paybacktime
Registered User
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Hi
I have started a small business that is starting to make some money. I haven't registered it yet as it was more of a hobby until recently but I will now be registering for tax however I am unsure of the best course of action for this.
My current situation is that I am a PAYE worker also and earn approx €45K plus have a company car/phone/Medical etc and pay all the associated BIK on that. My new business venture has the potential to earn me an additional €20K this year (that's what I have projected for this year with the current info available to me, it may be more but not much) and in all liklehood it will probably stay as a part time business for the forseeable future.
My wife is currently on maternity leave (she receives only the government maternity benefit as her company don't pay anything) and receives approx €281 per week (I think!) She is due to go back to work at the end of March but more than likely will extend her leave until August unpaid. Her salary is €48K. I am not currently claiming any of her tax free allowance as she claims back all the tax owed at the end of March and uses this towards living expenses while on unpaid leave.
Now ideally my wife would prefer not to go back to work at all in August and stay at home and mind the children (we have 2) so what is the best way for me to operate everything financially?? If she stays at home then obviously I would get her tax credits, about how much would this add to my take home PAYE salary??
If I register as a sole trader for the business (I am essentially providing a service rather than a product) what are the implications on tax for me and my wife.
Would I be better off registering as a company and "hiring" my wife to do the asmin side of things and paying her a salary thus reducing the tsx liaability??
Does anything affect my current PAYE job as I really don't want them to know anything about my sideline business.
I know I need to go see an accountant but I wouold love to get some ball park info first so I know where I stand with everything.
Thanks very much for your help
I have started a small business that is starting to make some money. I haven't registered it yet as it was more of a hobby until recently but I will now be registering for tax however I am unsure of the best course of action for this.
My current situation is that I am a PAYE worker also and earn approx €45K plus have a company car/phone/Medical etc and pay all the associated BIK on that. My new business venture has the potential to earn me an additional €20K this year (that's what I have projected for this year with the current info available to me, it may be more but not much) and in all liklehood it will probably stay as a part time business for the forseeable future.
My wife is currently on maternity leave (she receives only the government maternity benefit as her company don't pay anything) and receives approx €281 per week (I think!) She is due to go back to work at the end of March but more than likely will extend her leave until August unpaid. Her salary is €48K. I am not currently claiming any of her tax free allowance as she claims back all the tax owed at the end of March and uses this towards living expenses while on unpaid leave.
Now ideally my wife would prefer not to go back to work at all in August and stay at home and mind the children (we have 2) so what is the best way for me to operate everything financially?? If she stays at home then obviously I would get her tax credits, about how much would this add to my take home PAYE salary??
If I register as a sole trader for the business (I am essentially providing a service rather than a product) what are the implications on tax for me and my wife.
Would I be better off registering as a company and "hiring" my wife to do the asmin side of things and paying her a salary thus reducing the tsx liaability??
Does anything affect my current PAYE job as I really don't want them to know anything about my sideline business.
I know I need to go see an accountant but I wouold love to get some ball park info first so I know where I stand with everything.
Thanks very much for your help