Company director taking withdrawals from company profits. What tax do I pay?

[breakonthru]

Hi folks,

I'm doing up a P&L and Cashflow projection for a new business of mine.

I predict i'll make earnings from year three of the operation.

These earnings will be sporadic due to quantity sale of units sold etc, lump sum withdrawals at different times throughout the year..

What tax route should I go - PAYE or Self-assessed?
What's the employer % contribution to revenue above withdrawal to myself?

I will be a proprietary director of this company.

Cheers!

BreakOnThru

 

[WindUp]

.... What tax route should I go - PAYE or Self-assessed?

Unfortunately "both" is the answer

You'll need to opperate PAYE on payments to yourself and because you are a proprietary director proprietary director you also need to do a tax return every year..

There is no Employers PRSI on Class S

 

[breakonthru]

Unfortunately "both" is the answer

Thanks WindUp!

So Company pays PRSI Class A on PAYE income and pays nada PRSI on Self Assessment.

Cheers..

 

[dublin66]

No - PRSI is at 4% on the salary but no employer contribution.

 

[WindUp]

No - PRSI is at 4% on the salary but no employer contribution.

correct -- If you are a proprietary director , you are Class S -- company deducts employee PRSI of 4% and sends it to Collector General - employer PRSI is Nil