PAYE and small business?

H

HomersCash

Registered User
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48
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?

Thanks in advance.
 
do you plan on being self employed or do you want to set up a ltd company?

take a look at revenues website--lots of info there on setting up a business
 
I have no idea, self-employed or ltd company.

Whichever is easier and is the most tax efficient.

Looking for some advice?
 
Take a look at http://www.askaboutmoney.com/showthread.php?t=170
Starting a business
Sole trader or company - tax considerations

Sole Trader or company - other considerations

Back in the 90s I did some freelance work while in a PAYE job. It really was quite simple. You declare your profit (income minus allowable expenditure) from the business as income on Form11 (I think I read here that a Form12 can be used if the extra income is under a certain (low) threshold) and pay the extra income tax, PRSI and now also USC. In terms of tax bands, allowances etc it is treated as if it was additional PAYE income. You do have to keep accounts, watch the file&return deadlines and pay preliminary tax by October (or mid-November if using ROS) like any self-employed person.

If you set up a Ltd. company it's a different ballgame (I'm not familiar with that - see the posts above to read about the pros & cons).

Best of luck.
 
Thanks Chook and windup for the replies.

Yep, it was ages ago that I originally asked the questions, been flat out with my regular PAYE work and a small baby - so only getting time to follow up on it now really.

Do you think I could ring or call into Revenue and get to talk to someone to answer my basic questions?

Thanks
 
Could you get in contact with your local County Enterprize Board who run very good and inexpensive courses in starting your own business. They also run free seminars on various aspects of small business.
 
Revenue are in the tax collection business. They're not in the tax advice business. They certainly won't be able to give you any better advice on questions like 'self-employed or ltd company' than the person sitting beside you on the bus.
 
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