Limited company PAYE/PRSI payment

C

contractor

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Hello,

I was working as an IT contractor in 2007 with my own limited company. I have put this on hold for now and as such I have paid all outstanding profits to myself as a wage in 2008.

Must I register as an employer to settle my PAYE/PRSI or can I pay this through my Form 11 in 2009?

Thanks in advance.
 
must register for 2008 and pay all paye/prsi- if put straight on form 11 the prsi not counted, form 11 only counts tax on paye. might be better off to register for 2007 and make full use of tax bands etc
 
OK thanks. I was registered for 2007 but unregistered for VAT and PAYE/PRSI when moving to permanent employment so I wouldn't have any forms to fill in. I've already submitted my P35 for 2007 so I'll have to re-register for 2008.

As I'm now in permanent employment as of Jan 2008, will this affect my tax credits? If so do I need to do anything (any other forms to fill in maybe) or will the Revenue take care of it?

Is there any easier way? Could I claim this as dividends? I know I still need to pay tax on dividends but maybe its easier than re-registering, particularly as I will effectively be employed by 2 companies. I'm not sure if thats even legal.

Thanks.
 
You could repay the money you took from the company in 08 up to now- Treat as director loan. carry money in bank for a longer period before paying up. I would not be sure of dividend treatment.

I assume all tax credits are gone with main Job. It would be costly to do a 2008 P35. Do you have any relations you could be salary down for, brother/sister with tax bands/credits avaiable to use

could pay 20/80 on outstanding director loan in tax- repay money via cash/expenses as soon as possible and get refund of tax paid-temp measure.

No harm to get accountant advise when doing accounts
 
papervalue said:
You could repay the money you took from the company in 08 up to now- Treat as director loan. carry money in bank for a longer period before paying up. I would not be sure of dividend treatment.

I assume all tax credits are gone with main Job. It would be costly to do a 2008 P35. Do you have any relations you could be salary down for, brother/sister with tax bands/credits avaiable to use

could pay 20/80 on outstanding director loan in tax- repay money via cash/expenses as soon as possible and get refund of tax paid-temp measure.

No harm to get accountant advise when doing accounts
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No I've no relatives to pay unfortunately. If I was to just make a clean cut and pay myself a wage would I be able to avail of the lower tax band? My current permanent job puts me into the higher band, would the wage from my company be on top of this or are they treated independently? If they are I will only have to pay the lower band (and as you pointed out no credits as I'm using them up with my current job).
 
You would have to use the top band- If you user lower band you will get caught for the difference when you file personal tax return as 2 p60's are added together and taxed.
 
One last thing which is bugging me. Am I right in saying I do not have to pay any PRSI on the company wage (Class S), seeing as I am already paying Class A PRSI through my regular job?

From what I can see everything in Class S is already covered in Class A. But then again I would not be surprised if I had to pay it twice :(
 
Sorry, after reading some other threads I'm a bit confused on the matter now. What papervalue has said is great advice for the question of settling PAYE/PRSI. But as this is extra income on top of my normal full time PAYE job would it not go on the form 11? Should I be declaring it as a dividend? From what I can see I should not be paying PRSI twice.

Any clarification is greatly appreciated.

Edit: OK sorry PRSI is a percentage of your income therefore I must pay it on both sources. Makes sense :)
 
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