Your favourite way to take cash from your business

A

Amberleigh

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Was a sole trader until v recently. Now running ltd company. Looking for ways to take money from business in tax efficient manner. A great resource for me has been talking to other business owners who all have little tips to go about doing this (like the €500 vouchers for example).

As a sole trader I am used to simply setting aside money for tax and living off what's left over, but now as company director I have been advised to take a salary of around 30k, which is enough to live on, but a lot lower than before, so looking for ways to supplement this.

What is your favourite hack for taking money from a business?

And maybe this doesn't exist, but are there any resources (blog, book etc) that provides an exhaustive list of the ways money may be taken out of a business by a director.

My accountant clutches her pearls every time I ask about this ¯\_(ツ)_/¯
 
Amberleigh said:
Was a sole trader until v recently. Now running ltd company.
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And what did the accountant or tax consultant who advised you to become a limited company advise?

Tax planning is not like removing wine stains from silk shirts. It's not question of hacks found on websites. It's something that should have taken place when you set up the company and which you should keep under review.

Brendan
 
Professional training
Justified equipment
Pension contributions
€1000 per year voucher per employee
 
Always Learning said:
Add travel expenses to that.
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Thats debatable, depending on the contract.
For example if in IT contracting, if your "place of work" for the contract is Dublin, travel to and from that location is not an allowable expense.
If I need to go to Cork for an ad-hoc arrangement, that is allowable.
Accountant should advise on this.
 
AndroidMan said:
Thats debatable, depending on the contract.
For example if in IT contracting, if your "place of work" for the contract is Dublin, travel to and from that location is not an allowable expense.
If I need to go to Cork for an ad-hoc arrangement, that is allowable.
Accountant should advise on this.
Click to expand...
It is definitely debatable but I get the impression the op is looking at all possible options that one might use.
 
Sometimes you may need to stay overnight in a hotel in Dublin for a "business" event, in which case you will need to feed yourself also.
 
Its pretty simple when it comes down to it:

1. 1000 euro voucher per year
2. Pension
3. Business expenses
4. Salary

There's literally nothing else? So increase your salary / pension or keep the money in the business. One thing you should note is that there is huge limits for pension contributions now as a Ltd. company so you could be throwing a lot of your spare money into your pension tax free.
 
If your business is very cash generative and you have maxed your pension contributions then it may be worth considering a company vehicle.
 
Speaking to a contractor in Benelux area recently (who has his own ltd company).

He owns his house, works from home, and is able to rent out a room in his house as "office space" to his company, and decides on a reasonable rent to charge. All above board, there were some requirements on this from their revenue side alright, one was regarding the office having it's own private lock and key I think.

Is anything like that possible here?
 
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schrijn said:
Speaking to a contractor in Benelux area recently (who has his own ltd company).

He owns his house, works from home, and is able to rent out a room in his house as "office space" to his company, and decides on a reasonable rent to charge.
Click to expand...
Does he pay tax on this rental income?
 
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