Unpaid directors employed elsewhere impact on tax

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Pringles123

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Hi,

I am in the process of setting up a start up company. Myself and a business partner have done some initial work and we hope to get an innovation voucher grant from enterprise Ireland to get us to the next level. In order to avail of this we have to set up a limited liability company. We are both currently working and as such don't want our employer to know we are working km the side project just yet.

One of the requirements of setting up a limited company is to have 2 directors. I don't want to list myself as a director in case my employer finds out through tax. Initially for the first few months the company won't be making any money and directors will not be compensated in any way.

My question is if I list myself as a director will my tax status change? If I was to list my unemployed girlfriend as the director, initially until I quit my job, will it affect her dole? If I get my mother, who is working, but should be allowed to be listed as a director, to be one will the amount of tax she pays be influenced?

Has anybody any experience with this situation? Just don't want to get anyone into trouble or leave them out of pocket. I will change the directorship to my own name once I leave my job in a few months and in the meantime will sort out all necessary accounting issues for the company and directors if needs be.

Thanks
 
Firstly the only way your employer will find out that you are a director of a company is if they do a company search on you in the CRO website. Your tax credits etc will not change unless you inform Revenue that you are taking a salary elsewhere and that you want some of your tax credits etc transferred to the other employment/directorship.

As a director your tax status in relation to your current employment doesn't change at all. You will however have to file an Income Tax return with Revenue every year. However your current employer doesn't need to know this. Naming your girlfriend/mother as a director is unnecessarily complicating matters, especially for your girlfriend.
 
I was employed and same time was a director of limited company for 2 years, don't think anyone from my employment bothered as I did my work properly and only worked for my own company out of office hours, so I don't think its going to be a problem, providing how much hustle you might have not being a director of your own company - this is nothing to compare. Anyway you can be a director and not paying yourself, so from tax point of you there won't be a change, IMHO, but better to take advise from an accountant.

Good luck with your new start-up anyways!
 

The easiest way for your employer to find out is via a cro search. However, if your employer just Google's your name and you're listed as a director it's very likely that your name will show up on solocheck.ie or visionnet.

Can you appoint two family members as directors instead?
 
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