Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Setting up a company and remaining in employment

Options
  • 16-12-2006 11:53pm
    #1
    oceansapart
    Closed Accounts Posts: 14 ✭


    Hi ,

    I'm currently in permanent employment with a company and I am looking at setting myself up as a company on the basis of some freelance web development work which I have acquired from a company on the condition that I can invoice them.

    As this is extra to my main employment , my main questions are:
    1) Is there a tax issue being both in employment and setting up a company. I am on the lower tax band earning 29,500 excluding bonuses. The income from my freelance work would be approx 8,000 per annum
    2) I think I have learned from other threads enough about the CRO but can someone give me a dummies guide to the revenue. I must have a vat number to invoice the company I am doing freelance for. Also as I am not providing a product , but a service , is there anything else i should know regarding this,

    Thanks


Comments

  • Options
    #2
    Nuttzz
    Registered Users Posts: 3,774 ✭✭✭Nuttzz


    You should look at the company paying into your pension or car mileage etc rather than a straight wage that will be taxed at the higher rate.

    I would also question the need to set up a company at all for business worth €8000, cro compilance is a pain in the hole, you dont need a company to get a VAT number you can get a VAT number as a sole trader, as a sole trader you can claim expenses and get a lump sum into your pension without having to pay tax AFAIR, i'm sure others here will confirm or deny this. Also have a look around www.askaboutmoney.com its a good site for questions like these


  • Options
    #3
    oceansapart
    Closed Accounts Posts: 14 ✭oceansapart


    Thanks for that. I'm very interested in the idea of avoiding the CRO. So basically I can use my own name and register this for vat purposes , any idea how does this affect my PAYE job if at all ?


  • Options
    #4
    Nuttzz
    Registered Users Posts: 3,774 ✭✭✭Nuttzz


    it doesnt really, you need to fill in a tax return at the end of the year though and pay tax on the sideline job, although you should also make sure that moonlighting isnt a sackable offence were you currently work!


  • Options
    #5
    amir
    Closed Accounts Posts: 15 ✭amir


    oceansapart wrote:
    Hi ,

    I'm currently in permanent employment with a company and I am looking at setting myself up as a company on the basis of some freelance web development work which I have acquired from a company on the condition that I can invoice them.

    As this is extra to my main employment , my main questions are:
    1) Is there a tax issue being both in employment and setting up a company. I am on the lower tax band earning 29,500 excluding bonuses. The income from my freelance work would be approx 8,000 per annum
    2) I think I have learned from other threads enough about the CRO but can someone give me a dummies guide to the revenue. I must have a vat number to invoice the company I am doing freelance for. Also as I am not providing a product , but a service , is there anything else i should know regarding this,

    Thanks

    Read your employee contract and check if you can be in the other business. Probably there is something about informing them before you start working on your own.


Advertisement