Sole Trader or Company for Nixers

G

Guest122

Guest
Both Mrs. and myself work full time, and pay top rate PAYE. If both of us want to do some work/nixers on the side and pay resulting tax/VAT etc., what would be the best way to go about it?

Would we be better off setting up a company, or both of us setting up as sole traders? The money involved would be quite small – less then €10k/anm.

Thanks

BB
 
If you are earning less than 25K approx you do not need to register for VAT.

By the sounds of things you would be better off going sole trader as opposed to ltd company. There are plenty of links on how to go about doing this from this site.
 
Absolute no need for a limited company...self employed will suffice unless you expand.
would be far too costly....you will need to be making a lot more than €10K to make it worthwhile

FYI to setup the company will cost you at least €1,000

although the coporation tax rate is only 12.5% the money will have to be extracted either by way of salary or dividend which would result in high rate income tax & prsi
if you are self employed you can still reigister for vat even if your turnover levels are less than the €27,000/€52,000 thresholds therefore for vat purposes a company or self employed makes no financial difference.
 
Sole trade or company is probably the most commonly asked question to a tax adviser and will depend on many different circumstances as can be seen in the McGibneys guide

in summary breffni boys estimated income is far to small to warrant incorportion, however should he wish to incorporate at some future date there are provisions in place to ensure a smooth tax neutral transfer
 
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