22 October 2010

We wish to remind all tax payers of the existence of the four year time limit for the submissions of claims for the repayment of tax.

For the tax year 2006, the latest date for the repayment of tax is 31 December 2010. This applies to both PAYE workers and those assessed under the self-assessment system.

Particularly for PAYE workers who are not obliged to complete an income tax return each year, there may be unclaimed reliefs and credits. Contact us today to find out are you due a tax refund.

A post has been uploaded to the Revenue Commissioners website here

22nd September 2010

With the rapid decline in the state of the economy in 2008 we found by the time the filing deadline had come round in October 2009 that quite a few clients had difficulty in paying the tax liability on their 2008 profits. In such circumstances we would strongly advise that the return be filed none the less under the PAY & FILE SYSTEM, as regardless of your PAYMENT situation the following penalties apply to late FILING:

1. 5% of the amount of the tax liability for the year subject to a maximum penalty of €12,695 where the return is filed within two months of the due date.

2. Where the return is filed two months after the due date, the penalties increase to 10% of the amount of the tax liability subject to a maximum penalty of €63,458.

As regard settling the liability, Revenue has a number of arrangements available to the taxpayer. For example, where the total tax outstanding is less than €6,000 and a tax clearance certificate is not required, Revenue at their discretion can offer an informal arrangement which usually gives the taxpayer an extra year to pay the liability at their own discretion and on a NIL interest basis. Normal instalment arrangements by direct debit and interest calculated would commence after the twelve months grace. However, this is an important lifeline for many clients.

If you have set up a company you may also be liable to file a personal income tax return even if the company never traded or if you have no income other than PAYE salary. We fear that may entrepreneurs may have companies set-up out there where they hoped to get a new business venture going but ultimately they ended back in PAYE employment, leaving the company to sit there. Unfortunately, the provisions where a shareholder/director of any company fails to file a tax return as required, are the same as above. However, the penalty is more severe in that the ‘liability’ on which the penalty is calculated is tax payable for the year on all income, rather than the tax due at the end of the year (which typically should be nil for a PAYE worker).

So, failing to file a tax return where your actual liability is NIL if you file on time, could be turned into a considerable LIABILITY if you file late.

Any comments or queries welcome.

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Income Tax 2010
Income Tax 2009

30 July 2010

The Revenue Commissioners have issued two documents following their consultation process with public bodies to ensure they are compliant with the new VAT regulations, drawing together their conclusions.

The two documents with direct links from the Revenue website are:

Indicative List of VATable Income Sources and Rates

VAT Guidance Notes on the Treatment of Property Sales and Sale of Graves

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June 29 2010

The European Commission has authorised the extension of the Irish Bank Guarantee Scheme until 31 December 2010. Included in the measure is higher fees to be levied on the banks to provide an incentive for the banks to refinance themselves on the market without state support, and to limit distortions of competition.

Full details of the compensation and guarantee schemes are available on the website of the National Consumer Agency.

21/04/2010

Tax On Non Principal Private Residence
The Local Government (Charges) Act 2009 introduced a €200 annual charge on non principal private residences, payable by the owners to the local authority in whose area the property concerned is located. Liability for 2010 is assessed on the owner at 31st March 2010 (‘liability date’), with the due date of payment being 30th June.

There is no escape from the property tax:
Revenue have access to ESB records and the Private Residential Tenancies Board records to compile a list of landlords assessable
There is a fine for late payment of the tax – the 2010 charge increases by €20 monthly if not paid by 30th June. Unpaid 2009 charges have been accumulating at €20 monthly since 1st November 2009.
Payment can be made online or by cheque/draft/postal order.

To pay online click here

To download paper copy form (new customers) click here

To download paper copy form (renewals only) click here

For further information see the FAQ page here or feel free to give us a call.

Income Tax 2009
The deadline for filing your return is 31 October 2010, however if you believe that you will be in a refund position then you should file now to secure your repayment. Contact us for further details.

In addition, the college grant scheme requires that for the academic year 2010 – 2011, applications must be accompanied by notice of assessments for the tax year 2009 in support of the level of income of the applicant/their parents. In this case, the income tax return should be submitted well in advance of the college grant deadline of 31 August 2010.

So please contact us early so you can ensure you will have your notice of assessment from Revenue, and avoid missing the grant deadline.

Carbon Tax on Non-Transport Fuels
We would like to remind you that the Finance Act set the due date for the levying of carbon tax on non-transport fuels to be 1st May 2010 (e.g. heating oil), with an expected cost increase of 4.3c inc. VAT per litre. Stock up now to avail of the lower rates.

Should you have any queries on the above, please do not hesitate to contact us.