So how is it done??

00lk

Hi
I recently started working as a contract engineer for a company. Up until now I was always a PAYE worker. I’ve had to set up my own ltd company (as required by the recruitment agent??) and invoice my hours worked.
However I’ve since found out that I will be heavily taxed on the wages I take from my business bank a/c and the advice I got was to claim mileage expenses etc as this is tax free.
I would be grateful if anyone else in this situation can offer advice as to the best way to get access to the money in the business a/c without paying so much tax. Legally of course
I’m Male 25 and single, no house, 1 small car loan if that makes any difference. thanks

dbran

Hi OOIK

As you know you can claim mileage rates as an expense of the company and these amounts can be reimbursed to you tax free. These rates can be got if you do a search of the revenue site www.revenue.ie. There are various different rates to use based on engine cc, etc.

You will need to keep a records of the mileage that you do so you can justify it to the revenue in the case of an audit. This should tie into where you are working at each particular time etc.

As a company you will also be entitled to claim all the expenses necessary to carry out the business, eg a portion of light and heat, repairs, equipment etc.

PM me if you wish to go into this any further.


DB

byrne0f56789

You should hire an accountant. You can get a great deal in the current environment.

Hanley

If you're out of your normal place of work, as I imagine you would be as a contractor, you can probably claim food allowances too.