# Best Legal Tax avoidance measures



## z104 (21 Aug 2009)

Has anybody got any good suggestions on how to avoid paying tax for the ordinary P.A.Y.E. citizen

The obvious ones are 

1) not to spend your money thus avoiding V.A.T. /duty other stealth taxes
2) Contribute to a pension
3) Not drive a car so avoiding Car tax and v.a.t./ Duty on fuel, V.R.T
4) Claim your tax credits

Has anybody other ways?
I'm guesing ( correct me if i'm wrong)that at least : 60% of a P.A.Y.E. workers pay goes towards paying tax, would be nice to reduce this
especially now that a new water rates tax is proposed along with a property tax so it would be nice to claw some back.

Obviously I do not want to take a reduction in salary..


----------



## callybags (21 Aug 2009)

Take a pay cut...


----------



## jhegarty (21 Aug 2009)

*Re: Best Tax avoidance measures*

Donate all your money to charity.

Have the charity claim tax relief.


----------



## z104 (21 Aug 2009)

How will that put more money in my pocket?


----------



## Slim (21 Aug 2009)

You could shop in Northern Ireland, thereby paying less, no Irish tax and ensuring that your kids won't have jobs when they reach 18.

Don't change your car - pay no more VAT & VRT.

Cut down on drinking and smoking.

Go walking instead of joining a gym - pay no VAT except on the trainers


----------



## z104 (22 Aug 2009)

Slim said:


> You could shop in Northern Ireland, thereby paying less, no Irish tax and ensuring that your kids won't have jobs when they reach 18.


 
The price of goods and services needs to come down so If shopping in the north of Ireland helps bring this about then that's ok with me. 
There will always be demand for good and services, We're just too high.


----------



## John Rambo (23 Aug 2009)

Invest in the production of a film...it's clean, relatively straightforward and the amounts involved aren't astronomical.


----------



## theresa1 (23 Aug 2009)

Dont get a Credit card or have a joint one and half the stamp duty. Also dont use an ATM to withdraw money -save €2.50 and dont have a Laser Card -another €2.50. People can fight back if they are bothered instead of the usual Irish way of just moaning and doing nothing.


----------



## deadlyduck (23 Aug 2009)

You can recover PAYE paid in prior years (up to 6 years) if you are considering setting up in business on your own account- see information about the seed capital scheme here


----------



## Complainer (23 Aug 2009)

Take some tips from how 'the great and the good' of Irish society avoid paying a fair share of tax - see [broken link removed]

Still, we might get a few crumbs dropped from the table when they do their great charidee work.


----------



## Protocol (23 Aug 2009)

Niallers said:


> I'm guesing ( correct me if i'm wrong)that at least : 60% of a P.A.Y.E. workers pay goes towards paying tax
> 
> Obviously I do not want to take a reduction in salary..


 

*Nobody in Ireland pays 60% tax on their income.*


The total tax take by the State in Ireland is approx. 35% of all income.

In terms of income tax, here are some ATRs (Average Tax Rates):

a friend on 18k paid 0%
I pay approx 25% on approx. 60k income
My father paid *5% tax on 72k income*
etc., etc.


----------



## z104 (24 Aug 2009)

You are hit from both sides. You are paying income tax, levy, P.R.S.I. on your Gross income and you also get hit on your net income.

You are not taking into account *V.A.T. on every purchase*, Income levies, Stamp duties, Fuel duties, VRT, V.A.T. on V.R.T. ( Tax on a tax ) Motor tax, e.t.c.


----------



## Bronte (24 Aug 2009)

Complainer said:


> Take some tips from how 'the great and the good' of Irish society avoid paying a fair share of tax - see [broken link removed]
> 
> Still, we might get a few crumbs dropped from the table when they do their great charidee work.


 

That's quite shocking, the four hundered highest earners effectively pay 10% tax.  Also interesting is that the biggest winners in tax schemes were those who invested in the hotel industry, the very same people who now are crying for help, maybe they should give back some of their tax breaks instead.


----------



## Protocol (24 Aug 2009)

Niallers said:


> You are hit from both sides. You are paying income tax, levy, P.R.S.I. on your Gross income and you also get hit on your net income.
> 
> You are not taking into account *V.A.T. on every purchase*, Income levies, Stamp duties, Fuel duties, VRT, V.A.T. on V.R.T. ( Tax on a tax ) Motor tax, e.t.c.


 
Taking all taxes into account, the amount of tax revenue as a % of all income in Ireland is about 33-35%.

See here:

[broken link removed]


----------



## Protocol (24 Aug 2009)

Niallers said:


> You, VRT, V.A.T. on V.R.T. ( Tax on a tax ) Motor tax, e.t.c.


 

Why do people pick on VRT as an example of a "tax on a tax"?


Sure VAT is on alcohol, tobacco and fuel, which already have duty placed on them?


----------



## z104 (24 Aug 2009)

Protocol said:


> Why do people pick on VRT as an example of a "tax on a tax"?
> 
> 
> Sure VAT is on alcohol, tobacco and fuel, which already have duty placed on them?


 

VRT is a huge addition to the price of a car and on top of this you are whalloped by V.A.T. 50% of the cost of a car to the purchaser is tax. VRT - It's ridiculous and probably illegal.


----------



## John Rambo (24 Aug 2009)

All of the following should be considered:

1) Ensure you're claiming all the appropriate tax credits you're entitled too (e.g. PAYE, married/single, home carers, blind, dependant, service charge etc).

2) Ensure you claim tax relief (sadly now at the lower 20% rate) on medical and (non-routine) dental expenses as well as tuition/education fees and maintenance payments imposed by a court. Even check your grocery bills...coeliacs can claim tax relief on their food and some supermarkets (e.g. Superquinn I think) will give you an annual figure if you're a clubcard user.

3) When purchasing a car, bear the (relatively) new CO2/emissions regime in mind and avoid paying a fortune in motor tax. The policies being implemented by the Greens can save you money if you "take the carrot".

4) If you are entitled to mileage expenses, ensure you're paid same (they're tax free).

5) If you're making an investment, consider the possible tax savings. If you're buying and selling shares, do it in most tax efficient manner possible.

6) If you're married, ensure you're being taxed in the most efficient manner possible (e.g. joint etc).

7) As I said earlier, explore the idea of investing in the production of an Irish film...when all's said and done it'll save you approximately €4,000 per annum in tax (assuming you pay enough tax at the higher rate to benefit)


----------



## Gervan (25 Aug 2009)

Marry someone over 65. Annual income under €40,000 tax exempt and you don't have to pay Dirt, even if the one earning it is under 65.


----------



## jeanhib (25 Aug 2009)

Re tax relief for tuition fees does anyone know if i can put down nursery school fees on From 11 ? Are these tuition fees ?


----------



## MandaC (26 Aug 2009)

Bronte said:


> That's quite shocking, the four hundered highest earners effectively pay 10% tax.  Also interesting is that the biggest winners in tax schemes were those who invested in the hotel industry, the very same people who now are crying for help, maybe they should give back some of their tax breaks instead.



Many of these projects will not see out their tax life (7 years), so the allowances will, in effect, be clawed back.


----------



## xeresod (26 Aug 2009)

jeanhib said:


> Re tax relief for tuition fees does anyone know if i can put down nursery school fees on From 11 ? Are these tuition fees ?


 

No, they are not tuition fees. 

Tax relief for tuition fees only apply to certain approved third level courses and only the actual cost of tuition (not registration fees, etc) is allowable. 

See here for more info - might be useful for when junior is a few years older!


----------

