Accounting question

Viewtodiefor

Here's one for ye accounting gurus out there! Any ideas appreciated.

On the home farm helping out at minute, I have gotten a part time job offer for a three day week of salary 26000 before tax, also thinking of getting a direct debit from the auld lad into my account of 188 per week again before tax,

Any of ye got any ideas of the best way to do this for tax efficiency I.e. Should I go back on the paye system or just get a gross pay and look after my tax yearly? Or any other ideas.

Cheers

viztopia

Viewtodiefor wrote: »

Here's one for ye accounting gurus out there! Any ideas appreciated.

On the home farm helping out at minute, I have gotten a part time job offer for a three day week of salary 26000 before tax, also thinking of getting a direct debit from the auld lad into my account of 188 per week again before tax,

Any of ye got any ideas of the best way to do this for tax efficiency I.e. Should I go back on the paye system or just get a gross pay and look after my tax yearly? Or any other ideas.

Cheers

I don't think you have many options here to be honest. You should have no say in how the part time salary is operated and I would imagine that this will will go through the paye system. Then in relation to any money you receive from your father, this will more than likley be treated as paye income as I don't think that revenue would accept that it could be self employed income.
One thing you could consider is entering a partnership with your father. You could receive a weekly amount here and be taxable on an agreed split of the profits. One major benefit of thus would be that you could offset any potential farming loss against paye income and get a tax refund. Does this make sense?

Viewtodiefor

viztopia wrote: »

Viewtodiefor wrote: »

Here's one for ye accounting gurus out there! Any ideas appreciated.

On the home farm helping out at minute, I have gotten a part time job offer for a three day week of salary 26000 before tax, also thinking of getting a direct debit from the auld lad into my account of 188 per week again before tax,

Any of ye got any ideas of the best way to do this for tax efficiency I.e. Should I go back on the paye system or just get a gross pay and look after my tax yearly? Or any other ideas.

Cheers

I don't think you have many options here to be honest. You should have no say in how the part time salary is operated and I would imagine that this will will go through the paye system. Then in relation to any money you receive from your father, this will more than likley be treated as paye income as I don't think that revenue would accept that it could be self employed income.
One thing you could consider is entering a partnership with your father. You could receive a weekly amount here and be taxable on an agreed split of the profits. One major benefit of thus would be that you could offset any potential farming loss against paye income and get a tax refund. Does this make sense?

Hi vis thanks for d reply! Yes I understand wht your saying about about offsetting the income via a partnership.

If partnership was set up I'm guessing how it operates I get paid a weekly wage and then this is accounted for as labour in accounts? And as p/l shows up with this in it? You are taxed on th p n l figure? Then you can put your off farm income against this.

Also I maybe able to operate in work on a contract basis as Iv been involved with the company for ten yrs in many ways. Would this help if I got paid a fixed amount kinda as a person just brought in and paid a fixed amount