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Starting up a small business and a paye employee too

  • 22-02-2012 11:56pm
    #1
    Curlykazing
    Closed Accounts Posts: 1 ✭


    Hi Im new to boards so bare with me If I go wrong on this.

    I have bit of a dilemma. After searching the internet for hours I still havent found an answer so decided on boards for help..

    I work full time as a paye employee. I am tax compliant and always do my P21 at year end. I have recently set up exercise classes for spare money and want to be tax compliant too. I wasnt sure how well they would take off but they are going great at the moment. The first month I paid the rent in cash but I have insisted with the landlord that from this month it goes through the banks so that I could have some record of paying it out. All my money that I receive is paid in cash. I want record the income I receive and was thinking of quickbooks to help me with this.

    One query that I have is as a Paye employee I heard if you receive money for the business less the expenses relating to the business and its under €3500 it can be paid on the P21 as extra Income. Starting this year I wasnt expecting much to be earned so this was an option I would go for but now the classes have taken off brilliantly and I reckon the income would be more than that . I know its early in the year and gym classes are always busy this time year but I am expecting the classes to say strong. Would I be better off going for Form11. If I go on the P21 side I would not have to declare the income until next jan 2013 but if I go p21 I would have to submit accounts for Oct 2012?

    I have a personal bank account at the moment that I have been lodging the money into as I wasnt set up as a company. If I go along the Form 11 do I have to set up the company with the cro . I am the only one teaching the classes but I was thinking of setting up a ltd company just to protect claims against my home etc..

    I apologies for the long list of questions , Im new and not sure where to go with the questions or advice. I would welcome any advice received and I welcome connecting with you all

    Regards

    ck


Comments

  • #2
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    First off read the charter.

    This is not a free advice shop.

    Read the guide to self employed in the stickies.

    A Form 12 (PAYE Employee with additional income )or Form 11 (Self employed only) for 2012 is not due till October 2013.

    No point setting up a company as you are oblidged to file accounts with the CRO each year and adequate insurance should cover any claims, 9/10 the building you rent has this insurance but it is prudent to check. A companies return is not a Form 11. If you set up a company you will have to pay BOTH corporation tax on the earnings AND then Income tax on dividends to participators. A rule of thumb is that a company is pointless and unduly combersome and expensive until you are hitting the VAT thresholds. You will have to make a preliminary companies tax return in Dec 12 being the first calendar year.

    Now, thread closed. There are resources in the stickies, anything else is free advice and not what this forum is for.


This discussion has been closed.
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