Bike to Work Scheme Reminder

If a company decides to implement the Bike to Work Scheme, remember the scheme cannot only be made available to the directors of the company, it must be made available to all employees of the company. VAT cannot be reclaimed by the company on the cost of the bikes or associated equipment i.e. helmets, pumps, etc. More information on the scheme can be found at www.biketowork.ie. Any queries? Please leave a comment or contact me on blog@parfreymurphy.ie.   PDF

Jobs Initiative May 2011

The Minister for Finance, Michael Noonan, announced the Jobs Initiative on 11 May last which is designed to stimulate job creation. It includes the following measures in relation to business and employment taxes:   Abolition of employers PRSI on share based remuneration Temporarily halving the lower rate of employers PRSI for certain employees Amending the R&D tax credit regime to enhance flexibility in how companies account for the tax credit Temporarily reducing the 13.5% VAT rate to 9% in respect of tourism related services .   Employers PRSI . Share based remuneration The Finance Act 2011 […]

Tax Saver Commuter Tickets – Luas

The Tax Saver Commuter Tickets from Luas (www.taxsavertickets.luas.ie) offer tax savings for both employers and employees. The benefits include: Up to 52% travel cost savings for staff Up to 10.75% savings for employers on PRSI No more queues for Luas tickets Journeys are cheaper with prepaid tickets than with cash How it works: The cost of the Tax Saver Commuter Ticket is deducted from the employee’s salary before taxation. The corresponding amount paid by the employer to provide a monthly or annual Luas pass will be regarded as an expense incurred by the employer for the purposes […]

Changes to the Operation of RCT

Relevant Contracts Tax (RCT) applies to payments made by a principal contractor to a subcontractor under a relevant contract in the construction, forestry or meat processing industry. See www.revenue.ie for more information on how RCT works for a principal contractor. The Finance Act 2011 has introduced changes to the operation of RCT and the key elements of same are as follows: Replacement of the current RCT rates of 0% and 35% with a three rate scheme: 0% rate which will apply on the same basis as currently applies to a C2 holder. Criteria include compliance with tax obligations for […]

New Minimum Wage €7.65 per hour (Update €8.65 from 1 July 2011).

As you may be aware, the minimum wage for experienced adult workers will reduce to €7.65 per hour on 1 February 2011. An experienced adult worker is an employee who has any work experience in any two years after turning the age of 18. Employees currently on minimum wage The wage rate forms part of an employee’s terms and conditions of employment. Therefore an employer cannot reduce an employee’s wage rate from €8.65 to the new minimum wage rate of €7.65 unless the employee agrees to the change. If an employer does change the pay rate […]

Mandatory E-Filing Update

We are moving closer to the day when all tax returns are filed and paid online. From 1 June 2011 all companies, partnerships and individuals subject to the high earners restriction must file and pay returns online through Revenue Online Service (ROS) www.revenue.ie From 1 October 2011, sole traders with more than 10 employees will need to file and pay on ROS. It takes a few weeks to register for ROS, so if you haven’t done so already, you can register at the following address: http://www.ros.ie/PublisherServlet/info/setupnewcust If Revenue are satisfied that a person or business does not […]

Warning: P35 Refunds

Recent correspondence received from the Revenue Commissioners has advised that for a P35 refund to be processed, the P35 Return must be completed correctly. When completing a paper P35 return, even if it is obvious from the figures contained therein that a refund is due, a claim for a refund can only be processed when the refund amount is entered in Line E of the P35 declaration. For those filing on ROS, the “Net Refund Box” should be completed. Section 121 of the Finance Act 2007 provides for interest to be paid by Revenue where a […]

Introduction to Dividends

Guest post by Maria Fahy, Parfrey Murphy. A dividend is the distribution out of a company’s profits to it shareholders (members). Every company has the implied power, subject to any restrictions which may be imposed by the Articles of Association, to apply its profits to the distribution of dividend amongst its members. This is a reflection of the fact that companies are vehicles through which profits are made. However, there is no legal obligation on the company to pay a dividend, even where there are sufficient distributable profits available, unless the company’s Articles of Association state […]

Introduction to Payroll

The following is a brief introduction to payroll including how to register the business and employees, how best to operate a payroll system and details of what Revenue returns are required. Registering as an Employer The first step in registering employees is to register the business as an employer. This is usually done when first registering for tax by submitting either Form TR1 (sole-traders and partnerships) or Form TR2 (companies) to the local tax district. Tax registrations are now mostly completed online using the Revenue Online Service – ROS at www.revenue.ie .   Registering an Employee When employees […]

Business Expansion Scheme (BES)

Guest blog by Kieran Kennelly, Parfrey Murphy. The BES was introduced to allow individuals a tax deduction for the cost of investing in certain Irish companies.  The purpose of the relief is to encourage investment and to create or maintain employment in such companies.  It is well documented that Irish business are currently facing major difficulties in raising finance from banks.  Given the current circumstances Irish companies would be extremely well advised to consider the BES as an alternative method of raising finance for the purposes of creating or maintaining employment, enlarging capacity, increasing sales, engaging […]

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