Are you weary of the many obligations associated with being an owner/director of a limited company? As a contractor do you view the requirement to set up a company in order to obtain work as a necessary evil? Do you question whether you are optimising the company structure and what it offers you in return for your efforts?
The good news is that limited company structures offers significant scope to protect YOU and YOUR family’s current lifestyle, fund for your future retirement and ultimately provide you with peace of mind in a very tax efficient manner.
Protect Your Income
Your income is probably your biggest asset! For example if you are currently earning €60,000 p.a., and you have 20 years to retire, these earnings will total c. €2 million by the 20th year. If you cannot work due to illness or injury where will this income come from? If you are a director of a company you are particularly exposed as you are not entitled to State disability benefit.
Protect Your Family
The objective of life cover is to provide your family with a financial safety net in the event of your premature death. If you die, before retiring, your family’s income would be drastically reduced however the bills would still need to be paid.
Protect Your Retirement
The need to build up a private pension fund for retirement is compelling. The state pension, in its current guise, is largely accepted as being insufficient to solely meet living cost requirements. This is where the company structure offer significant benefit to directors/employees over sole traders when it comes to funding their retirement.
The costs associated with providing the above benefits can be treated as a trading expense of the company, thus qualifying for corporation tax relief, with no BIK implication for the directors.
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planning issues please contact us at email@example.com or 01 4958774