some insurance costs, such as fire, public liability, and business premises premiums, are considered allowable deductions.
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Work Space
If your second job requires you to rent out a space – such as a room for your fitness classes or a practice space for music lessons –these expenses might also be deductible. Common allowable expenses would be utility bills, heating, lighting, phone and internet.
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Prior Year Losses
Sometimes it takes a bit of time to start making money from a side job. If you incurred losses in previous years, these can be used to offset current year profits. It’s important to note, however, these losses need to be ring-fenced and declared to the Revenue Commissioners.
We know life can be busy with a few different jobs, so why waste your precious free time worrying about your taxes? Leave your tax return in the capable hands of our certified accountants and you’ll have plenty of time to make that extra cash.
To learn more about filing tax returns for your nixer, check out this article.
