With companies being used by farmers, the following are important:
Ensure you lodge your corporation tax return on time.A late return can result in penalties and loss of reliefs.Ensure that the company pays you a salary. This will enable you to get benefits paid for by the company.Benefits
Let the company pay your:
Health insurance bill.Life insurance. Club subscription.The benefit will be taxed on your salary, which will be taxed as a cost to the company. If you take out the funds yourself and pay yourself, it will cost you more in tax.
44. Family wages:
You can pay wages to your family if they are involved in the business. Ensure that you are paying the correct rate of PRSI.
45. Annual small benefit:
The company can pay you or any of its employees a one-off voucher of €500 each year tax- and PRSI-free.
46. EIIS:
Can you raise funds to invest in your company and allow the investors avail of EIIS? Do you or your family have off-farm income?
If invested in the business, this money could allow you to expand, purchase land etc.
Very strict rules and conditions apply but if the conditions are met, tax relief is available subject to annual and an overall limit.
You can no longer avail of this scheme in a company which you, or a family member, controls.
47. Motor expenses:
Have you a private car? Review whether it is best to have it as a company car or to claim mileage for business travel.
A company car, where the company pays all the cost including replacement and running, may suit you.
48. Tax payment:
Could you structure your tax credits on your salary in such a way that most, if not all, of your personal tax liability is paid by the company, allowing the company to get a tax deduction for the amount paid.
Preliminary tax is due on the ninth month after the company’s accounts year ends. Pay the correct amount.
49. Forestry:
If carrying on planting of forestry through the company, remember that clearfell is liable to CGT in the company.
The CGT exemption does not apply to a company.
50. Rent land to
the company
Review the rental of land to the company. A payment of salary is a better option.
Read more
Top 50 tax saving tips: VAT
Top 50 taxing saving tips: Capital gain tax
Top 50 tax saving tips: income tax
With companies being used by farmers, the following are important:
Ensure you lodge your corporation tax return on time.A late return can result in penalties and loss of reliefs.Ensure that the company pays you a salary. This will enable you to get benefits paid for by the company.Benefits
Let the company pay your:
Health insurance bill.Life insurance. Club subscription.The benefit will be taxed on your salary, which will be taxed as a cost to the company. If you take out the funds yourself and pay yourself, it will cost you more in tax.
44. Family wages:
You can pay wages to your family if they are involved in the business. Ensure that you are paying the correct rate of PRSI.
45. Annual small benefit:
The company can pay you or any of its employees a one-off voucher of €500 each year tax- and PRSI-free.
46. EIIS:
Can you raise funds to invest in your company and allow the investors avail of EIIS? Do you or your family have off-farm income?
If invested in the business, this money could allow you to expand, purchase land etc.
Very strict rules and conditions apply but if the conditions are met, tax relief is available subject to annual and an overall limit.
You can no longer avail of this scheme in a company which you, or a family member, controls.
47. Motor expenses:
Have you a private car? Review whether it is best to have it as a company car or to claim mileage for business travel.
A company car, where the company pays all the cost including replacement and running, may suit you.
48. Tax payment:
Could you structure your tax credits on your salary in such a way that most, if not all, of your personal tax liability is paid by the company, allowing the company to get a tax deduction for the amount paid.
Preliminary tax is due on the ninth month after the company’s accounts year ends. Pay the correct amount.
49. Forestry:
If carrying on planting of forestry through the company, remember that clearfell is liable to CGT in the company.
The CGT exemption does not apply to a company.
50. Rent land to
the company
Review the rental of land to the company. A payment of salary is a better option.
Read more
Top 50 tax saving tips: VAT
Top 50 taxing saving tips: Capital gain tax
Top 50 tax saving tips: income tax
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SHARING OPTIONS: