Additional self employed Business Help Required

[005404]

As always thanks in advance for all contributions they are much appreciated and valued.

My background Married PAYE employee earn 61k or so, Wife works 50k, Rental income 20k. Annual accounts done etc.

My concern is for 2 self employed jobs small which I project to earn between 8k low and 15k high side for the year 2019 on current projections.

The jobs are car dependent. My aim is to minimise my tax liabilities via old dormant pension with eagle star and off setting costs ie car services,fuel and after costs use my max pension allowances(I'm in 40's) and have DB pension with employer and contribute about 12/13% currently into AVC's with PAYE job. Thus with remaining unused percentage at my age bracket pay into my old pension to off set tax liabilities.

Ideally I would like to purchase a car and offset the cost against my income from this self employed work. Some advice on this and on what costs etc i can off set against my income would be greatly of interest to me.

So say I earn 10k would this be the correct way to calculate tax

10k earnings
(1500) Fuel (How is this calculated?)
(1200) Service
(200) Tyres
(700) Insurance
(x) Cost of new car(How is this calculated ie 20k car over 5 years 4k per year?)
(300) Clothes
-----
6100
(610)(Pension) (10% )

----
5490
Tax and prsi and USC 52% of 5490

Is my logic correct?

 

[cremeegg]

There are very precise rules about how this is calculated.

Basically you record all the costs of operating the car, being careful to keep the receipts for 6 years, and then deduct the appropriate % from your income as a cost. E.g. if the car cost €5k to run for the year and travelled 10,000 miles. Decide what % is relevant to the business, this will probably be an estimate, Revenue will probably accept 75% if you can demonstrate a high level of use. They will not accept 100%

The cost of buying the car gets tax relief as a capital allowance, the rules are detailed see Revenue site.

Clothes, as opposed to workwear e.g. safety boots helmets, are frowned on by Revenue. They will not accept anything which can be worn outside the work environment.

 

[Ciru75]

You can't claim travel expenses for travelling from your home to this work either.