Income tax changes

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...if the Pension Commission recommendations are implemented, self employed earning over €100,000 will pay a top rate of 61% by 2030, going up to 64.25% by 2040 and settling at 65.35% by 2050.

God help us all if any government feels this is equitable to tax people at that rate. You will see a shortage of doctors, dentists and other professions as it would not be worth their while to work here.
 
Steven Barrett said:
Don't know. they may use taxed income? Don't know how it is taxed in subsequent years. Maybe an accountant on here can answer it.
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I'm not doubting you, it just seems strange that a doctor can't hold working capital for supplies, an extension, that sort of thing.
 
Steven Barrett said:
...if the Pension Commission recommendations are implemented, self employed earning over €100,000 will pay a top rate of 61% by 2030, going up to 64.25% by 2040 and settling at 65.35% by 2050.

God help us all if any government feels this is equitable to tax people at that rate. You will see a shortage of doctors, dentists and other professions as it would not be worth their while to work here.
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But taxing the rich is the solution to all our problems. Haven't you heard?
 
Steven Barrett said:
...if the Pension Commission recommendations are implemented, self employed earning over €100,000 will pay a top rate of 61% by 2030, going up to 64.25% by 2040 and settling at 65.35% by 2050.

God help us all if any government feels this is equitable to tax people at that rate. You will see a shortage of doctors, dentists and other professions as it would not be worth their while to work here.
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If anyone is earning 100k+ self employed could they not just set themselves up as a ltd company?
 
Steven Barrett said:
The Revenue have a longstanding mistrust of the self employed in that they can put things through as expenses that an employee couldn't. But in saying that, company directors can do that too but they aren't hit by this tax. Probably because they can keep their income at €99,999 and put even more through as expenses. Sole traders aren't able to limit the amount of money they take as income.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
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I thought of this thread recently when I dealt with 3 tradespeople doing some home improvement. Each of them (unprompted) offered a discount for cash in hand. I didn't think this was still so common.
 
arbitron said:
I thought of this thread recently when I dealt with 3 tradespeople doing some home improvement. Each of them (unprompted) offered a discount for cash in hand. I didn't think this was still so common.
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Don't charge the customer VAT, so a 19% discount for you. They get cash in hand. If they are sole traders and earning over €100,000, they'd be paying 55% at top rate tax.

It has always continued to go on. Maybe the job you were getting done was small enough for them to hide it rather than a job that would take weeks to do?
 
Steven Barrett said:
Don't charge the customer VAT, so a 19% discount for you. They get cash in hand. If they are sole traders and earning over €100,000, they'd be paying 55% at top rate tax.

It has always continued to go on. Maybe the job you were getting done was small enough for them to hide it rather than a job that would take weeks to do?
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I spoke to a guy running a small fabrication company recently. It's a 5 man operation. He said he's looking for jobs that he can invoice and pay tax on because everyone is looking for a cash discount and he's bugger all income to declare. It's hard to spend €115k on a new BMW X5 while officially earning €40k a year. He's a good republican so I wouldn't report him.
 
Steven Barrett said:
Don't charge the customer VAT, so a 19% discount for you. They get cash in hand. If they are sole traders and earning over €100,000, they'd be paying 55% at top rate tax.

It has always continued to go on. Maybe the job you were getting done was small enough for them to hide it rather than a job that would take weeks to do?
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Yes, all jobs less than a week. One of the discounts offered was about 30%, others were less. I was surprised they just came out with it - I could have been a Revenue inspector for all they knew!
 
arbitron said:
Yes, all jobs less than a week. One of the discounts offered was about 30%, others were less. I was surprised they just came out with it - I could have been a Revenue inspector for all they knew!
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Yea, but you could have been a Gardaí for all they knew.
 
Sarenco said:
Certain professionals (dentists, solicitors, etc) are prohibited by statute from incorporating their businesses.
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Is there some way around this ?
As from memory pretty sure one medical consultant I saw say" joe blogs" had joe blogs ltd or variation thereon on the receipt
and also recall that on the tax defaulters list which usually has a few medical consultants had one person with the same variation .
 
Steven Barrett said:
If you are self employed and earn over €100,000, there is a 3% USC surcharge, meaning you pay 55% in tax. That's pretty high already. A lot of professions can't incorporate to avoid this by being under the PAYE system.

It is grossly unfair when you can be an employee for a multi national and have all the job security of a multi national and not create any employment yourself and pay less tax on a similar salary/ earnings.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
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Self-employed people like me don't have to pay Employers PRSI @ 8.8% on weekly earnings up to €398 and 11.05% on weekly earnings over €398. This is a massive saving in comparison to the 3% USC surcharge. The multinational employee has the Employers PRSI hidden from their payslip but it's still a tax on their wage.

So the true marginal rate for the multinational employee is (40 + 8 + 4 + 11.05) / 111.05 = 56.8%. And that's a marginal tax rate that kicks in at 70k, not 100k.
 
HollowKnight said:
I work in healthcare and refer regularly to medical/surgical consultants - all of them have a LTD company that they 'work for'.
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Revenue came after them big time a few years ago!

www.rte.ie

Revenue collects €19m owed by 128 consultants

Revenue Commissioners have collected more than €19m in tax, late payment interest charges and penalties following an audit of 128 hospital consultants.
www.rte.ie www.rte.ie
 
Purple said:
Isn't it hard to believe that Doctors are subject to the same human frailties as the rest of us.
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To be fair to them, most of them had set up those limited companies on the advice of their professional advisers! Unfortunately for them, Revenue then seems to have either tightened up, or changed its interpretation of the rules! :p Ouch!
 
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