PAYE worker v Assoc Dir - TAX Q

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Lorz

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Hope this is in the correct forum...

I am currently working as a PAYE worker but have been offered a position as an Associate Director. What are the implications - tax wise?

AFAIK I lose dental and optician benefits but AFAIK these are going/gone now for everyone incl. PAYE workers?

We plan on having more children - what are the implications for Maternity Benefit? Will I still be entitled to it?

If my salary stays the same will I end up with a reduced Nett salary due to losing Credits because I will be a Director?

Any other issues?
Trying to weigh up the pros and cons - Thanks.
 
Will you have a share holding? Is it greater than 15%? -- Are you actually a Director of the Company or is it simply a Title?
 
If you have no shareholding then you remain on PRSI class A with all it's entitlements. You also retain your PAYE credit.
 
That's great - thanks for that. I thought that once you became a director you automatically moved to Class S.
 
The different tax treatment applies only to Proprietary Directors, meaning directors who own more than 16% of the company. It doesn't sound like you will fit that category.
Sybil
 
Do bear in mind that the rules governing PRSI class (A1 or S1) are applied using different criteria to the '15% rule' governing eligbility to employee tax credit.

Get specific professional advice on this and related issues before committing yourself to any change in status. Your employer's accountants/tax advisors may be able to assist.
 
Lorz, associate director is a fancy term for a senior manager in some financial companies. Unless you are becoming a non-exec director or own the holdings outlined above I imagine you will remain as an employee for tax purposes re salary.
 
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