The minimum amount of salary that you are allowed to earn tax free per month is put through the payroll system. This means in your circumstance for example, that you can earn a basic salary of € 1180 per month without paying tax, and the balance will be paid to you from the expenses that you have accrued.
From a cash flow point of view this may be more advantageous to you at the moment, but you may find that you will use up your expenses very quickly, which means that once all the expenses are used up, you will be paying tax at 20% on a salary of up to €2733 per month, and then 41% on any income that you earn above the €2733 per month threshold.
A higher basic salary is taken every month, a figure of say €2500 (estimated), and the balance is paid by way of expenses. We will ensure that your average take home pay is approximately 85% of your total income. This will also mean that a larger amount of your expenses will be carried forward for future use, thus extending the length of time before you have to start paying tax at the higher rate.
You must update these on the banking & salary page on OAM.
We would obviously recommend Option 2, but it all depends on your own personal circumstances.
We will review the situation with you on a regular basis, so whichever option you choose can always be altered in the future (expenses allowing).
Please bear in mind that the tax rates and bands that are the current tax years rates and are subject to change.