Reduce Taxes against travel expenses

kk09

I pay enormous amounts of tax / PRSI / Levy every month. As I am working away from my family (with two Kids) I am currently paying (in addition to a mortgage) €400 in Rent a Month, associated Bills & Travel Expenses. My wife is also working. My problem is that it is bearly worth while working after I pay the additional travel, accomodation & so on. Is there any way I can offset the expenses.

Could I set up a company at home and offset the expenses to the company. Would they be allowable expenses (travel 100miles & accomodation [rent not hotel])

If I can't, I think I will just leave work and go home to Social Welfare. Surely it is logical for Gov to have some way of working this out.

Eoin

Are you self employed or a PAYE employee?

kk09

Eoin wrote: »

Are you self employed or a PAYE employee?

PAYE at the minute but only on temporary work at the minute. Have an offer for contract for the rest of year. I want to set that up the best way possible and expect that this is likely to be a full time position. From Tipperary, and working in Dhblin

Eoin

Actually, I don't think it matters either way. Travel to and from a normal place of work is not considered business travel. You can't deduct commuting costs as an employee.

Someone in the Entrepreneurial & Business Management forum might be able to clarify what you can expense if you manage to set up as a sole trader / company - but I think the same would apply, even if your home address was registered as your "business address". But I can move this thread if you want to confirm?

kk09

Eoin wrote: »

Actually, I don't think it matters either way. Travel to and from a normal place of work is not considered business travel. You can't deduct commuting costs as an employee.

Someone in the Entrepreneurial & Business Management forum might be able to clarify what you can expense if you manage to set up as a sole trader / company - but I think the same would apply, even if your home address was registered as your "business address". But I can move this thread if you want to confirm?

If you could please and we will see how we get on. If i was set up as a sole trader and had jobs all over ireland then would rent fall into this.

Eoin

thread moved

GerardKeating

Eoin wrote: »

Actually, I don't think it matters either way. Travel to and from a normal place of work is not considered business travel. You can't deduct commuting costs as an employee.

Someone in the Entrepreneurial & Business Management forum might be able to clarify what you can expense if you manage to set up as a sole trader / company - but I think the same would apply, even if your home address was registered as your "business address". But I can move this thread if you want to confirm?

Cannot remember the specifics, but there was a case against revenue about this a few years ago, if you worked from home, and travel to another location, then you are travelling between work places and can claim, but one would have to document/prove it and work at home a good amount of the time.

Eoin

GerardKeating wrote: »

Cannot remember the specifics, but there was a case against revenue about this a few years ago, if you worked from home, and travel to another location, then you are travelling between work places and can claim, but one would have to document/prove it and work at home a good amount of the time.

Yep, I think that would be a situation where you genuinely do work at home and travel to a customer's office on occasion. Not where you're a contractor working there on a regular basis, as that's then your place of work.

kk09

Eoin wrote: »

GerardKeating wrote: »

Cannot remember the specifics, but there was a case against revenue about this a few years ago, if you worked from home, and travel to another location, then you are travelling between work places and can claim, but one would have to document/prove it and work at home a good amount of the time.

Yep, I think that would be a situation where you genuinely do work at home and travel to a customer's office on occasion. Not where you're a contractor working there on a regular basis, as that's then your place of work.

So basically the Gov would prefer i didn't work and was a burden on the economy rather that work and pay enough tax to cover 3-4 peoples social welfare. That sucks.

Eoin

That's an interesting interpretation anyway.

sandin

Talk to a tax advisor / accountant - they don't cost much and can save you a fortune in tax. My guess here is you are domiciled at location A, work at location B and because of where B is, you must live nearby.
Similar to politicians, my guess would be that reasonable additional expense over and aboard normal living costs would be allowable as expense.

drunkmonkey

Any hope of train or car, I passed roscrea this evening at 6 and was at the red cow before 7. You might be able to claim some milage if driving, all depends on where in tipp your working though.

barneystinson

kk09 wrote: »

So basically the Gov would prefer i didn't work and was a burden on the economy rather that work and pay enough tax to cover 3-4 peoples social welfare. That sucks.

I think it's unfortunate but the reality is that the system is set up on the assumption that the workforce is mobile- the unfortunate reality is that some people are not as mobile as they would like to be. It's the harsh reality that if it isn't economically viable for you to be in this particular job and have to give it up, someone currently on the dole who lives closer will step in to take the job and pay the taxes you're currently paying, and you may end up getting the Social Welfare they were getting. No net loss to the economy, but very different for you.

If this was still the boomtime, you'd simply be able to get a job within a reasonable commute from home, or sell your house in Tipp and move closer to your workplace.

But if you think about it, if everyone was allowed claim a tax deduction for costs of travel to/from work, and/or accomodation to facilitate a long commute, it would be absolute chaos - and Ireland being what it is, practically everyone would tear the arse out of it (while continuing to rant about the Ivor Callely's of this world)...