PAYE Allowance

[Bobbi70]

Hi

As a director of my company I am not entitled to the paye allowance and pay PRSI at class S. However I have recently been taken on as an employee and am now getting my paye allowance and paying stamp at class A. I am still doing some work for my company and invoice my time out with that. I am assuming this is aok?

 

[DB74]

Yes it's fine provided it's a bona fide employment and not just a convoluted scheme to get some Class A contributions paid.

 

[BazFitz]

There seem to be three issues here;

Are you a proprietary director of "your company" (i.e. do you own 15% of the company)? If so, you are not entitled to the PAYE tax credit.

Do you control "your company" (e.g. do you own 100% of the company)? If so, you should more than likely pay PRSI at Class S.

Is this company that's taken you on as an employee a separate company with no connection to you? If so, you should be entitled to the PAYE tax credit and pay PRSI in relation to that employment at Class A.

 

[NumbrCrunchr]

No problem with claiming the PAYE allowance and paying A class PRSI on your new job assuming you (or your spouse) are not a proprietary director.