Money Maximising Advisors Ltd.
Financial Plan for Self-Employed
Turn the income you earn into a plan for your future
When you work for yourself, your income, business costs and family finances are closely connected. A busy practice or a full order book does not always mean you have enough cash available for tax, time off or retirement.
We help you connect
- Cash flow
- Tax planning
- Pensions
- Mortgages
- Investments
- Protection
WHO WE HELP
For professionals, tradespeople and other independent earners
At MM Advisors, we help self-employed individuals bring cash flow, tax planning, pensions, mortgages, investments and protection into one financial plan. We consider your business commitments alongside your personal goals, working with your accountant and solicitor where appropriate.
Our planning approach can help solicitors, accountants, barristers, electricians, plumbers, builders, carpenters, consultants, contractors and other people working for themselves. You may be a sole trader, a partner in a professional practice or the owner of a limited company. Those structures need different treatment.
Your spouse may be employed in the public or private sector, work in your business, be self-employed too or have no paid employment. Your plan should reflect the whole household and the income you can realistically rely on.
Your financial plan
What a good financial plan should give you
The result should be an understandable action list: what to do first, how much to commit and when to review the plan.
- A clear view of business income, costs, tax commitments and personal spending.
- An account and transfer system that turns variable earnings into an organised household budget.
- Appropriate pension contributions, with available reliefs assessed correctly.
- Cash flow forecasts for a home purchase, children's education, reduced hours and retirement.
- A mortgage and investment strategy linked to your goals and ability to accept risk.
- Protection for illness or death, and a plan for business succession and family inheritance.
HOW YOU WORK
A plan that reflects how you work
Solicitors, accountants and professional practice partners
Practice income may be affected by collection times, partner drawings, staffing costs and capital commitments. We assess the income available to support your household after allowing for business needs and tax.
For individual partners, the tax assessment generally follows the allocated share of taxable partnership profit, rather than simply the amount drawn from the practice. Partnership agreements and funding commitments also matter. Client money, where held, is not available to fund your personal plan or business investments.
Barristers and independent professionals
Fee income can arrive well after the work is done. We help plan around realistic collections, professional costs, tax reserves and periods when receipts are lower.
That can support a more stable level of personal spending and an affordable pension contribution schedule.
Tradespeople and project-based businesses
For electricians, plumbers, builders, carpenters and other trades, materials, equipment, vans, labour and delayed project payments can place pressure on cash flow. We consider these commitments before recommending a long-term contribution or investment.
Where Relevant Contracts Tax — RCT — applies, we include the effect of deductions on cash received. Your accountant checks credits and offsets against tax liabilities. RCT withheld should not simply be treated as the final tax bill or counted twice in your reserves.
Sole trader, partnership or limited company
As a sole trader, personal drawings are not a deductible salary paid to yourself. Leaving profits in a business account does not, by itself, defer the personal tax on those profits. A partner's position depends on their profit allocation and the partnership arrangements.
A limited company is a separate entity. Director remuneration, dividends where applicable and employer pension contributions have different rules from sole trader drawings and personal pension contributions. A sole trader cannot apply company employer pension rules to themselves merely by paying from a business bank account.
Where a company structure or an umbrella arrangement is being considered, we help compare the financial implications with your accountant. Professional practice rules and the actual working relationship must also be checked. Incorporation is not automatically available or the best option for every profession or business.
CASH FLOW
Organise your cash flow and automate your accounts
Know what you can comfortably take home
We distinguish turnover, taxable profit and cash actually received. VAT collected, tax reserves, supplier commitments and funds needed to keep trading are not all available for household spending.
A sustainable spending plan should be based on the income you can reasonably rely on. In stronger months, you can replenish reserves or fund additional goals after checking the tax and business commitments.
Give each account a clear purpose
1Business
Business operating account
Receives income and pays genuine business costs.
Tax reserve
Provides for Income Tax, USC and PRSI, or the relevant company taxes and payroll liabilities. Include VAT separately where applicable.
Business contingency and equipment reserve
Provides for quieter periods, repairs, replacement equipment and agreed reinvestment.
2Household
Personal income and bills accounts
Organise household transfers, mortgage payments and essential spending.
Personal spending account
Sets an affordable allowance for day-to-day spending.
3Savings & goals
Emergency and planned expenses savings
Provide accessible money for illness, annual costs, holidays, education and home projects.
Pension and investment contributions
Direct an agreed amount towards long-term goals after reserves are protected.
We help design a transfer schedule around your receipts and commitments. You retain control and authorise bank instructions. For a company, personal transfers require the proper approval, payroll or other accounting treatment.
Plan for the annual tax payment cycle
The self-assessment payment cycle can require the balance for the previous year and preliminary tax for the current year at the same time. We help you budget for this using your accountant's estimates. A first year with little preliminary tax due should not be mistaken for a year with no tax to fund.
Review the reserve when profits change. A fixed percentage of every receipt may be a useful starting routine, but the appropriate amount depends on expenses, income mix, reliefs and other liabilities.
Forecast the choices ahead
We model a mortgage, a new child, a career break, staff recruitment, business expansion or reduced hours. We also test delayed collections, lower profit, higher costs and weaker investment returns. Forecasts include relevant tax, charges and inflation and are estimates, not guarantees.
PENSIONS
Use pension relief with a sustainable contribution plan
Choose a pension that fits your earnings and goals
For eligible self-employed individuals, we assess PRSAs and personal pensions such as Retirement Annuity Contracts. We compare suitability, charges, investment choices, contribution flexibility and retirement options. Company owners may also have employer-funded options under different rules.
€115,000current aggregate annual earnings cap for personal pension relief
Personal pension relief is based on qualifying earnings, not business turnover. It is subject to age-related limits and an aggregate annual earnings cap, currently €115,000. Existing contributions and any other pensionable employment must be included in the assessment.
Understand what tax relief means in practice
Illustration: a 45-year-old sole trader with €100,000 of net relevant earnings and no other contributions affecting the limit could have scope for a €25,000 personal pension contribution within the ordinary 25% age-related limit.
€15,000illustrative effective cost of a €25,000 contribution after 40% relief
If the full €25,000 qualifies for Income Tax relief at 40%, the relief would be €10,000 and the effective cost after relief would be €15,000. This assumes sufficient income taxed at 40%, eligibility and a valid claim. The individual must still fund the contribution, and the timing of relief matters. No USC or PRSI saving is assumed.
A pension contribution should not leave you short of tax reserves, working capital or a house deposit. Pension access is restricted, and withdrawals at retirement may be taxable under the applicable rules.
Combine regular payments with an annual review
A contribution based on dependable income can make retirement saving more consistent. A further lump sum may be appropriate after profits and reserves are confirmed.
We review contribution capacity with your accountant before the relevant claim deadline, including any eligible prior-year election.
When you also have an employed role
Self-employment alongside public or private sector employment needs a coordinated calculation. There is not a separate €115,000 earnings cap for each income source.
We consider the pension linked to each role and the limits applying to contributions against that income.
Keep retirement savings separate from business sale expectations
We assess your PRSI record and potential State Pension entitlement alongside personal pensions and existing benefits. We also review lifetime pension limits.
Your retirement plan should test a lower or delayed business sale value, or the possibility that there may be no sale proceeds.
PROTECTION & FAMILY
Protect your income and include your family
01
What would happen if you could not work
Illness or injury may stop personal income while business overheads continue. We consider how long your cash reserves would last, what State benefits you may qualify for and the gap between those resources and your commitments.
We assess suitable income protection, specified illness cover, life assurance and mortgage protection. Occupation, duties, health, financial evidence, waiting periods and policy exclusions affect eligibility and cost. Physical trades and professional occupations can be assessed differently by insurers.
Income protection is designed for qualifying incapacity under the policy, rather than ordinary reductions in sales or payment delays. Business interruption and professional indemnity needs are separate matters to coordinate with your commercial insurance adviser.
02
Your spouse works elsewhere full-time or part-time
We review the spouse's public or private sector earnings, sick pay, pension and other benefits alongside self-employed income. We assess eligible household tax arrangements and how both retirement positions fit together.
03
Your spouse works in the business
A genuine role can support appropriate commercial pay and, where eligible, pension provision. Duties, hours, records and actual payment must substantiate the arrangement. Payroll, employment law and family-employment PRSI treatment should be checked with your accountant.
Children or other relatives may also perform real work where needed, with duties and pay appropriate to age and experience. Paying family members is not an automatic tax-saving arrangement; their own tax and benefit position matters too.
04
Only one spouse is earning
We assess the reliance on that income, access to savings and the cost of replacing unpaid caring responsibilities if either partner became ill or died. The non-earning spouse's previous pensions and future financial security remain part of the plan.
Personal pension relief normally requires qualifying earnings, and allowances cannot simply be transferred between spouses. Household reliefs, including any relevant caring-related credits, depend on meeting the conditions.
05
Protect business continuity where appropriate
For a partnership or business with key people, we can explore suitable protection linked to ownership and continuity agreements. Legal arrangements, beneficiaries and tax treatment must be assessed with the relevant advisers before cover is put in place.
MORTGAGES & INVESTMENTS
Plan your mortgage and investments around your income
Mortgage advice for the self-employed
Lenders assess trading history, sustainable earnings and affordability, rather than turnover alone. We help prepare accounts, tax returns and other evidence relevant to your application. Requirements and the treatment of variable profits differ between lenders.
- Buying a first home or moving to a larger family home.
- Reviewing an existing mortgage, switching lender or considering a different term.
- Assessing a mortgage alongside pension contributions and business commitments.
- Comparing mortgage overpayments with saving and investing.
If you are changing structure, taking time off or planning to reduce hours, we consider the potential effect on borrowing evidence. Meeting lender criteria is separate from deciding what is comfortable for your family.
Match savings to the timing of the goal
Cash for tax, emergencies or an approaching purchase needs to remain appropriately accessible. Long-term investment capital can be assessed differently, based on your ability and willingness to accept losses.
We review suitable investment funds and, where available through an appropriate arrangement, share or ETF exposure. We consider diversification, charges, Irish tax treatment and ownership. Having most of your wealth in one business or one property can make diversification an important planning question.
Sharia compliant and other investment preferences
If faith or other values inform your decisions, tell us at the outset. We can explore suitable Sharia compliant options, subject to provider and platform availability, and review screening standards, oversight, costs, currency exposure and Irish taxation.
Availability inside a pension differs by provider. Any purification requirements should be discussed using provider guidance and your preferred religious adviser. Sharia screening does not guarantee returns or low risk, and conventional mortgages or insurance need separate religious consideration.
Premises and investment property
If you are considering business premises or an investment property, we help assess affordability and finance options where available. Personal, company and pension ownership have different rules and tax consequences.
Pension property purchases are subject to scheme, trustee and Revenue restrictions, including connected-party considerations. An SPV is not automatically suitable for a sole trader or a route to moving money without tax consequences. Proposed structures should be assessed with the relevant advisers before a commitment is made.
RETIREMENT & LEGACY
Plan to work less and pass on wealth
Create options beyond continuing full-time work
We forecast reducing hours, taking fewer cases or projects, admitting a partner, selling a practice or closing the business. The plan considers the income that stops, the costs that remain and when pensions or other resources become available.
Accessible savings may be needed before pension access. We explain the assumptions behind retirement income forecasts and the options available at retirement, including an annuity or Approved Retirement Fund where eligible, with the relevant tax and investment risks.
Prepare for a sale or transfer early
A practice sale, partnership exit or family transfer needs coordination between financial, tax and legal advice. We help assess the personal outcome after costs, tax and any deferred proceeds.
Your tax adviser can assess Revised Entrepreneur Relief and Retirement Relief for an eligible disposal, and CAT Business Relief for a qualifying gift or inheritance. These reliefs have different conditions, limits and potential clawbacks; self-employment alone does not establish entitlement.
Professional practice arrangements, ownership periods, the assets being transferred and ongoing work commitments can all affect the outcome. Where there are no likely sale proceeds, the retirement plan should be built on other resources.
Plan for gifts and inheritance tax
We review potential Capital Acquisitions Tax — CAT — exposure arising from your home, investments, business interests and other assets. Pension death benefits need to be considered under their own rules.
€3,000current small gift exemption, per giver, per recipient, per calendar year
The current small gift exemption allows an individual to give up to €3,000 to a recipient in a calendar year without CAT. Two parents could each gift €3,000 to a child, totalling €6,000, where each gift is genuinely made by that parent. Other gifts and inheritances need to be assessed with the relevant previous taxable benefits.
We can assess qualifying Section 72 life assurance to help fund inheritance tax where suitable. Gifting property or business assets can also trigger other taxes, and any gifting plan should leave enough for your own future.
Coordinate legal arrangements
We work with your solicitor and tax adviser where appropriate on wills, business succession, partnership arrangements and enduring powers of attorney.
Unmarried partners have different tax and inheritance treatment from spouses or civil partners, which can affect ownership and protection choices.
ILLUSTRATIVE EXAMPLES
See how a self-employed financial plan could work
Example 01
A self-employed solicitor with an employed spouse
SolicitorSpouse in public sectorMortgageChildren
A solicitor runs a practice while their spouse works part-time in the public sector. They have a mortgage and children. The practice is profitable, but fee collections vary and they are unsure how much to commit to pensions.
Their plan could
Establish business and tax reserves, set a sustainable household transfer and assess personal pension funding alongside the spouse's public pension and AVCs. It would forecast education costs and reduced hours, and review protection for both partners.
Example 02
A tradesperson supporting a one-income household
ElectricianSole traderOne household income
An electrician works as a sole trader. Their spouse cares for the family at home. Materials are paid for before some jobs are completed, and the household depends on project receipts.
Their plan could
Separate supplier commitments and tax reserves from household money, build a contingency fund and arrange an affordable saving routine. It would assess income protection, mortgage affordability and pension contributions that can be reviewed as profit changes.
Example 03
A barrister planning for delayed fees and retirement
BarristerIrregular collectionsEarlier pensions
A barrister has irregular collections, ongoing professional costs and pensions from an earlier employment.
Their plan could
Use conservative cash receipt assumptions, provide for tax and establish flexible pension funding. It would model reducing the workload and the savings needed before pension access.
These examples illustrate the process. Amounts, products and structures depend on verified information and individual advice.
Illustrative examples only. Figures are simplified for illustration; actual outcomes will depend on your individual circumstances.
FROM WHERE YOU ARE TO WHERE YOU WANT TO BE
How MM Advisors can help
- 01Understand
Understand your priorities
We discuss your work, household and the decisions you want to make.
- 02Review
Review the information
We bring together business earnings, spending, tax estimates, pensions, debts, assets and existing policies.
- 03Plan
Build and explain the plan
We show cash flow forecasts, recommendations, costs and a clear action list.
- 04Implement
Coordinate implementation
We arrange suitable products within our service scope and work with your accountant, solicitor and pension administrator where needed.
- 05Review
Agree reviews
We establish how the plan will respond to changes in profit, family circumstances and retirement goals.
We explain planning fees, product charges and any commission before you proceed. Your accountant confirms the tax treatment and handles filings; legal implementation remains with your solicitor.
FREQUENTLY ASKED QUESTIONS (FAQs)
Before you build a plan, you may be wondering…
A few of the questions that often come up with self-employed people.
Can I get pension tax relief as a sole trader or partner?
Potentially, yes. Relief depends on qualifying earnings, age-related limits, existing contributions and the annual earnings cap. Turnover and bank receipts do not establish the contribution limit.
How much should I put aside for tax?
It depends on profit, expenses, reliefs, other income and tax already paid. We help build a reserve using your accountant's estimates and review it when earnings change, including the preliminary tax payment cycle.
Can I pay myself a salary from my sole trader business?
Your personal withdrawals are drawings, rather than a deductible salary paid to yourself. A company director's remuneration follows different rules.
Can I change pension payments when income fluctuates?
Contribution flexibility depends on the product. We assess a sustainable regular amount and possible top-ups without committing money needed for tax or business expenses.
Should I set up a limited company?
That requires financial, tax, legal and, where relevant, professional-rule assessment. The right choice depends on the work, costs, administration, profit extraction and future plans. Incorporation is not automatically suitable for every profession.
Can I get a mortgage with variable profits?
Lenders consider self-employed applications, but evidence, trading history and assessment rules vary. We help present the relevant financial information and assess affordability.
Does income protection cover a quiet trading period?
It generally addresses qualifying incapacity under the policy, rather than reduced demand or unpaid invoices. We assess policy terms alongside cash reserves and other protection needs.
Can my family work in the business?
Yes, where there is genuine work and appropriate commercial pay. Records, payroll, employment rules, family-employment PRSI treatment and pension eligibility need to be assessed.
MORE FINANCIAL PLANS
Explore other financial plans
MORE HELPFUL GUIDES & ADVICE
Guides for Financial Planning for the Self-Employed
CLIENT TESTIMONIALS
What Our Clients Say
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Money Maximising Advisors Limited is regulated by the Central Bank of Ireland – C154250
General information only. Tax treatment depends on individual circumstances and may change. Investments can fall as well as rise and you may get back less than you invest. Pension access restrictions apply. Mortgage approval is subject to lender criteria and affordability. Product eligibility and availability vary.