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Income protection for a Director? Executive or regular?

  • 17-09-2015 1:11pm
    #1
    Jesper
    Registered Users Posts: 815 ✭✭✭


    Which should I go for. I'm aware you save corporation tax if I pay directly from the company account. (Ltd company 1 director). But then when I declare it do I need to pay 41% on it as its a form of income?
    So saving of 12.5%.
    Vs. If i pay out my own personal account I've already lost the 41% so I'm only loosing out in the corporation tax saving?

    So makes sense to pay directly from the company account unless I'm missing anything?


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,725 Mod ✭✭✭✭Henry Ford III


    Executive is probably better. C.T. deductable, no B.I.K. It's treated the same as a pension contribution.

    Pay yourself extra income and pay it personally means similar C.T. deduction, but additional PAYE/PRSI costs, offset in part by Income Tax relief.

    Cover is similar, but not always identical.


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