Spending Company Profits

The most tax efficient manner of extracting or spending company profits so far advised in the thread is to -

1) pay myself extra salary and take a 42% hit or
2) invest more into the pension - which locks it up for a long long time.

[distracting comment deleted from this important thread - Brendan]

BTW I never said my accountant couldnt answer the questions - its just there are lots of answers my accountant gives me which I dont like.
 
I have a related question. My missus is setting up a limited company in the near future. She will need a car to drive around the country on business. Can she use company profits/money to by the car? If the company is registered for VAT can she reclaim the VAT? Does the vehicle have to be commercial i.e. van, car-van etc..
 
If she wants to buy a car and not a commercial she should buy it herself and charge millage to the company. It could be fixed to work out the same.
 
woods said:
If she wants to buy a car and not a commercial she should buy it herself and charge millage to the company. It could be fixed to work out the same.
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I think that depends on the type of job.

Im pretty sure someone whose job is constantly on the road, cannot claim mileage for personal car. Its only if you work in an office and make occasional trips on behalf of the company?
 
Fintan said:
I think that depends on the type of job.

Im pretty sure someone whose job is constantly on the road, cannot claim mileage for personal car. Its only if you work in an office and make occasional trips on behalf of the company?
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I suppose that it depends on your accountant. Mine allows me to do it.
I do think that you can write off a non commercial car to the company.
 
Icarus said:
Can you elucidate on this a little?
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My accountant prepares my tax returns and submits them to revenue. He obviously allows what he thinks is correct. He allows me to pay myself a lump sum each quarter from the company account to cover millage that I may have in connection with the business of the company.
I can not say if he is correct in doing this, only that he believes that he is and I thrust him.
 
Hi Woods

I would say that you are on very dodgy ground here. The Revenue does not like lump sum payments. Check the Revenue rules on mileage allowances. If you get an audit, you will probably pay extra tax, interest and fines.

Brendan
 
bonanza said:
The most tax efficient manner of extracting or spending company profits so far advised in the thread is to -

1) pay myself extra salary and take a 42% hit or
2) invest more into the pension - which locks it up for a long long time.

[distracting comment deleted from this important thread - Brendan]

BTW I never said my accountant couldnt answer the questions - its just there are lots of answers my accountant gives me which I dont like.
Click to expand...
Or start a new business(subject to your memorandum of association) renting a boat to take advantage of capital allowances as shown in the unison link
 
Brendan said:
Hi Woods

I would say that you are on very dodgy ground here. The Revenue does not like lump sum payments. Check the Revenue rules on mileage allowances. If you get an audit, you will probably pay extra tax, interest and fines.

Brendan
Click to expand...

Cant really see how that is a problem, if he was a mileage claim of €1000 a month for 3 months and then pays himself €3000 in month 3, considering he isnt paying himself for 2 months I cant see how "doing himself" is going to incur interest, fines or extra tax
 
What about a 'pool' car ?
USe the company profits to buy the car and pay for all related charges - road tax, insurance, petrol etc.

Is this allowed ?
 
bearishbull said:
Or start a new business(subject to your memorandum of association) renting a boat to take advantage of capital allowances as shown in the unison link
Click to expand...

BearishBull -
I like the idea, but go through it with me....

I buy a boat with my own PAYE cash ?
If with PAYE cash then how can it be a comercial boat ?

or if I buy it with Company profit ?
If with company profits then how do I personally enjoy the tax shelter ?

any thoughts ?
 
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