Mileage and Subsistence Update at November 26 2012

The tax free reimbursement of motor and subsistence expenses is becoming an area of increased focus for Revenue Audits which is resulting in companies being liable for interest and penalties due to non compliance with the regulations. Basic Rules Where directors and employees necessarily incur expenses of travel and subsistence (relating to the travel) in the performance of the duties of their office or employment the reimbursement of such expenses may within certain limits be made tax free.  The following conditions must be met: The director or employee must be temporarily away from their normal place of work […]

Health Levy Contribution Refunds

For the tax years 2008, 2009 and 2010, the exemption threshold for payment of the Health Levy was €26,000; this is €500 per week. If you earned more than €500 in any one week in the year, you would have been liable to the Health Levy but at the end of the year if your cumulative earnings are less then €26,000, you can obtain a refund of the health levy charged during the year. If you are entitled to a refund for 2008, 2009 or 2010, you should contact the Department of Social Welfare to claim […]

Supply of Goods and Services to other EU countries

Irish businesses who supply goods to VAT registered customers in other EU Member States without charging Irish VAT are required to submit a VIES return each month/quarter. Many businesses are not aware that from 1 January 2010 this obligation was extended to the supply of services. VIES returns can be submitted either monthly or quarterly and must include details of all VAT registered customers in other Member States to whom you have supplied goods or services without charging Irish VAT. Failure to file a VIES return can result in a penalty of €4,000. If you are involved in […]

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 Any queries? Please leave a comment or contact me on   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 ( 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 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) 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: 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 […]

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