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PAYE worker - thinking about also setting up small business

  • 21-09-2011 9:16pm
    #1
    RunHomerRun
    Registered Users, Registered Users 2 Posts: 963 ✭✭✭


    Hi,

    V v v v basic question.

    I am currently a regular PAYE worker.
    I am considering starting up a small on-line business.

    This will not replace my income I currently earn as a paye employee, but I hope it would be a little extra each month.

    How do I set up?
    i.e. currently PAYE paying the standard rate of paye.
    If I start a business or go self-employed how will I be taxed?

    I understand corporation rate is 12.5% for companies.
    If I set up a company, do I have to pay myself a weekly wage??

    Can I ask the above questions of the Revenue?

    Before starting to spend time working on developing the business, I need to make sure from a tax perspective its financially worth my while.

    Thanks in advance.


Comments

  • #2
    mari2222
    Registered Users, Registered Users 2 Posts: 568 ✭✭✭mari2222


    RunHomerRun wrote: »
    Hi,

    V v v v basic question.

    I am currently a regular PAYE worker.
    I am considering starting up a small on-line business.

    This will not replace my income I currently earn as a paye employee, but I hope it would be a little extra each month.

    How do I set up?
    i.e. currently PAYE paying the standard rate of paye.
    If I start a business or go self-employed how will I be taxed?

    I understand corporation rate is 12.5% for companies.
    If I set up a company, do I have to pay myself a weekly wage??

    Can I ask the above questions of the Revenue?

    Before starting to spend time working on developing the business, I need to make sure from a tax perspective its financially worth my while.

    Thanks in advance.

    You can register as a sole trader with revenue see their website...
    You are then subject to self-assessment, and will file annual returns online which include your PAYE income. The total of your earnings/income (profit plus gross pay as employee) is what you will owe tax on, with tax already deducted under PAYE taken into account.

    It is easy to do online as long as you have kept the figures correctly (money in/money out).


    Alternatively, you can register a new company on cro.ie....this requires more thinking about - you can read about director responsibilities on odce.ie; there are some tax breaks for the "corporation", but any money you take out as salary or dividends will form part of your personal income for tax.


  • #3
    Mark in Lucan
    Registered Users, Registered Users 2 Posts: 20 ✭Mark in Lucan


    Watch out for social welfare entitlements when you become sef employed.......they are none......you could end up begging on the streets without any state help.....while still filling in forms for the public service


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    Mark in Lucan wrote: »
    Watch out for social welfare entitlements when you become sef employed.......they are none......you could end up begging on the streets without any state help.....while still filling in forms for the public service

    Thats nonsense. If you read the OP you'll see they have, and intend to keep, their PAYE job. This means they will have Class A PRSI contributions.


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