Annalee123
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When it comes to pension funding, a year where a director doesn't receive a salary doesn't count as a year of service.Why would you want to take minimum salary? I used to do that as a UK director which made financial sense due to the tax treatment of dividends. But I've never seen it make sense in Ireland where I'm currently a proprietary director.
I think this is correct bit youd want to be careful then if you were taking big expenses. Revenue might question itYou are not obligated to take a salary or payment at all.
...for what purpose exactly?Hello,
If a company proprietary director has sole trader income also and wishes to take as little as possible as a salary from company, what would an acceptable salary be in order to be seen as a bona fide working director? Thank you
Good question. It's hard to understand. It could be for tax reasons although I can't work out how. Or it could be to act as Director on behalf of a relative who is disqualified. Maybe other reasons....for what purpose exactly?
It's not really that hard to understand as being a full time working director is a necessary pre-requisite for certain tax reliefs. If the OP's query is in that context, they'll probably need proper professional advice tailored to their specific circumstances.Good question. It's hard to understand. It could be for tax reasons although I can't work out how. Or it could be to act as Director on behalf of a relative who is disqualified. Maybe other reasons.
But without context, there are circumstances when a Proprietary Director wouldn't take any salary, e.g. because it is a new company with no sales yet.
Assume its Retirement Relief they are referring to here.Out of interest, which tax reliefs? Want to make sure I'm not missing anything!
Thanks. I had forgotten about that. Must store that one in my head for the future.Assume its Retirement Relief they are referring to here.
I don't think so. I suspect it's Entrepreneur Relief. But as we're only guessing as to what their objective is, it could be anything.Assume its Retirement Relief they are referring to here.
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