Umbrella or PLC (or any other means!) to maximise this payslip

aallaann

Hello,

I contract through an umbrella company. I was hoping someone could look through the typical pay slip below and tell me if it's worth forming a company and paying an accountant and whatever else is involved.

I've got to try and find the best way to maximise what I get. I worked an additional 30 hours last month compared with the previous to try and up my take home ... €17 out of each of those additional hours went on tax, leaving me to take home just €5.

So, if working harder isn't a viable option to increase my salary, I guess I need to find out how to do it smarter.

My accounting and tax knowledge is very limited so I do appreciate your patience in your replies.

Invoice Amount: (3623.15)
Less Expenses:
  Umbrella company fee (85.00)
  Employers PRSI (343.43)
Taxable Salary (3194.72)
Income tax (735.83)
Less annual personal tax credits
  Monthly tax credits deducted 302 (301.67)
  Additional unused cumulative tax credits (96.89)
PAYE (337.28)
PRSI Class A1 or A2 (105.75)
USC (166.84)
Total tax payable (609.87)
Net salary before expenses (2584.85)
Plus expenses (0.00)
Net Take Home Pay (2584.85)
Effective Tax Rate (28.66%)

Mr. Incognito

Read the charter.

Specific advice is a no no- 1st warning and lock.

Also if you set up a company you pay corporation tax AND then income tax when you extract profits so it you want an effective tax rate of 60-70% on your earnings go right ahead.