From Computejobs.ie

Set of Sample Accounts For an IT Contractor - Single
By OSK Contracting
Jun 7, 2006, 12:48

Single

Mr. Hennessy is single and starts contracting in January 2006. Mr. Hennessy is a proprietary director of Hennessy Software Solutions Ltd. His contract rate is €1,875 per week and he works for 48 weeks in 2006. Mr. Hennessy 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 €600, he pays permanent health insurance premium of €850 and rent of €550 per month.

	€	€
Total Contract Income (€1,875 per wk for 48 wks)		90,000

Less allowable business expenses (estimated)
Computer Costs	950
Insurance	800
Telephone	280
Motor & Travel	900
Stationary & Postage	150
Light & Heat	350
Rent Payable	2,000
Bank Interest and Charges	95
Internet Costs	250
Subscription to Trade Associations	300
Training Courses	1,400
Books and Journals	195
Permanent Health Insurance	850
Accountancy Fee	2,000
		(10,520)
Net Income		79,480


Company Pension Contribution		(10,000)

Income to be Paid as Salary		69,480

Less Medical Expenses		(600)

Taxable Salary		68,880

32,000 x 20%	6,400
36,880 x 42%	15,489
		21,889



personal Tax Credit	1,630
Rent Relief (1,650 x 20%)	330
Personal Pension Contribution(13,500 x 42%)	5,670
		(7,630)

		14,259

PRSI (3%)	2,084
Levies (2%)	1,389
		3,473

Tax and Social Security Due		17,732

This example is prepared on the basis that the individual is single.
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

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