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Putting aside money for the taxman.

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  • 09-02-2019 12:55am
    #1
    [Deleted User]
    Posts: 0 ✭


    Starting this year as self employed. Not great at money management (I'm sure I will get better!) But what I'm wondering is, what is the best way to keep aside money for the tax man at end of year?

    Separate tax account in the bank, invest, credit union or prize bonds?

    I can see pros and cons for all tbh


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    #2
    the_pen_turner
    Registered Users Posts: 7,515 ✭✭✭the_pen_turner


    i have a seperate account. best thing i ever did. every month i send over roughly the right amount to cover the vat . usually a bit more due to rounding it off

    make sure its signed up with revenue andd the accountant instructs them to take it , any refunds go in there too.
    if i buy tools etc the vat taken will be less so that builds up to go towards income tax etc.


    not sure any other options like investing or prize bonds etc are worth it. the money isnt in there long enough to make you anything.


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    #3
    onlinepal100
    Registered Users Posts: 36 ✭onlinepal100


    Totally agree with 1st responder. Unless your ongoing cashflow/business will pay off what you might owe to the Vat man ...keep roughly your net liability in a separate account and pay him/her from there.

    Ensure you maximise what you are entitled to offset against your liability so that you only put the net expected payment aside.


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