My accountant recently advised that I incorporate to avail of the 12.5% CT rate. However, I don't personally think I'm turning over enough to justify it. I provide professional advisory and consulting services, and up until last July I also had reasonable PAYE income also coming in. I bit the bullet in August and went full-time sole trader and as a result my turnover nearly doubled in 2018 which led to my accountant suggesting incorporation, but I'll still only turnover around €90 - €100k this year, and if a contract or two is lost it could be as low at €70 - €80k.
I don't yet own a house and I would be looking to draw down a salary of €50-70k so I'm not sure if incorporating is the most sensible thing to do, but I'm finding it hard to identify all the pros and cons from the tax point of view. I have no business debts and will be very unlikely to need to borrow given the type of work I do so limited liability in that respect is of limited value. My main concern is that I'll need the money in the next 3 -5 years to put towards a house so I'll be paying 12.5%CT as it accumulates and then taking it out at the marginal rate, which seems madness.
I've tried searching the forum but a lot of similar threads are very old so apologies if this has been explored elsewhere.
I don't yet own a house and I would be looking to draw down a salary of €50-70k so I'm not sure if incorporating is the most sensible thing to do, but I'm finding it hard to identify all the pros and cons from the tax point of view. I have no business debts and will be very unlikely to need to borrow given the type of work I do so limited liability in that respect is of limited value. My main concern is that I'll need the money in the next 3 -5 years to put towards a house so I'll be paying 12.5%CT as it accumulates and then taking it out at the marginal rate, which seems madness.
I've tried searching the forum but a lot of similar threads are very old so apologies if this has been explored elsewhere.
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