As a Sole Proprietor - do you need to do annual returns on profit, AND monthly PAYE?

By Marc Sevitz · Updated

If you are drawing a monthly salary from your business being a sole proprietor should you be paying monthly PAYE, as well as company tax on the annual profit? Or should you not be drawing a salary and only live off the profit of your company, but pay annual taxes on the profit?
Also if so, is this provisional tax or annual tax?
TaxTim Marc

TaxTim Marc said:
10 February 2013 at 22:26

The profits of a sole proprietor are taxed in your hands so whether you are paying yourself a salary or just living off the profits you will be paying the same amount of tax, just at different times so it really only affects your cash flow.

At year end you would need to declare all the incomes and expenses of the business on your return and be taxed accordingly.

You would need to register as a provisional taxpayer and submit a IRP6 every 6 months.