how much tax on 250 euro an hour?

j2u

hi i was wondering roughly how much the tax man would get of my money if i had a business which charged around 250 euro for an hours work,i would be getting about 50 euros from this and my employee would recieve the rest,thats the plan anyway but when i set up this business i of course want it all legal and legitimate so i need to know how much out of that will the tax man get his hands on?any rough ideas anyone?thanks

county

why would your employee get 200 and you only 50?

patsyh

How long is a piece of string, need more info.

For example as he is your employee you have to deduct paye and prsi, so therefore if you have agread to pay your employee the €200 into his hand and he is on the high rate of tax you will have to pay about the same amount again to the revenue

j2u

ok the business is going to be like a dating business,where the customer pays up to 250 an hour to spend time with mostly ladies or males of there choice for attending dinner dates and functions.so i suppose you could calll it an escort service but if anything of a sexual nature occurs then thats between the customer and my employee .now with this sort of business i could run it perhaps without the taxman ever finding out but i dont want to do this ,i want it to be legitimate so i am protected rather than persecuted by the law.so looking at the competition i would have to be paying my employee at least 200 euro ,and we would be charging the customer 250 euro.so after i was to register this business what rate of tax would i have to payfor my employee?would be 42% Or higher?how much prsi has to be paid and how do i go about this?so can anybody help me further now?thanks

smcgiff

@ €250 it would seem (to an innocent such as myself) that sex was implied in the fee.

Okay - I think we can forget about the lower rate of tax here. Assuming you get a PAYE number (I'd like to be a fly on the wall when the revenue official gets your application to register the business).

Assuming you will get your "employees" to register for tax credits, the revenue will then forward you their tax credits. Really - If you're going leggit and allowed to you will be able to afford an accountant to do this for you. You will have to deduct (and pay over to the Revenue!) PRSI & PAYE. Note - Just because an employee pays at the marginal rate of 42% doesn't mean they pay 42% on all of their income. Complicated? Yes? - get an accountant.

Oh, and you might want to tell your employees that any expenses they incur wholly and exclusively for their employment can be deducted as an expense (just keep the Anne Summers receipts!)

How are you going to answer the following question when registering for tax
Give a description of trade.

Simply... OLDEST ?

Finally - Sorry if I've come across flippant, it's just...well, at least I answered.

mick.fr

smcgiff wrote:

Oh, and you might want to tell your employees that any expenses they incur wholly and exclusively for their employment can be deducted as an expense (just keep the Anne Summers receipts!)

Can we get condoms and tissues expenses refunded lol ?

mick.fr

There are many escort girl agency in Dublin, all under 250 / hour anyway.
On their website I have not seen any information regarding their legal status (Ltd, VAT number...).

chump

mick.fr wrote:

There are many escort girl agency in Dublin, all under 250 / hour anyway.
On their website I have not seen any information regarding their legal status (Ltd, VAT number...).

What would one get for a fiver?

mick.fr

chump wrote:

What would one get for a fiver?

Not sure to understand ?
Can you rephrase for the poor frenchie that I am.
Thanks

j2u

mick.fr wrote:

There are many escort girl agency in Dublin, all under 250 / hour anyway.
On their website I have not seen any information regarding their legal status (Ltd, VAT number...).

Can u show me one? at best i have seen is 200 an hour and thats from independant escorts.anyway im not here to ask opinions just info and guidance.like i previously said anything that happen sexually is nothing to do with me,having sex with the clients is not a gaurantee just a provactive suggestion at most and thats all its going to be advertised as if that is what my employee wants and agrees to .for example if u see a profile for a woma on a dating website and it says that she likes sex and is a demon in the bedroom does that completly gaurantee that she will have sex with u on your first date?no of course not and this is no different.and i am aware that i will need to get an accoountant but first i just want a rough idea if i have to paye paye and prsi after all that and were charging 250 but i have to give 200 to my employee how much will i be looking at getting??

mick.fr

We know what an escort girl does, you do not need to insist on the sex thing, we GOT you,
Lets move on.
If she is an employee I guess the classic thing would apply, like any other employee.

MartMax

hiya

let's just say that you are just being the middle person and receive the €50 commission on each hour assignment. if you are doing business in capacity of a company, you'd have to pay tax at a standard rate of 12.5%. or rather as a sole trader, you'd be paying income tax 20% and 41% on certain threshold of your income.

as for the girls, let them do their tax returns themselves - being self-employed.

good luck with the "venture."

gosh i need sleep.

Marty

j2u

If i had a website that also was an adult website filming adult films would i be able to put the rental cost of the studio / room on expense and claim taxback for it?

patsyh

j2u wrote:

i just want a rough idea if i have to paye paye and prsi after all that and were charging 250 but i have to give 200 to my employee how much will i be looking at getting??

patsyh wrote:

How long is a piece of string, need more info.

For example as he is your employee you have to deduct paye and prsi, so therefore if you have agread to pay your employee the €200 into his hand and he is on the high rate of tax you will have to pay about the same amount again to the revenue

Doubt going legit will work for you because:
1. the girl is going to expect €200 cash and the revenue are going to want virtually the same amount of you for her PAYE, her PRSI and your Employer PRSI.
2. Doubt she'll want to give you her PPS number so that you can register her as an employee because she wont want her PPS number anywhere near a tax office because of her trade(ie doubt she is declaring her income).

End of my FREE advise, honestly dont be such a scab, go talk to an accountant, you cant trust 20 "internet" people giving 20 different opinions most being based on a conversation with somebody giving out about PAYE in their local.