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Are you overpaying VAT to the tax man?

Written by Nilsson Denver
Friday, 04 July 2008 22:02
Are you overpaying VAT to the Tax Man by not claiming all your purchase VAT back correctly? Just because there is no VAT breakdown on the receipt or invoice does not mean you cannot claim it back. The receipt or invoice must have the suppliers VAT number on it (They are breaking the law if they do not) But if there is no VAT breakdown, ensure you claim the VAT back at the right rate. At the end of this article I show you how to easily calculate the VAT on any invoice without a VAT breakdown.
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Do you want to reduce your company's tax bill and your employees tax bills

Written by Nilsson Denver
Friday, 04 July 2008 22:00
Employers and Employees do not take advantage of tax breaks given to them to reduce them amount of tax and prsi they pay. Here are several of the most obvious ways of saving tax.
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How much is your web address (www.domainname) worth to your business. Would your business survive without it. Here is how to protect it.

Written by Nilsson Denver
Friday, 04 July 2008 21:58
If tomorrow your domain name (www.yourdomainname.com) was no longer available to you, how would that affect your company. Your e-mail address is linked to your domain name, so if you lose the domain name your e-mails will not get to you. If your website can no longer be accessed, who will find you. If you sell items on your website, people will no longer be able to buy from you. So how do you protect you web address (Domain name) from being lost to you.
Last Updated on Tuesday, 29 July 2008 06:54
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Are your wages calculated correctly? Could you be paying too much tax and prsi? Part 1

Written by Nilsson Denver

Friday, 04 July 2008 21:50

As an employee, each week tax is taken from your pay and you just accept it. As an employer, you pay employers prsi and you just accept it. But is what you are paying calculated correctly and did you know that sometimes an increase in pay actually means you take less home?

Here is how your pay is made up

	1	Pension paid by Employer
	2	Employer PRSI

+	3	Benefit in Kind (BIK)
+	4	Gross Salary
-	5	Pension paid by employee
=	6	Taxable Gross Pay (3+4+5)
-	7	Income Tax
-	8	Employee Prsi
=	9	Net Pay after tax and prsi
ADD	10	Non Taxable items
+	11	Travel Pass
+	12	Subsistence
+	13	Mileage allowance
LESS	14	Other deductions
-	15	Credit union deductions
-	16	Income protection schemes
=	17	Net pay left to spend

In calculating all these amounts we need to understand the effects on your pay of

Last Updated on Friday, 04 July 2008 22:09

Are your wages calculated correctly? Could you be paying too much tax and prsi? Part 2

Written by Nilsson Denver

Friday, 04 July 2008 21:49

Part 2

Here is how your pay is made up in the eyes of the employer

+	1	Pension paid by Employer
+	2	Employer PRSI
+	3	Benefit in Kind (BIK)
+	4	Gross Salary
=		1+2+3+4 = Total cost to employer

The above shows the cost of an employee to a business

1. If the employer pays into a pension fund for an employee, there is no tax or prsi payable on
it. It is still money the business must pay out. The employee does not see any benefit in
their pocket immediately as pensions are a long term investment.
An employee could argue for the pension being made part of taxable salary so that he could
receive immediate beneift. The benefit would only be after tax and prsi is deducted and the
employer would have to pay employers prsi of up to 10.75% on the amount that would have been
prsi free if it where a pension amount.

Comparison example showng tax saved and extra tax paid, with pension/without pension

Last Updated on Thursday, 27 May 2010 09:07

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