investing tax free?

G

goose

Registered User
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Hi All
this is my first post, though I have been reading the site for a while.
Question is: I have received a bonus payment as a consultant in the region of 10K.

I would like to invest this money medium term may be 5 - 7 years.
10K is Gross and no tax has yet been paid my question is can I invest this 10K without having to pay self employed tax ?

I am not considered at the moment about CGT.

thaks in advance.
 
goose said:
10K is Gross and no tax has yet been paid
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How come? As far as I know you would normally be liable for income tax and PRSI on that payment immediately. However maybe you can explain more about how this bonus payment is structured since you are self employed? For example who is making the payment - your own company or somebody else? Is it included as salary from your own company? And so on...
 
Hi clubman,

the payment has been made by another company by means of Software Consultancy Bonus.

I would normally agree with your comment, however I recently read an advert indicating lump sum investments tax free.
so I was just checking if any one else know of these investment oppurtunity.

why was the Thread moved and where was it moved too ?
 
goose said:
however I recently read an advert indicating lump sum investments tax free.
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What was the advertisement for and what tax was it free of? I still suspect that you are liable for income tax and PRSI on the bonus. Unless it was actually paid to your company in which case other taxes may apply. What has your accountant/financial advisor recommended?
why was the Thread moved and where was it moved too ?
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It was moved from the Savings & Investment forum to the Taxation forum because it is more of a tax than a savings/invesyment query. A redirection link remains in the former forum so there is no need to worry about the move.
 
Goose, I don't see how you can avoid tax unless you make a pension contribution or maybe a BES investment?

What advert states lump sum investments are tax free? Was it some kind of Post Office investment? Note that such an ad would refer to the return on the investment being tax free, not the funds used to invest.
 
To be honest clubman I did not read all the detail, only thing I took was it may be possible to do.

How exactly could you use a BES investment to remain tax free ?

you are correct maybe it did relate to the return on investment. but i am familar with CGT on investments so this ad would not have stuck in my mind.

i will try more research and see if I can come up with anything.
 
goose said:
To be honest clubman I did not read all the detail, only thing I took was it may be possible to do.
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Can you find the ad in question and post more details so? Do you remember the company involved?

How exactly could you use a BES investment to remain tax free ?
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You invest in a company under the BES scheme and get your tax back on the money invested. If all goes well you eventually get your money back with a return on the capital invested. However bear in mind that such investments are generally high risk and long term and by running your own business you are probably already undertaking enough investment risk in the area of investing in small startups.
 
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