A proprietary director of the company is classified as self-employed

Luckily

Since 1st July 2013 a proprietary director who has 50% or more shares of the company
is classified as self-employed and is liable to pay PRSI at Class S.
Are there any negative and positive consequences for this type of individual?

Thanks for any comment in advance.

Gloomtastic!

Luckily wrote: »

Since 1st July 2013 a proprietary director who has 50% or more shares of the company
is classified as self-employed and is liable to pay PRSI at Class S.
Are there any negative and positive consequences for this type of individual?

Thanks for any comment in advance.

Not sure whether they still sell it, but as proprietor director, you will not be eligible for Income Protection Insurance. If the company goes bust you will be deemed responsible.

adrianw

A proprietary director with >15% shareholding has always paid PRSI at Class S?

Impetus

It says to me, if you are concerned about failure when setting up a business - don't do it in Ireland. You will be screwed by a corrupt banking system (as far as I can see from a distance, (in the middle of the Mediterranean)).

The Baltic states come to mind where company incorporation is often free, and are done is a few minutes. You just pay the ID card / digital signature fee of about EUR 20.

Employee costs are low. Some states have flat rate income tax (around 15%). Similar corporate income taxes.

Vilnius pictures: https://www.google.com/search?q=vilnius&biw=1536&bih=730&source=lnms&tbm=isch&sa=X&ved=0CAcQ_AUoAmoVChMIsfzrjNuIyAIVRVkaCh1w6gn1

Riga pictures: https://www.google.com/search?q=Riga&biw=1536&bih=730&source=lnms&tbm=isch&sa=X&ved=0CAcQ_AUoAmoVChMI3J_e59uIyAIVy9cUCh3gkQeT

pedroeibar1

Impetus wrote: »

It says to me, if you are concerned about failure when setting up a business - don't do it in Ireland. You will be screwed by a corrupt banking system (as far as I can see from a distance, (in the middle of the Mediterranean)).

The Baltic states come to mind .....

I think the brain must be waterlogged from that warm water and bobbing about in the rubber ring.
I think the OP is requesting info on the benefits downside as a Class S contributor

newacc2015

Impetus wrote: »

It says to me, if you are concerned about failure when setting up a business - don't do it in Ireland. You will be screwed by a corrupt banking system (as far as I can see from a distance, (in the middle of the Mediterranean)).

The Baltic states come to mind where company incorporation is often free, and are done is a few minutes. You just pay the ID card / digital signature fee of about EUR 20.

Employee costs are low. Some states have flat rate income tax (around 15%). Similar corporate income taxes.

Eh? Any examples of our "corrupt banking system". The days of dodgy off shore accounts and mass tax evasion are over. If our Banks are so ****, why does BOI have a massive contract with the post office in the UK?

Setting up a company in Ireland is super easy too. Suing people in Ireland is easy. Its great to set up a company in a country like Eastern Europe. But we you run into difficulty, you realise your screwed

Isle of man is beside Ireland. It has all the benefits of Eastern Europe eg low taxes. But its a modern economy and suing people etc is much more easier. Its english speaking too. Plus its beside 2 healthy economies. You are going to have much success selling to Eastern Europe compared to Ireland

Luckily

Hi pedroeibar1,

That is exactly what I want to know, particularly how can I make 48 paid prsi per year to be qualified for state contributory
pension, it is almost impossible because self-employed income can be uncertain and unpredictable

pedroeibar1

Luckily wrote: »

....That is exactly what I want to know, particularly how can I make 48 paid prsi per year to be qualified for state contributory pension, it is almost impossible because self-employed income can be uncertain and unpredictable

Sorry Luckily, not my area of expertise; no doubt someone with the appropriate knowledge will post soon.

nompere

Luckily wrote: »

Hi pedroeibar1,

That is exactly what I want to know, particularly how can I make 48 paid prsi per year to be qualified for state contributory
pension, it is almost impossible because self-employed income can be uncertain and unpredictable

If you're on self-assessment, then you'll get an income tax assessment each year. That assessment will include an annual assessment for PRSI, against which any amounts already collected (through the PAYE system, for example) will be deducted.

So rather than have an indeterminate number of single PRSI payments throughout the year, you have one for the year - and that is treated as 52 contributions for the year.

pedronomix

Simples, if your self employed status is your only income, you need to pay a minimum €500 per annum in PRSI contributions. this is normally done at annual return time, top up if needed!

Luckily

pedronomix wrote: »

Simples, if your self employed status is your only income, you need to pay a minimum €500 per annum in PRSI contributions. this is normally done at annual return time, top up if needed!

Thanks a lot pedronomix,

That is exactly what I wanted to to know, there is only one question left: if I missed paying prsi for the last few years can I top up now ?

pedronomix

Depends on your age and number of contribution made to date. Ring local SW office with your PPS no and they will tell you exactly!

Luckily

Great ! Thanks a million pedronomix !