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Budget 2022

12 October 2021

Last Updated: 12 October 2021

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

We will endeavour to update this with any major changes or announcements as we digest the budget this year.

Personal Taxation (from 1st January 2022)
• Personal Tax, Employee & Earned Income Tax Credits all increase by €50 to €1,700, see table below.
• Standard Rate cut off increase of €1,500 for all earners, see table below.
• USC Bands have also changed in the 2% band to account for increase in minimum wage from 1st January 2022, see table below.
• Work from home allowance now giving 30% relief on light & heat (previously 10%) and broadband costs still allowed at 30%, vouched expenses.
• Minimum wage to increase from €10.20 to €10.50 with PRSI and USC thresholds adjusted accordingly.
• Employers PRSI threshold for higher rate increase from €398 to €410.

Covid Supports
Employment Wage Subsidy Scheme (EWSS) extended until 30 April 2022, with rates to lower to €151.50 and €203 caps only. A flat rate of €100 per eligible employee will apply for March and April 2022, with no employer PRSI relief.

• Commercial rates waiver extended until end of 2021.

• Directors’ income tax returns with liabilities relating to directors’ remuneration – liabilities can be warehoused.

• PUP payment is to remain in place until end of Feb 2022

Business Taxation & Regulation
• Relief for start-up companies to be extended for five years.

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• Farmers flat rate addition decreased from 5.6% to 5.5%.

• Reduced VAT rate of 9% for hospitality will remain in place until end of August 2022

Stamp duty
• No changes noted.

Carbon Tax
• Increase of €7.50 per tonne applies from today for auto fuels and from 1 May 2022 for all other fuels. Petrol will increase by €1.28 for 60 litres, and diesel by €1.48

Capital Taxes
• No changes noted

(Local) Property Tax (LPT)
REMINDER TO FILE: While there were no changes announced in the budget, we like to remind you that your return for the years 2022 – 2025 is due to be submitted to Revenue by 7th November 2021. While we do not take responsibility for submitting this return as the tax payer is best placed to value their property, if you are experiencing difficulty using the LPT system please feel free to contact us.

Miscellaneous Provisions & Announcements
• Tobacco increase of 50c on pack of 20
• New Youth Travel Card will provide 50% discount on fares for those aged 18 – 23
• €5 weekly increase in main welfare payments
• DPS (Drugs payment scheme) threshold decreased to €100 per month.
• Carer’s allowance weekly earnings limit increased to €350 (single person) and €750 (couples).
• Parent’s Benefit extended by 2 weeks to 7 weeks from July 2022
• Free GP care extended to children aged six and seven years
• Help to Buy scheme is been extended in its current “enhanced” form for 2022, this is to allow other measures to be put in place e.g. Shared Equity Scheme over the next year or so.

Climate & Environmental Measures – (Electric Vehicles)
• €200 tax disregard for those who can sell electricity back to the grid
• VRT Tax, from January 2022 a revised vehicle registration tax table is being introduced. The 20 band table will
remain with an uplift in rates beginning with a 1% increase for vehicles that fall between bands 9-12;
2% for bands 13-15; and then a 4% increase for bands 16-20 .
• The €5,000 relief for Battery Electric vehicles is being extended to end 2023.
• The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.

Summary Statistics:

  Budget 2022Budget 2021
Capital Gains Tax Rate 33%33%
   
Capital Acquisitions Tax Rate 33%33%
Income Tax Rates   
 Lower20%20%
 Higher40%40%
DIRT Tax   
  39% (39% – where payments made less frequently than annually)39% (39% – where payments made less frequently than annually)
Tax Credits   
 Single Person€1,700€1,650
 Married Couple€3,400€3,300
 PAYE Credit€1,700€1,650
 Home Carer Credit€1,600€1,600
 Earned Income Tax Credit€1,700€1,650
Rate Bands   
 Single/widowed€36,800€35,300
 Awaiting updateSingle/widowed with dependent children€39,300€39,300
 Married -one income earner€45,800€44,300
 Married – two income earners€73,600€70,600
PRSI   
 Contribution CeilingNo limitNo limit
Universal Social Charge   
 < €13,000ExemptExempt
 € 0 – €12,0120.5%0.5%
 €12,013 – €20,6872.0%
 €12,013 – €21,2952.0% 
 €20,687 – €70,044 4.50%
 €21,296 – €70,0444.50%
 €70,044 – €100,0008%8%
 Self employed income > €100,00011%11%
 PAYE income in excess of €100,0008%8%
 Age >70/medical card holders with income < €60,000 – Max rate2.0%2.0%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.

Payroll Survey 2021

Covid Level 5 Supports

24 October 2020

The following is a summary of the main supports available during the Level 5 restrictions of 22 October – 2 December 2020 :

Employment Wage Subsidy Scheme (EWSS): To enter this scheme you need to project that your turnover for the period July – December 2020 will be down at least 30% on the same period in 2019. For the Level 5 restrictions, the subsidy will be paid weekly rather than monthly, and the rates of payment have increased. The EWSS is expected to be extended past its current end date of 31st March 2021.

Restart Grant Plus: To be eligible for this grant, you need to have demonstrated that your turnover for the period April – June 2020 is down at least 25% on the same period the previous year. The closing date for applications is 31st October 2020. If you have already received Restart Grant payments, you should not reapply for Restart Grant Plus.

Enterprise Support Grant: If you are not a commercial rates payer you may be entitled to up to €1,000 to restart your business. Further information is available here.

Covid Restrictions Support Scheme (CRSS): To be eligible for this scheme, your turnover for the period of restrictions must be no more than 25% of the turnover for a period equal to the same number of weeks in 2019 (or using 2020 turnover for a new business). Registration is expected in the coming weeks, with claims process commencing mid-November. The scheme will run from 13 October 2020 to 31 March 2021.

The relief will operate as a cash payment equal to 10% of the average weekly value of the 2019 business’s turnover up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for the same number of weeks as the restricted period (Levels 3, 4 and 5).

Other Industry Specific Grants: The RTE website maintains a list of supports available which can be accessed here.

Income Tax Non-Covid Debts: If you underpaid preliminary tax for 2019, this is regarded as a non-Covid debt which will qualify for the reduced rate of interest of 3% under instalment. Your return must be filed by 31st October to avoid a late filing surcharge, however you can apply for the reduced rate instalment arrangement up to 10th December.

Income Tax Covid Debts: If you are unable to pay the balance of your income tax liability after preliminary tax, this is considered to be Covid related debt so it may be warehoused for up to 12 months. Your return must be filed by 31st October to avoid a late filing surcharge as your liability is not being paid in full at the filing date.

Budget 2021

13 October 2020

Last Updated: 13 October 2020

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

We will endeavour to update this with any major changes or annoucements as we digest the budget this year.

Personal Taxation (from 1st January 2021)
• Dependent relative tax credit increased from €70 to €245

• USC 2% threshold adjusted for minimum wage increase (€10.20 instead of €10.10 from 1st January 2021).

• PRSI threshold has also been adjusted in respect of the minimum wage increase, from €10.10 to €10.20. (from 1st January 2021)

• No other changes to Income Tax, USC and PRSI rates with the exception of the above two changes.

Covid
Commercial Rates for 2019 are waived for the rest of 2020.

For businesses there is a new Covid Restrictions Support Scheme, where grants will be paid to those affected by restrictions imposed from Levels 3 – 5 of the Living with Covid strategy. We wait more details on this but would need to be either closed or severely affected by Covid19 restrictions.

• Employment Wage Subsidy Scheme (EWSS) expected to be extended past March 2021.

Business Taxation & Regulation
• Earned income tax credit increased by €150 to now equal the Employee Tax Credit of €1,650

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• Temporary reduction in VAT rate for Tourism and Hospitality items from 13.5% to 9% until December 2021

• Increase in farms flat rate addition from 5.4% to 5.6%

Stamp duty
• Consanguinity relief extended until December 2023

Carbon Tax
• Increase in rate by €7.50 to €33.50 per tonne. Household fuels will not be affected until next May. But cost of fuel from Midnight 13th October 2020 will be in effect 2.5 cent per litre on petrol and diesel from midnight tonight.

Capital Taxes
• No changes noted

(Local) Property Tax (LPT)
• No changes noted

Miscellaneous Provisions & Announcements
• 50c on pack of 20 cigarettes.

• Illness benefit will now be paid after 3 days instead of 6 days.

• Christmas bonus to be paid to those in receipt of Pandemic Unemployment Payment (PUP) for more than 4 months

• Self employed can earn up to €480 per month without losing their PUP payment.

• Illness benefit will now be available after three days out of work instead of the current six days.

• VRT to change based on emissions

• Motor Tax band from 1st January 2021 to change to a 3rd band to be inline with emissions testing. Also noted in the speech was the changes to the cars taxed under the CO2 emissions to create a level playing field.

Summary Statistics

  Budget 2021Budget 2020
Capital Gains Tax Rate 33%33%
   
Capital Acquisitions Tax Rate 33%33%
Income Tax Rates   
 Lower20%20%
 Higher40%40%
DIRT Tax   
  39% (39% – where payments made less frequently than annually)39% (39% – where payments made less frequently than annually)
Tax Credits   
 Single Person€1.650€1,650
 Married Couple€3,300€3,300
 PAYE Credit€1,650€1,650
 Home Carer Credit€1,600€1,500
 Earned Income Tax Credit€1,650€1,500
Rate Bands   
 Single/widowed€35,300€35,300
 Single/widowed with dependent children€39,300€39,300
 Married -one income earner€44,300€44,300
 Married – two income earners€70,600€70,600
PRSI   
 Contribution CeilingNo limitNo limit
Universal Social Charge   
 < €13,000ExemptExempt
 € 0 – €12,0120.5%0.5%
 €12,013 – €19,874 2.0%
 €12,013 – €20,6872.0% 
 €19,874 – €70,044 4.50%
 €20,687 – €70,0444.50% 
 €70,044 – €100,0008%8%
 Self employed income > €100,00011%11%
 PAYE income in excess of €100,0008%8%
 Age >70/medical card holders with income < €60,000 – Max rate2.0%2.0%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.

Revenue Warehousing of Debt

Last Updated: 21st May 2020

Revenue have suspended debt collection (i.e. enforcement) of the following tax payments in 2020:

1) VAT’s for: January/February, March/April and May/June 2020
2) Payroll Tax returns: February through to June P30 Liabilities

In addition Revenue will warehouse the debt for a period of 12 months, being the above debt and any future debt while the business was unable to trade or was trading at a significantly reduced level, plus an additional two months of tax debt to allow the business get back some positive cash flow.

While we await the legislation to be published, “trading at a significantly reduced level” is likely to mean sales activity to be down by at least 15% – 25%.

Covid-19 tax debts will be ‘warehoused’ for a period of 12 months interest free, and if an additional instalment repayment agreement is required after this period has elapsed, interest will be charged at the lower rate of 3%.

Tax clearance will not be affected.

We will update this note when we have legalisation clarifying the matter.

Telephone Line

Last Updated 30/09/2022 – 18.15

Landline number 044 967 5002 – See the table below for staff extensions.

You can call our team directly as well when you call to their extensions from the table below.

If the team member does not answer you will be diverted to our receptionist team whom will take your call and take a message and email it to them directly. If the person is off we will keep an eye on their email from our crm system or get their messages emailed to the bookkeeping manager.

There is also an out of hours voicemail if you want to leave a message.

Address for Posting

Due the increased risk of carrying Covid19 from store to store collections are still suspended till further notice we ask that you post the records to the office from 12th June 2020 as some of most of our team are back in the office from Monday 15th June.

Royal Canal Financial Control Services
Office 1, Eastwae Retail Centre

Kinnegad
Co. Westmeath
N91 V593

Temporary COVID-19 Wage Subsidy Scheme

Last modified: 30th March 20 00.16

Please note the following advice is summarised from Revenue website and guidelines given, it is only intended to give you an idea of the scheme and we will always encourage you to come speak with us directly to we can assess your own businesses situation

The information that follows is based on the terms of the Emergency Measures in the Public Interest (Covid-19) Bill 2020 (As passed by Dáil) which was recently published.

Employers are asked to keep employees on the payroll during this emergency and to maintain 100% or a significant part of their income for the period of the scheme. This is currently 12 weeks from 26th March 2020 but can be extended if required.

Please note that in April the scheme will move to pay only 70% of the normal weekly pay of each employee to a max of €410, as per Revenue no later than 20th April that Revenue will pay the subsidy. Normal weekly wage is based on the average weekly earnings from January – February (i.e. insurable weeks average to 29/02/2020).

Do I qualify for the scheme?

  • Be able to demonstrate to Revenue a minimum of 25% decline in turnover (see note on this below)
  • Be unable to pay normal wages
  • Be unable to pay normal outgoings fully and (see note on this below)
  • Keep your employees on the payroll
  • Also Employee must have been on the payroll as at 29th February 2020 and was on a payroll submission between 1st February and 15th March
  • Names of Employers using the scheme will be published on the Revenue website

What does it mean if I qualify from above list?

  • You can claim a subsidy from Revenue via your payroll as follows:
    • Max €410 per week where average net weekly wages is less than or equal to €585 per week or
    • Max of €350 per week where the average net weekly pay is between €586 but less than or equal to €960
    • Greather than €960 will not be supported at all.
  • Refund will be made 2 working days to the business bank account after payroll submitted to Revenue online (we do this if we do your payroll)
  • Employer pays the staff the wages per payslip.
  • Employers PRSI wil not apply on the subsidy element of the payment if no top up. if there is a top up above the Subsidy this will be at a reduced rate of 0.5%. Please remember this top up must be included in the payroll submission before payments made to staff.
  • Employee will not pay PRSI, Income Tax, or USC on their subsidy payment through payroll (however we see that Revenue state the following ”  However, the Subsidy will be liable to Income Tax and USC on review at the end of the year. “)
  • It is up to the Employee to contact Revenue to cease LPT deductions.

Other notes on the scheme not mentioned already

  • Cannot pay more net pay now to benefit from the subsidy
  • Cannot back date employees on the payroll
  • Any Employee Tax refunds from operating the scheme will be refunded.
  • Cannot run for staff making a duplicate claim from DEASP. e,g, Covid-19 Pandemic Unemployment Payment
  • If you put them on the Covid19 Pandemic Unemployment Payment you are encouraged to re-hire the employee as they would have been marked as a leaver on your payroll. Details on how your staff can close the claim of the Covid-19 Pandemic Unemployment Payment can be found here

Further details can be found on the Revenue website here

If you think you meet the conditions or wish to find out more please contact us. So we can discuss this with you and get it set up on your payroll for you.


Further Notes on how to Determine my turnover being down 25%

Revenue have issued some detailed guidance. They have based it on a “honesty” principal and self assessment, this means we need to keep on file our notes and workings on how we determined the reduction.

To calculate the reduction of turnover Revenue are using Q2 2020. This can be a decline in orders as well in March 2020 versus February 2020.

The requirement to be unable to pay other outgoings: – a business with cash reserves can now apply this scheme, we had thought when first announced this was an issue but Revenue have updated their guidance on this and they will continue to do so.

You need to demonstrate that any cash reserves in the business is to fund debt. That is to say the debt is equal or greater to cash reserves.

Revenue have also stated that where there is strong cash reserves and that they are not required to fund debt, will still qualify for the scheme but the Government would expect that they employer continue to pay a significant proportion of the employees’ wages.

As with all the above as this is a very fluid situation we will keep ourselves updated and update the website for your information, so please check the FAQ page and we will note there if there is an update.

SCBI Covid 19 Working Capital Loan Scheme

Updated 29th March 20 @ 15.3

This loan is available via AIB, Bank of Ireland and Ulster Bank.

Loan Features
Amounts €25,000 to €1.5m
Max Interest Rate 4%
Loan Term 1 year to 3 years
Unsecured loan up to €500,000
Optional Interest only repayments at the start of loans

What can the loan be used for
Future working capital requirements
To fund innovation, change or adaptation of the business to mitigate the impact of Covid-19.

Covid-19 Criterion
The business is impacted by the Covid-19 virus resulting in business turnover/profitability being negatively impacted by a minimum of 15%

The steps to apply
Apply online via the below website, obtain an eligibilty letter from SCBI and then apply direclty with the bank, as the banks are responsible for

Here at Royal Canal FCS, we have applied for similar SCBI schemes are familar with the process, if you feel you are entitled to the above please contact Joe or Ronan and we can discuss further with you.

https://sbci.gov.ie/schemes/covid-19-loan-application

Click here to return to the FAQ’s

Budget 2020

8 October 2019

Last Updated: 8 October 2019

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation (from 1st January 2020)
• REMINDER: The proposal to increase the minimum wage to €10.10 per hour from January 2020 is only being brought to Cabinet this week, and does not form part of the Budget day announcement.

•Dividend Withholding Tax (DWT) to increase from 20% to 25% from 1st January 2020. DWT is considered a payment on account with Revenue, where the 25% tax rate is now a more accurate average amount due when USC etc. is considered.

Brexit
• €1.2 billion package announced to respond to Brexit. Key areas: Agriculture, Enterprise, Tourism, Social Protection.

• Rainy Day Fund of €1.5bn created due to likelihood of a no deal Brexit.

Business Taxation & Regulation
• Earned income tax credit increased by €150

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• No changes noted

Stamp duty
• Non-residential property stamp duty rate increased from 6% to 7.5%. Transitional arrangements where the instruments are executed before 1 January 2020 where a binding contract existed prior to 8th October 2019.

Carbon Tax
• Increase in rate by €6 to €26 per tonne. Household fuels will not be affected until next May.

Capital Taxes
• Increase in the Group A inheritance tax threshold from €320,000 to €325,000

(Local) Property Tax (LPT)
• No changes noted

Miscellaneous Provisions & Announcements
• Excise duty on cigarettes increased by 50c on a pack of 20 cigarettes with a pro-rate increase on other tobacco products

•Monthly threshold for the Drugs Payment Scheme reduced by €10 per month.

• Medical card income threshold increased.

• Free GP care for children under eight, and free dental care for children under six.

• Additional €80m for the Housing Assistance Payment scheme.

• 100% Christmas Bonus in 2019.

• Limited increases in weekly social welfare payments: One Parent Family Payment + €15, Qualified Child Payment +€3 for children over 12, and +€2 for children under 12.

 

Summary Statistics

  Budget 2020Budget 2019
Capital Gains Tax Rate 33%33%
   
Capital Acquisitions Tax Rate 33%33%
Income Tax Rates   
 Lower20%20%
 Higher40%40%
DIRT Tax   
  39% (39% – where payments made less frequently than annually)39% (39% – where payments made less frequently than annually)
Tax Credits   
 Single Person€1.650€1,650
 Married Couple€3,300€3,300
 PAYE Credit€1,650€1,650
 Home Carer Credit€1,600€1,500
 Earned Income Tax Credit€1,500€1,350
Rate Bands   
 Single/widowed€35,300€35,300
 Single/widowed with dependent children€39,300€39,300
 Married -one income earner€44,300€44,300
 Married – two income earners€70,600€70,600
PRSI   
 Contribution CeilingNo limitNo limit
Universal Social Charge   
 < €13,000ExemptExempt
 € 0 – €12,0120.5%0.5%
 €12,013 – €19,8742.0%2.0%
    
 €19,874 – €70,0444.50%4.50%
    
 €70,044 – €100,0008%8%
 Self employed income > €100,00011%11%
 PAYE income in excess of €100,0008%8%
 Age >70/medical card holders with income < €60,000 – Max rate2.0%2.0%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.

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