Tax Deadline Day Looming!

The pressure’s on for everyone under self-assessment with the tax return filing and payment deadline at the end of this month. What does this mean for you? Your tax return must be filed by October 31st Any balance of tax due for 2015 must be paid by October 31st Preliminary tax for 2016 must be paid by October 31st File your return If you’ve not already prepared and submitted your tax return you need to get this organised straight away. Filing a tax return late will lead to a late submission surcharge, and the amount increases […]

October 31st Tax Return Filing – Are You Ready?

October 31st is fast approaching! Just a little more than 2 months left for anyone under self-assessment to submit their tax return and pay their tax bill. What October 31st means… If you’re under self-assessment, either on or before October 31st you must… Make your tax return for the 2015 tax year. Pay any balance of tax due for 2015. Pay Preliminary Tax for 2016. What do you need to? Right now… If you’ve not already contacted your accountant and provided the information they need to prepare your accounts and tax return, then you should do […]

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 […]

Tax Refunds to Be Made Electronically

Revenue recently announced that they will only be using electronic payment methods to make tax refunds. They have already been doing this in the case of Corporation Tax and VAT, but this is now being expanded to the following areas: Income Tax Employers PAYE/PRSI Relevant Contracts Tax Customs & Excise Duties Vehicle Registration Tax Capital Gains Tax Excise Licence Capital Acquisitions Tax Professional Services Withholding Tax Environmental Levy Dividend Withholding Tax Betting Duty The change is in line with the Tax Returns and Payments (Mandatory Electronic Repayment) Regulations 2016. These regulations stipulate that after 3 May […]

Revenue Focus On Construction Sector

Revenue have announced an increased focus on compliance risks in the construction sector. In recent reviews they have found that the VAT Reverse Charge is not being applied properly in a number of cases. In addition they have discovered issues with payments of Country Money and the operation of Relevant Contracts Tax. Read on to see what the issues are and how this could affect you. VAT Reverse Charge The VAT Reverse Charge was introduced on 1 September 2008. In brief it means that subcontractors do not need to charge and account for VAT on construction […]

Cash Withdrawals to be Taxed! What does it actually mean?

As announced in the Budget, changes were made by the Finance Act 2015 to levy stamp duty on withdrawals of cash from automated cash machines. This was to replace the flat rate charge on debit and cash cards and comes into effect from January 1st. The news generated some media attention at the time and in December 2015 even the European Central Bank (ECB) was drawn into offering an official opinion. The ECB, which was not consulted about the measure, takes the view that all forms of payment are equal. So it considers that legislation should […]

Changes to Home Carer Tax Credit

With effect from 2016 and future years the Home Carer Tax Credit has been increased to €1,000. Previously this has been running at €810 a year. In addition the income limit for the carer has been increased to €7,200 from €5,080. Once this limit is exceeded then the amount of tax credit due is tapered downwards. Once income for the carer has exceeded €9,200 (€6,700 in previous years) then no tax credit is due. What is the Home Carer tax credit? The Home Carer tax credit can be claimed by married couples or couples in a […]

Income Tax Exemption for “Relevant” Directors

From January 1st 2016 certain travel and subsistence expenses incurred by “relevant” directors have been exempted from income tax. A “relevant” director is defined as a non-executive director of a company who is not tax resident in Ireland. In order to meet the exemption criteria the expenses must be incurred solely for the purpose of attending a meeting of the company where the director: is attending in their capacity as a director; and is attending for the purpose of conducting the affairs of the company. Both of these criteria must be met to claim the exemption. […]

Benefits In Kind Targeted By Revenue

Directors who have not paid benefit in kind (BIK) tax on company loans are currently being targeted by the Revenue Commissioners. This can result in substantial tax liabilities as the Revenue are also applying interest of 13.5% on the loans when they are calculating the BIK tax payable. And penalties and interest could more than double the amount due. It currently appears, if directors make a BIK declaration before a Revenue Audit is notified, penalties and interests may not be applied. Any BIK tax due may be levied on the individual director involved if the company […]

Close Company Surcharge

The corporation tax rate of 12.5% may increase if the close company surcharge is relevant to your company. The close company surcharge provisions discourage rolling up investment, rental and professional income in companies by imposing an additional tax on such income retained and not distributed by the close company. Section 441 Taxes Consolidation Act 1997 provides for a surcharge on certain undistributed income of service companies.  The section defines a service company as including close companies where the principal part of the company’s income is derived from the carrying on directly of a profession or the […]