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New measures announced in Finance Bill 2016

solvepayroll.ie — Thu, 20 Oct 2016 15:07:53 +0000

New measures announced in Finance Bill 2016

Sportspersons’ Relief

Section 6 of the Bill extends the scope of Sportspersons’ Relief (Section 480A) to ensure that contributions to Personal Retirement Savings Accounts (“PRSAs”) can also qualify for the relief.

Personal Retirement Savings Accounts

Section 13 of the Bill makes a number of amendments to Part 30 of the Taxes Act which will impact the taxation of PRSA benefits. The amendment provides that the vesting of the PRSA, as a result of the PRSA contributor turning 75 years old, will now be regarded as a Benefit Crystallisation Event (BCE) and subject to Chargeable Excess Tax (CET) i.e. the chargeable excess is subject to income tax under Case IV of Schedule D at the marginal rate of 40%.

Confirmation of measures announced in Budget 2017

Income Averaging

In the Budget, the Minister announced the introduction of an option for farmers to “step out” of the income averaging regime for a single year of low income and instead pay tax based on the actual profits for the year. Section 17 provides that the tax deferred i.e. the difference between the tax due under income averaging and the tax based on actual profits, must be paid in equal instalments over a four year period.

As announced in the Budget, this option can be availed of for 2016.

DIRT

As announced by the Minister in the Budget, the rate of DIRT will be reduced from 41% to 39% in 2017. Section 20 gives effect to this change. The Bill also confirms that the DIRT rate will reduce by an additional 2% in each of the next three years until it reaches 33%.

Section 20 also makes a small amendment to Section 267M of the Taxes Act. It provides that where tax due on deposit interest received from EU and foreign financial institutions, which would otherwise be taxed at the DIRT rates above, is not returned by the due date, it will instead be subject to tax at the higher income tax rate of 40%.

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Ros Helpdesk – Extended hours

solvepayroll.ie — Fri, 09 Sep 2016 15:09:33 +0000

ROS Helpdesks extended opening hours announced

Revenue has announced the extended opening hours for the ROS Payment and ROS Technical Support Helpdesks for Pay and File 2016. Extended opening hours apply from 24 October. The Helpdesks will be open until 8pm most evenings and open until midnight on the ROS filing deadline, 10 November.

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Revenue’s FAQ and USC updated

solvepayroll.ie — Mon, 04 Jul 2016 12:04:58 +0000

Revenue’s FAQs on the USC have recently been updated to reflect that employer contributions to an employee’s Personal Retirement Savings Account (PRSA) are not liable to the USC from 1 January 2016.

Get details here

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Income Tax Loss restriction

solvepayroll.ie — Wed, 01 Jun 2016 12:09:05 +0000

Finance Act 2014 introduced a restriction on claims for trading loss relief by individuals carrying on a trade in a “non-active capacity”(S381B).

A related restriction on loss relief in the case of “tax avoidance” was also introduced (S381C). Revenue has issued a new Manual on income tax loss relief which includes information on these changes. The Manual includes information on some of the types of activities that Revenue do not view as actively engaging in a trade, together with case law and worked examples.

More Detail

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The Collector General’s Office to handle tax clearance queries from the start of April 2016

solvepayroll.ie — Thu, 21 Apr 2016 15:43:01 +0000

The Collector-General’s Office will assume responsibility for tax clearance with effect from today, 1 April 2016. Therefore, any queries in relation to the new electronic Tax Clearance (eTC) regime or tax clearance generally should be directed to the Collector-General’s Office from now on. You can contact the office on 1890 20 30 70 or submit queries via myEnquiries or by post.

If a taxpayer requiring tax clearance is not e-enabled, they can obtain a paper tax clearance application form (Form TC1) by contacting either their local tax office or the Collector-General’s Office.

Read the revenues eBrief here

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Construction sector – Reverse Charge

solvepayroll.ie — Fri, 25 Mar 2016 15:48:25 +0000

Revenue construction sector interventions – issues arising

Since last August, Revenue has been increasing its compliance interventions in the construction sector. As part of this work, Revenue has been examining whether the VAT Reverse Charge is being applied correctly. Revenue has issued an eBrief noting that the charge is not being applied correctly in some cases and has highlighted some issues they have encountered.

A failure by the Principal Contractor to self-account for the VAT.
Incorrect completion of the VAT invoice/document by the Sub-contractor.
Application of the two thirds rule.
Omission of the reverse charge from the VAT3 return.
Failure to apply the reverse charge when there is a supply between connected parties.

Revenue will be paying particular attention to how the VAT Reverse Charge is being operated in its compliance programme going forward. Penalties will be applied where appropriate.

Revenue is also checking a range of other issues as part of its compliance programme; including payments of country money and the operation of the eRCT regime

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ROS Digital Certs

solvepayroll.ie — Thu, 21 Jan 2016 15:54:00 +0000

ROS Digital Certificates (Cert) must be renewed every two years. If your Cert is due for renewal you will be prompted to renew it when you log in to ROS. Revenue has published an eBrief outlining the steps to take to renew your Cert. Once the steps are completed you will receive a new Cert.

Revenue recommends that you save this new Cert or you will not be able to continue to access ROS and it may take up to 10 days to receive another new Cert. Revenue’s eBrief also includes feedback from the ROS Helpdesk on related issues brought to their attention.

Start Up Relief for Entrepreneurs (SURE)

solvepayroll.ie — Fri, 22 May 2015 15:55:05 +0000

The Start Up Relief for Entrepreneurs SURE, replaces the Seed Capital Scheme. The relief allows a person starting a new business to claim a refund of income tax paid over the previous 6 years, within certain limits. The investment limits and qualifying criteria which applied to the Seed Capital Scheme will also apply to SURE.

Click here for more

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Beware of the Latest email scam – Tax refund

solvepayroll.ie — Mon, 11 May 2015 15:55:36 +0000

People are receiving emails that appear to be from the revenue regarding tax refunds or looking for debit/credit card details.

Revenue are warning that they never send emails requiring customers to send personal information via email or pop-up windows. For more click here

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Tax Clearance Certificates

solvepayroll.ie — Thu, 02 Apr 2015 15:59:42 +0000

Electronic Tax Clearance Certificates (eTC) will be introduced from 1 January 2016. Therefore, Tax Clearance Certificates issued from 1 April will have an expiry date of 31 December 2015. For more click here

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