Tax changes to subsistence rates

As published by Revenue today :

Reimbursement of Subsistence Expenses to Employees (including Directors)

While the reimbursement to an office holder or employee of expenses of travel and subsistence is a matter for the relevant body or employer, the tax treatment of such reimbursements is a separate matter. Guidance relating to the tax treatment of reimbursements is published on the Revenue website.

Following an agreed recommendation made by the General Council under the scheme of conciliation and arbitration for the Civil Service (General Council Report 1531 refers), changes will be made to the Civil Service distance requirements and rates with effect from 1 July 2015. These changes are reflected in Revenue Leaflet IT 54 – Employees’ Subsistence Expenses.

The distance requirements provide that:

  1. an overnight allowance which covers a period of up to 24 hours from the time of departure, as well as any further period not exceeding 5 hours, will only be payable free of tax in respect of an absence which is necessarily spent overnight at least 100km away from the employee’s home and normal place of work and
  2. a day allowance, which applies to a continuous absence of 5 hours or more, will only be payable free of tax where the absence is not at a place within 8 km (as opposed to 5 km) of the employee’s home or normal place of work.

Refer to pdfPart 05-02-04 (PDF, 69 KB), which is available on the revenue website under About Us / Freedom of Information / Tax and Duty Manual/Income Tax Capital Gains Tax Corporation Tax / Part 38.hotel

 

Sure Scheme – PAYE Tax Refunds for new companies

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, and the Minister for Finance, Michael Noonan TD, today (Thursday) unveiled SURE – a generous tax refund aimed at encouraging more people to start up businesses.seed

The ‘StartUp Refunds for Entrepreneurs’ allows entrepreneurs obtain a refund from the Government of up to 41% of the capital they invest in starting up a business.

Ministers Bruton and Noonan also today unveiled a comprehensive marketing campaign aimed at increasing awareness of SURE among people considering starting their own businesses, as part of an overall drive aimed at supporting more startups and ultimately more job-creation. This campaign includes:

  • A new website – sure.gov.ie
  • An online calculator, aimed at making it easy for people considering starting their own businesses to calculate how much they can receive under the scheme. This calculator will be made available on a range of Govt and business-related websites , and will also have a “printout” function, allowing entrepreneurs to show it to banks and other potential investors
  • An advertisement campaign using in particular local radio
  • A simple, user-friendly one-page leaflet summarising the scheme, which will be made available in hundreds of locations around the country where entrepreneurs will be able to find it
  • A new Revenue guide which explains the details of the scheme in a user friendly way

The SURE scheme operates as a refund of income tax paid by the person starting the business in the six years prior to the business being started. All income tax paid in those six years can be claimed as a refund under the scheme, subject to an overall limit of 41% of the total investment in the business.

SURE will be targeted particularly at encouraging people in PAYE employment, unemployed people and retired people to start their own business.

Launching the scheme today, Minister Bruton said:

“Two thirds of all new jobs across the economy are created by start-ups in their first five years of existence, and that is why we are putting in place a range of new measures specifically aimed at encouraging more people to start their own businesses. In Ireland we have great start-ups, we just don’t have enough of them. Through SURE, the Government is directly offering cash to people who are considering starting their own business, up to a value of 41% of their total investment. We are determined to ensure that as many people as possible are aware of this generous scheme so that more people start businesses and help create the jobs we need”.

Also launching the scheme today, Minister Noonan said:

“SURE is an excellent example of a Government initiative to provide a source of much needed funds to new businesses who often find it difficult to source seed capital.  Officials have been working closely to simplify the scheme in order to make it easier to understand and communicate to interested entrepreneurs. Entrepreneurs who start their own business could receive a refund of tax previously paid of up to 41% of the capital invested in their new company. The scheme will also be marketed by the Local Enterprise Offices, who will be only too happy to assist any entrepreneurs with any queries they may have”.

For further information:

Press Office, Department of Jobs, Enterprise and Innovation 01- 6312200 or press.office@djei.ie

NOTES FOR EDITORS

www.sure.gov.ie

Background

The SURE scheme is aimed at encouraging those who previously were in PAYE employment to start their own business. In simple terms, it provides a refund of previous income tax paid for entrepreneurs who invest in a new company.

The relaunched SURE scheme has the potential to become a more important source of finance for new businesses who often find it difficult to source seed capital.

A one page leaflet has been developed which briefly outlines the scheme and provides examples of the potential benefits. It also sets out the key terms and conditions and where potential entrepreneurs can go for additional information. The leaflet will be available in LEO offices, Revenue Commissioner offices and other locations where citizens/ potential entrepreneurs interact with the State (e.g. DSP offices, Citizen Information Offices, Employment Services Offices, Education and Training Boards, Community Enterprise Offices, etc.) It is also being circulated to industry grouping nationally (IBEC, chamber of commerce offices around the country, SFA, ISME, accountancy bodies)

A refund calculator has been developed which can be found at www.sure.gov.ie. Given the nature of the scheme, it can be challenging for a would-be entrepreneur to estimate the potential value of this relief to them. A simple online calculator will allow anyone, with the input of minimal data (mostly available on their P60 form), to estimate what refund they might receive should they meet the terms and conditions of the scheme. It will allow the potential entrepreneurs to create a printout outlining their potential refund, amount investment and other tax details and an overview of the calculations made. We will be encouraging other organisations (e.g. Enterprise Ireland, LEOs, Revenue Commissioners, relevant Government department websites, IBEC, ISME, Chambers Ireland, etc.) to place links to the calculator on their sites. The online calculator is also linked to the ‘Supporting SMEs Online Tool’.

Small Gift Exemption

If you have a parent or recashlative whom you believe will be gifting you a cash sum in the future, it is worth avoiding gift tax now, by availing of the small gift exemption.

You are allowed receive €3,000 per annum tax free in this matter and no tax returns are necessary either.

If you do not use this means of gifting cash, the person receiving the gift could end up losing 33% of it, through Gift or Inheritance Tax.

It is to early to begin tax planning and this is one small step to minimize potential tax bills in the future.

 

 

 

 

COMMENCEMENT OF NEW COMPANIES ACT 2014

The Companies Act 2014 will commence on 1st June 2015. It will replace the Companies Acts 1963-2013.

 

Forms to be used AFTER commencement on 1st June are now available on the CRO website.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Form-Comparison

 

SOME OF THE MAIN CHANGES IN NEW ACT AFFECTING ANNUAL RETURNS AND FINANCIAL STATEMENTS

 

 

*** CHANGES TO ANNUAL RETURN (FORM B1) ***

 

There are some changes included in the new B1 form. See link below.  Please

note this form must NOT be submitted before June 1st.

 

Old versions of the B1 form submitted electronically (“captured”) on CORE

before 1 June will be accepted by the CRO for up to 28 days after the date of

“capture”.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Form-B1

 

 

*** FINANCIAL STATEMENTS FILED WITH THE CRO AFTER 1 JUNE 2015 ***

 

The CRO is planning to take the following approach in relation to financial

statements attached to annual returns delivered to the Registrar on or after

1 June 2015:

 

  • if the financial year ends before 1 June 2015 and the financial

statements are signed by the director(s) before 1 June, they must

be prepared and filed in accordance with the 1963-2013 Companies Acts;

 

  • if the financial year ends before 1 June 2015 and the financial

statements are signed by the director(s) after 1 June, they may be

prepared and filed under either the 1963-2013 Companies Acts OR the

2014 Companies Act (it is envisaged that this arrangement will end

in April 2016 when all financial statements in respect of financial

years ending before 1 June 2015 should have been filed with the CRO);

 

  • if the financial year ends after 1 June 2015, the financial statements

must be prepared and filed under the 2014 Companies Act,

 

For further infomation please go to:

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Financial-Statements-after-1-June

 

 

*** FIXING OF LENGTH OF FINANCIAL PERIODS ***

 

Under section 288 of the new Act, the financial statements attached to a

company’s first full annual return (ie with financial statements) must

cover the period from incorporation and must not be for a period longer

than 18 months. Each subsequent financial year begins on the date

immediately after the last financial year end date and must be for a

period of no more than 7 days shorter or longer than 12 months.

 

For further information see Section 3 of CRO Information leaflet No.23

or cRO website

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

https://www.cro.ie/New-Act-2014/Annual-Returns/Financial-Statements-after-1-June

 

 

*** REVISION OF FINANCIAL STATEMENTS AND/OR DIRECTORS’ REPORT ***

 

A new provision in the 2014 Act is that if the company becomes aware of an

error in the Financial Statements, they should correct the error and file

the corrected documentation with the CRO not more than 28 days after the

date of revision. Where copies of the original Financial Statements or

original Directors’ Report have been laid before the company in a general

meeting or delivered to the Registrar, all revisions should be made with

reference to sections 366 to 379, CA 2014, using the Form B1X.

 

Where a revision is filed with the CRO, section 376(6), CA 2014, requires

that the original Financial Statements or Directors’ Report shall continue

to remain on the Register.

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Rectification-of-Financial-Statements

 

Also see Section 8 of CRO Information Leaflet 23.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

 

*** AUDIT EXEMPTION ***

 

Companies will only have to meet 2 of the 3 size criteria to qualify as a “small

company” for the purposes of claiming an audit exemption. Guarantee and Group

companies will be able to qualify for the audit exemption. There will be a new

audit exemption available to Dormant companies

 

https://www.cro.ie/New-Act-2014/Annual-Returns

 

Also see Section 4 of CRO Information Leaflet 23

 

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

 

*** EXTENSION OF TIME TO FILE ANNUAL RETURN WILL BE AVAILABLE FROM DISTRICT COURT ***

 

From the commencement date of the Companies Act 2014 (1 June 2015), applications

for an extension of time to file an annual return can be made through the

District Court as per section 343(5) of the Act. The costs of making an

application to the District Court are far less than the High Court (which

is currently the court prescribed).

 

Consequently, from 1 June 2015, CRO will no longer be engaging in correspondence

with companies appealing the application of penalties as a result of the late

filing of an annual return. Instead, companies who need more time to file their

annual return should make an application to the District Court in the district

court area where their registered office is situated.

 

  1. Section 343(5) of the Act will only apply to an annual return that “is to

be delivered to the CRO on or after” 1 June 2015 (ie has not been received by

the CRO before 1 June).

 

See Section 1.7.3 of CRO Information Leaflet 23.

 

https://www.cro.ie/New-Act-2014/-Forms-and-Leaflets/Leaflets

 

https://www.cro.ie/New-Act-2014/Annual-Returns/Extension-of-time-to-file-Annual-Return

P.R.S.I. on your Deposit Interest

If you are lucky enough to be making interest on your hard earned savings, then you are unlucky enough to be paying 41% DIRT on such interest.

Portrait of a pretty young woman with a look of shock on her face

From 01.01.2014 you must also pay P.R.S.I. on this interest at 4%. You may have thought this was being deducted by the banks but in fact you must make a tax return through the self assessment system to do so…

This basically means filing a tax return through the ROS system.

To ensure you are tax compliant and avoid any penalties or interest building up contact us today for a chat on this matter.

Tel Jason on 0874199204 or email jason@mcdowellaccountants.ie

 

 

ROS – Extension of Pay & File Deadline for ROS Customers for 2015

ROS – Extension of Pay & File Deadline for ROS Customers for 2015

Today, 28 April 2015, Revenue announced an extension to the ROS return filing and tax payment date for certain self-assessment income tax customers and for customers liable to Capital Acquisitions Tax (CAT).

For customers who file the 2014 Form 11 return and make the appropriate payment through ROS for:

  • Preliminary Tax for 2015,
  • Income Tax balance due for 2014,

the due date is extended to Thursday, 12th November 2015.

For beneficiaries who received gifts or inheritances with valuation dates in the year ended 31st August 2015 who make a CAT return and the appropriate payment through ROS, the due date is also extended to Thursday, 12th November 2015.

To qualify for the extension, customers must both pay and file through ROS. Where only one of these actions is completed through ROS, the extension does not apply and the required date to submit both returns and payments is no later than 31st October 2015.

Change to Medical Insurance Relief for policies renewed, or entered into, on or after 1 May 2015

n March 2015, the Minister for Finance announced his intentionExternal link to amend tax relief for medical insurance premiums for young adults from 1 May 2015 on foot of changes introdambuced under the Health Insurance (Amendment) Act 2014. Revenue has agreed to operate the changes on an administrative basis pending the provision of the underpinning legislation as part of the next Finance Bill.

For policies renewed, or entered into, on or after 1 May 2015, the full adult maximum tax relief amount of €1,000, or the relevant premium where this is lower, applies for all individuals aged 21 and over, even if they are availing of a reduced premium rate below the full adult price. Tax relief on the amount eligible for relief continues to be granted at 20%.

Revenue’s two guidance documents, pdf Medical Insurance – Information for Employers (PDF, 289 KB) and pdf Medical Insurance – Information for Employees (PDF, 273 KB) have been updated accordingly.

Taking Care of Business Workshops

Taking Care Of Business

FREE One Stop Shop For Your Business

Event Name Location Date
Taking Care of Business – South East Region Tower Hotel, Waterford Thursday 30 Apr 2015

Check out what previous Taking Care of Business attendees had to say about the event: Click here to view

Please click here to view the agenda

Do you own or manage a small business? Are you thinking of starting a new business? Then this event is for you!

Over 30 State bodies will be available to give you information and advice on a range of services for business. By attending one of these events you will:

  • Meet informally with representatives from a variety of State bodies
  • Get practical information and advice
  • Find out ways to save your business money
  • Get supports and tools to assist you in your business

Come along to this FREE event and get help with running and growing a sustainable and compliant business.

Don’t miss out, register for your place today.

FAQs

1 What is Taking Care of Business?
This free half-day event has been specifically designed to help small and start-up businesses understand and benefit from the services provided by many of our State offices and agencies. The event will include short presentations and opportunities to get information directly from the agencies involved.
2 How many State offices and agencies are coming to the event?
Representatives from 30 State offices and agencies will be available at the event. A number of business representative bodies will also be attending.
3 How do I sign up for the event?
Click on the ‘Book Now’ link above for the location you wish to attend and follow the online instructions.
4 Will I receive a confirmation?
Yes, by email to the address provided to us on the registration form.
5 Do I have to pay for the event?
No, this is a free event.
6 Where can I find an event agenda?
The agenda for the event can be found by clicking here.
7 What are the benefits of attending an event?
By attending one of these events you will:
• Meet representatives from a range of State offices and agencies
• Get practical information and advice
• Find out ways to save your business money
• Better understand the key regulations that affect your business
• Get supports and tools to assist you in your business
8 Do I have to register in advance or can I turn up on the day?
We strongly discourage ‘walking in’ as there are limited spaces available. It is best to register in advance.
9 Can more than one person from my company attend the event?
Yes, you can have as many attending as you wish. However, everyone must register in advance on the website, the same way you registered yourself.
10 Is parking available for the event?
The hotel car park is situated to the rear of the hotel. Parking is on a first come, first serve basis. Please click here for directions to the hotel:http://www.towerhotelwaterford.com/location.html  Further information on parking in Waterford can be found here: http://www.parkopedia.ie/free/waterford_city/parking/
11 What if I have more questions?
Please email us at info@takingcareofbusiness.ie.

12 
What is the Taking Care of Business Twitter policy?

Employees of the Health and Safety Authority, the Food Safety Authority of Ireland and the Department of Jobs, Enterprise and Innovation manage the @TCOB2015 account. @TCOB14 does not purport to represent the views of any State body, private sector organisation or individual involved with or supporting Taking Care of Business.

If you follow @TCOB2015 you can expect tweets about upcoming Taking Care of Business events.

If you follow @TCOB2015 we will not automatically follow you back.

If we follow a Twitter account or refer to existing hashtags it does not imply any kind of endorsement.

We review @messages Monday to Friday during office hours (excluding public holidays). We may occasionally tweet outside of office hours. We will ensure that feedback from twitter users about Taking Care of Business events is passed on to the coordinating group which organises the events.

We do not use any automation to post Twitter content.

For media enquiries about Taking Care of Business events please contact the Press Office of the Department of Jobs, Enterprise and Innovation atpress.office@djei.ie or +353 1 631 2200

Refund of Dirt paid for First time Buyers

DIRT First-Time Buyers Relief

Section 266A of the Taxes Consolidation Act 1997 provides for refunds of Deposit Interest Retention Tax (DIRT) for first-time buyers who purchase a house or apartment to live in as their home. It also applies to first time buyers who self-build a home to live in.

Who is entitled to claim?

A first-time buyer of a house or apartment who purchases or self-builds a property between 14 October 2014 and 31 December 2017 may be entitled to claim a refund of DIRT.

The first-time buyer must not have either individually or jointly with any other person, previously purchased or built a house or apartment.

The property must have been purchased or built as the first-time buyer’s home. It does not include properties acquired for investment purposes.

How to make a claim

To make a claim, the property must be registered for Local Property Tax (LPT). Once registered, you log in to the LPT system and enter your PPS number/Tax Reference Number, Property ID and Secure LPT PIN.

Once in the LPT system, you click the Claim DIRT F.T.B. Refund button. This will display a claim form and you enter the required information and submit your claim.

The following information is needed to make a claim:

  • Amount of DIRT to be refunded,
  • Purchase price or completion value for a self-build,
  • Purchase date/completion date,
  • Email address,
  • Bank Account details to which the refund is to be paid (if we have your details already on our records these will be displayed but you can amend them if necessary),
  • Evidence of DIRT deducted (i.e. bank statements).

Further Information

35 Wolfe Tone St Sligo info@mcdowellaccountants.ie 071 91 69647