Revenue have issued a note intimidating that under payments of preliminary tax (PT)for 2010, could result in an interest charge when you finalise your income tax liability for that year.

I will try to explain this in a simple example.

Say you pay PT of €500 for the year 2010 in this years submission.

Next year, when you finalise your accounts for the year 2010 you realise your tax bill is actually going to be €1,500. This means at 31st Oct 2010 you should have paid an extra €1,000.

The penalty for doing this will be an interest charge from the original deadline to the point at when you pay your tax bill (0.0273% per day).

On top of this, you have the extra €1,000 tax you underpaid.

I realise times are tough at the moment and most small businesses really struggle with cash flow so it is hard to pay both PT and the IT bill in one go come October 31st. Ease the pain by having a direct debit set up to pay the PT in installments, or at worst get your accounts for 2010 done as early as possible in 2011 so you minimise any potential interest charge you may be hit with.

Contact us for more information or if you want your accounts prepared swiftly.

Pixmania Ireland always seem to have  current discount codes available -
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Using the latest  Pixmania  voucher codes you can get a discount of  €7 when you spend over €200 and  get €17 discount on orders over €450.
The current Pixmania discount  codes are  valid until September 15th 2010
Enter the code at checkout when asked if you have a Voucher.

Current Pixmania Discount Codes for Northern Ireland and other UK shoppers can be found here  – Pixmania UK Codes -   – getting you as much as  £14  off  orders over £500

Pixmania is the online arm of the giant electronic DSG group (PC World, Currys Dixons). They sell anything from a Digital Camera to an Xbox, LCD TVs, Camcorders, MP3 Players, Juicers, Dysons, Laptops , Roombas etc.  all with delivery to Ireland.

More  Discount Codes Ireland

See more better business deals in this section.

Self-Assessment gives you greater control and responsibility over your tax affairs. It applies for Income Tax purposes to:

• Self-employed people (i.e. people carrying on their own business including farming, professions or vocations)
• People receiving income from sources where some or all of the tax cannot be collected under the PAYE system, for example: profits from rents, investment income, foreign income and foreign pensions, maintenance payments to separated persons, fees, profit arising on exercising various Share Options/Share Incentives.

Under Self-Assessment there is a common date for the payment of tax and filing of Tax Returns, i.e. 31 October. This system, which is known as ‘Pay and File’ allows you to file your return and pay the balance of tax outstanding for the previous year at the same time. Under this system you must:

• Pay Preliminary Tax for the current tax year on or before 31 October each year,
• Make your Tax Return after the end of the tax year but not later than the following 31 October.
• Pay any balance of tax due for the previous tax year on or before 31 October.
• Pay any Capital Gains Tax on disposals made between 1 January and 30 September of the current tax year.

For more detailed information

• IT10 – A Guide to Self Assessment
• IT19 – Professional Services Withholding Tax (PSWT)
• IT61 – A Revenue Guide to Professional Services Withholding Tax (PSWT) for Accountable Persons and Specified Persons (PDF, 168KB)

If you need further information or assistance on the above matters drop us a note today.

Revenue eBrief 15/10, which issued on the 30 March 2010, included the composite rate at which the income levy is charged on all relevant income for the full year 2009.

A number of queries have been received regarding the end of year calculation of the income levy on Schedule E income, where the levy had been deducted at source during the year.

The composite rates are to be applied to all relevant income for the year, including Schedule E income, which may have already suffered the income levy at the the different rates in force for the periods 1 January 2009 to 30 April 2009 and 1 May 2009 to 31 December 2009.

An additional liability to the income levy may arise for individuals with Schedule E income for the period 1 January 2009 to 30 April 2009 only. Depending on the level of their income, they may not have met their full obligations to the income levy using the composite rates when recalculated using the composite rates.

Likewise a reduction in Schedule E income in 2009 in the second period may result in an underpayment of the income levy overall as a greater portion of the income will have been subject to the lower rates of levy in place for that period.

The following examples demonstrate how underpayments may arise. In the first example the individuals income remains constant for the year. In the second example the income is lower for the second period.

Initial period:            1,925 @ 1% =             19.25
                             55 @ 2% =               1.10
Total                        20.35 x 18 =          366.30	

Later period               1,443 @ 2% =             28.86
                             537 @ 4% =             21.48
Tota                          l0.34 x 34 =       1,711.56	

Total for the year (366.30 + 1711.56)            2,077.86

Income for the year           102,960
                          75,036 @ 1.67% =       1,253.10
                          25,064 @ 3% =            751.92
                           2,860 @ 3.33% =          95.24
Total levy due                                   2,100.26
less Income levy deducted under PAYE             2,077.86
Balance due                                         22.40

Initial period:         1,925 @ 1% =                19.25
                          225 @ 2% =                 4.50
Total                      23.75 x 18 =            427.50	

Later period            1,443 @ 2% =                28.86
                          447 @ 4% =                17.88
Total                      46.74 x 34 =          1,589.16	

Total for the year   (427.50 x 1589.16)          2,016.66

Income for the year  	102,960
                        75,036 @ 1.67% =         1,253.10
                        25,064 @ 3% =              751.92
                         2,860 @ 3.33% =            95.24
Total levy due	                                 2,100.26
less Income levy deducted under PAYE             2,016.66
Balance due                                         83.60

ROS now provides the facility to amend a Form 11 that has been submitted to Revenue. The main features of this new facility are:

• It is available for Form 11 only; it is not available for Form 1 or Form 1(Firms).
• It is available through the ROS on-line facility only; there is no off-line amend facility.
• The option to amend through ROS is only available for the years 2009 et seq.
• Only the person who filed the original return (either the customer or their agent) will be able to amend the return details.
• If the return details have been amended more than twice, it will not be possible to amend the case through ROS.
• It will not be possible to amend all of the fields on the Form 11. Those fields that cannot be amended on-line will be ‘greyed out’.
• It will not be possible to amend all returns; for example, years which have been amended more than twice, years that have been subjected to a Revenue audit, etc. Where a year is blocked from on-line amendment, the user will be advised that they should submit their amendments to the appropriate Revenue District.

Notes:

• When a user selects a year in ROS on-line and a Form 11 has already been submitted, they will be presented with the return information currently held by Revenue. An introductory page will clearly show that the Form 11 is being opened in amend mode.
• The Form 11 screens are the same in amend mode as they are in the original Form 11.
• The return details presented may not be the same as those originally submitted, as the year may have been amended in the Revenue District. Remember, it is the return details currently held on the Revenue file and not the return details submitted that are shown on the amendable Form 11 screens.
• If a user amends a field on the return that would not, on its own, generate a new notice of assessment (e.g. an item in the extract from accounts pages) the user will be presented with a message advising them of this. The user can of course still submit the amendment.
• Where a user is advised that it is not possible to amend the return details on-line and to submit their amendment direct to the Revenue District, the amendment should be requested by existing methods, e.g. letter, email, etc. The purpose of contacting the Revenue District is to give the correct information to enable the return details be amended. The Revenue District will not be in a position to ‘unblock’ the return to allow an amendment through ROS.
• It will not be possible to amend return details in the period between submitting a return to ROS and the issue of an amended assessment. If the return details require amendment, the user will have to wait until after the issue of the notice of assessment (or amended notice of assessment).

Get desktop help from the Revenue Commissioners….

Drop us a mail for more informtion.

This is old news at this stage but its only coming home to bite now for any self employed people who are filing their 2009 annual return….Ouch !

The Health Levy in Ireland is really just another name for income tax that is deducted from earnings. It is supposed to be used by Department of Health and Children to fund health services in Ireland.  The recent April 2009 mini Budget doubled the rate of this Levy. (So will we see a massive improvement in Health Services? – or are we all just being fooled ?)

The following people do not pay the health levy:

• People earning less than €500 gross per week
• People who have a medical card
• People getting One-Parent Family Payment, Deserted Wife’s Benefit/Allowance, the Widow’s/Widower’s Contributory Pension and the Widow’s/Widower’s Non-Contributory Pension.

If you have paid the health levy and think you should not have, you should contact your local tax office to find out how to get this money back.

The health levy was previously paid at the rate of 2% on all earnings up to €100,100 and 2.5% on earnings over €100,100.

From 1 May 2009, the health levy will be paid at the rate of:

• 4% on all earnings up to €75,036
• 5% on earnings over €75,036.

So someone earning 40k a year would have paid  800 euro a year – will now pay 1600 euro a year (133 euro a month) . People paying private health insurance as well must be thinking why are they paying twice.

Company Secretarial

• Company formations €150.00

Corporation Tax

• Annual CT returns to Revenue with abridged accounts to CRO from €750.00

Employers

• Annual P35s from €150.00
• P30s from €35.00 per return

Prices excluding VAT :

• Annual Returns (Form 11) from €400.00
• Farm Accounts from €375.00
• VAT Returns (VAT 3 ) from €50.00 per return
• Employers Returns (P30) from €25.00 per return
• Employers Returns (P35) from €100.00
• Book keeping services from €15.00 per hour

http://www.google.ie/url?sa=t&source=web&cd=1&ved=0CBQQFjAA&url=http%3A%2F%2Fwww.revenue.ie%2Fen%2Ftax%2Fit%2Fforms%2Ftrcn1.pdf&rct=j&q=trcn1&ei=x-dzTMr4IcK4jAej-qiKCQ&usg=AFQjCNHAKAH0crU_JkdJmbQ1EiBih89u0w&cad=rja

From 1 September 2010, it will no longer be possible to register a vehicle at a Revenue Vehicle Registration Office (VRO). Instead, the vehicle must be brought to an NCT Centre for registration.

You must book your appointment with the NCTS within 7 days of the vehicle entering the State and have completed the registration within 30 days of the vehicle entering the State.

New Guide and FAQs

• Guide to Vehicle Registration Tax
• FAQS in relation to the revised vehicle registration procedures

Revised Lealfets & FAQs

• FAQs – CO₂ based Vehicle Registration Tax
• Before you Purchase a Car Abroad
• Temporary Exemptions for Foreign Registered Vehicles
• Transfer of Residence
• Transfer of Residence Duty-Free Vehicles
• Reserve a Registration Number
• Appeal Procedures
• Owner Name and Address Declarations

The maintenance grant is the main source of financial help available from the Irish State for students in full-time Post Leaving Certificate Courses (PLCs) and full-time higher education undergraduate/postgraduate courses. Support is available to eligible students in most colleges in Ireland as well as eligible Irish students in many colleges in Northern Ireland, the UK and other EU States. For eligible students, the maintenance grant is there to help with the various costs of participating in further or higher education. Students on part-time courses, access or foundation courses (in higher education institutions) and short courses are not eligible to apply for a maintenance grant.

McDowell and Company Accountants can provide assistant with the applications at a competitive rate.

Link to the forms below for your information.

http://www.studentfinance.ie/downloads/1273247091/DES_Student_Grant_Application_Form_final_for_web_06May10.pdf

If you are self employed, we can complete your accounts and this application at a heavily discounted rate.

email us for a quote today at  jason@mcdowellaccountants.ie

Conditions to be satisfied

1. Work must be carried out prior to 31st December 2010.
2. A Farm Nutrient Management Plan must be drawn up by an agency or planner approved by the Department of Agriculture, Food & Forestry.
3. The plan must be delivered to the Department of Agriculture, Food & Forestry.
4. The buildings and structures must be constructed in accordance with the Farm Nutrient Management Plan and certified as being necessary for the purpose of securing a reduction in or the elimination of any pollution arising from the trade of farming.
5. The building must be in use before the claim is allowable.

What are the changes to CAT and the administration of Probate being introduced by the 2010 Finance Act?

Gift tax is payable on certain gifts made during the lifetime of the donor. The person making the gift is called the donor or disponer and the person receiving the gift is called the donee. A gift is taken when a donee becomes beneficially entitled in possession to some property and does not give full consideration for it.

The 2010 Finance Act is introducing significant changes to the Capital Acquisitions Tax Consolidation Act 2003, as amended, to provide for –

• Removal of the requirement for Revenue certification of the Inland Revenue Affidavit (CA24) before issue of Probate by the Courts Service (Probate Office).
• Introduction of a pay and file regime for Gift Tax and Inheritance Tax.
• The introduction of a surcharge for the late filing of a CAT return.
• Abolition of the status of CAT as a charge on property that has been the subject of a gift or inheritance in the previous 12 years.
• Abolition of secondary accountability. Forms CA11, CA44, IT10, will no longer be issued by Revenue.
• Requirement to appoint an Irish-resident “agent” who will be responsible for pay and file procedures where beneficiaries are non-resident and do not pay and file.
• A requirement to electronically file where reliefs are being claimed.

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When are these changes coming into effect?

The abolition of the status of CAT as a charge on property, the abolition of secondary accountability, and a revised clearance threshold of €50,000 for joint accounts, all came into effect from the date of the passing of the Act. All other changes will come into effect on a date to be decided by the Revenue Commissioners. It is envisioned that this will be mid June 2010.

The Inland Revenue Affidavit will continue to be sent to Revenue for certification until mid June. Where the beneficiary is not resident, the personal representative or where the personal representative is also non-resident, the solicitor, is assessable and chargeable where the beneficiary does not file a tax return and make a payment. When does this provision take effect from?

In the situation where the personal representative is resident, the provision has effect from the enactment of the Finance Bill 2010. Where the personal representative is also non-resident and a solicitor is appointed under section 48 (10), the provision has effect from a date to be specified by the Revenue Commissioners expected to be mid June 2010.

What are the changes to the administration of Probate being introduced by the 2010 Finance Act?

From mid June you will no longer need to present an Inland Revenue Affidavit to the Revenue Commissioners for certification prior to your application for Probate to the Courts Service. Instead the Inland Revenue Affidavit will be submitted in duplicate directly to the Probate Office together with all other necessary documentation for the Grant of Representation.

If a corrective affidavit is needed where is it filed?

The corrective affidavit (form CA26) should be sent in duplicate directly to the Probate Office. Revenue will be provided with a copy by the Probate Office.

What is the procedure for De Bonis Non Grants?

Form A3C (change to personal representative) should also be sent in duplicate directly to the Probate Office together with all other appropriate documentation.

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What is the position with personal applications for Probate?

The majority of persons instruct a Solicitor to extract Probate. In some instances it is possible to apply in person through the Personal Applicants Section of the Probate Office or one of the District Probate Registries for Probate. Under this new legislation, where there is a non-resident beneficiary of an estate with a potential for tax liability and all of the proposed legal personal representatives of an estate are also non-resident, a Solicitor must be appointed to act in connection with the administration of the estate.

What will be the status of solicitors already acting in estates with non-resident beneficiaries and personal representatives? Will Revenue be treating them as agents under the new rules?

The new provisions apply in respect of applications for probate following the commencement of the Finance Act 2010 changes. Probates issued prior to this date are unaffected.

Will any clearance certificates be issued once the Finance Bill 2010 has been enacted?

In general, clearance certificates will not be issued by Revenue once the Finance Bill 2010 is enacted. An exception applies in the case of applications to the Property Registration Authority for adverse possession.

Can applications still be made for Letters of Clearance Form IT8 and Form IT10?

Form IT8 will still be applied for where the amount lodged or deposited in joint names exceeds €50,000. Form IT10 will no longer be issued.

I have a number of clients who are in the process of purchasing a property and the purchasers are seeking a certificate of discharge. The requirement for the certificate of discharge is included in the contract. What is the position?

Once the Finance Bill 2010 is enacted, there is no need for a certificate of discharge and Revenue will no longer issue certificates of discharge. The inclusion of such a requirement in the contract is superfluous as it is no longer required or available.

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I wish to claim a relief as part of making my gift or inheritance tax return. How do I meet the legal requirement to electronically file my return?

You can electronically file by registering with Revenue’s Online Service (ROS).

What is Revenue On-line Services (ROS)?

ROS is an internet based system that enables Revenue customers and their agents to conduct their business electronically with Revenue at a time and place of their choosing. The main features of ROS include facilities to:

• File returns and make payments.
• Obtain online details of personal/clients Revenue accounts.
• Calculate tax liability.
• Claim repayments.

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How do I register for ROS?

ROS has a simple three-step registration process, at the end of which a Digital Certificate will be issued. The Digital Certificate enables the customer to access ROS and utilise its full range of services. To register select the Revenue Online Service link from the Revenue homepage. From the ROS homepage click “How to become a ROS customer” and simply follow the instructions. The three steps to becoming a ROS customer are:

• Step 1: Apply for a RAN (ROS Access Number) which is posted to you.
• Step 2: Input the RAN and await the receipt of a system password which is also posted to you.
• Step 3: Enter the password to retrieve your digital certificate.

Is there any restriction on who can register as an agent for the purposes of filing a CAT return?

There is no restriction. Anyone can register to use ROS.

Who should I contact with any problems encountered when filing a ROS Return?

The ROS Helpdesk can be contacted at lo-call 1890 201 106.

I am a solicitor or individual taxpayer and wish to file a gift or inheritance tax return (IT38) online. How do I do this?

Having registered with Revenue as a ROS customer (see question 14) you file the gift or inheritance tax return (IT38) by logging onto your ROS account and selecting CAT from the tax heads listed. ROS will bring up the return screens for CAT. You complete the return by selecting from drop-down menus and entering the relevant information. The information you enter will customise the return as you progress so that you are only presented with the relevant sections. The ROS system will calculate the CAT liability based on the information entered. You can use an off-line version of the IT38 by downloading a return to your own computer (or office network), which you can complete off-line. Once satisfied with the return, you can go on-line in ROS to upload and file the completed return and make a payment to Revenue. In practice, most tax returns are prepared in the off-line environment and only uploaded to ROS when they are ready to be submitted to Revenue.

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I am a solicitor or individual taxpayer, how do I pay on-line in ROS?

Payment through ROS is straightforward. Simply sign-in and select the relevant links and the system will guide you through the process. You can make the payment by laser or by RDI. When you sign up for ROS you can set up a direct debit with ROS (known as ROS Debit Instruction (RDI)) where you can nominate a bank account from which ROS will automatically debit the on-line payments you have authorised.

I am an agent, how do I file a return on-line?

You cannot complete the return on-line using an “agent” ROS certificate but instead should use the off-line version of the IT38 to download a return to your own computer (or office network), which you can complete. Once satisfied with the return, you can file the return by logging onto your ROS account to upload and file the completed return and make a payment to Revenue.

I am an agent, how do I pay on-line in ROS?

Payment through ROS is straightforward. Simply sign-in and select the relevant links and the system will guide you through the process. You can make the payment by laser card only.

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I am a taxpayer, can I file my own return directly with Revenue?

Yes. A taxpayer can file his or her own tax return. However, where the taxpayer wishes to file electronically, or has a requirement to file electronically, through ROS, he or she will need a digital certificate. However, Revenue is aware that, in most cases, the practitioner acting for the estate generally files the tax returns for the beneficiaries and does not expect to see a substantial change in this regard.

Can I file a return without payment?

Yes. However it is important to make a payment of the tax by the due date to avoid interest charges so we recommend filing of the return and payment of the tax at the same time as an efficient and sure way of meeting both obligations to file and pay the tax by the due date. Payment through ROS also ensures that the payment is assigned to the correct case and period. If payment is being made after the return has been filed you can pay separately by going back into ROS or through the post by cheque.

When I push the button to pay and submit, is there a record of all the fields I’ve completed?

Yes. A copy of all the information that you have filed is available through your ROS in-box after the return is filed.

Will a notice of assessment issue automatically like in Income Tax?

CAT is a fully self-assessed tax. By completing your return on line, you self-assess and a notice of assessment will not issue. The tax is automatically calculated for you based on the information you provide. On receipt of the ROS return, Revenue will issue an acknowledgement. If the return is filed late, a surcharge will be due and an amended assessment will be made by Revenue to include the surcharge. In such cases, a notice of amended assessment will issue from Revenue. Where a paper return (IT38) is filed and if Revenue is satisfied that, based on the data in the return, the tax is correctly computed an acknowledgement will issue. However, if Revenue disagrees with the taxpayer’s self-assessment or if a surcharge arises, Revenue will make an amended assessment and a notice of amended assessment will issue.

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I am not claiming any reliefs. Can I file my return electronically rather than by paper copy if I wish?

E-filing can be used to file all returns regardless of whether a relief has been claimed. This is the preferred method for filing returns as it eliminates computational errors and ensures that all relevant data is returned. However you can if you wish still make a paper return.

I have received an IT38 from Revenue but do not have a requirement to file this tax year. What do I do?

As a service to customers, Revenue will issue a notice incorporating a Form IT38 to individuals who it understands may have a requirement to pay and file a CAT return. Given the fact that that the valuation date in relation to inheritances is not always easily determinable, Revenue accepts that there may be no liability for the year to which the IT38 relates. Where an individual has received such a form, the individual or a practitioner acting for him/her can advise Revenue that a return is not due. This can be done by contacting your local tax office or by ticking the relevant box on the paper form, and submitting it to Revenue. There is no need to sign the form and the submission of the notification will not be regarded as a submission of a return. The requirement to pay and file a CAT return for a year in which there is a valuation date is unaffected by this procedure.

What should I do where I have received a gift or an inheritance, and have not received a Form IT38 to complete?

You should file a return as required under Sec.46 CATCA 2003.

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What happens if I file late?

If a return is filed late, interest and a surcharge will apply. You may also be liable to penalties.

What is the surcharge?

The surcharge is based on a percentage increase in the total tax payable for the year for which the return is late, and is subject to a grading by reference to the length of the delay in filing as well as being subject to an overall cap, calculated as follows: A 5% surcharge applies, subject to a maximum of €12,695, where the tax return is delivered within two months of the filing date (e.g., for the year of assessment 2010, any date between 1 November 2010 and 31 December 2010 inclusive). A 10% surcharge, up to a maximum of €63,485, will be applied where the tax return is not delivered within two months of the filing date.

If secondary liability and the 12 year charge only remain for cases where Revenue have issued proceedings (after the new Act) how will practitioners be able to confirm if proceedings were issued? Are there any cases in practice where proceedings have issued?

It should be clear to practitioners whether or not proceeding have been commenced. A letter from Revenue indicating that proceedings are being considered is not an indication that proceedings have commenced. Revenue confirms that there are no active cases where proceedings were issued.

As an agent appointed under Section 48(10), what is the position where a beneficiary provides incorrect information regarding the receipt of prior gifts and inheritances and additional tax is now due?

Revenue will not pursue the agent for liability in this situation as a result of the beneficiary providing incorrect information to the agent, provided the agent has made reasonable enquiries on the matter and has acted in good faith.

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As an agent appointed under Section 48(10), what is the position where the liability of a beneficiary is affected by the value of non-Irish assets which were not disclosed by the beneficiary to the agent and over which the agent did not have any control?

Where a liability to CAT arises in respect of assets that were not under the control of an agent and the assets were not reported to the agent following reasonable enquiries by the agent acting in good faith, Revenue will only pursue the agent directly for the outstanding tax to the extent of the assets remaining under the control of the agent.

What is a PPS number and where do I get it?

This is an individual’s Personal Public Service Number, which is issued by the Department of Social and Family Affairs. Please note that PPS numbers containing 2 alphas of which the second alpha is a “w” should not be used. In this case, a new number should be sought from the Department of Social Protection.

How will any outstanding Probate Tax issues be dealt with?

There is no change to the treatment of outstanding Probate Tax issues.

How should Inland Revenue Affidavits (Forms CA24) be dealt with for cases where the Disponer died prior to 05/12/2001?

There will be no change to the Inland Revenue Affidavit procedure for cases with a date of death prior to 05/12/2001 and the current form should continue to be used.

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As a resident personal representative under Section 45AA of the CAT Act or a solicitor under Section 48 (10) of the CAT Act what steps can I take to ensure I am not personally liable to the inheritance tax of a non-resident beneficiary?

As a result of discussions between the Law Society and Revenue, it is accepted that the resident personal representative or solicitor under Section 48 (10) may write to Revenue [*]indicating that he or she is intending to distribute the assets taken by a non-resident beneficiary from the estate of the deceased within one calendar month, where that personal representative or solicitor is satisfied that any relevant pay and file obligations have been met.

If Revenue indicates within the time frame of one calendar month that it is considering auditing the return or lack of return by that beneficiary, the resident personal representative or the solicitor under Section 48 (10) should retain control of the assets relating to that beneficiary’s benefit (in so far as he or she has control) until such time as either Revenue confirm in writing that there will be no audit or the audit, including any appeal process, is completed and any taxes which are assessable on either the resident personal representative or the solicitor under Section 48 (10) pursuant to Section 45AA of the CAT Act are paid to the satisfaction of Revenue.

If Revenue fails to respond within the timeframe of one calendar month advising that the file may be audited, Revenue are not precluded from carrying out an audit within the usual statutory time limits against the non-resident beneficiary. However where the non-resident beneficiary is selected for audit, the non-resident beneficiary will be responsible for all aspects of the audit process under the Audit Code of Practice for Revenue Auditors without prejudice to the Revenue’s rights, if any, to information as prescribed by law. In the event of an additional liability being identified where the resident personal representative or the solicitor under Section 48 (10) acted honestly and in good faith and did not deliberately fail to comply with his or her obligations, then Revenue will only seek to enforce liability on the resident personal representative or the solicitor under Section 48 (10) to the extent of any assets remaining under his or her control. Any excess liability will be sought by Revenue directly from the non-resident beneficiary and liability for the excess liability will not be enforced against the resident personal representative or the solicitor under Section 48 (10).

* The letter should be sent to Dublin City Centre District, Revenue Commissioners, 9/15 Upper O’Connell street, Dublin 2

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When does the increased threshold relating to clearance of joint accounts apply from?

The increased threshold (from €31,750 to €50,000) applies to persons dying on or after 21 February 2003, i.e. the date of the passing of the Capital Acquisitions Tax Consolidation Act 2003. However, on an administrative basis, Revenue will treat the increased threshold as applying to persons dying on or after 26 January 2001.

When is a Form IT8 required in relation to joint deposit accounts in financial institutions?

A. Form IT8 is required where the sum of money on deposit in the name of the deceased and any other person exceeds €50,000. The following examples illustrate the point:

1. Joint bank account in the names of John and Joan containing €30,000. John dies – IT8 is not required.
2. 2 joint bank accounts in the names of John and Joan containing €30,000 in each account. John dies – IT8 is required. The total on deposit in which John and Joan have an interest is €60,000.
3. Joint bank account in the names of John and Joan containing €30,000 and joint bank account in the name of John and Jack also containing €30,000. John dies – IT8 is not required.
4. Joint bank account in the names of John and Joan containing €30,000 and joint bank account in the name of John, Joan and Jack and also containing €30,000. John dies – IT8 required. John and Joan have an interest in joint deposit accounts containing €60,000
5. Joint bank account in the names of John, Joan and Jack containing €60,000. John dies – IT8 is required. John, Joan and Jack all have an interest in a bank account containing €60,000.
6. Joint bank account in the names of John and Joan, who are married to each other, containing €60,000. John dies – IT8 is not required. (The requirement for an IT8 does not apply in the case of a joint account in the names of a married couple.)

The Inland Revenue Affidavit, at page 13 question 6, asks about payments under the Nursing Home Support Scheme. What is the purpose of this question?

The purpose of the question is to prompt the personal representative that there may be a liability under this scheme and to ensure that the liability is reflected in the application for a Grant of Representation. Any liability must be paid to Revenue. The section 16 manual gives more information in relation to Revenue’s role as collection agent for the HSE.

When is the residence test to be carried out for non-resident beneficiaries or personal representatives?

The test for whether a person is resident or not on a particular date, e.g. a date of death, should be carried out for the tax year in which the date falls.

Does the Form Q7 (valuation of private company shares) have to be filed with the CAT return?

There are no changes to the forms and procedure for cases with a date of death prior to 5th December 2001, but for later deaths Form Q7 is no longer be required when the CAT return is filed.

How many copies of the IT38 should I file?

If you are filing a paper form, please only file one copy of the return. Likewise if you are filing an online IT38, you only file it once.

Do I need to register my client for CAT?

If a taxpayer is not registered within Revenue’s systems you must register them for CAT by contacting the taxpayer’s Revenue office. If the taxpayer is already registered for any tax and you intend on filing their CAT return (IT38) online through ROS then there is no need to register , as the case will be auto registered for CAT when you upload the IT38.

How do I complete the new Inland Revenue Affidavit (CA24)?

The CA24 should be completed in duplicate, preferably using blue pen. If you make an error or do not need to enter any information please do not strike though the boxes.
CA25 (Guide to completing the Inland Revenue Affidavit)

How do I order the new CA24 and IT38S?

The new forms are not available online instead to order call our 24-hour telephone number 1890 30 67 06 or 00353 1 70 23 050 for callers from outside the Republic of Ireland and leave your details and the number of forms you require. Alternatively, you can e-mail your name, full postal address and the number of forms you require to custform@revenue.ie For cases with a date of death prior to 5th December 2001 the forms are availabe to download from the CAT Forms section of the site.

Will I receive a receipt for a CAT payment?

Receipts are no longer being issued for CAT payments. Instead taxpayers may view their payment details by requesting a statement of account or online through ROS.

moving from Eircom.

Jason@mcdowellaccountants.ie

Deaths Occurring on or after 5 December 2001

Important notice about the changes to Probate and CAT administration

As and from 14th of June 2010

Probate

• Revenue will no longer issue High Court certificates in connection with applications for Grants of Representation for deceased persons who died on or after the 5th day of December 2001. Consequently, there will be no requirement in these cases to send the Inland Revenue Affidavit to the Revenue Commissioners prior to submission to the Probate Office.
• A new version of the Inland Revenue Affidavit is available and must be submitted, in duplicate, to the Probate Office. Supplies of the Inland Revenue Affidavit (form CA24) may be ordered online. The Probate Office will not accept older versions of the Inland Revenue Affidavit.

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CAT

• A new fixed pay & file date of 31st of October, for all valuation dates falling in the 12 month period commencing on 1st of September and ending on 31st August, will be introduced for Gift and Inheritance Tax.
• A new electronic gift and inheritance tax return (Form IT38) will be available through ROS (Revenue’s On-line Service). This new return can be used for all tax years from 2001.
• There is a requirement to electronically file the gift and inheritance tax return, except in the circumstances outlined below.
• A new paper gift and inheritance tax return (Form IT38S) will be available but can only be used if the taxpayer meets the following criteria:
  1. No relief/exemption/credit is claimed, apart from small gift exemption.
  2. The benefit taken is an absolute interest without conditions or restrictions.
  3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
• The old version of Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
• Returns filed though ROS in respect of valuations dates commencing on 1 September 2009 and ending on 31 August 2010 will be accepted as filed on time where the return is made by 31 October 2010. Where the return and payment is made through ROS, the extended filing date will also apply.

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Filing of IT38s

• From the 14th of June all Form IT38s, for deaths occurring on or after 5th December 2001, can be filed and payment made online through ROS.
• It will be mandatory to file online through ROS where a valuation date is on or after the 14th June 2010 unless a taxpayer can meet the following criteria:
  1. No relief/exemption/credit is claimed, apart from small gift exemption.
  2. The benefit taken is an absolute interest without conditions or restrictions.
  3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
• If a taxpayer meets these criteria he/she may use the new Form IT38S. Please note that the old Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
• From the 14th of June all paper IT38s, for deaths occurring on or after 5th December 2001, should be sent to the following address:

  Collector General
  PO Box 354
  Limerick

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Transitional Arrangements for CA24s

Revenue and the Probate Office are requesting that practitioners no longer submit the current version of the Inland Revenue Affidavit to Revenue in connection with the issue of a High Court certificate from the 31st May 2010. This is to allow Revenue to issue certificates for applications already on hand at that date.

The Probate Office will continue to accept all cases in which practitioners obtain or have already obtained a High Court Certificate from the Revenue. In all other instances, practitioners are requested to submit completed copies of the new version of the Inland Revenue Affidavit directly to the Probate Office from 14 June 2010.

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The link is www.revenue.ie/en/tax/it/forms/cgprsi1.pdf

People who pay schedule E earnings are eligibile to claim PRSI relief on pension contributions. Those on A1 PRSI can claim up to 9% extra tax relief.

I have attached a pdf of the form, for those of you claiming 4 years just print a second one.

To clarify the position you must be salaried and pay your pension contribution directly yourself.

Anyone paying their pension through payroll will have this deducted at source.

If you need help completing these form give me a call.

To order call our 24-hour telephone number 1890 30 67 06 or 00353 1 70 23 050 for callers from outside the Republic of Ireland and leave your details and the number of forms you require.  Alternatively, you can e-mail your name, full postal address and the number of forms you require to custform@revenue.ie

Deaths Occurring on or after 5 December 2001

Important notice about the changes to Probate and CAT administration

As and from 14th of June 2010

Probate

• Revenue will no longer issue High Court certificates in connection with applications for Grants of Representation for deceased persons who died on or after the 5th day of December 2001. Consequently, there will be no requirement in these cases to send the Inland Revenue Affidavit to the Revenue Commissioners prior to submission to the Probate Office.
• A new version of the Inland Revenue Affidavit is available and must be submitted, in duplicate, to the Probate Office. Supplies of the Inland Revenue Affidavit (form CA24) may be ordered online. The Probate Office will not accept older versions of the Inland Revenue Affidavit.

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CAT

• A new fixed pay & file date of 31st of October, for all valuation dates falling in the 12 month period commencing on 1st of September and ending on 31st August, will be introduced for Gift and Inheritance Tax.
• A new electronic gift and inheritance tax return (Form IT38) will be available through ROS (Revenue’s On-line Service). This new return can be used for all tax years from 2001.
• There is a requirement to electronically file the gift and inheritance tax return, except in the circumstances outlined below.
• A new paper gift and inheritance tax return (Form IT38S) will be available but can only be used if the taxpayer meets the following criteria:
  1. No relief/exemption/credit is claimed, apart from small gift exemption.
  2. The benefit taken is an absolute interest without conditions or restrictions.
  3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
• The old version of Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
• Returns filed though ROS in respect of valuations dates commencing on 1 September 2009 and ending on 31 August 2010 will be accepted as filed on time where the return is made by 31 October 2010. Where the return and payment is made through ROS, the extended filing date will also apply.

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Filing of IT38s

• From the 14th of June all Form IT38s, for deaths occurring on or after 5th December 2001, can be filed and payment made online through ROS.
• It will be mandatory to file online through ROS where a valuation date is on or after the 14th June 2010 unless a taxpayer can meet the following criteria:
  1. No relief/exemption/credit is claimed, apart from small gift exemption.
  2. The benefit taken is an absolute interest without conditions or restrictions.
  3. The property included in the return was taken from only one Disponer and is not part of a larger benefit
• If a taxpayer meets these criteria he/she may use the new Form IT38S. Please note that the old Form IT38 may not be used in respect of valuation dates on or after 14 June 2010.
• From the 14th of June all paper IT38s, for deaths occurring on or after 5th December 2001, should be sent to the following address:

  Collector General
  PO Box 354
  Limerick

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Transitional Arrangements for CA24s

Revenue and the Probate Office are requesting that practitioners no longer submit the current version of the Inland Revenue Affidavit to Revenue in connection with the issue of a High Court certificate from the 31st May 2010. This is to allow Revenue to issue certificates for applications already on hand at that date.

The Probate Office will continue to accept all cases in which practitioners obtain or have already obtained a High Court Certificate from the Revenue. In all other instances, practitioners are requested to submit completed copies of the new version of the Inland Revenue Affidavit directly to the Probate Office from 14 June 2010.

The relief that exists at the moment is aimed at getting PAYE workers to purchase bikes and they can save up to half the cost of a new bike if they are on the higher tax rate, if you include PRSI. (more info at http://www.bikescheme.ie/)

Anyway, the joys of being self employed continue as yes, you guessed it; there is no such scheme for us the self employed. However…….where there is a will there is a way…..

In the same way as someone may purchase a car for their business, I believe to ‘keep the greens happy’ you can buy a bike to carry on your own business. The rules for PAYE are that they only have to use the bike for part of their journey. So surely it has to be consistent for the self employed. I would therefore allow the purchase of a bike for business use, and also, if you are VAT registered, claim the 21% vat back too.

The only downside is, you have to pay the full cost of the bike yourself, and then claim tax relief when your annual return is put through once your financial year is over. To ease the pain on cash flow maybe leave the purchase of the bike until you are at your year end and so your return could be filed pretty soon after the purchase. Make sure your returns are being done by your accountant on line. Paper returns are taking literally months to be processed at the moment but on line returns are going through pretty quickly.

Contact me if you need any more information

jason@mcdowellaccountants.ie

In the 12 months to the end of April, there was a jump of more than 13 per cent in the number of people signing on, an increase of close to 51,000.

However, according to the latest figures from the Central Statistics Office (CSO), the number of people signing on the live register fell slightly last month.

The CSO’s latest figures, which were published on Friday, showed that a total of 432,500 are signing on in Ireland, a drop of 500 between March and April.

While the figures may indicate a marginal improvement on the jobs front, the harsh reality is that many workers still feel they are walking a precarious tightrope above an abyss called unemployment.

Redundancy

For the thousands of people who have lost their jobs or who fear losing them, knowing their rights is very important.

Some companies have opted for a range of alternatives to try to stave off the redundancy solution. Temporary lay-offs, shorter working hours and unpaid leave are all being considered as struggling businesses try to cut their salary bill.

Typically, employers must provide adequate notice for workers i f they intend to change their working arrangements.

Also, those who find themselves laid off or on short-time working may be entitled to jobseeker’s benefit or jobseeker’s allowance, subject to meeting certain criteria.

However, in some cases, new working arrangements aren’t enough, and employers feel they have no choice but to make staff redundant.

Redundancy can occur in a number of ways. The employer can decide to close the business or shut down operations in a specific location, or the company can decide that staff in a particular category are no longer needed.

Entitlements

The Redundancy Payments Acts 1967-2007 provide employees with a minimum entitlement to statutory redundancy payments.

To qualify, the employee must be between 16 and 66 and have been with the employer for more than two years.

Absences such as holidays, illness, maternity leave and parental leave do not qualify as breaks in employment, but if a worker was on strike or absent for more than 52 weeks due to an injury at work, or 26 weeks due to illness in the past three years, these periods do not count towards service.

Employees who are made redundant are usually entitled to a lump-sum.

Eligible employees are entitled to at least two weeks’ pay per year of service, plus one bonus week.

This is based on gross pay, meaning current normal weekly pay before tax and PRSI deductions.

Pay is capped at €600 a week for the statutory payment, but employers may make an additional payment if they wish.

If an employer is unable to make redundancy payments – or fails to do so – the Department of Enterprise, Trade and Employment will step in and make a payment from the Social Insurance Fund.

Tax relief

Statutory redundancy payments are exempt from taxation, but you may be eligible for a number of other tax reliefs.

Tax may be due on an additional top-up – or ex-gratia – payment from your employer.

Ex-gratia payments may include an additional lump-sum, payment in lieu of notice or the gift of a company asset, such as a car or laptop. If your employer gives you an asset, the current market value of the item is taxable.

However, given the depressed prices for most assets, this market value rule could work to an employee’s advantage when negotiating a redundancy package, due to the lower taxable amount that could be due.

There are three types of relief for ex-gratia payments. A basic exemption of €10,160 plus €765 per full year of service applies to any lump-sum received above the statutory amount.

If you are not a member of the company’s pension scheme or if you waive your right to receive a tax-free lump-sum from your occupational pension scheme, an increased exemption limit can be granted of €10,000 increase over the basic exemption.

The third type of relief is standard capital superannuation benefit (SCSB),which calculates the amount of your lump-sum exempt from tax based on a formula that looks at your average salary for the last three years and the number of years of full service.

Typically, this is of most benefit to long-standing employees and those with higher incomes.

People who receive a redundancy payment may also be entitled to ‘top slicing relief’.

This reduces the tax rate applied to the taxable element of an ex-gratia payment to the average tax rate paid by the employee over the previous three years.

Pensions

People being made redundant have a number of pension choices, including leaving their pension benefits in the existing scheme or transferring them to a new employer’s scheme.

However, the treatment of pensions would change if the company is being wound up.

In this case, the value of a person’s pension could be transferred to a buy-out bond, a type of lump-sum investment policy for pension transfers.

We guarantee to cut 25% of your current fee and fix that price for the next 3 years.

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We challange any accounting practice out there to match the level of tax tips and advice we maintain freely on our site, which is automatically built into your tax calculations.

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jason@mcdowellaccountants.ie

Introduction

You may claim tax relief in respect of the cost of certain medical expenses paid by you. You cannot claim tax relief for any expenditure which:

• has been, or will be, reimbursed by another body such as the VHI, Quinn Healthcare, Hibernian Aviva Health, the Health Service Executive or other body or person
• has been, or will be, the subject of a compensation payment
• relates to routine dental and ophthalmic care.

Further details on the main medical expenses that qualify for relief are given in the Items of Expense section.

If you have a query regarding any medical expense, you may contact your Regional PAYE Lo Call Service.

Is there a time limit for making a claim?

Yes. A claim for tax relief must be made within 4 years after the end of the tax year to which the claim relates.

In respect of whom may I claim the tax relief?

Claims for up to and including the 2006 tax year:

For these tax years, you may claim tax relief in respect of health expenses incurred in respect of:

• yourself and your spouse
• your children (or any other children who, for the year of the claim, are in custody of and maintained by the claimant) who are under 18 years of age and for those over 18 years of age who are receiving full-time education
• a relative of yours
• a non-relative who is aged 65 years (or over) or who is permanently incapacitated by reason of mental or physical infirmity.

Claims for 2007 and subsequent tax years:

You may claim tax relief in respect of any qualifying health expenses paid by you in respect of any individual.

Can I claim tax relief on the full cost of the Health Expenses?

Yes, in respect of the 2007 and subsequent tax years.

However, if your claim relates to any year up to and including 2006, the first €125 of your claim is disallowed where the expenses were incurred in respect of one person and €250 where expenses were incurred in respect of more than one person.

At which tax rate is the relief given?

The following table sets out the rate of tax at which relief is allowed over different years

How is the tax relief given if I incur a Health Expense in one tax year and pay for it in a later tax year?

You can choose whether you want to claim the tax relief for the tax year in which the payments were made or for the tax year in which the expenses were incurred.

What if more than one individual contributes to the cost of qualifying health care?

Where more than one individual contributes to the cost of qualifying health care, each individual can claim relief in respect of the portion paid by him/her.

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When can I make a claim?

Claims for tax relief for health expenses incurred in a tax year can only be made after the end of that year (however, see next question ).

I am a PAYE worker paying monthly nursing home fees for my mother – Is it possible for me to get the tax relief due on these fees through the PAYE system during the tax year instead of waiting until at the end of the tax year?

Yes, provided the nursing home is on the list of approved hospitals and nursing homes . However you must submit a claim on a completed Med 1 Form in the normal way at the end of each tax year.

How can I claim tax relief in respect of Health Expenses?

You may claim the tax relief by:

• claiming online via Revenue’s PAYE anytime service
• by completing Form Med 1 – Health Expenses Claim for Tax Relief (PDF, 342KB) and submitting it to your local Revenue office
• if you use a Form 11 (PDF, 657KB) to make a tax return and claim reliefs and credits, the amount of the health expenses claim may be entered at Panel I on the Form 11 and there is no need to complete a Form Med 1.

If the claim includes non-routine dental treatment (see Dental Expenses section), you must obtain a Form Med 2 – Dental Expenses (PDF, 80KB) – Certificate by Dental Practitioner which is signed and certified by the dental practitioner.

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Do I need to submit receipts with my claim?

No, claims for health expenses are processed on the basis of the information shown on the claim form. In cases of doubt, the claimant will be contacted to clarify matters and may be asked to submit receipts.

Receipts and Form Med 2 need not be submitted with a health expenses claim; however you must keep all receipts for a period of six years in case your claim is subsequently chosen for detailed examination.

My neighbour works in my local tax office, can I ask to have my Health Expenses claim processed in a different tax office?

Yes, if a health expenses claim comes up for examination, the claimant has the option of having the claim examined by a Revenue office other than his/her local Revenue office. This option is available only where the claimant does not wish his/her local office to know the nature of the medical condition.

Can I claim relief on the cost of medical treatment obtained outside the State?

As regards treatment outside the State, the following expenses qualify for tax relief:

• the cost of qualifying treatment carried out by a practitioner (GP, consultant or dentist) provided such practitioner is entitled under the laws of the country in which the care is provided to practice medicine or dentistry there
• the cost of maintenance or treatment in a hospital, nursing home or clinic is allowable provided that the institution is on the Revenue list of approved hospitals and nursing homes.

Where the relevant qualifying health care is only available outside of the State, then the cost of reasonable travelling and accommodation expenses are also allowable. In such cases, the expenses of one person accompanying the patient may also be allowed where the condition of the patient requires it. Where the patient is a child, the expenses of one parent may generally be allowed and, exceptionally, of both parents where it is clear that both have to be in attendance.

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Items of Expense

What category of Health Expenses qualify for tax relief?

Only health expenses incurred in the provision of ‘health care’ qualify for tax relief.

What is ‘health care’?

‘Health care’ is defined in tax law as meaning to prevention, diagnosis, alleviation or treatment of -

• an ailment
• an injury
• an infirmity
• a defect
• a disability

and includes care received by a woman in respect of a pregnancy as well as routine maternity care.

What is the meaning of ‘Health Expenses’?

Health expenses cover a wide variety of matters and include -

• Doctors’ and consultants’ fees
• Diagnostic procedures carried out on the advice of a practitioner
• Drugs/medicines prescribed by a doctor/dentist/consultant
• Maintenance or treatment in a hospital or approved nursing home (the hospital/nursing home must be approved by the Minister for Health and Children or approved for the purposes of health expenses relief by the Minister for Finance after consultation with the Minister for Health and Children). See list of approved hospitals and nursing homes
• Supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner
• Physiotherapy or similar treatment prescribed by a practitioner
• Orthoptic or similar treatment prescribed by a practitioner
• Speech and language therapy carried out by a Speech and Language Therapist for a qualifying child, where a Speech and Language Therapist means an individual approved by the Minister for Health and Children
• Transport by ambulance
• Educational psychological assessments for a qualifying child, carried out by an Educational Psychologist who is registered with the Minister for Education and Science
• Certain items of expenditure in respect of a child suffering from a serious life threatening illness
• Kidney patients’ expenses (up to a maximum amount depending on whether the patient uses hospital dialysis, home dialysis or CAPD). See Kidney Patients section below.
• Specialised dental treatment
• ‘In vitro’ fertilisation.

The following paragraphs outline the main issues that arise in health expenses claims.

Must the hospital / nursing home / maternity home or other similar institution be approved?

Yes. Only payments in respect of maintenance and treatment in a hospital, nursing home/maternity home or other similar institution approved by the Minister for Finance (after consultation with the Minister for Health and Children) qualify for relief. See list of approved hospitals and nursing homes.

Note: If your claim refers to a hospital/nursing home which does not appear on the list of ‘approved’ institutions, enquiries as to whether such hospital/nursing home is, in fact, an approved institution for the purpose of health expenses tax relief can be made to your local Revenue office.

What does ‘Practitioner’ mean?

Practitioner means any person who is:

1. registered in the register established under section 43 of the Medical Practitioners Act 2007
2. registered in the register established under section 26 of the Dentists Act 1985
3. in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there.

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Which drugs and medicines can I claim for?

Only the cost of drugs and medicines supplied by a pharmacist, on prescription from a medical practitioner, qualify for relief. (However, see paragraph re coeliacs and diabetics).

Which diagnostic procedures carried out on the advice of a practitioner qualify for relief from income tax?

Claims for relief under this heading generally refer to the cost of procedures or treatments carried out by persons who are not qualifying practitioners on patients who are referred for such procedures or treatment by their own doctor. However, whilst tax relief may be allowed in respect of procedures or treatments carried out, relief is not due in respect of the cost of drugs, medicines, lotions etc., prescribed by the person providing the treatment

In the case of a psychologist/psychotherapist, relief can only be allowed where the psychologist/psychotherapist is a qualified practitioner as outlined in paragraph What does Practitioner mean? or where a patient is referred by a psychiatrist for a diagnostic procedure.

Which treatments prescribed by a practitioner qualify for relief from income tax?

Examples of allowable treatments under the heading physiotherapy include treatment by a chiropractor, osteopath and bonesetter. Acupuncture treatment is not allowable unless carried out by a person who is a qualified practitioner as outlined in paragraph What does Practitioner mean?.

I am a coeliac and follow a special diet, can I claim tax relief on the cost of my food?

Yes. The cost of gluten-free foods manufactured specifically for coeliacs is an allowable expense for the purposes of a health expenses claim. A letter from a doctor stating that the individual in respect of whom the claim is made has the condition is acceptable. If receipts are requested, qualifying receipts are not confined to those from a chemist – receipts from shops, supermarkets, etc., in respect of gluten-free food products manufactured specifically for coeliac patients are also acceptable.

I am a diabetic and follow a special diet, can I claim tax relief on the cost of my food?

Yes. The cost of food products manufactured specifically for diabetics is an allowable expense for the purposes of a health expenses claim. A letter from a doctor confirming that the individual in respect of whom the claim is made is diabetic is acceptable. If receipts are requested, qualifying receipts are not confined to those from a chemist, doctor, etc. – receipts from shops, supermarkets, etc., in respect of food products manufactured specifically for diabetics are also acceptable.

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Can I claim for the cost of Educational Psychologists and/or Speech and Language Therapists?

Yes, but only in respect of a child who is either under the age of 18 years or if over 18 years is in full-time education. Health expenses relief is allowed for expenditure incurred in respect of an Educational psychological assessment carried out by an Educational Psychologist and incurred in respect of Speech and Language Therapy carried out by a qualified Speech and Language Therapist.

Can I claim tax relief on the cost of paying for constant nursing care in the home of a seriously ill person?

In cases of serious illness, where qualified nurses are engaged on the advice of a medical practitioner to provide constant nursing care in the patient’s home, tax relief under the heading of health expenses may be allowed where the following conditions are satisfied:

1. A medical certificate can (if requested) be provided which –
   1. shows the nature of the patient’s illness
   2. states that constant nursing care by fully-qualified nurses in the patient’s home is required, and
   3. covers the full period for which home nursing is being claimed
2. The nurses providing the nursing care are fully qualified and their full names, addresses and qualifications can be supplied
3. Receipts can, if requested, be provided in respect of all payments to the nurses and, where necessary, a breakdown of the payments is provided. This is to ensure that relief is given only in respect of the amounts paid which directly relate to the rendering of nursing care and not to the nurses expenses.

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I pay for additional nursing care for a patient in a nursing home, can I claim tax relief for this expense?

Where the claim is in respect of a patient in a hospital or nursing home, relief may also be allowed in respect of payments made to qualified nurses to provide additional nursing care over and above that ordinarily provided by the institution if -

1. the conditions at paragraphs (2) and (3) of Can I claim tax relief on the cost of paying for constant nursing care in the home of a seriously ill person? above are satisfied; and
2. a medical certificate can, if requested, be submitted which –
   1. shows the nature of the patient’s illness
   2. states that constant nursing care over and above that ordinarily provided in the institution is required, indicating the necessity for such additional care and
   3. covers the full period for which additional nursing is being claimed

Can I claim tax relief on the cost of the supply, maintenance or repair of a surgical, dental or nursing appliance?

Tax relief may be claimed in respect of the costs incurred on the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner. Where there is any doubt that the appliance in question is a medical, surgical, dental or nursing appliance, a certificate from a medical practitioner may be requested. The certificate should:

1. state the nature of the patient’s illness,
2. confirm that the appliance is being used on the advice of the medical practitioner
3. outline how the appliance will help to prevent, diagnose, alleviate or treat the ailment, injury, infirmity, defect or disability from which the patient is suffering..

The claim will be considered in the light of the information submitted and relief given where Revenue is satisfied that the appliance may be regarded as a medical, surgical, dental or nursing appliance.

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Can I claim for relief on the cost of IVF treatment?

For the purposes of Section 469 Taxes Consolidation Act (TCA )1997 ‘In Vitro Fertilisation’ may be regarded as treatment in respect of infertility and relief may be allowed in respect of the cost of this treatment where the treatment is carried out by a practitioner (within the meaning of Section 469 of the TCA 1997).

If the treatment involves maintenance in a hospital (i.e. overnight), relief may be allowed in respect of any expenditure incurred in respect of such maintenance where the hospital is on the Revenue list of approved hospitals.

I have a trained guide dog supplied by the Irish Guide Dogs for the Blind, can I claim Health Expenses in respect of the costs relating to my dog?

Where a blind person maintains a trained guide dog supplied by the Irish Guide Dogs for the Blind, an annual sum of €825 may be claimed as a health expense and after the first claim this is given as a tax credit in the annual certificate of Tax Credits.

Claimants need not provide evidence of such claims. However, a letter from Irish Guide Dogs for the Blind confirming that the claimant is a registered owner of a guide dog should be submitted for the first claim for relief. Irish Guide Dogs for the Blind has been notified of this requirement.

Note: Assistance dogs provided to autistic children do not qualify for the relief.

Is tax relief allowed on the cost of travel relating to health issues?

Tax relief may be claimed in respect of the cost of transport by ambulance. However, where regular continuing treatment or consultation is required and the patient has to travel long distances, tax relief may be claimed in respect of the cost of the travelling other than by ambulance. It is not the intention that this tax relief be granted for minor local travelling expenses or occasional travelling [e.g. to undergo an operation (unless by ambulance)].

In addition to these, please refer to -

• Paragraph ‘Can I claim relief on the cost of medical treatment obtained outside the State?’
• Paragraph ‘My child has a life threatening illness/permanent disability and attends hospital on a regular basis’
• Paragraph ‘What Health Expenses can Kidney patients claim tax relief for?’ .

My child has a life threatening illness/permanent disability and attends hospital on a regular basis. I have large travel expenses and pay car parking fees, phone and accommodation costs. Can I claim tax relief on any of these expenses?

Apart from obvious health related expenditure, tax relief is also available in respect of other expenditure incurred in respect of children with life threatening illnesses (including child oncology patients) and children with permanent disabilities who require constant or regular hospital care. Constant or regular hospital care does not necessarily mean being permanently in hospital. However, it does imply regular hospital attendance or supervision appropriate to the serious illness. The qualifying items of expenditure are -

Travel

The following qualifies for relief -

1. the cost incurred in transporting [unlimited journeys] the child and accompanying parents/guardians to and from any approved hospital
2. the cost incurred by the parents/guardians of the child in visiting the hospital when the child is an ‘inpatient’ where such trips are shown to be essential to the treatment of the child.

If a private car is used, the cost of travel is determined at a rate as per kidney patients at kidney patients section. No relief is available for car parking fees.

Telephone

Where the child is being treated at home, a flat rate of €315 to include telephone rental and calls may be claimed where the expenses are incurred for purposes directly connected with the treatment of the child. The rate available in previous years is as follows:

Overnight accommodation

Payments made by the parent/guardian to a hospital, hotel or B&B in respect of overnight accommodation in or near the hospital where the child is a patient where such overnight stay is necessary for the treatment of the child.

Hygiene products and special clothing

The cost incurred in respect of these items subject to a maximum of €500 per year.

Note: Claims in respect of the cost of minding brothers/sisters of the patient while the parents/guardians attend the hospital are not allowable.

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What Health Expenses can Kidney patients claim tax relief for?

Apart from obvious health related expenditure, tax relief is also available under the heading of health expenses in respect of the following:

Hospital dialysis patients

The cost of travelling to and from hospital is an allowable expense for the purposes of a health expenses claim. Where a private car is used, the claimant should specify the number of trips undertaken and the kilometres (or mileage) involved. See paragraph A of section on Kidney Patients for rates.

Home dialysis patients

Relief may be allowed under the following headings and at the rates shown in paragraph B of section on Kidney Patients.

• Electricity
• Laundry and protective clothing
• Telephone
• Travelling: Qualifying number of kilometres (mileage) at the appropriate rate per km/mile

Chronic ambulatory peritoneal dialysis (CAPD) patients

Relief may be allowed under the following headings and at the rates shown in paragraph C of section on Kidney Patients.

• Electricity
• Telephone
• Travelling: Qualifying number of kilometres (mileage) at the appropriate rate per km/mile

When making a tax relief claim for health expenses for a kidney patient, claimants should identify the appropriate category. Revenue is aware that it is possible for a patient to move from one category to another, depending on his/her condition. Where a change takes place during the course of a year, relief for each category should be apportioned as appropriate.

Routine Ophthalmic Care

Tax relief is not available for the cost of sight testing or the provision and maintenance of spectacles and contact lenses.

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Dental Expenses

Which dental treatment expenses qualify for tax relief?

Tax legislation specifically excludes relief for expenditure incurred on the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures. These items are excluded from relief even if there is an underlying medical condition that gives rise to the dental treatment or if the treatment in a particular case is considered to be of a non-routine nature.

A treatment for which relief is claimed must be considered in the light of the above exclusion (i.e. relief for the cost of any work carried out may not be allowed where the treatment is an extraction, scaling or filling of teeth, etc.)

If, however, the treatment is, for example, of an orthodontic nature, involving the extraction of a tooth as part of that treatment, relief would be allowed for the cost of the orthodontic treatment excluding the cost of the extraction.

An exception to this rule is the cost of the surgical extraction of impacted wisdom teeth carried out either in a hospital or in a dental surgery, which is allowable.

Claims for non-routine dental treatment

An individual claiming relief on Form Med 1 for non-routine dental treatment must hold a Form Med 2 (Dental) which is signed and certified by the dental practitioner. The forms are supplied to dentists through the Irish Dental Association.

A list of treatments for which relief may be allowed.

Non-routine dental treatment outside the State

Non-routine dental treatment obtained outside the State may be allowed provided the dentist is a qualified practitioner (i.e. entitled under the laws of the country in which the care is provided to practise dentistry there). A Form Med 2 – Dental Expenses (PDF, 80KB) – Certificate by Dental Practitioner must be completed by the dentist.

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Kidney Patients

A. Hospital dialysis patients (where the patient attends hospital for treatment)

Relief in respect of expenditure incurred travelling to and from hospital (unlimited journeys for all years) may be allowed at the following rates -

B. Home dialysis patients (where the patient uses a dialysis machine at home).

Relief may be allowed in respect of expenditure up to the following amounts –

C. Chronic Ambulatory Peritoneal Dialysis (CAPD) patients (where the patient has treatment at home without the use of a dialysis machine)

Relief may be allowed in respect of expenditure incurred up to the following amounts –

Note: It is possible for a patient to move from one category to another. Where this happens, relief for each category may be apportioned as appropriate.

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Dental Treatments for which Tax Relief is Allowable

1. Crowns
   These are restorations fabricated outside the mouth and are permanently cemented to existing tooth tissue.
2. Veneers/Rembrandt Type Etched Fillings
   These are a form of crown.
3. Tip Replacing
   This is regarded as a crown where a large part of the tooth needs to be replaced and the replacement is made outside the mouth.
4. Gold Posts/Fibreglass posts
   These are inserts in the nerve canal of a tooth, to hold a crown.
5. Gold Inlays
   These are a smaller version of a gold crown. (Only allowable if fabricated outside of the mouth).
6. Endodontics – Root Canal Treatment
   This involves the filling of the nerve canal and not the filling of teeth.
7. Periodontal Treatment
   Root Planing is a treatment of periodontal (gum) disease. Currettage and Debridement is part of root planing. Gum Flaps is a gum treatment. Chrome Cobalt Splint if used in connection with periodontal treatment (if it contains teeth, relief is not allowable). Implants following treatments of periodontal (gum) disease, which included bone grafting and bone augmentation.
8. Orthodontic Treatment
   This involves the provision of braces and similar treatments.
9. Surgical Extraction of Impacted Wisdom Teeth
   The surgical removal of impacted teeth carried out either in a hospital or in a dental surgery is not regarded as ‘routine dental treatment’ and relief is therefore allowed for the cost of such surgical removals.
   Note: An impacted tooth is one which is so firmly lodged in its socket that it cannot emerge through the gum in the normal way. The impaction may be caused by an overlying bone, or because the tooth has grown in such a way that it has become wedged in against another tooth.
10. Bridgework
    Dental treatment consisting of an enamel-retained bridge or a tooth-supported bridge is allowable.
    Note: Tax relief is not available for the cost of scaling, extraction and filling of teeth or the provision of artificial teeth or dentures.

In addition to the Sole Traders, Limited Companies and Farmers etc making up my client base, I offer a tax refund service to PAYE employees.

I would very much welcome the opportunity to present an offer to your employees at your place of

Business. I propose to have a 15 minute power point presentation, at a time convenient to you and one which would be of least disruption to your operations.

The presentation will focus on the “Tax Refund” area of my business. I would be proposing a “No Rebate – No Fee” agreement to your employees. With my experience in the area, I have noted that many people are reluctant to apply for tax refunds or employ an accountant to do so. They often expect the fees to be high with the possibility of no gain…! My offer provides the security of no incurred fees if a rebate is not available to them; in essence, they have nothing to lose and the possibility of a rebate to gain.

For those that are secured a rebate, a percentage fee will be charged on the rebate total.

Should your employees express an interest in this service, I would arrange to meet with them outside of working hours at my office in Grange.

Perhaps you will consider my proposal and I look forward to hearing from you in due course if you think it feasible.

Thanks in advance for your consideration,

Regards,

Jason McDowell

McDowell & Co Accountants

Can Agents access the ROS PAYE service for their Clients?

Yes. Through their ROS Digital Certificate, Agents have full access to ROS PAYE for any of their clients who are registered for PAYE.  Revenue’s online service for PAYE customers is called ‘PAYE Anytime’. Agents do not currently have access to the latest version of PAYE Anytime, however they have access to the full functionality of this service, through ROS PAYE.

How do I register as an Agent for a PAYE Client?

To register as the Agent for a PAYE taxpayer, Dublin based agents should e-mail dublinagents@revenue.ie quoting their client’s PAYE reference number, name and address and their TAIN (Tax Agent Identification Number). Agents located outside the Dublin area should contact their own Revenue District. It takes 3-4 working days for the client link to update to ROS.

How do I gain access to ROS PAYE?

As an Agent you will be able to search ROS for clients who are registered for PAYE via the PAYE-Ind tax type, as well as using all the existing Client Searches on the Agent Services page. If your client has an active PAYE registration, then a PAYE tab will be visible on the Client Services screen just above the client’s name. When you click on this Tab you will be brought to the My PAYE Services screen for that customer.

How do I quit the Client’s PAYE area?

A ‘Business’ Tab is displayed at the top right hand side of the My PAYE Services screen, if you click on this Tab you will be returned to the Client Services screen.

What years are available in ROS PAYE?

The current year, plus the four previous review years are available in ROS PAYE. (Please note however that if your client was not registered for PAYE during one or more of the review years, or was registered for Income Tax assessing in one or more of the review years, then such year(s) cannot be reviewed.)

What can I see/update in a Client’s ROS Profile?

You can enter your client’s date of birth where this is not already on record and add the number of dependent children. You can also enter or amend your client’s bank account details. The bank account details provided must be those of the client. On no account should Agents/Practitioners input their own or their practice’s bank account in the client’s record.

What can I do at the Tax Credits & Incomes Section?

As an Agent linked to your PAYE client you can complete all available PAYE transactions on behalf of your client. This means that you can view, add, amend or delete the principal Tax Credits and Incomes information currently held by Revenue for your client.

Can I access/amend a Client’s spouse details?

Yes – but only if your client and their spouse are jointly assessed.

How can I request a review of a Client’s PAYE for a review year?

You can request a client’s PAYE Balancing Statement (P21) for one or more review years by selecting the “change year” option. Revenue will review your client’s income and tax for the year(s) and issue a Balancing Statement (P21).

(NOTE: this facility is available for clients who had PAYE income only in a review year. If clients were registered for Income Tax in any year, then they should complete a Form 11 for that year.)

How do I view my Client’s Pay & Tax Details on ROS PAYE?
Can I access my client’s P60 on ROS PAYE?

You can view details of your client’s taxable pay and tax paid for a review year by selecting the Pay & Tax tab. A client’s P60 cannot be viewed in ROS PAYE.

Can I view correspondence submitted by a Client?

No – but you can view the dates of any written correspondence to/from your client by selecting the ‘Info Services’ Tab on the My PAYE Services screen.

If a Client is registered for PAYE Anytime and has opted to receive correspondence electronically can I view this correspondence?

A paper copy of PAYE correspondence is sent to an Agent even in cases where a PAYE customer has opted to receive correspondence electronically. In addition, the Agent can view the contents of the customer’s PAYE Inbox.

It should be noted that PAYE-related correspondence is not available in the Agent or Client ROS Inbox, which holds only business correspondence.

Can Agents restrict Access Control to PAYE Services?

An Agent can restrict sub-users from accessing PAYE Services on ROS PAYE. “PAYE-Ind” is available on the Administration Services screen as a tax type, so a ROS Administrator can grant “File”, “Prepare”, “View” or “No” permissions to their sub-users. ]]> http://www.mcdowellaccountants.ie/faqs-on-the-use-of-the-ros-paye-service-by-agents-for-clients/feed/ 0 http://www.mcdowellaccountants.ie/bank-of-ireland-transaction/ http://www.mcdowellaccountants.ie/bank-of-ireland-transaction/#comments Mon, 26 Apr 2010 10:54:23 +0000 Jason http://www.mcdowellaccountants.ie/?p=963 ...Read the Rest]]> The Minister for Finance, Mr. Brian Lenihan T.D., welcomed the announcement today that Bank of Ireland intends to raise €3.4 billion of equity capital. This will ensure the Bank meets the stringent capital requirements set out by the Regulator. The National Pension Reserve Fund Commission will enter into a transaction with Bank of Ireland which will form part of this capital raising exercise.  The Minister for Finance said:

“This transaction is good news for our economy, good news for the taxpayer and good news for Bank of Ireland’s shareholders and investors.  The level of private sector investment is tangible evidence of the growing international and domestic confidence in both Bank of Ireland and our economy.  I have stressed on numerous occasions that others have confidence in us and we need to demonstrate that confidence in ourselves.  Today’s announcement shows that Ireland can and is addressing the difficulties in our financial sector.”

The Minister said that Bank of Ireland has a strong future as a well capitalised and cleaned up bank that will benefit its investors and our economy.  He added that the transaction has been agreed on market terms which will allow the State and its taxpayers achieve a significant return on its investment. This transaction represents a good deal for the taxpayer.

The Minister said:

“Bank of Ireland is the first of our financial institutions to emerge from the banking crisis.  Through NAMA, we have removed the crippling uncertainty about the losses resulting from the bank’s riskiest loans — and we have done so on terms that are fair to the taxpayer.  The transactions announced today are consistent with the long-stated Government preference that private market solutions to capital rising are found and implemented. Our policies have delivered a cleaner, well-capitalised and better funded Bank of Ireland that is now in a position to provide credit to support economic recovery and new job creation.

Returns for the State

The Minister emphasised the returns to the State from this transaction:

“When this deal is complete:

• The State will hold a valuable approximately 36.5%  share of the bank
• The State will continue to hold approximately €1.78 billion of preference shares and these will earn a higher coupon of 10.25%
• The State will get €491 million profit for its warrants
• The State  will receive some €51 million in fees for conducting this deal

Welcome as these financial returns are, the most important benefit from this transaction will be the economic return that will flow from the lending commitments as I announced on the 30^th March 2010. This will support the economy to return to sustainable growth.

The strongly recapitalised Bank of Ireland will now be in a position to provide credit to Irish businesses and households as the economy recovers.  The transaction agreement provides a legal basis for the credit package. Bank of Ireland’s plan, setting out how they propose to meet these targets, will be submitted to my Department by the 14^th May 2010.

The overriding objective of the Government’s banking policy is to ensure a healthy functioning banking system that can meet all the needs of the economy. Today’s announcement is a crucial step in realising this objective.”

You should complete this form (IT PRELIM RMD) by signing it and inserting the amount of tax your expect to be liable for for that year.  This amount was actually due to be paid on 31 Oct 2009.

If you feel you will have no tax to pay just insert zero.

When your accountant computes what your liability is for 2009, this amount is compared to what you paid in preliminary tax and the difference is what has to be paid or refunded by 31st Oct 2010.

Preliminary tax is basically a way of prepaying your tax for a year.

You can also set up a direct debit with Revenue for income tax to spread the payments instead of having one lump sum hitting your cashflow…

You can do DDs for VAT and PAYE/PRSI.

Time is running out…………….