Yeah, but I reckon revenue would have a hard time proving it - in fact an impossible time proving it, unless of course they monitor her every movement and do an analysis of time spent etcwill she actually be doing work seriously? revenue do not appreciate schemes like that being put in place, will you be able to back this up in the case of a revenue audit because they will check it
Wrong way round - Revenue don't have to prove that she is not a legitimate employee - You have to prove that she is.Glenbhoy said:Yeah, but I reckon revenue would have a hard time proving it - in fact an impossible time proving it, unless of course they monitor her every movement and do an analysis of time spent etc![]()
Dell_Boy said:I have my only Ltd company. Is it possible I could pay my girlfriend (who is a student) a certain amount tax free and therefore reduce my tax liability?
She will of course be doing admin work for me.
conor_mc said:My question is this - if Dell_Boy wanted to pay any employee (g/f or not) an extraordinarily high hourly rate, what can the Revenue do about it? Surely as long as he complies with minimum wage legislation, Revenue have no right to limit how much an employee can be paid?
ClubMan said:42% tax plus 6% PRSI/health levy (up to the relevant employee limit) plus 10.75% employer PRSI.
I presume that the original query relates to splitting the company owner's current income between him and the girlfriend in order to avail of the latter's tax credits/allowances and thereby pay less tax overall?
If I owned a business I would certainly run this one by my accountant to get an independent, professional opinion on the ins and outs.
ClubMan said:Would such a transaction be assessable for CGT, Capital Acquisitions/Gift Tax and/or stamp duty?
askalot said:It would be assessable for both CGT and stamp duty but I'm assuming that as with all small, 'one man band' limited companies the share captial is something like 1 euro and that Denis O'Brien isn't looking to stage a takeover thereby forcing the value of the shares up.
dam099 said:The nominal value of the shares would be irrelevant for CGT at least I'm sure the Revenue would assign market value to them. Just because the shares are not quoted does not mean their value is the 1 euro par value.
ClubMan said:Becoming a director involves significant responsibilities that people should not take on lightly or without due consideration of all of the implications. I still believe that the best course of action for the original poster is to talk to his accountant/tax advisor to get independent, professional and comprehensive advice on the relevant legitimate tax planning/financial engineering options open to him and his partner.
If this is a limited company then doesn't it require at least two directors at all times? Where there are two directors then each must sign the B10 to "release" the other and appoint a new director if the time comes. In this case one could refuse and insist that they remain on. Casually appointing people directors just for the purposes of avoiding taxes is not very prudent as far as I can see. Once again independent, professional advice on the tax, legal and other implications of such decisions is essential.Helen said:make sure she resigns and you sign up a new director!