Paying Bonus to get Cash out of Company

Hi,

Basically I am self employed with a Ltd company of which I am a Director.
It is coming up to my company year end and there is cash in the company.
I wish to avoid paying Corp tax on this and then income tax at a later date.
I had thought about sticking the money into a pension but have decided to leave that off for a while yet.
My current idea is to just pay myself a bonus to get the cash out and pay the income tax when my self assessment is due.
I currently pay PAYE/PRSI on a set wage each month so I presume all I do is balance this off in the form 11?

Am I missing anything??...

Mik

Any amounts which you draw as salary/remuneration/bonus from the company must be made under deduction of PAYE/PRSI. You cannot pay the bonus gross and then settle the tax on it on the F11.

Firstly make sure you are taking all the tax free money for which you are eligable.
Mileage, subsistance etc. It's amazing what ppl don't claim.

Graham is correct, but even if he wasn't you would be caught at premliminary tax stage.

Ok - I relaise that I pay the Net of tax to myself
So I should work out the additional PAYE/PRSI and submit it as an additional payment this month?

mik_da_man said:

Ok - I relaise that I pay the Net of tax to myself
So I should work out the additional PAYE/PRSI and submit it as an additional payment this month?

Click to expand...

Yes, take the normal gross for the month, add on the bonus, deduct the tax/prsi on all & remit that on your P30.

Ok - Cheers