Being self-employed is not always as easy as it may sound, and for some it is a rather daunting prospect. There are so many rules and regulations to follow, and legal obligations you have to comply with. These are compounded more if you employ anyone. Even just having one employee suddenly creates a whole new raft of things to deal with:
- Health and safety measures have to be considered, as you will be responsible for making sure they come to no harm because of their job. The fines and penalties for not following health and safety rules and regulations are horrendous, and random checks are carried out by the Health and Safety Authority to make sure you are complying. Ignorance of the rules is no excuse. The HSA website is a mine of information, or a phone call to them will get you all the help you need.
- You will need to run a PAYE scheme to make the necessary deductions from their salary. This is a complex scheme that is usually better carried out by experts, as getting it wrong will only incur the wrath of the Revenue. You cannot delay putting this in place, as any salary paid has to have the deductions made. The potential cost of this makes financial planning Ireland even more crucial.
- Employer’s liability insurance is a legal requirement. It covers you for compensation claims in case your employees are injured at work in an accident caused through your negligence, or because of any other reason that was not their fault, but yours. The cost depends on your trade or profession, the construction industry, for example, has much higher premiums than an office based business.
- You need to ensure they do their job properly and do not upset your clients or let your business down.
It is easy to see how you can neglect your own affairs while you are trying to keep your staff, your customers and the government happy. Some self employed muddle through like this for years and then realise they are coming up to retirement and have made no provision for it. Do not forget your retirement planning because you are taking care of everyone else, look after yourself as well by contacting the finest financial planning Ireland has at Mason Wealth Management.
Lets Start With The Taxman
None of us like handing money over to the taxman. If you have employees you will be paying their tax every month, and your own tax for the previous year is due by 31st October. There is nothing you can do about the tax you have to hand over for your staff, but you can help to reduce your own tax liability. You can get tax relief on contributions into a personal pension plan. You will not only starting your financial planning for the future, but you will also be giving less money to the taxman. That has to be a good place to start.
Other tax advantages of personal pension plans are that any growth within them is tax free, and on retirement you can withdraw 25% of the retirement fund tax free, up to a maximum amount of £200,000. (These figures can change with each budget).
What Pensions Will You Have On Retirement?
Most people will have at least one of the following pension types:
- A state pension – When you are considering financial planning Ireland, there is quite a complex system for state pensions. Although it is more generous than some other countries, it’s still a lot lower than you would have probably been earning. At the present time, the state pension does not start until you are 66.
- An occupational pension – Many larger employers will have occupational pension schemes in place, but you are unlikely to have this type of pension if you work for a smaller company. Each scheme has its own set of rules, but generally they provide a pension for the retiree, or for any surviving dependants on the death of an employee. The government is actively encouraging smaller businesses to start occupational schemes for the employees, as some of them attract tax relief. Often these schemes start to pay the pension at an earlier age than the state pension.
- A personal pension – A personal pension is usually taken out by the self-employed, or employees who are not in an occupational scheme. This part of financial planning Ireland will provide a pension for when the person retires, or for surviving dependants on their death. You can usually deicide at what age you want to take your pension from the plan, although there are legal limits to stop you taking it far too early.
The majority of people realise that the state pension will not let them live the life they want after retirement, and that if they are not in an occupational scheme, they should be looking at a personal pension plan to supplement their retirement income. But where do you start? How do you know the amount to contribute? How do you find the best personal pension plan for your needs? How do you find the best financial planning Ireland has to offer?
If you are seeking the best financial planning Ireland has to offer, you should get in touch with Mason Wealth Management. We have been providing assistance in all types of financial planning for over 30 years and have experts in all areas of pension plans and investments.
Even if you have already retired, we can help you to improve your money situation by maximising your current finances. This can be achieved in several different ways and if you want help from our experts get in touch with us right now.
You can contact us by phoning 01 969 5786, you can email at [email protected] or you can complete our contact form and we will be in touch with you. Whichever you do, we are confident that you will not regret speaking to the best financial planning Ireland has at Mason Wealth Management.