Own company & PAYE employee as well...

exactiv

Hi.

I've been a PAYE employee with my current employer for many years. I've started company with a friend of mine in January to make a bit of money on the side.
It's not a Ltd company & we're not registered for vat, it's just a registered business name / partnership.

I've a few questions:
What's the story with tax?
Should we set up a company bank account?
Do we need an accountant?
How can we pay ourselves from our company?
Is there anything we REALLY REALLY need to do?

I haven't a clue about such things and any help at all would be very much appreciated.

Ex.

gerrycollins

the story with tax is you are treated seperatly as a director/partner of this company as you are as a PAYE worker, two different enities altogether

Yes set up a company bank account keep everything for the company with the company and personal with personal

Best off getting an accountant they can be real helpful with other taxation questions etc

You pay yourselves as either directors/partner or just pay your self as a PAYE worker(this will then cross with your existing PAYE job)

Things to do....talk to an accountant and solicitor

exactiv

Thanks for the reply. What about paying myself non-taxable expenses? Like mileage for instance?

gerrycollins

exactiv wrote:

Thanks for the reply. What about paying myself non-taxable expenses? Like mileage for instance?

ah this is why you need an accountant lol but the basics

you can pay for anything you want for use within the company,(materials,milage,even clothes,rent,lunch etc) as long as its for use with the company and the money used to purchase the above is from the company coffers, at the end of the year with all the receipts kept from during the year you can subtract the total spent on expenses from your overall profit and then pay tax on the remaining amount.but dont forget too many expenses look bad to the bank and the tax man so dont eat up all your profits with non existing expenses

exactiv

ok. sounds good so far

So for example. We haven't got the bank account yet. But we will by next week. I've had to buy a laptop for genuine company use last week. The reciept is made out to the company, but I paid for it with my personal credit card. Can I pay myself €X the cost of the laptop with a company cheque?

gerrycollins

sorry bout this but your going into accountant stuff here which i dont know much about but i dont think you can do what you are suggesting cause it was made out to the company the money has to come from your investment or starting capital it gets complicated get an accountant sorry cant help anymore

exactiv

that's cool. thanks for your help. I've arranged a meeting with an accountant for friday week. thanks again.

gerrycollins

no probs contact solicotors also to organise company so one person is not left holding the baby so to speak

lomb

a partnership is a seperate legal entity and u do books seperately for the partnership as an entity and deduct expenses,then finally u divide the profit according to your agreement, and whatever u make thats your share u put on your tax return at year end. if u register for vat its the partnership thats registered not u.
open a seperate partnership bank account and u are as well draughting a written agreement if its at all serious. also limiting has its advantages if u choose to do so, as your protected personally then if something happens like someone sueing for some reason. best of luck with it.