The modern career path rarely looks like a straight line anymore. For many of us in Ireland, the “9-to-5” is just one part of the picture.

Maybe you are a marketing manager by day and a wedding photographer on weekends. Maybe you are a teacher who rents out a property. Or perhaps you do some consulting work on the side of your main employment.

If this sounds like you, you have what Revenue calls “Mixed Income.”

While diversifying your income is a brilliant financial move, it does complicate your relationship with the taxman. Suddenly, you are not just an employee; you are part-employee, part-business owner.

Here is the human-centric, jargon-free guide to understanding how your different income streams interact—and how to keep your tax bill compliant and efficient.

The Three “Buckets” of Income

To understand how you are taxed, you first need to understand how Revenue views your money. They generally see three distinct buckets:

1. PAYE Income (The “Day Job”)

This is the simplest bucket. Your employer does the heavy lifting here, deducting Income Tax, USC, and PRSI before the money ever hits your bank account.

• The Filing Rule: If this is your only income, you usually don’t need to file a tax return at all.

2. Self-Employed / Trade Income

This is your “active” side income—freelancing, consulting, or selling goods.

• The Tax: You pay tax on your Net Profit (Total Income minus Allowable Expenses).
• The PRSI: Be aware that Class S PRSI (for self-employed) is currently 4.1% (rising to 4.2% from 1 October 2025), with a minimum payment of €650 per year.

3. Rental Income

This is “passive” income, but it is taxed heavily.

• The Filing Rule: You must declare this, regardless of how little it is.
• The Note: You cannot use the “Earned Income Tax Credit” against rental income (more on this below).

The Big Question: Do I Need to File a Tax Return?

This is where most people get tripped up. “Do I need to file a full self-assessment return just for a little extra cash?”

The answer depends on two “Magic Numbers”: €5,000 and €30,000.

You typically move from being a simple PAYE taxpayer to a “Chargeable Person” (needing to file a Form 11) if:

1. Your net non-PAYE income (profit after expenses) is over €5,000 per year.
2. OR Your gross non-PAYE income (total sales/rent before expenses) is over €30,000 per year—even if your profit is low.

Helpful Note: If your extra income is below these limits, you still have to pay tax on it! You just do it via a simpler method—the Form 12 (accessible via ‘Review your tax’ in Revenue myAccount) rather than the complex Form 11.

When Incomes Collide: The “Aggregation” Effect

When you file your return, Revenue doesn’t look at your side hustle in isolation. They stack it on top of your PAYE salary.

This is important because of Tax Bands. If your day job pays you €45,000, you have already used up a large chunk of your Standard Rate Cut-Off Point (currently €44,000 for a single person in 2025).

This means your side-hustle income will likely be taxed at the Higher Rate (40%) immediately, not the lower 20% rate.

• The Warning: Many people save 20% of their side income for tax, only to be shocked when the bill is actually 50%+ (40% Tax + 4% PRSI + USC).

Common Pitfalls (And How to Fix Them)

1. The “Double Credit” Mistake Self-employed people get an Earned Income Tax Credit (max €2,000). PAYE workers get an Employee Tax Credit (max €2,000).

• The Trap: If you have both types of income, you cannot claim the full amount of both. The combined value of these two credits is capped at €2,000 total. You cannot “double dip.”

2. Forgetting Preliminary Tax If you are a “Chargeable Person” (filing Form 11), you must pay Preliminary Tax by 31 October each year. This is an estimate of next year’s tax bill.

• The Risk: If you forget this, you can be charged interest. A safe bet for most is to pay 100% of your previous year’s liability to avoid penalties.

3. Missing Allowable Expenses Don’t pay tax on money you spent to run your business.

• Freelancers: Did you claim a portion of your home broadband, electricity, and heating for your home office?
• Landlords: Have you claimed your RTB registration fees, insurance premiums, and 100% of your mortgage interest?

Your Action Plan: 5 Steps to Peace of Mind

1. Separate Your Money: Open a separate bank account for your side income. It makes tracking income vs. expenses infinitely easier.
2. Review the Thresholds: Check your net profit from last year. Did you cross the €5,000 line? If so, you need to register for Income Tax on ROS (Revenue Online Service).
3. Save Aggressively: If you are a higher-rate taxpayer in your day job, set aside 50% of your side-hustle income for tax. It sounds high, but it is better to have money left over than a surprise bill.
4. Claim the Rent Tax Credit: If you are renting a home and paying tax, ensure you claim the Rent Tax Credit (€1,000 for single individuals in 2025). It reduces what you owe dollar-for-dollar.
5. Get a “Mixed Income” Review: The interaction between PAYE and Self-Assessment is complex.

Need Help? Managing one job is hard enough; managing the taxes for two is a job in itself. If you are worried about Preliminary Tax or unsure if you are claiming the right credits, contact Intax.ie. We specialise in helping “Mixed Income” earners keep more of what they earn.

Disclaimer: This guide is for informational purposes and based on current Revenue and Citizens Information data for the 2025 tax year. Tax laws are subject to change. Please consult a tax professional for advice specific to your situation.