Tax on second non-PAYE income

Rocka2

Registered User
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12
Hi,

I work as an accountant for a company in industry where I get paid a salary and pay my taxes through the PAYE system. A family member has recently set up his own business and has asked if I would look after all the company set up, filing and accounting work. He works for himself and has no employees but his income is significant enough it makes better tax sense to register as a ltd company.

Is it ok for me to just invoice him a fee for the services I provide and then do a self-assessment return? Can I set myself up as a contractor for this business even though I am already a PAYE worker? I have an ACA qualification.

One final thing to note is that the new business is in the UK.

Thanks for any help,
 
You don't need to "set your self up as a contractor " or indeed do anything except declare the income to Revenue. Fill in a form 11

You have an ACA qualification and you don't know this.:eek::eek::eek: What are the institute teaching these days.:(:(:(
 
Thanks for your reply Cremeegg. Im an accountant for a multinational and have always been a PAYE worker so this is outside of my normal domain.
 
Less than €10,000. I'm below the VAT registration threshold so I'm thinking I don't make any reference to VAT on the invoice if Im not VAT registered?

I want to make sure I approach this is the correct way as I'm not going to be an employee in the business. I wanted to check if you need some sort of an accounting licence to prepare accounts for a Ltd company which you don't work for. If that was the case, should I take the contractor route instead or is it simply just a case where I can raise an invoice each month/quarter for the work I carry out. Thanks!
 
You need to be a Registered Auditor, to sign audit reports, other than that there are no licensing requirements. A company only requires an audit if it is above a certain size.
 
You need to be a Registered Auditor, to sign audit reports, other than that there are no licensing requirements. A company only requires an audit if it is above a certain size.
The OP is an ACA and therefore would need a practising cert and professional indemnity insurance in order to comply with Chartered Accountants Ireland rules, if they are to provide paid-for services to a third party customer in their own account and not as an employee.
 
So if I had a contractor agreement in place with the company, so that I was hired as a contractor to do the accounts etc.. would that get me around the practising cert issue? thanks!
 
I'm frankly baffled that as a chartered accountant you need to ask that question. Of course it won't. You run the risk of damaging your career and professional reputation if you don't at least know the basic responsibilities of membership of Chartered Accountants Ireland.
 
All I want to do is help my brother out to ensure he correctly records all financial information for his new business and pays the appropriate taxes. So basically you are saying that I cannot do this and get paid for it. I have come to the forum for advice to see how I can best deal with the situation. I work for a huge multinational, not in a practice were this type of thing is my day job and I understand every situation in which I need a practising cert. I have no need to until now!
 
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I have found that as accountants we should stick to what we know.

I have seen accountants from industry try to do accounts for small businesses and you would not believe the errors they make.

With the best will in the world you would be much better off getting your brother to go to a practice who will do the work for him especially as you are going to change him.
 
Thanks for your comments Joe_90, a valid point. Ive also experience of accounts prep for smaller businesses and in the UK! My issue is around invoicing and making sure Im compliant.
 
All as the OP is not auditing accounts just preparing them and the directors sign the accounts does this not negate the need for a practicing cert and PI? Would the same goes for VAT returns etc or does the institute say he needs them for that sort of work to?

Re invoicing surely the OP can just invoice the company and then just do what cremeegg said in post 2 i.e. it goes on their form 11.

Re setting up the company the CRO website is fairly good.
 
All as the OP is not auditing accounts just preparing them and the directors sign the accounts does this not negate the need for a practicing cert and PI? Would the same goes for VAT returns etc or does the institute say he needs them for that sort of work to?

Well I'm hardly pulling the OP's leg, when I say the folllowing?

The OP is an ACA and therefore would need a practising cert and professional indemnity insurance in order to comply with Chartered Accountants Ireland rules, if they are to provide paid-for services to a third party customer in their own account and not as an employee.
 
So what sort of work can an ACA do without PI and practicing cert? Going off topic here I now just thinking out loud!
 
So what sort of work can an ACA do without PI and practicing cert? Going off topic here I now just thinking out loud!

The reason for the practicing cert and the PI is to protect people from people who aren't qualified or have been disqualified. Do you want to have people who are not fully qualified to do an audit etc and signing them off as audited? If he does them wrong and you don't pay the proper tax, the Revenue comes after you. As he won't have any PI, you'll have difficulty in being able to sue.

It's basic regulation. If the OP wants to do the work off the books, that's up to him, but he shouldn't be looking to charge a legitimate fee and declare it as income if he is not authorised to carry out the work.

Steven
www.bluewaterfp.ie
 
Ok well the OP never suggested anything of the sort about working off the books. The OP has come to this forum for advice on the different ways an accountant can work for a company and what is involved in each scenario.

I want to make sure I approach this is the correct way as I'm not going to be an employee in the business. I wanted to check if you need some sort of an accounting licence to prepare accounts for a Ltd company which you don't work for.
 
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