Have a Nixer? Here are 4 Things to Know About Filing a Tax Return
Guide to income tax returns for nixers:
Are you looking to take on a nixer, but are unsure of how it will affect your taxes? Have you been working a few side jobs and want to make sure you are tax compliant?
In recent years, more and more people in Ireland have started to pick up side jobs or “nixers,” in addition to their main source of income. Nixers such as dog walking, trades work and teaching fitness classes are great ways to make extra money without affecting your day job.
But whether you’re saving up for a down payment on a new car or looking to splurge on extra leg room for your next holiday, it’s important to remember that your side job will affect your tax return.
What Exactly is a Nixer?
A nixer is any side job that you work on in your spare time, in addition to your full-time job or other main source of income. A nixer can be anything from part time photography to teaching fitness classes on the weekend.
Some people take on nixers outside of their main working hours, in the same line of work. So for example, an electrician might be employed and work 9-5 for a building contractor, and then do a few electrical jobs on the side in the evening time.
There is no limit to the number of income streams you can have at one time – some people have two or three side jobs if they can find the time! Some of the most common nixers in Ireland are:
- Electrical work
- Fitness Instructing
- Dog Walking
- Personal Training
- DJ events
Do I Need to Register my Nixer?
Yes. It is important to remember that all additional income must be declared in your tax return or you could be penalised.
Regardless of what your nixer is or how much you make from it, it is essential that you declare any non PAYE income with the Revenue Commissioners.
If you have unreported or under-reported income, you could be viewed by the Revenue Commissioners as tax-evading and would be liable for both the outstanding tax and interest/penalties.
Do I Need to File a Tax Return for My Nixer?
Yes. Because you are required to declare all income to the Revenue Commissioners, you must file a tax return for your new side job. However, the way in which your nixer will affect your taxes is dependent on the amount of money you are making along side any other income earned, such as your PAYE job.
Generally speaking, if you make less than €5,000 annually from your side job(s), you can file a Form 12 – however, if you earn in excess of €5,000 annually, you will need to register with the Revenue Commissioners and file a Form 11.
Can I Claim Tax Deductions for My Nixer?
Yes! For people working more than one job, there is a wide range of “Allowable Deductions” that can be used to offset your income tax return. Unfortunately, these are not automatically applied to your tax return, which is why we always recommend that people with nixers work with a tax expert when filing their returns.
While your deductions will vary depending on your work, here are some of the common nixer expenses you might be able to claim for:
Accountancy Fees: costs for an accountant or financial advisor.
Materials: costs for any materials, equipment, protective clothing etc.
Phone Bills: costs for using your personal phone to complete work for your nixer.
Motor Expenses: costs for motor tax, insurance and servicing when car is necessary to complete work.
Insurance Costs: insurance fees including public liability.
Work Space: costs for rented workspace such as fitness studio or music classroom etc.
Prior Year Losses: incurred losses in previous years can be used to offset current year profit.
Learn more about allowable deductions here.
How our experts can help.
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 even more free time to focus on your nixer.
For over 20 years, our Certified Accounts have been working for clients with nixers to ensure they remain tax-compliant, and to help them claim every possible credit and deduction when filing their tax returns. For a low fee starting at just €199 (VAT incl.), Tax Return Plus will take the stress out of doing your taxes, leaving you with plenty of free time to make the most of your nixer.