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Jobs Initiative May 2011
Topical Tax Issues
Reminder: VIES Returns also apply to Services
Deadlines and Reminders
PM Services
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Parfrey Murphy

We specialise in providing Tax, Accounting and Business Advice to new and owner-managed businesses on a friendly and personal basis. Whether you are a sole trader, or own a new or expanding company or you require tax advice we can offer help and assistance of the highest calibre, based on our technical skills, confidentiality, professional independence, the personal commitment of our partners and staff, and the will to succeed.

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Jobs Initiative May 2011
by Una Beecher

 
Cafe

The Minister for Finance, Michael Noonan, announced the Jobs Initiative on 11 May last which is designed to stimulate job creation.

It includes the following measures in relation to business and employment taxes:

  • Abolition of employers PRSI on share based remuneration
  • Temporarily halving the lower rate of employers PRSI for certain employees
  • Amending the R&D tax credit regime to enhance flexibility in how companies account for the tax credit
  • Temporarily reducing the 13.5% VAT rate to 9% in respect of tourism related services

read moreĀ»

Topical Tax Issues
by Sinead Herlihy

 
Sinead Herlihy

Bike to Work Scheme

If a company decides to implement the above scheme it cannot only be made available to the directors of the company, it must be made available to all employees of the company.

VAT cannot be reclaimed by the company on the cost of the bikes or associated equipment i.e. helmets, pumps, etc.

 

Income Tax

Incorrect claims for allowances and tax credits are now subject to a €3,000 penalty.

Only 75% of mortgage interest on Irish residential rental properties is allowed as a deduction in Rental Accounts with effect from 7 April 2009. Please note that this restriction also applies to foreign residential rental properties.

Also the NPPR charge of €200 is not allowed as a deduction in an individual’s rental account as the Revenue view same “as a rate levied by a local authority”.

 

VAT

Statutory penalty of €4,000 to cover:

  1. Failure to file VIES returns for services.
  2. VAT 13B holders : failure to notify Revenue if they cease to qualify for authorisation, penalty for each VAT period in which they fail to notify Revenue.
  3. Property: Failure to issue a Capital Goods Record for a property
  4. Property: Failure to provide documentation on the surrender / assignment of a pre 1 July 2008 lease
  5. Property: Failure to provide specified documentation to purchasers for properties transferring under the sale of a business
  6. Property: Failure to maintain specified information on the VAT history of properties held.

VAT Consolidation Act 2010 came into effect on 1 January 2011 and has repealed the 1972 Act. All contracts should now reference the VAT Consolidation Act and relevant sections.

If a liquidator replaces another liquidator then Revenue must be notified to update the VAT registration details of the company in liquidation, if applicable.

A liquidator can claim for bad debt relief but the usual conditions apply.

 

Key areas of focus for Revenue Audits

  • Locums.
  • Using increased exemption for termination payments without obtaining prior Revenue approval.
  • Categorising as a termination payment payments where there was a contractual entitlement to payment under the PAYE system e.g. pay in lieu of notice, holiday pay, etc.
  • Reimbursement of motor expenses and subsistence.
  • Employer using incorrect PRSI class for employees e.g. uses Class A instead of Class S. Repayments are now subject to the 4 year rule.
  • Non deductible VAT i.e. food, drink, accommodation, entertainment expenses, etc.

 

Tax Clearance Certificates

Where a taxpayers tax liabilities are being discharged via an instalment arrangement beware that a tax clearance certificate which would normally have been valid for one year may only be issued for a shorter period.

 

Incorporation

When doctors incorporate their sole trades it should be noted that they must form unlimited companies not limited companies.


Reminder: VIES Returns also apply to Services
by Orla Linehan

 
Orla Linehan

Irish businesses who supply goods to VAT registered customers in other EU Member States without charging Irish VAT are required to submit a VIES return each month/quarter. Many businesses are not aware that from 1 January 2010 this obligation was extended to the supply of services.

VIES returns can be submitted either monthly or quarterly and must include details of all VAT registered customers in other Member States to whom you have supplied goods or services without charging Irish VAT.

If you are involved in Supply of Goods or Services to other Member States please register with VIMA as soon as possible. The relevant VIES registration form can be found on http://www.revenue.ie/en/customs/businesses/vies-update-feb09.html.


Deadlines and Reminders
by Sinead Herlihy

 
Sinead Herlihy

Remember from 1 June 2011, all companies and partnerships as well as high earning individuals will need to file and pay online. If you are not yet registered for ROS (Revenue Online Service) you should do so immediately on www.revenue.ie.


Deadline - 14 June 2011

Return and payment of dividend withholding tax for May 2011. 

Return and payment of professional services withholding tax for May 2011.

Return and payment of relevant contracts tax for May 2011.

Return and payment of PAYE / PRSI for May 2011.

 

Deadline - 21 June 2011 

Corporation Tax

Preliminary corporation tax for accounting periods ending 31 July 2011.

First installment of preliminary corporation tax for accounting periods of large companies ending 31 December 2011.

Corporation tax returns for accounting periods ended 30 September 2010.

Balance of corporation tax due for accounting periods ended 30 September 2010.

Third party information returns for accounting periods ended 30 September 2010.

 

Where returns and payments are made electronically the return and payment deadlines are being extended to the 23rd day of the month

 

NPPR  

Collection of the Non Principal Private Residence Charge for 2011 commenced on the 31st March 2011


The 2011 charge is based upon the ownership and status of the property on the 31st March 2011.

Please note that you must pay the NPPR charge for 2011 on or before the 30th June to avoid late payment fees.

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