About to register a new company

[Curious G]

Hi there, I'm a current paye employee, thinking about setting up a new business (based around webdesign) while still maintaining a full-time position at the office, in other words going legit and paying tax on part-time nixer work outside the office. The process of setting up a new company on the cro.ie website seems pretty straightforward, but I'm alittle unclear on the tax implications, if it's an actual 'company' (ie. a legal entity) as apposed to a 'business name' registration (with the actual person being the entity), am I to be taxed on the full paye rate of earnings, instead of say the standard 21% vat rate, or is that a sole trader, or am I completely mixed up ?

In other words, whats to best way (for a high-income tax earner) to minimise the tax payable on afew lump-sum payments for himself, I was under the illusion that you charge a client 21% and basically forward that amount to the revenue but a friend says it a whole lot more complicated with paye workers ?

 

[ClubMan]

Might be worth reading Tommy McGibney's summary overview of issues related to starting a new business [broken link removed]. If you do decide to set up a company as opposed to operating as a sole trader then perhaps the [broken link removed] and sites wil have some information of interest to you.

 

[RainyDay]

You'll also need to make sure there is no conflict of interest with your day job and that you are not breaching any terms in your current contract of employment. I think the VAT issue will depend on your likely income during the year on the non-PAYE side. How much do you expect to earn non-PAYE?