Advice on new company

daithi_dearg

Hello,

I've been left 25k as part of a redundancy payment almost 2 weeks ago and they are paying me up to the end of March also. Am I right in saying that anything above 20k will be taxed?

My feeling is that if I was to start another job straight away I'd be virtually working for free or perhaps I'm wrong in that thinking.

I was thinking of starting my own company and just have a couple of questions:
1. If I was to set up as a sole trader would I immediately be entitled to no dole payments in the future?
2. I read somewhere that you would only have to register for tax if you have €3000 profit.
3. Am I right in saying I'm not entitled to dole payments for 6 months after accepting redundancy?
4. Can I delay setting up as a sole trader until I achieve this 3k profit.

Any suggestions?

Thanks,
David

Peterdalkey

No you are way off the mark.
1. You will be entitled to be a certain amount of tax free redundancy tax free, read this http://www.citizensinformation.ie/en/employment/unemployment_and_redundancy/redundancy/
2. and then this http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_and_work/short_term_enterprise_allowance.html
3. you are only taxed on income above your tax free allowances and thresholds.

Once you have read these info pieces, come back with any queries you might have.


cheers

peter

daithi_dearg

Hello Peter,

Ok the redundancy sections I had seen already but thanks for the additional link for STEA.

1. I have 4 years service so I suppose I am due Basic Exemption, Increased Exemption and 4 x 765 ie. 10k + 10,160 + 4 * 765.

2. I suppose if I'm to go direct back into paid employment I'm being taxed on 5k of redundancy which I suppose isn't a massive deal when you look at a full year of wages.

So what I'm really left with is do I want to set up on my own or go back to paid employment which is a decision I really need to make.

3. Unless I've missed something am I entitled to dole payments or STEA straight away if I can't get a job? Also I can't see any benefit in going to the hassle of getting STEA payments instead of the dole.

Also do you have answers for following:
4. If I was to set up as a sole trader would I immediately be entitled to no dole payments in the future?
5. I read somewhere that you would only have to register for tax if you have €3000 profit.

Thanks.

Peterdalkey

if you are thinking of starting your own business, STEA is the way to go, you get Jobseekers benefit, do not have to sign on and can earn money without jeopardising your nine months of JSB!! They will even pay it directly in to your bank account.

You will be taxed on your total income with the usual standard tax reliefs. The 3000 you refer to is a red herring. You need to register with revenue as self employed under STEA, it is all explained in the link I sent you. You can also search this forum under STEA and you will get tons of info.

Cheers

Peter