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RE: Business Expenses - Impact on Earnings

  • 20-08-2014 3:33pm
    #1
    Generic
    Registered Users, Registered Users 2 Posts: 4 ✭


    I have to apologise in advance for what some may consider a ridiculous question from someone starting up their own business!

    I'm about to start my own company and I just can't get my noggin around the impact of business expenses (i.e. expenses I intend to claim from the company related to mileage, stationary, etc.)

    I am trying to figure out how business expenses impact on either the company or my own personal earnings.

    Take for example the company is paid 10,000 per month (before tax) and I wish to claim business expenses of 2,000. Is the 2,000 taken from the 10,000 before tax or after the tax has been calculated. I am presuming expenses impact therefore on the profit of the company?

    I should add that it will be a limited company with a single director holding 100% of the equity.

    Again apologies but for some reason I just can't get around the concept.


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    Tax is calculated on the profit, so the sales less the allowable expenses in the company.

    See extensive coverage of travel expenses paid to Company directors.


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