Tax Calculation Thread

Hi Sono;

Im a bit unsure of what your saying (more lack of knowledge on my part).

Currently any Directors company pension payments reduce down my tax liability.

For example if my Gross is 100k and my pension is 24k; my taxable income is now 76k. The pension payments get taken at source (no Tax, PRSI or USC taken out)

Now I have a potential PAYE job offer in pipe works and the option to remain part time in my current role.

This would mean that my PAYE salary is 80k and my Ltd company salary is 40k. I would like to keep up my 24k pension payments.

So I suppose I am trying to weigh up what this would look like tax wise.

No its not all PAYE.

My new role would be PAYE; but existing role is Ltd Company which shall have hours reduced.

where does it say that it's a BIK?

so payroll being done and you get a payslip then which shows your payments/pension/tax deductions?

that is PAYE income. it doesn't matter that you are a director. the only difference could be PRSI band based on whether or not you are a proprietary director

I’m not familiar with the calculator but I’m sure it will give you a close idea alright

Yes, you can go back in and amend the income tax return, after submitting the tax return, once the 1st return has been processed, when you log back in the next time you will be given the option ‘amend’, select that and add whatever expenses that you need to add and submit. An amended Statement of Liability will then issue for the year & any further refund will be transferred to your bank account or if your previous return for that year had an underpayment, the collection method will re-calculate.

Have you received a new tax credit certificate stating your tax credits are reduced by 23 euro? If so then you'll pay 23 euro more PAYE this year. If it's only recently happened then about half that amount was probably collected in one go.

The Receipt Tracker is just basically somewhere to store your receipts so that you don’t have to retain them for 6 years, the amounts on these receipts must be included in your income tax return to claim relief.

Do you do you pay on your figure after allowable expenses etc are deducted

Yes, you pay tax/PRSI/USC on that value- basically on the rental profit.

Hi Folks,

Its quite a while since I've dealt with CGT and never on the sale of a house. Can I ask the following please?

1: As Sale closed on 18/11, I need to have my CGT paid before 15/12/23?

2: Property sold was my wife's former PPR. I can offset the time as PPR against the Taxable Gain?

3: Can Home renovation and other work undertaken while she lived there be used to offset chargeable gain?

4: Can I capitalise the costs of new boiler and white goods that were being depreciated while we were renting out? Can I total up the remaining deprecation and offset against the chargeable gain?

5: As we previously rented out the property we submit Form 11, am I correct in thinking that current CGT liability will need to be declared there via amendment to Form 11 and pay up.

I just want to be certain that any offests she/we may be entitled to are maxed out and that no more than is required in CGT is paid.

Thanks for any pointers on this.

Really appreciate your post, only after I posted did I see a thread with a very similar question that you'd already responded, so a double thanks is well in order.

The tax charge is 20% of the gross wages, less the weekly tax credits leaving the actual tax payable. Eg, gross wages of €600 would be a €120 charge, less weekly credits of €80 leaves tax payable of €40. If your wages were doubled to €1,200 then the charge is €240, less weekly credits of €80 leaves tax payable of €160. You’ll need to submit your 2023 return to get back any tax you have overpaid since the year is over

You should pay Class S PRSI on rental income (as your only source of income) and Class S counts towards the Contributory state pension.