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Claiming deductions on employment income

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  • 16-10-2020 4:24pm
    #1
    theglobe
    Registered Users Posts: 300 ✭✭


    My accountant has told me that 'Unfortunately you cannot claim any deductions as it is employment income, and such expenses are only allowable against trading income as far as I know.'

    I own a company in the United States but run it in Ireland and pay taxes here. I would like clarification on the above if possible please?

    My partner runs the business from the UK and is allowed deductions in the UK.


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    #2
    marizpan
    Registered Users Posts: 443 ✭✭marizpan


    You are receiving a directors salary from the US company?
    Is the company not claiming the expenses that are wholly and exclusively incurred for you carrying out your duties?


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    #3
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    marizpan wrote: »
    You are receiving a directors salary from the US company?
    Is the company not claiming the expenses that are wholly and exclusively incurred for you carrying out your duties?


    Yes, I receive dividends/salary throughout the year.

    The company doesn't incur stuff like office equipment, Irish accountancy fee.


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    #4
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    theglobe wrote: »
    Yes, I receive dividends/salary throughout the year.

    The company doesn't incur stuff like office equipment, Irish accountancy fee.
    Then what exactly are you thinking of deducting?


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    #5
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,026 Mod ✭✭✭✭Jim2007


    theglobe wrote: »
    Yes, I receive dividends/salary throughout the year.

    The company doesn't incur stuff like office equipment, Irish accountancy fee.


    There is something off about your whole situation... perhaps yo need to rephrase the question.


    If the company has nothing to do economically with Ireland, then one would expect you receive a salary and dividends from the company, plus you are reimbursed for your out of pocket expenses like other employees and the company could supply you with home office equipment like many others do.


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    #6
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    Jim2007 wrote: »


    There is something off about your whole situation... perhaps yo need to rephrase the question.


    If the company has nothing to do economically with Ireland, then one would expect you receive a salary and dividends from the company, plus you are reimbursed for your out of pocket expenses like other employees and the company could supply you with home office equipment like many others do.

    I am not actually reimbursed for out of pocket expenses through the company, I generally put stuff like office chairs on my personal card. Should I just buy everything through the company going forward?


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    #7
    bobmalooka
    Registered Users Posts: 1,521 ✭✭✭bobmalooka


    theglobe wrote: »
    I am not actually reimbursed for out of pocket expenses through the company, I generally put stuff like office chairs on my personal card. Should I just buy everything through the company going forward?

    The scenario isnt completely clear to me TBH, but in most cases that would be sensible.

    You should talk to your accountant.

    Possibly a case of client expectation and accountants scope of work not being aligned. - you might need some advice on how to efficiently manage your expenses. This possibly isn’t covered (I would guess) if they are purely filing your tax returns based on the info you provide.

    Again, talk to your accountant.


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