Extra work, tax options..?

piobhan

Hi

I’ve recenly taken on some extra work from my employer.
It’s a small private company. My annual income is approx 38k per year.

He valued the work at 75 euro, he didn’t take into consideration that to give me a net increase of €75 it would cost him closer to €135. (Continuing to pay me 135 extra a week isn’t an option)

I like this extra work and would like to keep it up as it’s a nice bit extra and has come at a good time with house work etc.

What are the options? Just take a gross increase of 75 per week or is there a more tax efficient way?

Ideally I would like a company car, is it possible to use this extra work and the gross increase of €75 per week towards that in some way?

Thanks for any help

Calahonda52

If he wont wear the 135 then a co car is a non runner.

Monthly lease payments would be 500+ euros a month for him plus tax insurance.
Then you would pay BIK on the momo at 30% of the OMV of the momo
This gets added to you pay and taxed at your top rate
so if the momo is 30,000 OMV the BIK is 9,000 at 50% for tax psi/usc/etc so 4500 per annum

ps the above assumes little business mileage, IIRC you need to be doing 40,000 km plus per annum to make any serious dent in the BIK
https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/private-use-of-company-cars/how-to-calculate-the-value-of-the-benefit.aspx