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Tax Calculation Thread

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  • Registered Users Posts: 1,012 ✭✭✭nhg


    You don’t need to do any calculations for Remote Working Relief, the system will do all of that.

    You need to input the amount you paid for each service being claimed for in the year and upload a copy of the bills to match the claim i.e. you upload all electricity, heating & broadband bills for 2022. (In terms of broadband if your supplier also provides you with a tv package, you enter the amount that’s for broadband only but you upload the invoice which displays the full amount including tv)

    You have to enter the number of days you worked remotely in the year. You will also be asked if you received a contribution from your employer, if yes the amount received.

    The system will do the rest.



  • Registered Users Posts: 11,946 ✭✭✭✭GBX


    Super, thanks. Wasn't sure. Appreciate the replies.



  • Registered Users Posts: 10,694 ✭✭✭✭Jamie2k9


    I have a question on WFH releif.

    I rent in Dublin and rent is part of bills so I don't see the bills.

    I was hoping to just claim off my family home's bills even though I didn't make a financial contribution to them via offical channels anyay. I was home during 2020 working remotely and hve access to all the bills in my parants names. I have access to those for 2021/2022 as well.

    I just want to see what revenue would think about this as they say you need to show evidence you contribated.

    Its a pretty small amount probablly less than 100 quid per year but I am just worried if they audited.



  • Registered Users Posts: 456 ✭✭Sono Topolino


    As I understand it, you need to be the account holder to claim the relief. The gas bill here is in my wife’s name and although I contributed towards it i can’t claim the credit.



  • Registered Users Posts: 530 ✭✭✭tmh106


    Does anyone know if the WFH relief is covered under the four year rule or do I have to claim it by Oct 31 of the following year? For example, can I still claim relief for 2021 or am I too late? Thanks.



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  • Registered Users Posts: 4,077 ✭✭✭relax carry on


    It's just like any other credit/relief; you have up to 4 years to claim it by filing/amending your tax return for the relevant tax year.



  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    Lads would anyone be able to do a quick calc for a combined PAYE & Ltd income in a year.


    Income from PAYE would be €80,000

    Income from Ltd 40,000

    Pension Contribution from Ltd 24,000


    High level would do.



    Any advice appreciated.



  • Registered Users Posts: 407 ✭✭Madeoface


    The PWC site has a very quick tax calculator. Try that.



  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    Thanks I am familair with that website its very useful; but it doesnt allow you to include a Directors Pension from the Ltd earnings (That I can see).



    It looks to mee that it only allows Pension contributions from the PAYE income



  • Registered Users Posts: 456 ✭✭Sono Topolino


    Is there a reason you think that a company pension contribution is a BIK? I thought Finance Act 2022 changed that.



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  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    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.



  • Registered Users Posts: 15,921 ✭✭✭✭Seve OB


    what you mean ltd company?

    it's all PAYE surely?



  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    No its not all PAYE.


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



  • Registered Users Posts: 15,921 ✭✭✭✭Seve OB


    explain what you mean by ltd company? most companies are ltd companies

    do you not currently get stopped PAYE from your remuneration there? i don't think you are giving enough information here

    it is confusing because you you even say yourself that pension is being taken at source

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

    this indicates to me that you are being deducted PAYE through your directors remuneration

    of course possible you are issuing invoices and declaring your own tax?



  • Registered Users Posts: 15,921 ✭✭✭✭Seve OB




  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    Apologies for the confusion I'll try to clarify.


    Currently I am a director of a Ltd Company Gross Income is 100K; 24k Pension contribution (directors pension) which is taken at source.

    Taxable income is €76k


    My accountant does my payroll every month and I take a monthly wage from that lets say €6333 (76000/12) for arguments sake.

    Taxes, USC, PRSI are all payed out on above figue no funds left in company. (Maybe not conventional but not illiegal in any way & suits my circumstances)


    The above would be the common for people in my industry up and down the country.



  • Registered Users Posts: 15,921 ✭✭✭✭Seve OB


    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



  • Registered Users Posts: 94 ✭✭Dave_D_Rave


    Cheers Seve looks like we are on the same page now.



    So am I correct in saying that I should treat all my income from Ltd Company and PAYE job as PAYE essentlially when using the PWC Calculator ?



  • Registered Users Posts: 15,921 ✭✭✭✭Seve OB


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



  • Registered Users Posts: 34,573 ✭✭✭✭Hotblack Desiato


    Possibly stupid question but I've finally got around to totting up the family medical expenses for 2020, 21 and 22. Have claimed on MyAccount for previous years no problem, but there's a bit of a complication since Covid.

    I haven't got around to working out how much I can claim for WFH relief for these years, and I probably won't for a good while either. Can I claim the health expenses now and then go back whenever (within the four year limit) to amend the return to add WFH expenses?

    Or as it says I'm making a "tax return" (are they trying to scare the daylights out of PAYE workers or what?) then I'm declaring that all income and reliefs are correct and I can't go back for another bite later?

    Fingal County Council are certainly not competent to be making decisions about the most important piece of infrastructure on the island. They need to stick to badly designed cycle lanes and deciding on whether Mrs Murphy can have her kitchen extension.



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  • Registered Users Posts: 1,012 ✭✭✭nhg


    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.



  • Registered Users Posts: 34,573 ✭✭✭✭Hotblack Desiato


    That's what I was hoping! Thanks a lot @nhg

    Fingal County Council are certainly not competent to be making decisions about the most important piece of infrastructure on the island. They need to stick to badly designed cycle lanes and deciding on whether Mrs Murphy can have her kitchen extension.



  • Registered Users Posts: 50 ✭✭Keith1111


    If I wanted to set up affiliate links and get paid from them how would I go around declaring this income and paying tax on this.



  • Registered Users Posts: 50 ✭✭Keith1111


    Thanks looks like it would fall into the fees and commissions side of it.



  • Moderators, Society & Culture Moderators Posts: 30,657 Mod ✭✭✭✭Faith


    Hi folks,

    I'm a (married, joint assessment for tax) full time PAYE employee and my salary is well into the higher tax band. I've started doing some extra freelance work on the side. I'm trying to figure out how much, in a percentage, that I should be putting away to cover the extra tax due? Equally, I have various costs associated with the freelance side - should I factor that in when calculating tax? The costs would be things like office rental, professional registrations, purchase of equipment and software. As it stands, I'd project earnings of maybe €8K this year and costs of maybe €3K.

    I'll find an accountant to help with the specifics, but for now I just want to be sure I'm putting aside enough money to cover a tax bill in general terms. Thanks!



  • Registered Users Posts: 456 ✭✭Sono Topolino



    The freelance work is trading income and you will have to report it on your tax return. In computing your annual trading income, you are entitled to a deduction for expenses incurred in the course of the trade. Such costs would include office rental, professional registrations and annual software licensing fees (e.g. Microsoft Office). Equipment purchases would likely be considered "capital" in nature, especially if you would use them over the course of a number of years. The same is true if you purchase a software license that entitles you to use the software for an multi-annual or indefinite period of time (e.g. a Microsoft Windows license).

    The other thing to remember is preliminary tax. Once you file your first tax return you will have to pay:

    1. Tax on 100% of the previous year's income (revenue less expenses and capital allowances)
    2. Tax on 90% of the current year or 100% of the previous year's income.

    You can ignore PAYE income in calculating your preliminary tax liability as this is taxed at source. Your first tax return will have to be filed in mid-November of the year following your first year of trading (i.e. November 2024 if you started trading this year), and preliminary tax will be due around that time also. To avoid any surprises, I would therefore hold back at least 55% of your freelance income, being the difference between revenue and expenses (not including capital expenditure).

    I would definitely speak to an accountant about the specifics.



  • Moderators, Society & Culture Moderators Posts: 30,657 Mod ✭✭✭✭Faith




  • Registered Users Posts: 130 ✭✭spalpeen


    Hi,

    I'm a self employed contractor and I work from home doing video consultations on the computer. Can I claim a proportion of rental expenses, electricity, gas, medical registration fees etc? Are these allowable deductions? I believe insurance payments can be deducted from my income also.

    And, if applicable, are these to be deducted to be deducted assessable profit to make a net profit or are they a separate deduction category on the form 11?



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  • Registered Users Posts: 3,246 ✭✭✭ Dylan Scary Overlap


    Might be in the wrong thread but il ask anyway

    im a clerical officer and noticed my wages were down a bit, saw that my paye on my payslip went up in my last two weeks - just noticed on my Revenue account it states PAYE underpayment of minus 23euro...would that why my PAYE increased over the last few weeks..



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