I am director of a company and a sole employee. My father is also a director but just in name as i needed two directors. I am also a employtee of another company earning approx 55,000 a year. I have not drawn a wage from the company but there is €20,000 that can be drawn as a wage. I don't want to be taxed at the marginal rate of 41% so was thinking of getting my dad to put the 20,000 as a directors pension (he is 60 years old) and then get the 20,000 in 5 years time rather than getting 10,000 not after tax. Is this possible? will there be no tax on directors pension or does it depend on his existing pension arrangements?
I apologise if these are silly questions but i'm new to this!
Thanks in advance for any help.
I apologise if these are silly questions but i'm new to this!
Thanks in advance for any help.