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 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

Contractor setup as a Business

seclachi · 2009-11-19 10:11:24

I was talking to some guys at work, and one mentioned he is setup as his own buisness and he gets the company hes contracting for to pay his buisness instead of paying him a salary. As a matter of interest, whats the benifit of this ? Is there a reduced level of tax ? Does he just pay him self a salary out of the buisness…

19-11-2009 10:11am

#1

seclachi

Closed Accounts Posts: 510 ✭✭✭

Join Date: October 2008

Posts: 468

I was talking to some guys at work, and one mentioned he is setup as his own buisness and he gets the company hes contracting for to pay his buisness instead of paying him a salary. As a matter of interest, whats the benifit of this ? Is there a reduced level of tax ? Does he just pay him self a salary out of the buisness just below the upper tax bracket and save the rest for the buisness ?

0

Comments

#2 19-11-2009 10:16am

3DataModem

Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭

Join Date: March 2008

Posts: 3860

It can be tax efficient.

He can write off a lot of expenses (travel, computer, phone, car) as company business expenses and avoid income tax.

The revenue commissioners have taken a dim view of people who over-exploit this purely to evade tax, but this is only a problem if you are particularly brazen about writing off crazy expenses.

0