T
toga
Guest
I have started a business in the services sector about a year ago. It's doing well, has very low overheads (really only premises rental, which is quite cheap), thus most of my takings are profit which is taxable.
My accountant has said that I should form a company. He says that if I were to earn 130,000 Euro per annum gross, that I would pay myself 30,000 and be taxed normally on that and the rest would be taxed at 12.5%. This would leave me paying about 20,000 Euro tax as opposed to about 50,000 (all very rough figures!).
Where is the catch??? How do I access the profits, what do I do with them and are they taxed again before I get my stick paws on them? It all seems to be too good to be true that I simply walk away with the profits!
Apologies for my financial ignorance.
My accountant has said that I should form a company. He says that if I were to earn 130,000 Euro per annum gross, that I would pay myself 30,000 and be taxed normally on that and the rest would be taxed at 12.5%. This would leave me paying about 20,000 Euro tax as opposed to about 50,000 (all very rough figures!).
Where is the catch??? How do I access the profits, what do I do with them and are they taxed again before I get my stick paws on them? It all seems to be too good to be true that I simply walk away with the profits!
Apologies for my financial ignorance.