Tax as a director

L

louthguy

Registered User
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hi

I'm working in Australia at the moment and looking at investing in a company in Ireland where I will be a director in it. If I return home in the coming years to Ireland and work full time in an engineering job how would the tax be calculated in both jobs ? Is the tax calculated differently as a director ?
 
It depends on your shareholding. If you own more than 15% of the Company, you will be a proprietary director and considered self-employed. You would still be entitled to the PAYE tax credit in your other employment however. If you are also registering as an employee of the company you'll be a director of, you can elect to split your personal tax credit whatever way you wish between the two companies. It's my understanding that you wouldn't be entitled to the new self-employed tax credit if you are already claiming the PAYE tax credit from the other employment.
 
Yes, you can keep both your PAYE and single tax credit with the other company that you are an employee only of. Whatever you earn in the company you are a director of would be taxed at your marginal tax rates.
 
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