David’s 10 ideas to reduce your tax bill -
Here are a few ways of reducing your tax a liability which you may or may not have used!
1. Employ a family member
– make use of all family members tax credits who are not working
and therefore reduce your liability by up to €4,000.
2. Form a partnership with your spouse if they have no income, to stop your profits being taxed at the higher rate and save up to €6,000.
3. Pension - despite the bad press, choose a pension which is minimal risk, and reduce your annual tax bill.
– know the different tax class’s in regard to PRSI –
you could be paying too much PRSI if you’re on the wrong code!
5. Keep all your medical expenses and claim them in the MED 1 form.
6. Certain dental expenses can be claimed via a MED 2 form.
7. Keep all your church /school/charitable donations and claim them as an expense.
8. If you work from home for your business
either partly or fully, remember some of the household bills can be
written off as a business expense. This could include light and heat,
insurance, telephone bills, broadband etc. Also remember that bins
charges can be claimed for all individuals.
9. Claim travel costs – you can claim mileage for business travel. The current civil servant rates can be up to 59 cent per km.
10. Get a good accountant!