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New business and paying Tax

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  • 25-07-2005 3:52pm
    #1
    startupco
    Closed Accounts Posts: 1 ✭


    I have just set up a company, I am the only employee, so I am paying myself a wage from my company account into my own personal account, my accountant said to keep as much money in the company account as I can, so at the end of the year the money left in the company account only gets taxed at 12%, others are saying that there accountant told them to leave as little as possible in the company account, I am confused, I am meeting my accountant next week to discuss but if anybody has any advise before then that would be great :)


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    #2
    kluivert
    Registered Users Posts: 2,399 ✭✭✭kluivert


    I am a trainee and slighty confused by that. It is your profits that will be subjected to corporation tax of 12.5%. and not the balance of the business current account.

    You as a director will be subjected to paye and prsi (S Class) for directors emoluments. Who is the other director of the company? PM me if you got any enquiries and hopefully ill be able to answer them but your accountant should be able to provide you with timing accurate up date information for you.

    In addition to this please do a small amount of research into taxation of a company and paye/prsi, so when you attend a meeting with her accountant you wont be sitting there nodding your head wondering what the hell is he/she talking about. Check out revenue.ie or startingabusinessinireland.com or google them to get the exact website address.


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    #3
    ck1
    Registered Users Posts: 123 ✭✭ck1


    I agree with kluivert but just one little point regarding retaining monies in company accounts. Rental income undistributed at the end of the year is quite heavily taxed, I think its around 20%.


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    #4
    raxall
    Closed Accounts Posts: 19 ✭raxall


    this is a good lesson to learn, never to trust anyone...

    accountants can be after your $$ as well and not your best interests :mad:


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