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Becoming a sole trader

  • 14-06-2011 10:45am
    #1
    mr kr0nik
    Registered Users, Registered Users 2 Posts: 755 ✭✭✭


    Hi All,
    Was thinking of becoming a sole trader for IT contracting. I'm currently PAYE. Are the two mutually exclusive. I would like to have the opportunity to go for a contracting job if it comes up but dont' really want to leave my existing job until then. Obviously if I can have it all ready to go then it would help, but is it possible?

    Cheers.


Comments

  • #2
    Eoin
    Registered Users, Registered Users 2 Posts: 21,263 ✭✭✭✭Eoin


    Moved to "Entrepreneurial & Business Management" forum.

    But yes - it's absolutely possible from the revenue/registration side; you can do both easily.

    Remember to check your contract to see if there are any clauses about this.


  • #3
    mr kr0nik
    Registered Users, Registered Users 2 Posts: 755 ✭✭✭mr kr0nik


    Thanks Eoin.


  • #4
    kennyb3
    Registered Users, Registered Users 2 Posts: 6,724 ✭✭✭kennyb3


    mr kr0nik wrote: »
    Hi All,
    Was thinking of becoming a sole trader for IT contracting. I'm currently PAYE. Are the two mutually exclusive. I would like to have the opportunity to go for a contracting job if it comes up but dont' really want to leave my existing job until then. Obviously if I can have it all ready to go then it would help, but is it possible?

    Cheers.
    Yes!

    You ll just return your extra contracting income on a Form 11 at the end of each tax year. Just be careful as if you are already at the higher rate for your paye employment you ll be paying tax @ approx 50% on the extract contracting work.

    If you have any other questions just PM me.


  • #5
    Herbalist
    Registered Users, Registered Users 2 Posts: 149 ✭✭Herbalist


    as kennyb3 has advised you can do both but as a sole trader you would need to pay the same rates of taxes on your earnings as you do in your current role. So if your current role has pushed you into the higher rate already then it is this higher rate that you will pay on all additional earnings.
    You will need to pay your taxes on a yearly basis as a sole trader so to ensure you have enough put away at the end of the year to cover what you owe it could be worth setting some aside each month for this purpose.


  • #6
    kennyb3
    Registered Users, Registered Users 2 Posts: 6,724 ✭✭✭kennyb3


    And just to add you may face a double sting in your first year with the requirement to make a prelim tax payment for the following year. This often catches start-ups out.


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  • #7
    Kristopher
    Closed Accounts Posts: 2 ✭Kristopher


    If are interested in trading then it is not a bad idea to move towards it. There are many trading software too that could be of great help to you. Search in the internet and know more about these trading software.


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