For the vast majority of taxpayers, there remain very few legitimate methods of reducing your tax liability. This is relevant for Employees, Self Employed Company Directors and Sole Traders. That’s why the Pay and File deadline on the 31st October is such an important milestone as it offers everyone the reminder that they don’t have to write that big cheque to the tax man. They have other options, namely Pension contributions.
For example, if you are a top rate taxpayer (40%), are you aware that every €1000 invested can result in a tax refund of €400? If you look at it a different way, everyone thought SSIA’s (remember them J) were the ‘best thing since sliced bread’! Why? Because every €100 you saved you got a ‘free’ top up of €25 from the Govt. Well, in SSIA terms, for every €100 you save out of your pocket into a pension, you get €67 if you are a 40% taxpayer. That’s over 250% more than you got from an SSIA. Obviously, pensions are more long term than an SSIA but that’s why the incentive is so much better. The options for owner-Directors are even better.
We’re not tax advisors and don’t pretend to be. We are however more than qualified to take the information your accountant/tax advisor has provided you and convert it into a practical, affordable, tax efficient plan which has the added benefit of helping ensure you don’t have to rely on a vastly underfunded State Pension in the future.
Contact us for more information