Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all! We have been experiencing an issue on site where threads have been missing the latest postings. The platform host Vanilla are working on this issue. A workaround that has been used by some is to navigate back from 1 to 10+ pages to re-sync the thread and this will then show the latest posts. Thanks, Mike.
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Declaring Salary

  • 14-03-2015 7:56pm
    #1
    tyler_d
    Registered Users Posts: 70 ✭✭


    Hiya

    I run a company and take a wage out every year and submit my p30 every 3 months.

    I have set up a small company as a partnership and was wondering how i should take money out of the company. Its not alot of money but what is the best approach. Do you just take money and declare this at the end of the tax year with your other income or do you have have to include this in your current p30.

    Thanks

    Aaron


Comments

  • #2
    viztopia
    Closed Accounts Posts: 770 ✭✭✭viztopia


    Any money you take out of the partnership will be drawings and you will not be taxed on this. A set of accounts will have to be prepared for the partnership and the profits split between the partners. You will be taxed on this amount in your personal tax return which will include your paye income so you should budget for tax due in this return at some stage


  • #3
    tyler_d
    Registered Users Posts: 70 ✭✭tyler_d


    Thanks for this. So basically I do my p30 as normal for my other company and then when im doing my personal income return at end of year I mention how much i took out of the partnership. Is this correct?


  • #4
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    tyler_d wrote: »
    Thanks for this. So basically I do my p30 as normal for my other company and then when im doing my personal income return at end of year I mention how much i took out of the partnership. Is this correct?

    No. The salary you draw as employee/director is taxable.

    The PROFIT of the partnership is taxable, on the partners, in the ratio agreed / set out in the partnership agreement. This is regardless of whether ye don't draw a cent out of the partnership.


  • #5
    tyler_d
    Registered Users Posts: 70 ✭✭tyler_d


    Sorry i get ya now. So basically the profit I take out I must declare in my personal income at end of year.


  • #6
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    tyler_d wrote: »
    Sorry i get ya now. So basically the profit I take out I must declare in my personal income at end of year.

    Not the profit you take out. Your SHARE of the profits the partnership makes.

    Lets say it's a shop. Ye turn over a million, gross profit 500k. Pay staff wages, rates, rent etc... and have 100k net profit.

    If the partners don't take a penny, ye pay tax on the 100k (split whatever way ye have agreed).

    If the partners dip into the overdraft or reduce stock levels and extract 160k in cash from the business, the PROFIT is still 100k, and the tax bill is still the same.

    This is basic accounting / tax - if you don't understand it talk to your accountant immediately.


  • Advertisement
  • #7
    tyler_d
    Registered Users Posts: 70 ✭✭tyler_d


    Thanks for that. I will definitely have a chat with him.


  • #8
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    tyler_d wrote: »
    Hiya

    I run a company and take a wage out every year and submit my p30 every 3 months.

    I have set up a small company as a partnership and was wondering how i should take money out of the company. Its not alot of money but what is the best approach. Do you just take money and declare this at the end of the tax year with your other income or do you have have to include this in your current p30.

    Thanks

    Aaron

    partnership or company different rules alltogether


Advertisement