it probably is prudent to regularise this before end of year and avoid repeating.
Hi BrendanHi peemac
Fully agree with your post apart from the above. Should he not regularise it immediately.
Revenue would not like to see a loan repaid just before year-end, only to be taken out again, just after year-end, as some directors do.
Brendan
That's pretty much it, as far as I can see, Brendan.Thanks Tommy
Just be clear. He took €25k out in March. Let's assume he repays it now, 3 months later.
He should declare BIK of
€25k
@13.5%
x3/12
or €843 benefit
and pay about half of this in tax - say €400.
So the real rate of interest is the marginal tax rate on 13.5% or about 7%
And the company has to pay 20% Income Tax if it's still on the books at the year-end.
Brendan
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?