Can a director be taxed as a PAYE worker?

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z107

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Can a director with a 50% share of a limited company, opt to be taxed as PAYE? Will they also get the PAYE tax credit?

On a related note, can the director also opt to be on Class 'A' PRSI instead of Class 'S'?
 
Thanks ubiquitous, I suspected that might be the case.

Maybe there might be some other way which one could become an employee.

For example;
Get four people A, B, C & D and two companies X & Y.
A & B are directors of company X and employees of Y
C & D are directors of company Y and employees of X

That's probably a bit complicated though. Maybe there's an easier way with just two people.
 
Is it because the director has 50% that he cannot be on Class A? I have 14% shares of a company and when i was a director i was on class s but i asked the accouant to move me to class a and he did just said it would cost extra.
 
umop3p!sdn said:
Thanks ubiquitous, I suspected that might be the case.

Maybe there might be some other way which one could become an employee.

For example;
Get four people A, B, C & D and two companies X & Y.
A & B are directors of company X and employees of Y
C & D are directors of company Y and employees of X

That's probably a bit complicated though. Maybe there's an easier way with just two people.
Click to expand...

Technically a director is an employee just a certain class of employee who may not get a PAYE credit and may be on Class S PRSI.

I'm not sure what the purpose of the scenario outlined above is?
 
If nothing else, it's a lot of trouble to go to just to get a PAYE tax credit and a bigger PRSI bill.
 
Hi,

I am a full-time paye worker and have set up a company to do additional work at the weekends (I'm a 50% owner/director). The additional work is a sideline activity and is not intended to become my main employment or source of income. The questions I have are:

1. does this make me a propietary director even though it is not my main source of income?
2. do I need to complete from11 returns or can I continue with form12?
3. on the references to the paye tax credit above: am I still entitled to this on my paye income or does being a director mean I no longer get it at all?
 
diroche said:
Hi,

I am a full-time paye worker and have set up a company to do additional work at the weekends (I'm a 50% owner/director). The additional work is a sideline activity and is not intended to become my main employment or source of income. The questions I have are:

1. does this make me a propietary director even though it is not my main source of income?
2. do I need to complete from11 returns or can I continue with form12?
3. on the references to the paye tax credit above: am I still entitled to this on my paye income or does being a director mean I no longer get it at all?
Click to expand...

1. Yes, you are a proprietary director, because you own more than 15% of the shares in the company.

2. directors must complete a Form11. There used to be a Form 12 for direcotrs but I believe that it is no longer used.

3. You should still qualify for the paye credit in respect of your full time employment.
 
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