Microworking (PDF, 59 pages, 1106KB) - Forfás

FORFÁS MICROWORKING
security, he is not necessarily a tax risk. His sin may be that he fails to send me a
return by the middle of November with the amount in question declared in it.
However, there may not be any money due.
The operation of cash in the white collar sector - hospitality, the trades and so on -
is a bigger risk for us than necessarily somebody who is earning a small amount of
money. A married couple with one source of income has to earn in excess of €24,000
before they are in the tax net. A self-employed person has to have a turnover of
more than about €36,000 before he or she has to register for VAT. Therefore, the tax
offence might be more perceived than real.”
Ms. Josephine Feehily (Chairman, Office of the Revenue Commissioners) in
address to the Public Accounts Committee, 22 September 2011
It was acknowledged later in the debate however, that the non-compliant worker puts the
compliant worker at a competitive disadvantage by not charging VAT and other expenses and
thereby jeopardises the employment within the compliant company. This is an issue of
particular concern the Construction Industry Federation and other business representative
bodies.
Notwithstanding the focus on higher yielding investigations by Revenue, there is an on-going
campaign to reduce the level of undeclared work in the economy generally. On the 11 th of
April 2011, for example, the Revenue Commissioners circulated a letter to all schools
requesting that all teachers be reminded that income on additional earnings should be
declared:
“This letter is for any school personnel earning additional income in a selfemployment
capacity. The typical activities for which information is being sought
includes teachers giving grinds, teachers teaching extra subjects outside school time,
teachers supervising after school study, sports coaches, music and drama tutors and
personnel engaged in other extracurricular activity in a self-employed capacity. The
school is requested to make the contents of the letter available to all staff employed
in the school to enable them to make a voluntary declaration to the Revenue
Commissioners.
Gross earnings totalling less than €3,174 in a calendar year can be returned on the
Form 12 (Tax Return for Employees, Pensioners and Non-proprietary directors) under
the heading of “Other Income”. The person should calculate any additional taxes and
social charges due on this income and make the payment to the Collector General
before the following October 31 deadline each year. Income in excess of €3,174
should be returned on Form 11 Tax Return and again the tax must be calculated and
paid on time.
No employee of a school can earn any income tax free except payment for travel on
school business and vouched expenses or a gift of up to €250 maximum in any one
calendar year”
Schools themselves were obliged to make a return where they had made payments to school
personnel for extracurricular activities such as grinds, sports coaching and other
administrative functions.
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