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Any benefit to being a Sole Trader as well as a PAYE worker

tempnam · 2019-07-02 16:02:09

Hypothetical situation. If an employee has their annual review and there is a couple of grand of a salary increase on the table. It becomes apparent that a good chunk of this will be lost to tax however. Thinking about any legal ways to reduce this burden, the following idea comes to mind: Instead of taking a PAYE salary…

02-07-2019 4:02pm

#1

tempnam

Registered Users, Registered Users 2 Posts: 491 ✭✭

Join Date: February 2013

Posts: 401

Hypothetical situation.

If an employee has their annual review and there is a couple of grand of a salary increase on the table. It becomes apparent that a good chunk of this will be lost to tax however.

Thinking about any legal ways to reduce this burden, the following idea comes to mind:

Instead of taking a PAYE salary increase, the employee sets up as a sole trader and invoices the employer on a monthly basis for the increased amount.

Would this be more or less tax efficient?

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