PAYE and Have a company tax help

bg

I am an employee of a large multi national, I am on the PAYE system..
I have recently setup my own company in my spare time.

Im wondering how do i pay myself from my own company. ? If i go paye i presume i will have to pay 42% tax..
dont know much about the tax system and dont want a big bill ant the end of the year if i get it wrong...

billclinton

You need to register the company for PAYE. Otherwise any monies you take out of the company will got to your directors account and then you will have a tax bill at the end of the year. Very hard to take money out of a company without paying tax!!!!

bg

but any expences i encur. Ie diesel for car when on company business, phone bills etc can be taken out without paying tax. once i have expence statement.. and reciepts. I paid for most of the setup costs on my own personal credit card, so when company was setup and i had money in the account i wrote a cheque to myself to pay off personal credit card .. Is this correct.

billclinton

Thats correct..keep receipts for everything. A percentage of the expenses (ie diesel and mobile) are usually disallowed for private usage. Dont forget if you are registered for VAT, you can claim back the VAT on diesel but not petrol

Nuttzz

claim the civil service rates

http://www.finance.gov.ie/viewdoc.asp?DocID=4039

bg

could i pay my personal car insurance from the company? and get back as i use the car for personal and business use?

billclinton

Of course you can but as I said a percentage is disallowed for tax purposes. Car tax, servicing and repairs are also allowed

billclinton

Best way of doing this is that you total up your receipts at the end of the year and then work out the civil service rates. Which ever gives you more..then go with that one

spectre

billclinton wrote: »

Best way of doing this is that you total up your receipts at the end of the year and then work out the civil service rates. Which ever gives you more..then go with that one

How can you prove how many miles you've used?

Accountant

Get yourself a diary. At the end of every day, write down the destination and distance of your journey's.

This is a grey area and is subject to abuse, just be careful not to claim more miles than are clocked up on your car.

aidan.connolly

Hi,

When you say you set up your own company, are you saying that you are running as a "Sole Trader" or have set up a Limited Company ? Taking wages out of a Sole Trader business and a Limited Company are two very different issues.

If you take money from a Sole Trader Business, it is treated as Drawings. If you plan to pay your self a wage from a limited company, you will have to register for PAYE and deduct PAYE and also PRSI. Be aware that if you already have another job producing a wage, this will effect the amount of tax you pay on your second wage.

I would suggest you get some professional assistance.

thecola

aidan.connolly wrote: »

I would suggest you get some professional assistance.

Can anyone give some link/contacts to this kind of proffesional help (in co.Dublin)? I'm finance analyst myself, yet my area is different, more corporate relations. I'm thinking of some kind of start, and wouldnt want to screw up these things from begining.

Thanks!

aidan.connolly

Hi,

Maybe "Accountant" , one of the posters in this thread could point you in the right direction.
Appart from that I would say that you would get some advice from an accountant. The first consultation should not cost that much. It is an important area to have correct from the start.

Accountant

Try www.kdaaccountants.ie, they provide help and advice to alot of start-ups.

aidan.connolly

thanks for replying