Salary as a company director

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Hello

I have recently started a limited company . I want to take a small salary . Do I just register myself as an employee and then take salary as normal paye worker based on my tax credit certificate etc or is there anything different because I am a director of the company I would be employed by ?

Thanks
 
In simple terms yes. Register company as employer for PAYE. Apply for a tax card for yourself as an employee of your company allocating your tax bands.credits to this employment.

Ensure your tax credits don't give you the PAYE employee credit of 1650. New earned income credit of 550 available instead.

Assuming you own 50% or more of company then ensure Class S PRSI (4%) so no employer contribution payable.

Don't forget to take tax free small benefit exemption each year (500 euro voucher tax free) as well :)
 
Thanks Rory_W

Ok so im trying to get to grips with this having previously been used to being a regular "Class A" PRSI .

If my company employees me I will be Class S.

PRSI contribution on salary will be 4%?

but I don't have any tax credit??? is that correct?

so for example if my company paid me 500 euro per week what would my liabilities on same be ? PRSI at 4% on the full 500? and would the 500 then be taxed at the 20% band rate so I would pay 100 euro per week PAYE?

sorry would love if you could clarify some of above for me. head wrecked. was hoping to pay myself a salary that would be relatively tax free (no employer PRSI cost to company etc) but didnty realise had no tax free allowance applicable or am I missing something.




thanks again
 
You pay income tax, PRSI and USC.

Income tax is dealt with through PAYE. You should apply for a cert of tax credit and standard rate cut off.

If you get this then your should receive the standard Personal credit and the earned income credit so €1,650 and €550 per annum. So €500 gross is taxed at 20% with a credit of €42.30 so income tax of €57.7.

PRSI and USC are calculated seperately. Check delloite.ie/tc
 
Thanks Joe

will check that link.

that's the bit I am confused about. I thought because I am a director of the company owning 50% or more (ie controlling interest) that I cant claim the standard tax credit of 1650 and just the earned income credit.

I was hoping as per your example that I can claim both (to include the 1650 credit as if I was a normal paye worker).

Do you think I can?

thanks again
 
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