Entrepreneur Relief

An individual only may claim relief from CGT in respect of a chargeable gain arising on the disposal of qualifying business assets. There is a lifetime limit of €1 million on the gains made on or after 1 January 2016 that you can claim relief on. If you can claim this relief, you will pay CGT at the rate of 10% on gains from the disposal of business assets. This is reduced from the normal rate of 33%. Up to 31 December 2016, gains from such disposals are charged at 20%. The qualifying business assets must have […]

A SURE INVESTMENT – STARTUP REFUNDS FOR ENTREPRENEURS

SURE – Startup Refunds for Entrepreneurs is a tax relief incentive scheme. You may be entitled to an income tax refund of up to 41% of the capital that you invest in your own company under SURE. Depending on the size of your investment you may be entitled to a refund of income tax paid over the 6 years prior to the year in which you invest. Main Conditions The conditions for SURE are that an investor must: Establish a new company carrying on a qualifying trading activity Have mainly PAYE income in the previous 4 […]

TAX TREATMENT OF TERMINATION PAYMENTS

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 […]

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