Sole trader . Or set up a company

JC43

Firstly apologies if this question has been covered before.

I was let go the other day from my company and received an ex gratita payment. This is taxed using the scsb method.
I have been approached by two companies to do work for them on a part time consultancy basis. Neither want to put me on the payroll as it would affect their head count. Do both have told me to put in an invoice. I have always been a paye worker and did a return every couple of years so how will this work from a tax point of view.?

Secondly how will I pay prsi and what will I do the weeks I may not have work ? Will this affect my old age pension? Or do I sign on for credits the weeks I'm work. Terribly confused .

Thirdly one of the companies us a startup and I might put some money in. Would I be better off doing it before end of December for tax reasons seeing I got that ex grata payment .

Thanks for your advise and knowledge

CIARAN_BOYLE

JC43 wrote: »

Firstly apologies if this question has been covered before.

I was let go the other day from my company and received an ex gratita payment. This is taxed using the scsb method.
I have been approached by two companies to do work for them on a part time consultancy basis. Neither want to put me on the payroll as it would affect their head count. Do both have told me to put in an invoice. I have always been a paye worker and did a return every couple of years so how will this work from a tax point of view.?

Secondly how will I pay prsi and what will I do the weeks I may not have work ? Will this affect my old age pension? Or do I sign on for credits the weeks I'm work. Terribly confused .

Thirdly one of the companies us a startup and I might put some money in. Would I be better off doing it before end of December for tax reasons seeing I got that ex grata payment .

Thanks for your advise and knowledge

1. you will have to file an annual income tax return.
2.Class S Prsi through your income tax return if sole trader income is geeater than €5,000 covers youqs self employed for the year.
3. Only if it counts for tax relief under BES scheme.

exaisle

I don't want to sound like a parrot....but go and see an accountant.

Your questions are of a general nature but an accountant can go into the specifics with you. If you are investing in a startup company, you may qualify for tax relief under the SURE scheme. (Have a look at leaflet IT15 on the Revenue website).