Tax infos, much appreciated

Flatlinezor

Hello!

I have been doing several trips to Revenue in the city of Galway and some things are still not clear. Please if anyone can help/offer services/recommend services, please do so.

I am a single individual, a full time employee where I get over the 40% tax band rate by my salary there alone and they pay FULL PRSI and everything obviously. I founded a company here in Ireland beside my full employment and I am the only employee of that company, the director. Being self employed there and paying myself a very low amount of 500 euros per month. I have already let revenue know I am working there "as well" and according to them the next time I have to care about tax for me as an individual will be next October (2017 October) which is okay and I understand that, to self-assess for the 2016 period. The company I founded (2016 May) I employ myself only from June 2016 so that will be a 7 months period of 500 euros.

I am registered for VAT through the company since it is a Limited company. Now, the VAT return filings are new to me, I just got a letter from the collector comissioner that I missed the first 2 month period. I called them, I apologized since this is all new to me (and I had only selling/purchasing to EU countries so I am NIL to report in all that regard) and I have initiated to do a ROS profile for the company (and myself as well as an individual for next October's income tax filings). The VAT filings should be straightforward enough because:

I am using an online payroll and accounting software. Basically all my invoices and purchase invoices are kept and I have all bank statements and everything neatly tracked in the software, it even can do VAT return details.

So basically my question is, first of all Revenue told me there is a new thing in 2016 which allows me as being self employed to not have to tax the first 3500 EUR on my income which sounds superb but I don't find any sign of that online but they assured me it is not the single individual + paye tax credit. I had the assumption that since I am over 40% band rate already through my main employment, all the income I am gonna get from being Self Employed will be taxed 40% immediately. Bear in mind that if that is true, I am absolutely shocked anyone would wanna do something extra because it is just not worth the effort since the government takes half of it.. If that 3500 "tax credit" of some sort as a self employed individual is really something that exists, can someone tell me what is it?

Also, about PRSI. I am the director in my company, how does that differ in a way payroll runs should be done? I think all I should do is to pay CLASS S PRSI on the 500 per month and the USC and that is it. Am I correct in this? Also, if getting a salary of 500 would mean I lose most of it, is there a way to somehow transfer that to pay me out in dividends, or any other way that might be better for tax purposes? I have no shares in the company but it can be arranged of course if needed. (The owner of the company has 100% of the shares but he is not involved in day to day operations, I am basically the boss.)

I don't mind paying for someone to look over these. The company basically deals with outsourcing 3D Modeling work throughout Europe, so basically I have 10-12 invoices a year having a turnover of 100k approximately, I am as of a conductor that connects demand for 3D work with supply from artists all around Europe. The purchase invoices the same, whatever I sell I obviously buy lower and the remaining money is profit which I will tax as 12% as far as I know next October for the 2016 period. Is this correct as well? Apart from Corporation tax, will I need to pay anything else?

Much appreciated guys, hopefully someone ha some insight....

PS: Sorry for the double post outside the Galway city topic

westgolf

You need to bring all of the above information plus supporting documentation to a good accountant with a specialism in taxation. He will set you up correctly with revenue, get you up to date and flag what you need to do going forward. Probably charge in the region of €300 for the job but its well worth it. Use the same guy each october to do your return and its straightforward from there.

PM me if you want the name of a good firm..no connection just a satisfied and ongoing client of said firm.

Mrs OBumble

+1 to the accountant

The 3500 thing is not a regular tax credit. It's something to do with a tax relief for people who start new businesses - you get a certain amount of your previous years salary tax free (or something - I've heard about it, but not taken notice of the details).

Flatlinezor

Hmm good to know, if anyone might have more info on it (I am sure the accountant will have) let me know though till I get to the guy/gal.

Cheers!

Isaac26

How much would it cost me to tax and insured my Nissan 350z 2005

gerrybbadd

Isaac26 wrote: »

How much would it cost me to tax and insured my Nissan 350z 2005

Wouldn't you be better asking..... maybe an insurance company?