Acquaintance about Tax, PRSI and employing staff
You have to be well aware of the tax structure that you are about to take care of. You have to analyze every financial pain points even before you start your company so that it won’t hurt when the situation arises. You will be liable for a corporation tax provided it is incorporated as a company. If you are a sole trader, then you pay tax under the self-assessment system.
In 2020, self-employed people can claim an Earned Income tax credit of €1,500 (which has increased from €1,150 in 2018 and €1,350 in 2019). This is also open for business owners or managers who are not qualified for a PAYE credit on their salary income.
Startups may get a tax relief on the first three years of corporation tax and the value of the relief will be linked to the amount of employers’ PRSI paid by a company in an accounting period subject to a maximum of €5,000 per employee.
You must register for PAYE and PRSI with Revenue, if you are starting up a business and choose to employ the workforce.
So if you are about to start your business journey, then you are exactly at the right place. Our pioneers in Company formation can help you to tie up the loose ends, address the legal issues and help you to go forward in accordance with Ireland’s government rules and regulations.
Visit TASC Accountants to experience the best company formation services in Ireland.