Irish Taxi Forum

Public Area => Taxi Talk => Topic started by: john m on April 16, 2019, 10:39:57 am

Title: Taxi nomics
Post by: john m on April 16, 2019, 10:39:57 am
The economics of running a taxi and who else gets coin .Just looking through my Insurance docs and realized im paying 17% interest because I pay by installments thats nearly 400 a year on top of my premium .Interest rate of 4.6% on car loan. another 400 a year .I usually pay my tax by CC that is another few quid interest until thats paid off .There is at least a Grand to be saved in interest over a year .Might be interesting if somebody who understands finance properly could advise (Rat) what interest paid is tax deductable as a business charge and what interest is just wasted money .
Title: Re: Taxi nomics
Post by: Mr phooey on April 16, 2019, 11:03:31 am
Hoo are yoo wit Mr John? 
Have yu done the maths rite?
I'm paying 175 interest on almost 2700...
Title: Re: Taxi nomics
Post by: john m on April 16, 2019, 11:28:25 am
Interest is 17.4% but its decending interest is 109 .over the year .Thats why I asked for advice from somebody who knows .I suppose CC interest is the bogey your inclined to leave the debt on the card to long .The Rodent would probably point to the Commission on work as the biggest expence .
Title: Re: Taxi nomics
Post by: dalymount on April 16, 2019, 02:29:37 pm
I always thought you had to pay all your tax liabilities in one fo,is this not the case ?
Title: Re: Taxi nomics
Post by: john m on April 16, 2019, 02:41:10 pm
I always thought you had to pay all your tax liabilities in one fo,is this not the case ?

I pay my tax bill in one but you can pay in instalments if you come up short just contact the revenue and come to an arrangement .Revenue areusually accomodating as long as you pay up .
Title: Re: Taxi nomics
Post by: dalymount on April 16, 2019, 02:52:24 pm
Im the same John,I aways pay in one go,but I never knew you could pay in instalments
Title: Re: Taxi nomics
Post by: watty on April 16, 2019, 04:23:17 pm
@ JohnM:  Maybe get a Credit Union loan at 8-ish % instead of paying CC rates?  Or put aside a few bob each week in advance.  Easier said than done, of course.

@ dalymount:  I set up a direct debit for few years back and pay Revenue a certain amount each month.  Takes the shock out of it when you submit your final accounts in Oct.
Title: Re: Taxi nomics
Post by: Cool Boola on April 16, 2019, 05:10:53 pm
Are we talking bout pre tax  here
Title: Re: Taxi nomics
Post by: Jack Meoff on April 16, 2019, 06:17:04 pm
I always thought you had to pay all your tax liabilities in one fo,is this not the case ?

I pay my tax bill in one but you can pay in instalments if you come up short just contact the revenue and come to an arrangement .Revenue areusually accomodating as long as you pay up .

If you are registered with ROS you can log on and pay whatever you want.
Even a Euro a week if you want
Title: Re: Taxi nomics
Post by: Jack Meoff on April 16, 2019, 07:17:26 pm
I always thought you had to pay all your tax liabilities in one fo,is this not the case ?

I pay my tax bill in one but you can pay in instalments if you come up short just contact the revenue and come to an arrangement .Revenue areusually accomodating as long as you pay up .

If you are registered with ROS you can log on and pay whatever you want.
Even a Euro a week if you want.
So between now and and October one can log in and pay any few bob  for 2018 tax liability.
Title: Re: Taxi nomics
Post by: dalymount on April 16, 2019, 09:41:20 pm
Is this the preliminary tax your talking about ?
Title: Re: Taxi nomics
Post by: Jack Meoff on April 17, 2019, 04:54:23 am
You can pay both each day on line by logging in.
Add a few euro each week and come October your tax bill could be nearly paid.
Title: Re: Taxi nomics
Post by: Belker on April 17, 2019, 05:30:19 am
The economics of running a taxi and who else gets coin .Just looking through my Insurance docs and realized im paying 17% interest because I pay by installments thats nearly 400 a year on top of my premium .Interest rate of 4.6% on car loan. another 400 a year .I usually pay my tax by CC that is another few quid interest until thats paid off .There is at least a Grand to be saved in interest over a year .Might be interesting if somebody who understands finance properly could advise (Rat) what interest paid is tax deductable as a business charge and what interest is just wasted money .
Get a proper weekly plan in place and save in advance of what you need, you will always get a better deal fer cash, and if'n you have saved the cash upfront then there is No Interest to be paid !
I know I will need at least 4K in my current account next Oct fer insurance, tax man, accountant, NCT and suitability and I save in advance fer all of them.
Title: Re: Taxi nomics
Post by: Belker on April 17, 2019, 05:33:19 am
Im the same John,I aways pay in one go,but I never knew you could pay in instalments
I would imagine that paying your tax bill in instalments might bring on a hefty interest rate ??
Title: Re: Taxi nomics
Post by: dalymount on April 17, 2019, 09:07:28 am
I always wondered why a few years ago,when they DOUBLED the PRSI  contribution for self employed,there wasnt one voice raised anger,or in question as to why they did this.particularly when you consider we get fukk all in the event we get nothing if your business goes belly up
Title: Re: Taxi nomics
Post by: stonethecrows on April 17, 2019, 09:19:17 am
Im the same John,I aways pay in one go,but I never knew you could pay in instalments
I would imagine that paying your tax bill in instalments might bring on a hefty interest rate ??
Ken I think the idea is to pay next years Tax bill  in advance that way no interest would be applicable
Title: Re: Taxi nomics
Post by: Cool Boola on April 17, 2019, 03:33:16 pm
Heuston....we have lift off!!!!!!!
Title: Re: Taxi nomics
Post by: Rat Catcher on April 17, 2019, 04:51:51 pm
You can deduct interest paid to a financial institution, erm... including HP interest/admin charges.
Title: Re: Taxi nomics
Post by: Rat Catcher on April 17, 2019, 04:57:55 pm
I always wondered why a few years ago,when they DOUBLED the PRSI  contribution for self employed,there wasnt one voice raised anger,or in question as to why they did this.particularly when you consider we get fukk all in the event we get nothing if your business goes belly up

It was only the minimum contribution that doubled and it qualifies you for quite a range of benefits including:

Maternity Benefit
Adoptive Benefit
Paternity Benefit
Widow's, Widower's or Surviving Civil Partner's (Contributory) Pension
State Pension (Contributory)
Treatment Benefit Scheme
Invalidity Pension

Not bad for a tenner a week in any man's language.
Title: Re: Taxi nomics
Post by: Cool Boola on April 18, 2019, 02:31:09 am
Not to mention....free eye test ...and 82euro allowance off medium rated glasses...dental benifits ??and free Viagra for over 80s
Title: Re: Taxi nomics
Post by: Rat Catcher on April 18, 2019, 02:42:53 pm
I think that's covered under Treatment Benefit Scheme.