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Limited Company - tax advice?

  • 24-01-2018 11:21pm
    #1
    Barryphelo
    Registered Users Posts: 7 ✭


    I have been operating as a sole trader for 5 years in the Leisure Hire Business, turnover approx 100k.. looking to set up as a limited company now and seeking advice on how best to structure the accounts etc..
    I want to pay myself a salary but pay the least amount of tax etc.. I have 100 % shares in the company, the wife is the secretary but with 0% shares..
    What is the best salary to pay myself to be most beneficial tax wise? and is there any other benefits of company status I could utilise??


Comments

  • #2
    Bobby1984
    Registered Users, Registered Users 2 Posts: 268 ✭✭Bobby1984


    Hi Barry,

    You say that you are looking to set up as a company but you also say that you have 100%. Is the company already set up?

    There are a number of factors to consider when setting up a company rather than trading through a sole trade. I will highlight some factors worth considering but it would be best to meet an accountant face to face to go through your full scenario in detail.

    1. What is the reason for setting up the company. Is it to avail of limited liability?
    2. Is/was the sole trade making large profits which were getting taxed at the higher rate of tax. Company profits are taxed at 12.5% but monies taken from the company will continue to be taxed at your relevant rate.
    3. Reporting obligations are much more stringent for a company and therefore costs increase. Accounts need to be prepared and sent to the CRO on an annual basis.
    4. What is your standard of living like? Do you need all the monies you earn or could some funds be kept in the company to expand?
    5. What is your future wishes for the business. Do you want to pass it on to children or possibly sell it at some stage?
    6. What age are you? Are you close to retirement? Do you have a pension? One of the most tax efficient methods of withdrawing funds are through pension contributions.

    As I said above, these are only some of the factors to consider and it is best to talk to a financial advisor face to face.


  • #3
    TiGeR KiNgS
    Registered Users, Registered Users 2 Posts: 1,435 ✭✭✭TiGeR KiNgS


    I think the expenses to target are;

    CT
    Rent the business office to the company
    Directors travelling expenses
    Company Pension Plan

    PAYE
    No difference ???


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