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Is there any way to cut tax?

DaveByDavid · 2021-10-07 19:32:06

I've recently become self employed and am in the top bracket for tax. I've been thinking of becoming a limited company instead but I'm not sure there's much benefit. In the UK they can pay themselves minimum salary and then pay additional money in dividends at lower tax brackets, but I don't think a system like that exists…

07-10-2021 7:32pm

#1

DaveByDavid

Registered Users, Registered Users 2 Posts: 434 ✭✭

Join Date: July 2021

Posts: 414

I've recently become self employed and am in the top bracket for tax.
I've been thinking of becoming a limited company instead but I'm not sure there's much benefit.
In the UK they can pay themselves minimum salary and then pay additional money in dividends at lower tax brackets, but I don't think a system like that exists in Ireland, you would still pay the full 40%.
From what I can tell the main reason to become a business is to get added protection from any legal issues. But in terms of paying tax it would be the same whether I have a business or not.
I know I need to look into paying into a pension because of the tax benefits - just a shame we don't have ISAs over here that work in the same way as UK.
Have I missed anything, is there any way to cut the amount of tax that is paid on all money earned?

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