Set of Sample Accounts of an IT Contractor - Married
By OSK
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Married
Mr. White is married and starts contracting in January 2006. Mr. White is a proprietary director of White Technical Solutions Ltd. His contract rate is €1,875 per week and he works for 48 weeks in 2006. Mr. White's wife earns €75,000 per annum from PAYE employment. Mr. White pays a company contribution into his company pension scheme of €10,000 and he makes a personal pension contribution of €13,500. During the year, he pays medical expenses of €750, he pays permanent health insurance premium of €900 per month. Mr. White has a mortgage and he obtains mortgage intrest relief at source.
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€ |
€ |
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Total Contract Income (€1,875 per wk for 48 wks) |
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90,000 |
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Less allowable business expenses (estimated) |
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Computer Costs |
950 |
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Insurance |
800 |
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Telephone |
280 |
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Motor & Travel |
900 |
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Stationary & Postage |
150 |
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Light & Heat |
350 |
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Bank Interest and Charges |
95 |
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Internet Costs |
250 |
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Subscription to Trade Associations |
300 |
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Training Courses |
1,400 |
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Books and Journals |
195 |
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Permanent Health Insurance |
900 |
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Accountancy Fee |
2,000 |
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(8,570) |
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Net Income |
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81,430 |
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Company Pension Contribution |
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(10,000) |
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Income to be Paid as Salary |
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71,430 |
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Income - Spouse |
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75,000 |
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Joint Income |
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146,430 |
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Less Medical Expenses |
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(750) |
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Taxable Salary |
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145,680 |
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64,000 x 20% |
12,800 |
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81,680 x 42% |
34,305 |
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47,105 |
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Personal Tax Credit |
3,260 |
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PAYE Credit (Spouse) |
1,490 |
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Personal Pension Contribution(13,500 x 42%) |
5,670 |
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(10,420) |
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36,635 |
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PRSI (3%) |
2,143 |
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PRSI - Spouse (46,600 @ 4%) |
1,864 |
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Levies (2%) |
1,428 |
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Levies - Spouse (2%) |
1,500 |
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6,935 |
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Tax Due |
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43,570 |
This example is prepared on the basis that the individual is married.
All the expenses and reliefs shown above are estimated for illustration purposes
OSK Contracting provide quality and professional business advice to indigenous Irish businesses. Our clients include government bodies; multi-national groups; PLCs; SMEs and sole traders but we specialise in progressive indigenous Irish family owned businesses.
Reprinted with kind permission by OSK Contracting www.osk.ie
Phone: 01 439 4200 East Point Plaza East Point Dublin 3
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