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Business Plan Wages detail Question

  • 27-11-2014 2:27am
    #1
    EIREHotspur
    Registered Users, Registered Users 2 Posts: 769 ✭✭✭


    I am in the process of doing my Business Plan.

    I am starting off Sole Trader.

    Do I put the wages I would pay myself in under Full Time Staff Wages plus add my PRSI as a % of that.?

    Where is the definitive details of allowances......% of ESB, Tel your allowed etc so as to accurately factor that in?

    thanks


Comments

  • #2
    Gloomtastic!
    Registered Users, Registered Users 2 Posts: 8,826 ✭✭✭Gloomtastic!


    As a sole trader, your annual profit is your salary. Tax and PRSI is calculated from your year-end tax return.

    As for ESB etc. every accountant will tell you differently but if you are working from home and it's two bedroom/one reception room/kitchen, you could claim 25% of your ESB.

    I claim 100% mobile bill and 100% broadband. 0% insurance. 85% car expenses (depending on work/personal usage). 0% mortgage/rent.


  • #3
    EIREHotspur
    Registered Users, Registered Users 2 Posts: 769 ✭✭✭EIREHotspur


    that's a great response.....perfect...thanks for that!


  • #4
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Although what Gloomtastic says above is correct, this is supposed to be a business plan that shows the viability of the business to someone eg a bank, social welfare, an invester etc. and not how much tax you should pay.

    The main point should be to show that the business earns a return for the business owner and main risk taker and that there is enough profit after that to pay back a loan, etc.

    So you should include a reasonable level of salary for yourself as a cost to show that the business is viable. Otherwise your presentation may fail.

    dbran


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