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Company expenses

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  • 07-10-2014 1:42pm
    #1
    tendjose
    Registered Users Posts: 295 ✭✭


    If I have a company and I hire a contrator, can I put his invoice on the company expenses and get the 52% back?
    Tagged:


Comments

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    #2
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    what 52%?


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    #3
    thecommander
    Registered Users Posts: 2,537 ✭✭✭thecommander


    Need a bit more detail there


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    #4
    JMR
    Registered Users Posts: 633 ✭✭✭JMR


    Presume you mean.....

    You pay a contractor for doing work for your company out of your own pocket and then have your company reimburse you personally for the expense incurred?

    No problem with that but you cannot reclaim the VAT portion of the invoice as far as I am aware.


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    #5
    tendjose
    Registered Users Posts: 295 ✭✭tendjose


    Ok Imagine my Limited Company wants to calculate my salary for this month.

    During this month I hired a contractor for 15 days and I paid his invoice.

    On my salary calculations I also invoiced one client and I want to take the most money as I can as my salary.

    Because I'm above the 3900€ margin per year I have to pay 40% plus PAYE, PRSI, USC, and all together makes 52% of the gross salary (the total of my invoice without VAT).

    Can I include the full amount of the contractors invoice on my company expenses?


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    #6
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    Short answer, NO. You and your company are two separate tax and legal entities. The only way you could do this is by trading as a sole trader, in which case you and the business activity are a single entity from a legal and taxation standpoint.


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    #7
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Hi OP

    If you are having difficulty getting your head around this then you should speak to your accountant.

    But if you want to claim the subcontractor payment as an expense of the company then the company has less profits to pay out to you as a salary. This therefore means the company will be paying less payroll taxes on the salary. But this is only because there is less profits in the company to begin with and there is therefore less salary. Personally I would rather have more profits and pay more tax then have no profits and pay no tax.

    I think the question that you are really asking is if you should put through an invoice or not. And I think you should know the answer to that already tbh.

    Dbran


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