Decent IFSC jobs paying 100k + 20% bonus

Cyrus

OU812 wrote: »

Must be 20+ PMs in my place on €700 a day. 220 working day per annum contracts & they're taking home a gross of €150+k a year. Decent accountant will see you take most of that home.

I can't see any accountant could make that happen legally

80s Child

OU812 wrote: »

Not only IFSC. Any niche market will pay more than market rates. Must be 20+ PMs in my place on €700 a day. 220 working day per annum contracts & they're taking home a gross of €150+k a year. Decent accountant will see you take most of that home.

My former boss left us at €180k to go to a Greenfield at €330k with a four year contract. Was in programme management. Wa good at his job though & could tell what management wanted to hear.

Projecting Managing what exactly?

OU812

Cyrus wrote: »

I can't see any accountant could make that happen legally

Putting most of it into a pension pot is perfectly legal

80s Child wrote: »

Projecting Managing what exactly?

Software development in a very niche area for a very large company

dubrov

Well you can only put 15% into a lending when you are less than 30. Thus rises to a maximum of 40% as you get older.

Also, putting money in a pension doesn't avoid tax, it just defers it.

The tax man will get you eventually

srsly78

dubrov wrote: »

Well you can only put 15% into a lending when you are less than 30. Thus rises to a maximum of 40% as you get older.

Also, putting money in a pension doesn't avoid tax, it just defers it.

The tax man will get you eventually

That's for a normal pension, occupational pension has a much higher cap.

Cyrus

OU812 wrote: »

Putting most of it into a pension pot is perfectly legal


Software development in a very niche area for a very large company

putting most of it into a pension pot isnt possible there are caps and then you arent taking it home either.

OU812

Cyrus wrote: »

putting most of it into a pension pot isnt possible there are caps and then you arent taking it home either.

The amount of money a company can contribute to a director’s pension on behalf of a proprietary director can be substantial.

A company may make whatever contributions are necessary to build up a pension fund which will provide a director with a pension of 2/3rds of final pensionable salary – subject to a maximum salary of €150,000 and a maximum fund value of €5.4m.

Therefore, if the company director (self employed contractor), takes an average salary from the company, he can divest the company "profits" into his pension.

They get to take it home at retirement age (subject to the usual taxation at that point). All perfectly legal.

Then of course you've got allowed deductions - VAT on diesel, operating expenses, subsistence etc. All perfectly legal & allowed ways of reducing taxes.

Remember, taxes are like a restaurant bill, you have to pay what's due, but you don't have to tip!

Zascar

100k Salaries are not rare in IT. The IT Sales industry is booming and if you are decent you can make 100k with a few years experience and the right career moves. It does depend on you performing and hitting target but if you overachieve then you can make way more too. If you want to go to London - the standard salary for a good enterprise account manager is £100k base plus the same again in commission - £200k total. Not quite as high here but 100k total including commission is easily doable in this market with many software sales jobs in multinationals. And that's just a normal sales role. Manager/Director/VP Salaries are significantly higher than that as expected.

100k may seem like a huge amount to people on low wages but it's hardly Crystal and Maybachs. The average salary is 45k that's €2,850 after tax a month, 100k takes home just over €5k. So just over 2k a month more - not even double the average salary- so not a massive difference considering the responsibility, stress, pressure and years of hard work to get there. Many think it's lifestyles of the rich and famous on 100k, but that difference is easily gone with slightly nicer things in your life. People think because you are on 100k you are rich and much have a fat bank account, you'd be surprised how many are still out of money at the end of the month. Especially if only one is working. Two average salaries after tax nets more than one person on 100k.

Cyrus

OU812 wrote: »

Therefore, if the company director (self employed contractor), takes an average salary from the company, he can divest the company "profits" into his pension.

They get to take it home at retirement age (subject to the usual taxation at that point). All perfectly legal.

Then of course you've got allowed deductions - VAT on diesel, operating expenses, subsistence etc. All perfectly legal & allowed ways of reducing taxes.

Remember, taxes are like a restaurant bill, you have to pay what's due, but you don't have to tip!

yes sure but two things,

a) its just a deferral of tax and
b) if you just take an average salary then you live the life of someone on an average salary

its hardly worth the hassle.

The deductions you mention above reduce the effective tax rate but not materially.

srsly78

This is not correct. Occupational pension avoids prsi+usc as well as paye. Tax paid later in life could fall into the lower band, so a large difference.

Saying that pensions are 'hardly worth the hassle' is clearly wrong for high earners.

OU812

Cyrus wrote: »

yes sure but two things,

its hardly worth the hassle.

Oh come on!!!

It's hardly worth the hassle to save thousands (or hundreds of thousands over the life of your pension) ??

Cyrus

srsly78 wrote: »

This is not correct. Occupational pension avoids prsi+usc as well as paye. Tax paid later in life could fall into the lower band, so a large difference.

Saying that pensions are 'hardly worth the hassle' is clearly wrong for high earners.

steady on chief, i know exactly how pension contributions work, i max out my allowance every year. Tax paid later in life if its a decent pot will be paid at the higher rate.

The point i was making was that a poster stated you could take home 150k and pay very little tax, if the way to pay very little tax is to pay most of it into a pension then it means you are going to be living on a modest salary today. I am all for providing for your pension but there has to be a balance and if there is you will pay plenty of tax.

Cyrus

OU812 wrote: »

Oh come on!!!

It's hardly worth the hassle to save thousands (or hundreds of thousands over the life of your pension) ??

its hardly worth the hassle to earn 150k and live off less than the average industrial wage was the point.

OU812

Cyrus wrote: »

its hardly worth the hassle to earn 150k and live off less than the average industrial wage was the point.

Who mentioned "less than the average industrial wage"?

It's perfectly possible to have a decent life on €40k a year while another 50k (+) is being put into long term investment. In fact, that's the ideal for most people.

If you do it right, most of your daily expenses are covered - transport, communications, subsistence etc., the basic salary is to allow for living expenses, mortgage, bills, WAM.

Want more? Take more.

Cyrus

OU812 wrote: »

Who mentioned "less than the average industrial wage"?

It's perfectly possible to have a decent life on €40k a year while another 50k (+) is being put into long term investment. In fact, that's the ideal for most people.

If you do it right, most of your daily expenses are covered - transport, communications, subsistence etc., the basic salary is to allow for living expenses, mortgage, bills, WAM.

Want more? Take more.

you said you would take most of it home, to take most of it home you would be taking a pretty small salary for yourself and putting most of it into a pension. Perhaps youd like to give an example of what you actually mean.

To make the money you are talking about you'd need to be one of the main urban hubs, how are you going to get a mortgage and then pay for said mortgage if most of your money is being diverted to a pot that you can access in 20-30 years time?

OU812

I've already explained it.

Maximise your allowable expenses, pay yourself an average salary & your company puts the balance into your pension. You know company directors can have self directive pensions, right? You can put your funds into whatever you want.

To answer your second point, My office is in Dublin, like I said, most of the guys on contract earn about €700 per day - that's an average, some are on slightly less, some are on more. One guy in particular is on €2.5k a day, because he's highly specialised, I don't include him because he'll skew things. Most of them are with us 3+ years with no sign of leaving/changing companies. The majority of them live in Dublin, some commute from further counties, but that's down to themselves. I'd say maybe 75% of them live in Dublin & own their own homes.

Perfectly possible.

I contracted myself for years, & I was able to get a mortgage in Dublin on far less than these guys pull in.

Cyrus

OU812 wrote: »

I've already explained it.

Maximise your allowable expenses, pay yourself an average salary & your company puts the balance into your pension. You know company directors can have self directive pensions, right? You can put your funds into whatever you want.

To answer your second point, My office is in Dublin, like I said, most of the guys on contract earn about €700 per day - that's an average, some are on slightly less, some are on more. One guy in particular is on €2.5k a day, because he's highly specialised, I don't include him because he'll skew things. Most of them are with us 3+ years with no sign of leaving/changing companies. The majority of them live in Dublin, some commute from further counties, but that's down to themselves. I'd say maybe 75% of them live in Dublin & own their own homes.

Perfectly possible.

I contracted myself for years, & I was able to get a mortgage in Dublin on far less than these guys pull in.

i dont see how paying yourself an average salary enables them to get approval for mortgages to buy houses in dublin.

OU812

Cyrus wrote: »

i dont see how paying yourself an average salary enables them to get approval for mortgages to buy houses in dublin.

I don't know your circumstances, wether employed or contractor or your age etc. so it's difficult to frame responses.

However, in my own experience, at the time, as a self employed contractor, I had to supply pay records, bank statements, invoices & pension statements, I had an "income" of €30k with a further €5k in expenses as income (5k freed up same in income of expected expenditure). My spouse was employed & had a slightly higher income.

Once the bank could see that although my personal income was only €35k, my company had higher earnings. I also had approximately the same again going into my pension, which would be there at retirement age (or from age 50), there was no problem getting approved.

My income has gone up considerably since then leaving more disposable income per week, but I've also had income creep as well (larger car, bigger holidays, nicer toys), mortgage payments have fluctuated, but I overpay meaning I'll be finished the term earlier.

If your income is legitimate, there's generally no obstacles.

Cyrus

OU812 wrote: »

I don't know your circumstances, wether employed or contractor or your age etc. so it's difficult to frame responses.

However, in my own experience, at the time, as a self employed contractor, I had to supply pay records, bank statements, invoices & pension statements, I had an "income" of €30k with a further €5k in expenses as income (5k freed up same in income of expected expenditure). My spouse was employed & had a slightly higher income.

Once the bank could see that although my personal income was only €35k, my company had higher earnings. I also had approximately the same again going into my pension, which would be there at retirement age (or from age 50), there was no problem getting approved.

My income has gone up considerably since then leaving more disposable income per week, but I've also had income creep as well (larger car, bigger holidays, nicer toys), mortgage payments have fluctuated, but I overpay meaning I'll be finished the term earlier.

If your income is legitimate, there's generally no obstacles.

Im a paye worker and i have my own house, im not looking for advice more trying to understand how if you are decreasing your income to allow your company fund your pension how that leaves you re mortgage approval.

so what were the bank lending to you on, your income, or your income plus your pension contributions? In todays scenario where you can borrow 3.5x income what are you getting 3.5x of?

OU812

At the time (pre recession), we were granted 4x income, which combined with savings & the additional "banked" funds meant we comfortably qualified for our mortgage.

Probably a different story now, but if you can show (for example) that you have a pension pot of €300k (or thereabouts) which you can draw on in 25+ years, then there shouldn't be an issue.

OU812

OU812 wrote: »

........
Then of course you've got allowed deductions - VAT on diesel, operating expenses, subsistence etc. All perfectly legal & allowed ways of reducing taxes.

.......!

Vat on diesel only applicable to company vehicles...........you'll find most contractors don't have one.

Operating expenses, desk based folk have little to none of these.

Where your normal place of work is is generally where they are Mon to Fri so expenses and subsistence etc is also largely NA.

most folk stopped talking sh1te about such things after 100s of contractors got a severe spanking from revenue 5/6 years ago.......... revenue are happy they've "changed behaviour" now.

OU812

Augeo wrote: »

Vat on diesel only applicable to company vehicles...........you'll find most contractors don't have one.

When I was a contractor, my car was owned by my company (& I owned the company) - totally legitimate

Augeo wrote: »

expenses, desk based folk have little to none of these.

- Contractors have many expenses such as hardware & utility

Augeo wrote: »

your normal place of work is is generally where they are Mon to Fri so expenses and subsistence etc is also largely NA.

. Subsistence applies when away from your registered place of business (which was my office address) - I'm making the assumption the guys I work with have the same arrangements.

Augeo wrote: »

folk stopped talking sh1te about such things after 100s of contractors got a severe spanking from revenue 5/6 years ago.......... revenue are happy they've "changed behaviour" now.

I haven't contracted for a number of years, but my returns were always done on time (never screw with revenue). I've never got a spanking severe or otherwise, maybe I was lucky, maybe I wasn't doing anything I wasn't supposed to.

OU812

OU812 wrote: »

....

. Subsistence applies when away from your registered place of business (which was my office address) - I'm making the assumption the guys I work with have the same arrangements.



I haven't contracted for a number of years, but my returns were always done on time (never screw with revenue). I've never got a spanking severe or otherwise, maybe I was lucky, maybe I wasn't doing anything I wasn't supposed to.

Subsistence does not apply as you say...it applies when you are not at your normal place of work.

You are 100% incorrect on when subsistence applies.

Also when you were throwing 35k into a pension that was approx half of the income...thsts fine. The Ordinary annual contribution actuarial calculations ensure someone hauling in 700/day can't do the same as they'll quickly end up with a pension pot far in excess of 2m.

Lots of what contractors did years ago was incorrect but revenue didn't realise they were largely working desk gigs Mon to Fri in the same clients site.

If you had a company car your bik should have been considerable unless you were claiming to and from normal place of work was business miles which you likely were. Again, such mileage is not business miles for most contractors. ... As they work in the same clients site every day sitting alongside staff folk.

The spanking kicked off iirc approx 2012 direction....lasted about 2 years.

OU812

You're making a lot of assumptions about me without knowing particulars of my situation, but whatever.

Cyrus

the old being a contractor but really being an employee gig is pretty much up since 2012,

https://www.taxassist.ie/resources/show-question-and-answer/id/9/

https://parfreymurphy.ie/revenue-crackdown-on-independent-contractors/

If a director or an employee spends little or no time at their employer’s place of business and all their time, for example, on site, the Revenue Commissioners may argue that the normal place of business of the director is in fact the site and not the employer’s place of business. This would mean that the journeys from home to site are not business journeys from a normal place of work to a site but rather a journey from home to work which of course cannot be reimbursed tax free.

OU812

OU812 wrote: »

You're making a lot of assumptions about me without knowing particulars of my situation, but whatever.

You've alluded to taking a salary of 30k, expenses of 5k, throwing 30k ish into a pension while being a contractor with a company car..... Who reckoned subsistence was applicable when you were away from your registered business address.

I've made little to no assumptions TBH. I'd assume if you reckoned subsistence was applicable then you also reckoned travel from business address to work was business miles. That's the only assumption I've made.

You can of course clarify any wrong assumptions I've made.

AndrewJRenko

OU812 wrote: »

Therefore, if the company director (self employed contractor), takes an average salary from the company, he can divest the company "profits" into his pension.

How do you put profits into your pension without paying corporation tax on the company profit and income tax on the drawing down?

It's not personal money until you have drawn it down.

srsly78

AndrewJRenko wrote: »

How do you put profits into your pension without paying corporation tax on the company profit and income tax on the drawing down?

It's not personal money until you have drawn it down.

You don't put profits into the pension. Rather the company contributes to the occupational pension. The company makes contribution not individual - this way usc+prsi+low limit is avoided. Also it reduces profit and thus corp tax.

AndrewJRenko

srsly78 wrote: »

You don't put profits into the pension. Rather the company contributes to the occupational pension. The company makes contribution not individual - this way usc+prsi+low limit is avoided. Also it reduces profit and thus corp tax.

So it's a normal employer contribution to pension, and subject to all the usual limits of that?

srsly78

AndrewJRenko wrote: »

So it's a normal employer contribution to pension, and subject to all the usual limits of that?

No - occupational pension has different rules.

The limits for personal contributions are the same, but the limits for employer contribution are much much higher.