Can my employer tell I'm contracting on the side through tax?

W

Winifred

Guest
I'm working in an IT company, pretty happy with the job but I'm hoping to one day branch out and setup a business very similar to my current employers business.

Seeing as things are going well for them and I believe there is lots of space for another company doing similar work I'm looking at setting up sooner rather than later. I want to start off doing it as a part time job ran in my own personal time. It's contract type work so very easy to do at weekends and evenings and won't impact my full time job.

I want to be as tax compliant as possible, obviously I need to register a business name as well to sort out additional company requirements like websites/business cards etc.

I'm going to start as a sole trader/partnership so my question is can run this business side by side with my PAYE job without my employer finding out (through some mad tax credit chinese whispers) that I'm doing this work on the side?
 
Ireland is a very small country, so it's quite likely that your employer would find out about it quite soon.

Check your employment contract. There probably is a specific term preventing you from working elsewhere.

Even if it's not in your contract, it may well be implied that you don't compete with your employer.

I think if they do find out, they may well have grounds for dismissing you.

Brendan
 
Your employer won't find out from a reduction in tax credits, if that is what you're asking.
Any tax due on your sole trader enterprise will be paid quite separately from your Paye work, on the basis of accounts prepared by you and submitted with a Form 11 return after the year end.
 
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