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self employed or paye?

  • 10-10-2008 9:25pm
    #1
    pluckey
    Closed Accounts Posts: 8 ✭


    Hi ,
    If i setup my own private limited company and pay myself a salary , am I PAYE or self employed?
    I have been told I would pay income tax at the time I pay myself so surely this is the same as being PAYE.
    Am I missing something here?
    Thanks.


Comments

  • #2
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    pluckey wrote: »
    Hi ,
    If i setup my own private limited company and pay myself a salary , am I PAYE or self employed?
    I have been told I would pay income tax at the time I pay myself so surely this is the same as being PAYE.
    Am I missing something here?
    Thanks.

    Yes. the company and yourself would be two separate legal entities. You would not be paying yourself a salary - the company would. You would have to complete separate tax returns for the company and yourself with the company. You should get good legal and accounting advice before setting up a company.


  • #3
    pluckey
    Closed Accounts Posts: 8 ✭pluckey


    thanks , but is there any other way to get my hands on the money the company earns and hopefully pay less tax than Joe PAYE?
    ( BTW I would be an IT contractor )


  • #4
    deepriver
    Registered Users, Registered Users 2 Posts: 346 ✭✭deepriver


    the definition of self employed is you have control over the management, objectives, strategies or profit making ability of a company... so even if you are a PAY employee you are self employed, however your tax liabilities should be met through PAYE unless you have additional incomes like rent etc

    in terms of reducing your tax liability as a PAYE employee, using exepenses as a pay mechanism is a good way... try and push wages through as expenses where possible and legal.. look at mileage allowances, bin allowances, medical allowances etc

    you need to get on revenue.ie and read those boring documents!!


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