Paye Worker & Self employed

[ranger]

Hi,

Just wondering if anybody went about settig up their on company while being a PAYE (slave) worker. I understand that PAYE & Self employed are on different PRSI classes and self employed lose their tax credits. However I need a tax clearance cert. Are there any implications working as PAYE worker while trying to get my company off the ground ? Opinions please


Ranger

 

[ButtermilkJa]

No implications if you just register as a sole trader while still working as a PAYE employee. That's the easiet way as you'll just pay income tax on any earnings over and above your PAYE earnings (and probably a small % of PRSI).

Not sure what happens about tax credits when you're fully self-employed (this is my first year fully self-employed!) but I'd imagine you get some kind of credits .

Good luck with the venture!

 

[ranger]

Thanks for the info Buttermilkya. Hope everything is working out with your venture.

ranger

 

[mirmick]

).

Not sure what happens about tax credits when you're fully self-employed (this is my first year fully self-employed!) but I'd imagine you get some kind of credits .

If your business is registered ltd company and you are the director then your credits will be reduced in your own company. No PAYE credits in your own company but you will get PAYE credits if you are employed some where else.
When you will calculate your self emplyed income tax then you will use PAYE tax paid as a credit(deduction) against the gross icome tax.