setting up a company or going self employed

HighlyCooL

right where to begin. im a student thinking of setting up a business sorta part time. altho i need a tax clearance cert, i rang the tax man and he said i need to be self employed! this brings me to my first question what happens if i get a job and they want a tax credit cert? my dad also said that might cause some truble later on if your not making any money they might start asking questions. he said i should register a limited company and work form there that it would be cheaper in the long run. but this gives me my second question, will i have to register for vat even tho i wont be making the €20000 a year. and how will i pay myself out of the company.
my head is melted so any help would be great.
hc

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HighlyCooL wrote: »

right where to begin. im a student thinking of setting up a business sorta part time. altho i need a tax clearance cert, i rang the tax man and he said i need to be self employed! this brings me to my first question what happens if i get a job and they want a tax credit cert? my dad also said that might cause some truble later on if your not making any money they might start asking questions. he said i should register a limited company and work form there that it would be cheaper in the long run. but this gives me my second question, will i have to register for vat even tho i wont be making the €20000 a year. and how will i pay myself out of the company.
my head is melted so any help would be great.
hc

What do you need the tax clearance cert, for ?

Don't listen to your dad unless he has direct experience doing this.

The 20K figure is wrong its 30something now for services, and you would not have to register unless you reach the threshold.

You would be an employee of the company and pay yourself as such.

For what you have in mind forget a company and go sole trader.

HighlyCooL

i need it to get registered with sei.
well he was self employed for years and said he had alot of difficaltys when in was in an accedent and was trying to clame disability coz he couldnt work. and said its difficuilt to switch back to the paye system. what i am concerened about is can i be self employed and work in a company that pays where you are paid paye.

heggie

while you won't have to register for VAT, it may be beneficial if you do, eg claiming vat back on business purchases, otherwise you're going to be paying 21% out of your margins

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heggie wrote: »

while you won't have to register for VAT, it may be beneficial if you do, eg claiming vat back on business purchases, otherwise you're going to be paying 21% out of your margins

depends on who his customers are, if they are non-vat entities ie(general public) it is better not to be VAT registered.

Self emloyeed are on Class S prsi which does limit your benefits, this is what you're dad could have been talking about.

If you setup a company and are a paye employee of that company, you will still be on Class S prsi, as you are the owner of the company and called a proprietary director.

HighlyCooL

ah thats great so your getting shafted ether way. well at least i know now where i am going. i thing i will jsut register as self employed and if things go big i can always register a company. thanks for your help lads

Diceicle

You should take a look at the FAS start your own business course. It covers all necessary info that you need. 1 night a week for 10 weeks €250. Good value.

Savman

Don't worry whichever way you go the govt will make sure they have their hands in yer pockets