Hi there, I have 2 questions. 1) The USC band rates on my Tax Credit for state rate 1 is 12,012 at 1% and rate 2 is 6,665 at 3% etc. However the app does like the fact that rate 2 is lower than rate 1. Is this as simple as switching the rates? Would this effect my tax bill to the USC? 2) MY business is variable and I may have more business one month than the next month. Can I have a variable wage how can I set that up and does a variable wage have any consequences to my tax? Thanks for the help. Really impressed with the app!

Vote Up
0
Vote Down

Hi there, I have 2 questions. 1) The USC band rates on my Tax Credit for state rate 1 is 12,012 at 1% and rate 2 is 6,665 at 3% etc. However the app does like the fact that rate 2 is lower than rate 1. Is this as simple as switching the rates? Would this effect my tax bill to the USC? 2) MY business is variable and I may have more business one month than the next month. Can I have a variable wage how can I set that up and does a variable wage have any consequences to my tax? Thanks for the help. Really impressed with the app!

1 answer

Vote Up
0
Vote Down
Peter Connor ⋅ Staff January 9, 2016
Public

Hi Shane,
In terms of the USC rates.  The way that it’s written on the tax credits is that it’s:

  • 1% on the first €12,012
  • 3% on the *next* €6,656

To enter this into Bullet, add €6,665 to €12,012 is €18,668 – so you’d enter that in Bullet for the 3% rate (and so on for the other USC rates).  Note that if you have access to ROS (the Revenue Online Service), it’s *way* easier to download the P2C file from there and import that into bullet – that will import all your tax details straight from Revenue without you having to type anything in.
On the variable pay – the app can handle that.  Any unused tax credits you have in one month carry forward to the next month.  The idea is that over the whole year, you’ll end up paying the same as someone who got paid the same constant amount of money.  There are plenty of people running their own businesses that have sporadic pay, and the tax system is (more or less) there to help with that.

#answer-2416
  1. shan January 9, 2016
    So for the wages and payslip I need to adjust the amount each month and pay myself what ever I feel is an appropriate salary for that month?
  2. shan January 9, 2016
    Thanks for the help, I didn't realise I could upload a file from ROS, I have access and will up load it now.
  3. Peter Connor January 9, 2016
    Yes - the system will automatically calculate the correct amount of tax based on the gross you enter each month (along with any unused tax credits from previous periods). You can pay yourself whatever you feel is appropriate each month. The P2C file import is definitely the best and most error-proof way to get tax details in Bullet.
  4. shan January 9, 2016
    Thanks, very helpful for somewhat who is starting out and not sure about the details.
  5. shan January 9, 2016
    I don't seem to have a P2C file in my ROS profile or in PAYE Anytime profile. I only have a 2016 tax credit pdf available to me, am I missing something simple? Do I need to request this from the revenue?
  6. shan January 9, 2016
    I don't seem to have the option on my account to view PAYE and USC P2C Details. I might need to update my details with the revenue. Thanks anyways.
  7. Peter Connor January 9, 2016
    Hi Shane,
    When you signed up you should have received a mail with a link to our ebook. This covers everything post formation. Here is a link to our ebook on what to do once you've started a company
    You need to register yourself as an employee. Just email ROS with your name, pps number, company name, company number and your home address. They'll add you to your company and then that should generate a ROS file.
    That's probably what's happened.
    Here are main points on how you can be part of a company.
    Shareholder - you own the company
    Director - you run and have legal responsibilities
    Employee - you work for the company
    You can be all 3 or just one, so you need to let Revenue know.
    Hope that helps Pete
  8. shan January 9, 2016
    Ya that helps,
    I will be all three it is more of the tasks need to inform the right people to make sure I have the right forms I the hard part to figure out. Thanks for the advice, I’ll let revenue know once the TR2 form is processed and I am up and running.
    Many thanks,
    Shane
  9. Peter Connor January 9, 2016
    No problem Shane. Project16 sounds interesting.
  10. shan January 9, 2016
    haha Cheers, the CRO didn't think so ;) Therefore I need to register it as a trading name instead. Some headache! I provide training courses and part time consulting to train software teams to be more scientific and data driven to achieve high customer value with their end product.

Please login or Register to Submit Answer