AFS Accountancy

Early filing discount!

Self-employed: file your income tax with AFS Accountancy by 31st August and get 20% discount.

Small to medium business's first consultancy is FREE.

Afs accountancy is a group of accountants with combined of 20 years experiences. Specialist on taxation, bookkeeping payroll services. Send your enquiry to [email protected] or call directly on 089 4730763.

The Department of Finance has published the end of Q1 exchequer returns, which show a significant increase of €2.5 billion in tax revenues compared to the same period last year.

This positive trend is seen as an indication of the Irish economy's continued strength, despite ongoing global economic uncertainty. In addition to tax revenue, the Irish economy has seen strong job creation, unemployment rate is lower than the pre-pandemic level. These factors combined suggest that Ireland is well-positioned to continue its growth trajectory and maintain its status as one of Europe's fastest-growing economies.

AFS Accountancy aims to provide business owners with a useful tool to navigate the key differences between sole traders and limited company, which is a common topic that accountants are often asked to advise on.
The main differences between these businesses are structures, ownership, and legal requirements.

A sole trader is personally responsible for all the debts and liabilities of the business, while a limited company limits the liability of its owner(s), personal assets of the owners are protected in the case of any financial difficulties faced by the company.

Furthermore, limited companies must comply with legal requirements under the Company Act 2014 and the Companies Registration Office (CRO), such as annual filings, while sole traders do not have such obligations. Taxation is also another area where these two business structures differ, as limited companies are taxed on their profits and are required to file CT, while sole traders are taxed on their personal income from the business.

Here is an example of how taxation differs between a sole trader and a limited company.
Tax liability for Mr X with €100K trading profit as a sole trader and limited company.

Sold Trader:
Net Profit € 100,000
Tax liability including PRSI, USC, after deducting relevant tax credit.
Assumed Married couple (1 earner) with HC credit

€ (31,970)
Take Home € 68,030

* Please note that the above is an estimate and actual figures may differ depending on individual circumstances.

Limited Company:

Mr X takes €49K as salary, €10K as pension and remaining balance as dividend.

Tax Liability for X Limited and Mr X
ER PRSI, CT & DWT (X ltd) €16,535
IT less DWT Credit and other relevant credits (Mr x) €13,850
Total €30,385
Take Home €69,609
Saving €1578

*Please note that the above is an estimate and actual figures may differ depending on individual circumstances.

*Picture collected from internet source