iamthemoney
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I would recommend registering for taxes as soon as you incorporate. All the expenses incurred would be for the purposes of building the business anyway. It will have no effect on your day job (unless you have clauses in your contract of employment regarding outside employment).hi folks, i am setting up a new LTD company and a few questions..
i am currently a paye worker, and i am setting up this business to do consultancy work on the side; I will be loaning the company money to get started and ongoing, until the company gets going 6+ months time, its a consultancy company so i wont be selling any physical goods.
i will be drawing no salary, and the company wont have any income, or be issuing any invoices , or have any employees, for a good few months, it will just be incurring expenses.
will i have to register for PAYE / TAX / VAT? and how would this affect my PAYE day job?
i will also be availing of the audit exemption, as i will be the sole shareholder in the company.
i intend to keep it as cost effective as possible, any suggestions welcome,
one final point, the second director in the company, will not be a share holder, and not have a salary, he is just there to satisfy the CRO requirement, to have 2 directors, will he have to file any tax, or other paperwork, if he is a director?
thanks
The more fundamental question is why are you setting up a limited company at all for part-time work?
If you have trading losses, I think you can set your trading losses against your paye income for tax purposes. Not sure about this, but check it out before incorporating.
In general, it is better to operate as a sole-trader. If the company grows, then you can consider incorporating.
Brendan
You file an extra tax return.
You make an annual return to the companies office.
if you are late with your return, then you lose your audit exemption.
You have a separate bank account. (But you might choose to have this anyway to keep your businesses separate)
And then you decide to discontinue the business, you have the hassle and cost of winding up the business.
You can normally get professional indemnity insurance which you probably should get anyway. Unless you are in a high risk profession, I don't think it's worth the hassle of a company.
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