Your spouse or an appointed company secretary can receive up to €33,000 annually at the standard rate of tax of 20%. This is €33,000 more income that can be earned before entering the higher tax bracket of 40%.
The Standard annual tax credits total €3750 per year. This means they can earn up to €18,750 per year and not pay any PAYE on this income as it is fully covered by their tax credit allowance. Anything above this will be taxed at 20%, up to €33,000. Above this amount the tax rate increases to 40%.
The benefit of the above is an additional amount of income at the standard rate of tax, and also reduces the amount of expenses used monthly. You can choose how much monthly income you wish to allocate to your spouse, either the basic amount to pay no tax for maximum retention, up to the €33,000 annual figure, or a set amount of your choosing.
- You may add a company secretary to your payroll
- Benefits of this include reducing the amount of expenses used monthly, and increasing the annual amount of income taxable at 20%
- The company secretary should not have income from any other source, as this would negate the tax benefits of adding the secretary
- A PPS number is required for the new employee (we apply for this) and an annual tax return is also filed.
- Once added to the company payroll a payroll is processed and individual payslip is produced and sent to you. Combined salary is transferred to your account.
- Standard monthly management fee is charged for processing all of the above - This is €125 per month to run the payroll.
- A setup fee is charged in the first months salary - this is a once off fee of €200 which covers the full application and admin costs to us.
To avail of this send an email to support@oconnorandassociates.ie stating you wish to add a company secretary and we will start the process for you.