# Proprietary directorship



## Henny Penny (5 Jan 2010)

Hi folks,

If my spouse becomes a proprietary director of a company do I lose my PAYE tax credit  - assuming I work for a different company?

Thanks

HP


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## Setanta12 (5 Jan 2010)

Absolutely not! 

(He even keeps his if he pays sufficient PAYE in a different PAYE job where he's a non-proprietary director, while still being a proprietary director of a diff company!)


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## Henny Penny (6 Jan 2010)

Thanks Setanta!


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## techman (9 Jan 2010)

The spouse of a proprietary director is not entitled to an Employee's PAYE Credit.

See here: http://www.askaboutmoney.com/showthread.php?t=105414


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## Setanta12 (9 Jan 2010)

From the link above 'They informed me that she wouldn't now be entitled to these credits because she is now married to the director of the company she works for.'

That is correct advice. But if she worked elsewhere (ie anywhere other than the company where her husband is a proprietary director) she would also be entitled to the PAYE credit.

I stand by my advice. I don't have the TCA1997 to hand but I'm a qualified tax advisor.


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## John Conlon (9 Jan 2010)

Setanta12 is absolutely correct. The restriction only applies to the same company to avoid manipulation.


[broken link removed]


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## Graham_07 (10 Jan 2010)

Setanta12 said:


> But if she worked elsewhere (ie anywhere other than the company where her husband is a proprietary director) she would also be entitled to the PAYE credit.
> 
> I stand by my advice. I don't have the TCA1997 to hand but I'm a qualified tax advisor.


 
I can confirm this also. Setanta is absolutely correct. I have a number of clients who themselves or their spouses are proprietory directors but also have other unrelated  PAYE employments and have the PAYE credit correctly allowed to those other employments.


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## Nicky (19 May 2010)

Hi All,

Could you clarify me my issue please:
As an ordinary PAYE employee I worked for a company in January-March 2008, then I set up Ltd company
as a main shareholder in September 2008 and since then I get salary as a proprietary director.
Am I qualified as a proprietary director for the whole year, partly or not qualified for that year for the tax credit purpose ?
Thanks in advance


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## Graham_07 (19 May 2010)

Nicky said:


> Hi All,
> 
> Could you clarify me my issue please:
> As an ordinary PAYE employee I worked for a company in January-March 2008, then I set up Ltd company
> ...




You are entitled to the PAYE credit insofar as it relates to the previous non-proprietory director employment. However if the earnings from that employment are less than that which the PAYE credit would absorb then the credit is reduced to that amount. 

e.g. PAYE credit €1,830.
if non-proprietory director PAYE employment gross pay is , say €6,000 then the appropriate portion of the PAYE credit is €1,200 ( €6,000 at 20% ) . if the employment gross pay is €15,000 then the appropriate PAYE credit is the full €1,830.


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## Nicky (19 May 2010)

Thanks Graham, as I got I am entitled to the PAYE credit as a portion from gross income being an ordinary employee, but not of proprietary director


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## dubrov (2 Jul 2010)

Does the above mean that being a proprietary director in one company does not affect my ability to claim PAYE credit if I also work as a PAYE employee (non-proprietary) in another company?

e.g. I earn €100,000 a year from Company A as a normal PAYE employee and I also earn €50,000 from Company B of which I am a propietary director. 

Would I still be entitled to the full PAYE credit in relation to employment A?


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## papervalue (2 Jul 2010)

dubrov said:


> Does the above mean that being a proprietary director in one company does not affect my ability to claim PAYE credit if I also work as a PAYE employee (non-proprietary) in another company?
> 
> e.g. I earn €100,000 a year from Company A as a normal PAYE employee and I also earn €50,000 from Company B of which I am a propietary director.
> 
> Would I still be entitled to the full PAYE credit in relation to employment A?


 
Yes you can claim paye credit for company a

If you had 10 employee jobs- You only get paye credit once a year on tax return


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## dubrov (2 Jul 2010)

Cheers papervalue. I was thinking of doing a startup business on the side which would generate very little income for the first year.

Looks like it won't cost me an extra €1,830 to do this.

Assuming there are no conflicts of interest and no contractual problems, is it inevitable that my current employer would find out via my P60 or something similar?

Ideally, I would prefer not to disclose it and receive my PAYE salary as now and be taxed seperately on the proprietary role (all at the higher rate I guess)


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