IT Contractor P30 returns

[paulod]

Hi,

I started a Limited Company last October and after finally getting setup on ROS need to submit monthly p30's. I am IT contracting getting a daily rate.
I am the proprietory Director.

Can someone please advice on my calculations.
I still find expenses a grey area so will leave those out for the present but they will be minimal.
Lets say the company takes in 70k a year from invoicing excluding VAT.

I want to draw maximum salary from the company.
Have submitted p11 to revenue and have have received csv file with tax credits etc and am registered as an Employee.
Would the easiest thing to to to calculate monthly tax be:

20% of yearly tax cutoff rate (41763)
41% of yearly higher tax rate (70000 - 41763)
USC and PRSI class s

Divide all this by 12 and submit monthly returns for this?

Down the road how would I claim expenses off the company if there is no money in the company? Take expenses out of Gross Company income and pay myself a smaller salary?

Any help is much appreciated and anything I am missing.

 

[Capefear]

.

gross pay 70000
paye 16629.77
USC 4218.80
PRSI 2800
Net Pay 46351.4

based on the figures you have giving above, your p30 monthly would be
paye 1385.81
PRSI 584.90
total p30 1970.71

check deloitte.ie/tc/ use this site to calculate your payroll.

Expenses: You should read the IT51 & 54 information leaflets from the revenue and become familiar with the civil services expense rates you can claim for mileage and subsistence.

These are generally the only afew ways you can take money out of a company.
1. Expenses that are incurred wholly, exclusively and necessarily in the performance of the duties of the employment.
2. Wages: the more you put through as salary the more tax you pay, so less is best within reason .
3. Pensions: Based on the figures above your net salary is 46K You can pay yourself a salary that is less than this thus reducing your tax and then you will have two options:
A. You leave this money in the company and pay corp tax on it and also the close company surcharge or
B. pay this money into your pension and by doing this you dont have to pay corp tax etc. The only thing to take into account with pensions that you are restricted to the amount you can put in each year depending on age.
4. Civil Service mileage and subsistence rates. See IT54 & 51. These are your expenses that you don't need a receipt for but need to keep a diary. A word of warning here, these expenses can be a good way to get money out of the company but don't take the pizzz as was mentioned above its great paying no tax until you have a revenue audit. And according to a tax specialist I was talking to last week the revenue are doing a lot of desk audits on motor expenses & subsistence etc. So you just need to be smart in how you claim these expenses. Eg say you need to stay an over night in a hotel, pay the hotel using your personal laser card. Say the hotel costs you €50.00 you can claim back €140 ( i dont have correct figure to hand) using the civil service overnight rates, once you keep a log in your diary no receipt needs to be kept just who you had the meeting with and you submit and expense form to the company for €140 and your up €90.00.
As I said just be clever and dont talk the pizzz.


HTH

 

[paulod]

Thanks for the reply.

 

[paulod]

Lets say you factor in a few weeks holidays over the year into your Gross pay, meaning it will be reduced from say 70,000 to 67,000 but you continue to make p30 returns based on the 70k figure, Monthly . How does this tax get adjusted at end of year? Is it adjusted based on your end of year accounts by revenue? Or is it up to you to reclaim the extra tax paid? Also how would you advise adjusting for expenses that you know for sure are wholly for the business? Would you deduct for that month from the gross figure earned and calculate tax on the remaining figure for that month? Many thanks

 

[Yakuza]

If you've overpaid income tax over the year, this will be refunded by revenue when you file your income tax return - you might have doctors vists etc to claim back some relief on. They're fairly quick about getting a cheque out as well.