Termination Payments Tax Treatments

Are you AN EMPLOYEE leaving your current employment? Are you in receipt of a lump sum from your employer? Or are you AN EMPLOYER making a termination payment to a staff member or a group of staff?  Do you know how to process these payments correctly through your payroll and avoid costly mistakes?  Are you aware of the appropriate tax treatment of same? The calculations of the exemptions and reliefs relating to termination payments can be complex and detailed.  We can guide you through the options and help you structure any termination payments in an efficient […]

5 Simple Ways To Reduce Your Tax Bill

  This is a very popular post that we first published in 2010. It’s been reviewed and refreshed for up-to-date accuracy. 1. Question Every Expense Whether you’re trading as a sole trader or a limited company, an easy way to reduce your tax bill is to ensure that all of your business expenses are recorded in your accounts. So every time you put your hand in your pocket to pay for something or reach for the credit card, think: is this a business expense? The general rule is that if the expense is wholly and exclusively […]

5 Ways To Save Yourself The Pain Of Tax Mistakes

Making mistakes when it comes to tax and dealing with Revenue can be costly. Here are 5 ways to save yourself some of that pain. 1. File and pay on time Missing deadlines for filing returns or paying tax can be costly. In many cases penalties apply. Also, failing to comply with deadlines increases the risk of you getting a Revenue audit. In some cases Revenue have the right to make an assessment of the tax owed, and then it can be stressful to appeal and sort the correct liabilities. Deadlines are published well in advance […]

Save Tax – Benefit In Kind Exemption For Travel Passes

For some years an exemption has been available where an employer can purchase a bus, rail or ferry pass for an employee under an approved salary sacrifice arrangement. The exemption means that no tax is payable on the benefit-in-kind. Recently Revenue issued a clarification to show that an employee can enter into one of these salary sacrifice arrangements, with their employer’s agreement, more than once a year and the exemption will still apply. Remunerating staff in a tax-effective manner can make a difference in attracting and retaining good quality employees. So, where you have staff commuting […]

The immediate Double Benefit to Reduce Your Taxes Now!

The deadline for filing 2014 income tax returns is 31 October 2015 or 12 November 2015 where returns are filed and the tax paid through ROS. You can reduce your 2014 tax liability by making a pension contribution on or before 31 October 2015 or on or before 12 November 2015 and backdating the income tax relief against the 2014 tax year. Tax relief is available on pension contributions at the highest rate of income tax paid. The maximum pension contribution you can make on which you will receive the tax relief is dependent on your […]

Tax Relief for Tuition Fees 2014/2015

Tax Relief on Tuition Fees

For approved courses at approved third level education colleges there is a tax relief for fees paid. An individual can claim tax relief on fees paid in respect of any person as long as the qualifying fees have been paid. Qualifying fees means tuition fees including the Student Contribution but excludes registration fees and examination fees. The maximum limit on qualifying fees for the academic year 2014/2015 is €7,000 per individual per course. This limit is reduced by €2,750 for a full time student and €1,375 for a part time student. If fees for the academic […]

Home Renovation Incentive

The Home Renovation Incentive (HRI) provides tax relief for you by way of an income tax credit at 13.5% of qualifying expenditure on: • repair, • renovation, or • improvement works.   These works must be carried out on your main home by HRI qualifying Contractors. The amount of your HRI tax credit depends on the amount you spend on qualifying works. You need to spend over €4,405 (before VAT) to qualify for the HRI tax credit. This €4,405 (before VAT) can be the total from any number of jobs carried out and paid for from […]

Significant Tax Savings on Property Transfers

If you personally own a commercial property and are renting it to your company, with the recent decline in property values and interest rates it may be in your interest to consider transferring it to the company together with any related bank borrowings thereon. From my experience this may result in significant savings for you and your company. An example will give you an indication how this can be done. Tom is the owner of a company (HCO) which is part of a group which holds a trading company and has a positive net worth. Tom […]

Travelling to Work by Bus or Rail?

Can or do you commute by rail or bus to work? If the answer is yes why not reduce the tax on your salary and your carbon footprint at the same time? Ianrod Eireann and Bus Eireann through their service offer monthly or annual tickets for sale which , effectively, are “tax deductible”. Your employer has to pay for such a ticket but you would make what’s called a “salary sacrfice” by reducing you salary by an equal amount (thus re-imbursing your employer). However, you can potentially reduce the amount of PAYE, PRSI and USC normally deducted form your salary…by between a total of 31% and […]

Taxation Tips You Can Avail of Before 31 October 2014

1.      Deadline date. Late filing will result in an automatic late filing surcharge of 5% of the tax liability if a return of income is filed within the first two months of the deadline and 10% of the tax liability if filed thereafter. Please note for directors the surcharge is based on the income tax liability before any credit for PAYE tax paid by the director. Revenue can also impose interest and penalties on the late payment of your income tax liability. 2.      Trading via a private limited company. The annual profits of a company are […]

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