PAYE Worker Registering A Limited Company

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kseire

Registered User
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Hi,

I am currently a PAYE worker working in IT, and I do a lot of design work for websites outside of work. I was thinking of registering a LTD Company for which I could advertise and trade my web services professionaly. My questions is, if i register a LTD Company and take a wage from there as well as my Full Time job how will this affect me taxation wise. Can I remain a PAYE worker and keep my Tax Credits for my job, and just pay full tax on my other wage I take from my LTD Company without credits?

Any help or advice would be much appreciated.

kseire
 
Yes you can take a wage from your own company and pay tax at your top rate (either 20% or 42% depending on your salary from your original employment) plus PRSI @ 5%. You can keep all of your tax cut-offs and credits in your original employment. If you subsequently decide to leave your current employment and only work for your own company and draw a wage from it, then you will lose your entitlement to the PAYE credit (tax credit of €1,490 per year)
 
I thought that once you became a proprietary director you lost your PAYE credit?
 
You should also do a search here and look for threads discussing the merits of trading as a sole trader or through a limited company, for a sideline business like you seem to be refering to it is questionable whether a limited company is really necessary.
 
You are still entitled to the PAYE credit if you have another non-proprietory directorship employment.

Just like if kseire was to leave her current employment and take up full time employment as a proprietory director now, he/she would still be entitled to the full PAYE credit for 2006 due to partial employment elsewhere.
 
DB74 said:
Just like if kseire was to leave her current employment and take up full time employment as a proprietory director now, he/she would still be entitled to the full PAYE credit for 2006 due to partial employment elsewhere.
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Interesting to know! thanks...
 
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