News & Publications

Regular news updates which may be of interest to some of our Clients.  Please do not hesitate to contact us should you require any further clarification or information on any of the items below.  JB Accountancy 021-2355664.​

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Budget 2016 - Key Features
14.10.15
 
The Minister for Finance Michael Noonan T.D. presented his 2016 Budget yesterday. Minister Noonan outlined wide ranging adjustments to the personal tax regime, focused primarily on the USC. The Minister also announced steps to begin equalising the tax treatment of the self-employed and employees, together with proposals to support entrepreneurship.

 

The key features of yesterday’s Budget are outlined below.

 

 

Personal Tax:-

 

Universal Social Charge

Minister Noonan has announced comprehensive changes to the USC for 2016. These are aimed at reducing the tax burden on low and middle income earners.

 

The changes to USC mean that the marginal tax rate for those earning up to €70,044 will not go above 49.5%. This is the first time since the supplementary Budget in April 2009 that the marginal rate for middle-income earners has fallen below 50%.

 

There have been no changes to the income tax rates and bands.

 

Home Carer Credit

The Home Carer Tax Credit is being increased by €190 to €1,000 for 2016. The income threshold on the “home carer” has also increased from €5,080 to €7,200.

 

Self-employed - A new “Earned Income Tax Credit”

In a move to begin equalising the tax treatment of the self-employed with employees an “Earned Income Tax Credit” of €550 is being introduced in 2016. This credit will be available to those with earned income who do not have access to the PAYE Tax Credit.

 

Employee PRSI credit

A tapered PRSI credit is being introduced for low income earners to ensure that the benefits derived from an increase to the minimum wage, next January, are not completely eroded by entry into the PRSI net. The credit, which will be subject to a maximum of €12 per week, applies to individuals earning between €18,304 and €22,048 per annum.

 

Pensions

In line with comments made by the Minister in last year’s Budget, the “additional” pension levy of 0.15% will expire at the end of 2015.

 

Woodlands income and the High Earners Restriction

Profits or gains from the occupation of woodlands are being removed from the High Earners’ Restriction.

 

 

Entrepreneurship and Indigenous Business:-

 

The Minister has also announced several tax measures aimed at encouraging and supporting entrepreneurs and small business owners.

 

  1. The Earned Income Tax Credit, as detailed above.

  2. A 20% CGT rate to apply to the disposal in whole or in part of a business up to an overall limit of €1million in chargeable gains.

  3. Extension of the 3-year relief from corporation tax for start-up companies to companies commencing to trade over the next 3 years. The “start-up companies’ relief” applies where the total corporation tax payable for a period does not exceed €40,000. The amount of relief available is linked to employer’s PRSI.

  4. The entry point to the top rate of Employer PRSI is to increase by €20 per week to €376 per week.

  5. The commercial motor tax regime is being simplified and rates reduced. The current 20 rates are being replaced with 5 rates, which will range from €92 to €900. The new rates will apply with effect from 1 January 2016.

 

The Minister also confirmed the changes in the Enterprise and Investment Incentive Scheme (EII) which were announced in Budget 2015, but had been subject to State Aid approval. These included an increase in the annual limit companies can raise to €5 million and an increase in the lifetime cap to €15 million. Investments in the extension, management and operation of nursing homes will also qualify for the EII. The changes apply from midnight tonight.

 

Film relief:-

The cap on eligible expenditure is being increased from €50 million to €70 million, subject to State Aid approval.

 

Bank Levy:

The bank levy, which was due to expire in 2016, has been extended until 2021, a measure which is expected to yield circa €750 million over the period of extension. The levy is currently calculated on the basis of DIRT payments, however, the Minister has committed to undertaking a review of this methodology.

 

 

International Tax:-

 

Knowledge Development Box

The Minister formally announced the introduction of a Knowledge Development Box (“KDB”). Income qualifying for the KDB will be subject to a preferential rate of corporation tax of 6.25%.

 

It is expected that the KDB will contain provisions which are designed to make it more accessible for certain SMEs (being companies with a global turnover of less than €50m and who derive income of less than €7.5m annually from IP assets). In particular, SMEs who develop assets which are not patent protected can still be eligible for the scheme, provided that the company receives formal certification from an independent government agency.

 

The KDB will apply to any income earned from accounting periods commencing on or after 1 January 2016. The Minister stated that the KDB would add “a further dimension to our ‘best in class’ competitive corporation tax offering, which includes the 12.5% headline rate; the R&D tax credit; and the intangible asset regime”

 

Country-by-Country Reporting

In order to “enhance transparency”, the Minister has announced proposals to introduce Country-by-Country reporting (“CbCR”) for large Irish headquartered multinational enterprises (MNEs) and certain other Irish subsidiaries, where CbCR is not implemented in the parent company’s jurisdiction.

 

 

Capital Taxes and LPT:-

 

Increase to the Class A Capital Acquisitions Tax threshold

The current Class A (parent to child) Capital Acquisitions Tax threshold will be increased from €225,000 to €280,000. The new threshold applies to gifts or inheritances received on or after 14 October 2015.

 

The current Class B and Class C thresholds remain unchanged. There has been no change to the Capital Acquisitions Tax rate of 33%.

 

Capital Gains Tax

Other than the reduced rate of CGT to apply to the disposal of a business, there has been no change to Capital Gains Tax. The headline rate of Capital Gains Tax of 33% remains unchanged.

 

Local Property Tax (LPT)

The Minister is recommending postponement of the revaluation date for the Local Property Tax from 2016 to 2019. Legislation to implement the postponement will be brought forward in due course.

 

 

The Agri-Sector:-

 

Stock relief and stamp duty exemption

The Minister has announced the extension of general stock relief, the stock relief for young trained farmers and the stock relief for registered farm partnerships for a further three years to the end of 2018. Stamp duty exemption for young trained farmers is also being extended to the end of 2018.

 

Farm partnership transfers

A new farm succession transfer partnership model is being introduced, subject to State Aid approval. The Minister has noted that this will allow two people to enter into a partnership with an appropriate profit-sharing agreement which makes provision for the transfer of the farm to the younger farmer at the end of a specified period, not exceeding ten years. An income tax credit worth up to €5,000 per annum for five years will be allocated to the partnership and split according to the profit-sharing agreement.

 

Excise duty and micro-breweries:

The special relief reducing Alcohol Products Tax on beer produced upfront will now be available upfront as well as through a rebate.

 

Property:

The Minister confirmed the extension of the Home Renovation Incentive (HRI) scheme to 31 December 2016.

 

 

Other matters:-

 

Stamp duty

To encourage the use of card payments by consumers, the current €2.50/€5.00 per annum charge on ATM cards and ATM & debit cards will be abolished from 1 January 2016. A new 12c ATM withdrawal fee will apply from 1 January also, capped at €2.50/€5.

 

9% VAT rate

The Minister announced that he would not make any changes to the 9% VAT rate in this Budget.

 

Incentive for certain aviation services facilities

A scheme of capital allowances for the construction of facilities used in the maintenance, repair, overhaul and dismantling of aircraft, is being commenced. Further details are expected in the Finance Bill.

 

Childcare

The Minister has announced an extensive package of measures to “focus on affordability and quality” in childcare. These include:

•             Increase in child benefit by €5 to €140 per month per child for 2016.

•             Introduction of a free pre-school place for children from age 3 – 5.5 or until the start primary  

              school.

           

 

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Revenue eBrief No. 97/15 - Update on Tax Clearance Expiry Dates & eTax Clearance 

​29.09.2015

 

In line with changes introduced in the Finance Bill 2014, electronic Tax Clearance (eTC) will be introduced from January 1st 2016.

 

As previously advised in eBriefs No. 37/15 , 55/15 and 69/15 tax clearance certificates issuing since April 1st 2015 have different expiry dates depending on when the certificate issued. Customers are now advised that tax clearance certificates issuing in the period October 1st 2015 to December 31st 2015 (Quarter 4) will have an expiry date of June 30th 2016.

 

The position can be summarized as follows:- tax clearance certificates issuing and end dates.

 

Period When Tax Clearance Issued                           End Date Of Certification

 

Q2 2015 1/4/15 to 30/6/15                                          end date of 31/12/15

 

Q3 2015 1/7/15 to 30/9/15                                          end date of 31/3/16 (as advised in

                                                                                         eBrief 37/15 issued on 27/3/15)

 

Q4 2015 1/10/15 to 31/13/15                                     end date at 30/6/16 (as advised in

                                                                                         eBrief 69/15 issued on 3/7/15)             

 

The transitional period from paper clearance certificates (which have a specified end-date on the certificate) to eTC (which will be subject to ongoing review and are therefore not end-dated) is during the first 6 months of 2016.

 

From January 1st 2016 all new applications for tax clearance will be through the new online eTax Clearance system, except for customers with an exemption from mandatory e-filing requirements i.e. on age grounds or due to broadband access or similar issues.

 

The up-to-date tax clearance status of customers will be available to be checked by public service bodies, taxpayers and their agents online, on an ongoing basis, as required.

 

Applicants that are successfully tax cleared in the new eTC system will also be given a Tax Clearance Access Number which they can provide to the public service body or third party who needs to verify their tax clearance status.

 

The public service body uses the PPSN/tax reference number and the Tax Clearance Access Number to verify - via the Revenue On-line Service (ROS) or the Government Networks - that an applicant holds a tax clearance certificate.

 

eRCT Site Identifier Number 

​08.09.2015

 

From December 2015, there will be a new mandatory field in the Contract Notification process in the eRCT system. The new field is for a "Revenue Site Identifier Number" (SIN). Each contract will require a SIN when the Contract Notification process is being completed. The SIN is a system-generated identifying number which is applied to the location or locations where relevant operations are due to take place under a particular contract.

 

Upon the introduction of the new field, where a Principal contractor is updating the eRCT system with details of a new contract at a new location for the first time, the system will automatically provide a "Revenue Site Identifier Number" when they enter the location of the relevant operation. When identifying the location of relevant operations, Principals will be required to enter both the Site/Project Name and the Address.

 

The SIN will also be provided on the Contract Notification that issues to the Sub-contractor. Once the system has generated the SIN, the Principal or Sub-contractor should only enter the SIN instead of the location, for any further updates they make to the eRCT system in respect of the same location

 

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Rent-A-Room Relief 

​09.02.2015

 

With effect from 1 January 2015, Finance Act 2014 increased the Rent-a-room relief income limit from €10,000 to €12,000 per annum.

 

Income arising to an individual in respect of the letting, for residential purposes, of a room or rooms in his/her home, including income arising from the provision of meals or other services supplied in connection with the letting, is exempt from income tax, PRSI and USC where the income is below the annual limit for the tax year in question. However, income from the provision of accommodation to occasional visitors for short periods does not qualify for the relief as, in this scenario, the visitors use the accommodation as guest accommodation rather than for residential purposes.

 

The relief can apply in the case of lettings to students, but not in the case of guest accommodation, including where such accommodation is provided through online accommodation booking sites.

 

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Annual Membership Fees Of A Professional Body - Employees & Office Holders 

​03.02.2015

 

Tax deductibility of employee expenses – Section 114 TCA 1997

In addition to expenses of travel, Section 114 TCA 1997 provides for a tax deduction in respect of expenses incurred wholly, exclusively and necessarily by an individual in the performance of the duties of his or her employment. In the context of annual membership fees of a professional body, whilst each case is examined on its own facts and circumstances, Revenue will operate in accordance with the following guidance for the tax year 2011 and subsequent years.

 

Where there is a statutory requirement for membership of a professional body etc.

In some instances, individuals are required by statute to be registered members of a designated professional body, association, society, council, etc. before they can carry out the duties of their employment. Under long standing practice, a deduction under Section 114 TCA 1997 is allowed in respect of the annual registration or membership fees in such instances.

 

In other instances, a statutory provision may provide that an individual registered with, or a member of, a professional body, association, society, council, etc, has a right, by virtue of such registration or membership, to plead or be heard in representing a client of his or her employer before a court or tribunal. Under long standing practice, a deduction under Section 114 TCA 1997 is allowed in respect of the annual registration or membership fees in such instances provided the duties of the employment require the individual to appear and plead before a tribunal.

 

To ensure that you are claiming the appropriate tax relief in respect of any employment expenses you incur please do not hesitate to contact us.

 

 

Revenue eBrief 10/15 - Sub-Postmasters & Social Welfare Branch Managers - Tax & PRSI 

​03.02.2015

 

For income tax purposes, the income arising to Sub-Postmasters and Social Welfare (SW) Branch Managers in their capacities as Sub-Postmasters and SW Branch Managers is taxed as self-employment income and is reported to Revenue on a Form 11.

 

Such income is also liable to PRSI (at Class A) which is deducted at source by An Post / Department of Social Protection. In the case of Sub-Postmasters, class A PRSI is only charged on an element of the total payment made by An Post. Other elements which are intended to cover, for example, staff costs, rent of premises, etc. are not within the class A PRSI charge. With regard to SW Branch Managers, PRSI is charged on the total payment by DSP. This is in accordance with the terms of their respective contracts. Income which has not been subject to class A PRSI (including other sources of income) attracts a PRSI liability in the normal way.

 

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CGT Deadline 

​24.01.2015

 

If you sold, gifted or transferred an asset between 1st December and 31st December 2014, or if you received capital payments from such assets, you must pay any Capital Gains Tax due by 31st January 2015.

 

For disposals between 1st January and 30th November 2014, payment was due by 15th December 2014.

These arrangements apply to all taxpayers, including PAYE and self-employed.

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Leasing Farm Land 

​24.01.2015

 

For periods up to 31 December 2014 an individual aged 40 years or over, or an individual who is permanently incapacitated by mental or physical infirmity from carrying on a trade of farming, may be entitled to an exemption from income tax of certain income arising from leasing of farm land. With effect from 1 January 2015 the age restriction or the requirement to be permanently incapacitated were removed by the Finance Act 2014.

 

For further information please do not hesitate to contact us.

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Local Property Tax (LPT) 

​06.01.2015

 

What do I need to do for 2015?

You need to confirm your payment method for 2015 if you paid your 2014 LPT in one lump sum (that is, by single debit authority, debit card, credit card, cash, cheque or postal order) or if you made regular payments by cash.

 

If you wish to pay in one lump sum payment is due on or before 7 January 2015. If you agree to pay in full by Single Debit Authority by 7 January 2015, Revenue will not debit your account until 21 March 2015.

 

You don’t need to do anything if you paid your 2014 LPT by phased payment method (that is, by direct debit or deduction at source from salary/occupational pension or from certain Government payments) or deferred the full charge or if you claimed an exemption. Your current payment method/exemption will automatically apply for 2015. There is no need to contact Revenue, unless you wish to change your payment method for 2015.

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Revenue eBrief No. 110/14 - Relevant Contracts Tax - Revised Penalties From 1st January 2015  

​02.01.2015

 

Relevant Contracts Tax – Revised penalties from the 1 January 2015 for the failure of a principal contractor to operate Relevant Contracts Tax correctly on relevant payments to a subcontractor.

 

A principal is obliged under section 530F of the Taxes Consolidation Act, 1997 to deduct tax from payments to subcontractors in accordance with the deduction authorisation which has issued. Section 17 of Finance Act 2014 introduced a revised sanction where principals fail to operate Relevant Contracts Tax (RCT) on relevant payments to subcontractors. The penalty that a principal will be liable for will be proportionate to the amount of the tax that should have been deducted. The principal will be liable for a penalty for each instance of non-operation of RCT after 1 January 2015 and this will be based on the status of the subcontractor.

 

  • Where the subcontractor is registered with Revenue and is fully tax compliant and thus liable to a RCT deduction rate of zero, the principal will be liable to a civil penalty of 3% of the relevant payment.

  • Where the subcontractor is registered with Revenue and is substantially tax compliant and thus liable to a RCT deduction rate of 20% - the principal will be liable to a civil penalty of 10% of the relevant payment.

  • Where the subcontractor is registered with Revenue and is not compliant and thus liable to a RCT deduction rate of 35% - the principal will be liable to a civil penalty of 20% of the relevant payment.

  • Where the subcontractor to whom the payment was made is not known to Revenue – the principal will be liable to a civil penalty of 35% of the relevant payment.

  •  

In all the above instances the principal will be required to submit an unreported payment notification to Revenue.

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CGT "7 Year Relief" And Date Of Purchase 

​16.12.2015

 

Section 604A TCA 1997 provides for relief from CGT in respect of certain properties purchased between 7 December 2011 and 31 December 2014, where the property is held for more than 7 years. Where the conditions of the section are met, gains attributed to that 7 year period will not be subject to CGT. We have had a number of queries as to whether the purchase must be completed by 31 December 2014 in order to qualify for relief or whether it is sufficient that the purchaser has entered into an unconditional contract to purchase the property.

 

Revenue has clarified that the normal CGT provisions contained in Section 542 TCA 1997, as regards the time of disposal and acquisition, apply. Accordingly, an unconditional contract must be in place by 31 December 2014, although the conveyance or transfer of the asset may take place after that date. In the case of a contract subject to a condition precedent, the condition must be satisfied by 31 December 2014.

 

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Irish Charities Regulatory Authority Goes Live 

​18.10.2014

 

The Irish Charities Regulatory Authority (CRA) is formally established on the 16th October 2014. The main provisions of the Charities Act 2009 also become effective.

 

Charities will be required to register with the CRA by 16th April 2015. Those charities which already have a valid CHY charity tax exemption number will be deemed to be registered. However they may need to supply the regulator with details of their financial year end.

 

All registered charities will be required to submit an annual activity report to the CRA which will be due not later than ten months after the financial year end.

 

The Charities Act provides for the Minister for Justice and Equality to make regulations setting the format and content of the annual reports that charities are required to make to the CRA. These regulations have not yet been made. This means that the format and content of charity reports is not yet prescribed

 

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Revenue eBrief 85/14 - Mandatory iXBRL Filing For Corporation Tax Payers

​01.10.2014

This eBrief covers the following:

  • Obligation to File Electronic Financial Statements with the Corporation Tax Return (Form CT1) - from 1st October 2014

  • Clarification regarding iXBRL Obligations for Holding Companies

 

1. Obligation to File Electronic Financial Statements with the Corporation Tax Return (Form CT1) - from

    1st October 2014

 

Revenue has adopted iXBRL (inline Extensible Business Reporting Language) as the standard to be used for submitting electronic financial statements and is rolling out mandatory iXBRL filing for Corporation Tax payers in stages.

 

Phase 1 applied to cases dealt with in Large Cases Division, where electronic filing of the financial statements has been mandatory since October 2013. We are now entering Phase 2, for Revenue customers not dealt with in Large Cases Division filing Corporation Tax returns where the Accounting Periods end on or after 31st Dec 2013 and the Corporation Tax return is submitted on or after 1st Oct 2014.

 

Companies who meet all of the following criteria below are excluded from Phase 2. It is, however, open to such companies to choose to file electronic financial statements along with the CT1 now through Revenue's Online Service (ROS) before it becomes mandatory at the start of Phase 3 which will begin at a later date.

 

  • Balance Sheet total does not exceed €4.4 m, and

  • Company turnover does not exceed €8.8 m per annum, and

  • The average number of employees does not exceed 50.

 

Each of the three criteria must be met - otherwise the company is required to file the financial statements in iXBRL format in Phase 2.

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Revenue eBrief 83/14 

​30.09.2014

Application of Professional Services Withholding Tax (PSWT) to payments made to Medical Practitioners under a contract of insurance in respect of relevant medical expenses.

 

Payments made by authorised health insurers to registered medical practitioners or their employers under contracts of insurance are relevant payments for PSWT purposes.

 

This eBrief deals with claims for credit for PSWT where a payment is made in the name of an individual medical practitioner but the medical practitioner does not have beneficial entitlement to the payment and has received it in the capacity of an employee/office holder.

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ECJ Case Considers VAT Rate On eBooks

​23.09.2014

The Court of Justice of the EU held in Oy (Case C 219/13) that European VAT law does not require Member States to apply the same VAT rate to printed books and eBooks. In Ireland, printed books are zero rated but eBooks are subject to VAT at the standard rate.

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Revenue eBrief No. 78/14 - eRCT Bulk Rate Review

​10.09.2014

The eRCT Bulk Rate Review is an integral part of the eRCT system.

 

A Bulk Rate Review consists of an automatic review of the RCT deduction rates of all subcontractors registered in the eRCT system based on their tax compliance over the previous three years to date. The review is run on a periodic basis in any given year.

 

The most recent Bulk Rate Review took place on Friday 5 September 2014. As a result 10,810 contractors had their RCT deduction rates amended either upwards or downwards, depending on their compliance track record.

 

All subcontractors who have had their RCT deduction rate amended on foot of the review, and their relevant principals, are in the process of receiving a notification advising them of the rate changes.

 

Rate Determination

Rate determinations are based entirely on real-time compliance data over the last three years. Rates will be unchanged, or will be amended either upwards or downwards depending on the subcontractor's compliance record.

 

In general:

  • a 0% (zero) rate will apply where a subcontractor is fully compliant with his/her tax obligations

  • a 20% rate will apply where a subcontractor is substantially compliant, and

  • a 35% rate will apply where the subcontractor is unknown to Revenue or has compliance issues that are not being addressed.

 

Home Renovation Incentive (HRI) Scheme Qualifying Contractor

A HRI qualifying contractor is one who is registered for ROS, VAT and RCT as well as being tax compliant. For RCT subcontractors, this means a zero or 20% RCT rate.

 

If a subcontractor’s RCT deduction rate is at 35% they do not qualify for participation in the HRI Scheme. Subcontractors with a 35% RCT rate should contact their local Revenue office to agree a plan to bring their tax affairs up to date.

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Introduction of Registration Forms For Non-Resident Traders

​09.09.2014

In order to fulfil the requirements of EU Commission Regulation 904/2010, during 2013 Revenue introduced the following Forms for use in circumstances where a tax registration is required by a non-established or non-resident entity for the purpose of conducting business in the State:

 

TR1 (FT): Tax Registration Form For Non-Resident Individuals, Partnerships, Trusts or Unincorporated Bodies Trading in Ireland. 

 

TR2 (FT): Tax Registration form for Foreign Companies. 

 

These forms are broadly similar to the TR1 and TR2 forms which are used in respect of resident entities, however Forms TR1(FT) and TR2(FT) also require additional details of any foreign VAT numbers held by the applicant, and details of any Relevant Contracts in Ireland entered into by the applicant at the date of application.

 

In order to ensure that the registration process may be completed without delay, it is essential that all the information requested in the Form used should be provided. In particular, care should be taken in respect of the following points:

  • Information fields which are blank or incomplete may necessitate further correspondence. Where the required details are not available, this should be clarified in a supplementary note or covering letter which is to appended to the completed Application Form.

  • The taxable status of the business activity should be clarified and confirmed prior to the submission of the registration application. Where the proposed business activity is tax-exempt, a registration application will not be processed and should not be submitted.

 

All registration applications are subject to assurance checking by Revenue in order to ensure that the applications are genuine and fully in order. In certain circumstances, Revenue may contact the registrant directly in order to clarify specific business or application details.

e-Day

​25.08.2014

e-Day is the date from which central Government, local authorities and State agencies stop issuing and accepting cheques from businesses. e-Day is the 19th September 2014. The particular focus of e-Day is to encourage SMEs to migrate from cheque usage. Cheques are an expensive means of payment for businesses because of bank charges, stamp duty, postage, time spent making lodgements, and unpaid cheques. Businesses are migrating away from cheque usage and opting for more efficient payment methods instead. e-Day will move this process along while reducing costs for businesses.

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New Audit Code Is Released  

20.08.2014

Revenue’s new code of Practice for Revenue Audit and Other Compliance Interventions (the new Code) came into effect on August 14th 2014. It significantly revises the 2010 Audit Code.

 

Comments on a few of the key changes are listed below.

 

1. Focus of audits and compliance interventions

 

The new Code notes that Revenue audits will generally focus on a year or period where a specific risk has been identified. Multi-year or period compliance interventions may be carried out where material risks, identified by a range of data sources, are identified for a number of years (or periods). This approach also applies to non-audit interventions.

 

The additional costs to a taxpayer of extending an audit has also been introduced as a factor that will be taken into account in deciding whether to open earlier or later years.

 

2. The “no loss of revenue” provision

 

The new Code recognises that there may be exceptional circumstances where “no loss of revenue” claims may be considered in relation to taxes other than VAT and RCT.

 

3. Timeframe for concluding Revenue interventions

 

Delays can arise in the conclusion of an audit or intervention, even though a taxpayer has answered all queries promptly. The new Code notes that if there is no clear cause for the delay in finalising the audit/intervention a taxpayer’s entitlements to credits or tax refunds shall not be delayed or withheld.

 

Reducing The Frequency Of VAT Returns - Cashflow Advantage  

​18.06.2014

VAT returns are generally required to be filed on a bi-monthly basis. However, this requirement to submit a VAT return every two months may be reduced as follows:

 

  • Bi-annual returns may be made by traders whose total VAT payments for the year are €3,000 or less.

  • Four-monthly returns are an option for those whose yearly VAT payments are between €3,000 and €14,000.

  • Revenue may, by concession, allow traders to file annual VAT returns. A trader has the option in this case of aligning their VAT year end with their accounting year end. This concession is only available to smaller traders.

 

It is also possible to pay your VAT liability by monthly direct debit. This option is open to those whose bi-monthly VAT liabilities do not exceed €50,000. You need only make one annual VAT return. Where the direct debit payments have not covered the VAT liability for the year in full, there will be a balance of tax to pay at the year end. You should note that where the balance of tax is not paid on time, interest may be applied. Where the amount underpaid exceeds 20% of the final liability, interest will be backdated to middle of the VAT period.

 

Where the direct debit payments have exceeded the final liability for the year, there will be a refund of tax paid.

 

If a trader’s VAT liability for the year has fallen, they may apply to Revenue to reduce the frequency of the VAT returns that must be filed during the year.

 

VAT returns must always be made by the 19th day of the month following the end of the VAT period. E.g. If the VAT period is 1st March 2014 -30th April 2014 the return must be filed and any liability paid by the 19th May 2014. This date is extended to the 23rd of the month for returns filed and paid using ROS (Revenue Online Service). 

 

If you require any advice on any of the points mentioned above, please do not hesitate to contact us.

VAT On Supply Of Fully Managed Linen Laundry Service In Healthcare Sector 

​11.06.2014

Revenue has published an eBrief on the VAT treatment of the supply of a “fully managed service” comprising of the hire and laundry of linen in the healthcare sector. It deals with the current concessionary treatment of the laundry element of the supply at the reduced VAT rate.

The eBrief may be found on the Revenue Commissioners website.

Debt Release - Land Dealers & Developers 

​06.05.2014

​Revenue has issued guidance on when individuals engaged in the trade of dealing in and developing land can be subject to income tax on the release of a debt. Finance Act 2013 introduced measures intended to ensure that such individuals do not obtain the benefit of losses for tax purposes when no economic loss has been suffered. The relevant Revenue manual has been updated to include instructions and examples illustrating how the provision is intended to operate. For further information please contact Jason on 021-2355664.

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Thursday 13th November Confirmed As ROS Extended Deadline

​29.04.2014

Thursday 13th November Confirmed As ROS Extended Deadline Revenue has confirmed the extended 2013 ROS income tax Pay and File deadline as Thursday, 13th November 2014. As usual, this deadline applies only when you both pay and file via ROS. The ROS deadline also applies to CAT returns and payments made through ROS for gifts or inheritances with valuation dates in the year ending 31 August 2014. For more information please call Jason on 021-2355664.

Revenue Launch HRI Electronic System ​​
15.04.2014
Revenue Launch HRI Electronic System Revenue has launched their new electronic Home Renovation Incentive (HRI) system. Under the HRI scheme once a contractor is tax compliant homeowners can obtain an income tax credit of 13.5% of qualifying expenditure incurred on repair, renovation or improvement work on their home. Homeowners can use the online system to check whether a contractor is tax compliant. Contractors can enter details of qualifying works and payments received through the HRI incentive link on ROS. If you require further details on the above please contact Jason on 021-2355664.

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