Supplementary Budget 2009
- Income levy thresholds lowered, with the 2% rate at €15,000, 4% at €75,000 and 6% at €175,000.
- Health Levy rates will double to 4% and 5%. The entry point for the higher rate will be reduced to €1,443 per week which is €75,036 per annum.
- Mortgage interest relief will now only be available for the first seven years on principal private residences.
- DIRT will go up from 23% to 25%. The levy on non-life insurance premiums rises from 2% to 3%.
- Interest relief on rented residential accommodation limited to 75%
- Stamp Duty trading scheme to be introduced
- Capital Gains Tax and Capital Acquisitions Tax will both rise from 22% to 25%.
- Early childcare supplement halved from 1 May, and scrapped altogether next year.
- No increases in social welfare for the next couple of years, rates may be reviewed later.
- New scheme to allow civil servants over the age of 50 to retire.
- Christmas welfare bonus will not be paid this year, while those under 20 will have their dole payments halved.
- A 10% cut in political expenses, while long-term payments to TDs will be abolished.
- Commission on Taxation will decide on how to raise further money from taxing or means testing child benefit.
- A national infrastructure bond to be looked at to raise money for capital projects.
- Enterprise Stabilisation Fund to be set up to help protect jobs in troubled businesses.
- A review of top-level public sector pay rates.
- Petrol and alcohol duties will not go up.
- Cigarettes up 25 cent and diesel up 5 cent a litre
- New asset management agency to take bad loans off the banks' balance sheets.
3 Year tax break for New Companies
Believe it or not there has never been a better time to establish a new business as a Limited Company.
The Government have announced in the Budget for 2009, that start up companies which commence trading from January 1st, will be exempted from both Corporation tax and Capital Gains Tax for the first three years, up to a total tax liability of €40,000.
This translates into a massive €320,000 in tax free company profit at the current rate of corporation tax rate of 12.5%, each year for three years.
Naturally, there there are some 'terms and conditions' attached to this initiative, which is waiting for EU approval but none which we believe will impede a genuinely new project. For instance already established businesses can not simply set up a new company and move an existing trade over.
Extended deadline for ROS customers
For 2008 the form 11 return filing date – 31 October is extended until 17 November for taxpayers who both file and pay on ROS. To avail of the extension both the Return of Income and the Payment must be made on ROS.
Relief may be claimed in respect of a Retirement Annuity Contract (RAC) or a Personal Retirement Savings Account (PRSA) payment made on or before the return filing date of 31st October. Where an individual qualifies for the extended Pay and File deadline available to ROS customers, who both file and pay online, the deadline for making RAC and PRSA payments and claiming the relief is also extended to 17 November 2008.
This extended deadline also covers payments of Additional Voluntary Contributions (AVCs) made under Section 774(8) or Section 776(3) TCA 1997, where the individual qualifies for the extended Pay and File deadline.
High-income individuals who are required under Section 485FB(3)TCA 1997 to submit Form RR1 and who both pay and file through ROS, may also avail of the extension to 17th November 2008.
Mandatory electronic filing & payment
The Revenue Commissioners announced today that they are to begin a detailed and wide-ranging consultation process with tax practitioners, industry representative bodies, software providers and customers with a view to introducing a requirement that tax returns and payments for specific categories of taxpayers must be made electronically through ROS, the Revenue Online Service.
ROS has already achieved significant electronic return filing and payment rates to date - but a considerable number of fully computerised businesses still remain outside the ROS system. The aim is to bring these businesses within ROS, on a phased basis, commencing with certain returns and payments due by larger companies in 2009.
Post Budget'09 Breakfast Briefing
Drogheda & District Chamber would like to invite all members and non-members to attend our post Budget'09 Breakfast Briefing
Wednesday 15th October 8am to 9am
Boyne Valley Hotel, Drogheda
This even will provide an excellent opportunity to hear in-depth analysis and discussion of Budget'09
The briefing will comprise a detailed overview of the Budget and its implications by local financial experts.
Speakers at the breakfast will be:
Gail McEvoy CPA from McEvoy & Associates
Registered Auditors & Accountants,
Also Proprietor of The Tac Clinic Ltd, Corporate @ Personal Tax advisors.
Voluntary Disclosure Initiative - Deposit Interest Reporting
In May, Revenue announced a voluntary disclosure initiative for persons holding untaxed funds in domestic deposit accounts.
Under recently introduced regulations banks and other financial institutions are required to provide Revenue with details of the names and addresses of account holders where interest in excess of €635 was paid. For the years 2005 and 2006 banks, building societies and savings banks are required to report to Revenue on DIRT-liable accounts on or before 15 September 2008. For the year 2007 the reporting deadline is 31 October 2008.
Taxpayers who had €100,000 or more in aggregate in these accounts (which included funds not previously declared for tax) at any time between 1 January 2005 and 31 December 2007 have until 15 September 2008 next to make a voluntary disclosure under an initiative announced by the Revenue Commissioners.
Revenue emphasise that the focus is on money, which was undeclared for tax purposes and this current initiative will affect a relatively small number of taxpayers. The primary concern for Revenue will be the capital funds in the accounts.
Terms and Conditions of the Voluntary Disclosure Initiative
Persons who have undeclared tax liabilities in relation to accounts, now subject to the reporting regulations, which in aggregate held €100,000 or more at any time during the years 2005, 2006 and 2007, and who fail to avail of this disclosure initiative are precluded from making a qualifying disclosure if:
A Notice of Intention is not submitted on or before 15 September 2008 and
A full payment and disclosure is not made on or before 15 January 2009
The following persons are not eligible to make a voluntary disclosure under this initiative:
-Persons previously required to make a disclosure under the BNR, Offshore or SPIP project and who failed to make a complete disclosure,
-Ansbacher and CMI/NIB cases and
-Persons who have come or may come under the investigations arising from the Moriarty or Mahon Tribunals.
-Benefits of Voluntary Disclosure
Persons who have tax issues relating to monies on deposit and who wish to avail of the opportunity to make a voluntary disclosure will receive the following benefits:
-The penalty for underpaid tax will be substantially mitigated;
-Their name and settlement amount will not be published by Revenue in the quarterly list of tax defaulters in Iris Oifigiúil;
Revenue will not initiate an investigation with a view to prosecution
Martin announces €60m Fund to boost SME's
Minister for Enterprise, Trade and Employment, Micheál Martin, TD has todayannounced a €60m growth fund to support Irelands Small and Medium Sized companies.
The Growth Fund, operated by Enterprise Ireland, will help secure new jobs in Irish firms by supporting investments in staff, equipment and technology to increase competitiveness and encourage new exports.
Eligible companies will be able to receive €650,000 from Enterprise Ireland to support business plans that meet the main criteria of the scheme.
Announcing the details of the Growth Fund Minister Martin said:
“Innovating to improve competitiveness has become a national priority in the face of growing international pressure. I welcome Enterprise Ireland’s Growth Fund which will help our SME sector to increase productivity and exports whilst also creating new jobs”.
“As SMEs make up over 97% of the Irish business sector, it is imperative that they have the capacity and capability to innovate and grow. This Enterprise Ireland fund underlines the determination of Government to continue supporting Irish firms as they prepare to meet the challenges of the future.”
“Significantly the announcement of this fund follows on from our recent provision of €500 million to encourage company investments in Research and Development. I would again strongly encourage all small and medium sized companies to take time to study the full range of excellent supports which are available through Enterprise Ireland.”
Following the Minister’s announcement, Feargal Ó Móráin Executive Director of Enterprise Ireland said: “Today’s announcement of the Growth Fund just one week after the launch of the revised R&D fund means that Enterprise Ireland can now offer a full complement of innovative supports to Irish companies. SMEs that are already clients of Enterprise Ireland or would like to become one can get the funding they
need to innovate their business, become more productive and increase their exports”.
“A key component of the new Growth fund is the inclusion of the Workplace Innovation Fund which is aimed at developing the innovative capacity of individual employees”, Mr. Ó Móráin added.
Revenue issue new C2 cards
Each year the Revenue Commissioners systematically reviews half of its C2 holders' database and renews the cards of those still entitled to hold such a card, for a further two years. As part of Revenue's ongoing review of security of the actual C2 Card, a slightly revised version has been introduced with effect from 1 January 2008. It will be phased in as follows:
- All new applicants from 1 January 2008 will be issued with the new card.
- C2 holders whose card expires on 31 December 2008, and who still qualify, will be issued with a new card as part of the renewal process later this year.
- C2 holders whose card expires on 31 December 2009, and who still qualify, will be issued with a new card as part of the renewal process at the end of 2009.
As the renewal process is split across two years, there will a transition period where authentic versions of both new and old style cards will be in circulation and may be presented to Principals until 31 December 2009. From 1 January 2010, only the new version will be in circulation.
The basic card remains exactly the same in terms of layout, hologram, magnetic strip and artwork, except for the addition of some dynamic security effects, which will incorporate the Revenue Logo, Castle Gates, Harp and the legend C2.
Principal Contractors need to be aware that they may be presented with the old or the new version of the card up to 31 December 2009. They should continue to carry out the relevant checks before applying for a payments card. A C2 should normally be presented in person to the Principal. When applying for a card (RCT 47) the Principal should:
- Examine the original C2 (certificate of authorisation);
- Check that the C2 bears the photograph of the person presenting it;
- Check that the C2 is still in date;
- If the C2 is in order, apply immediately for the payments card to the local Revenue District on Form RCT 46;
- When completing Form RCT 46, check that the sub-contractor's signature on the RCT 46 matches that on the C2; and
- Check that the Subcontractor's name on the RCT 46 is the same as that on the C2
Revenue Calendar of Key Dates for 2008
14PAYE/PRSI: P30 monthly return and payment for December 2007
14DWT: Return and payment of DWT for December 2007
14PSWT: F30 monthly return and payment for December 2007
14RCT: RCT 30 monthly return and payment for December 2007
19VAT: VAT 3 return plus any payment for period November/December 2007
1-21Corporation Tax: PT for APs ending between 1-29 February 2008
1-21Corporation Tax: Returns for APs ending between 1-30 April 2007
1-21Corporation Tax: Pay Balance due on APs ending between 1-30 April 2007
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-30 April 2007
31Capital Gains Tax: Payment due on gains arising between 1 October 2007 to 31 December 2007
http://www.revenue.ie/publications/key-dates.htm
February 2008
14PAYE/PRSI: P30 monthly return and payment for January 2008
14DWT: Return and payment of DWT for January 2008
14PSWT: F30 monthly return and payment for January 2008
14RCT: RCT 30 monthly return and payment for January 2008
15PSWT: F35 annual return for year ended 31 December 2007
15RCT: RCT 35 return for year ended 31 December 2007
15PAYE/PRSI: Issue P60 2007, to each employee
15PAYE/PRSI: Due date submission of Form P35 for year ended 31 December 2007 (A separate Quarterly P30 return is not required for the last quarter of year. Include payment for the last quarter with your P35)
1-21Corporation Tax: PT for APs ending between 1-31 March 2008
1-21Corporation Tax: Returns for APs ending between 1-31 May 2008
1-21Corporation Tax: Pay Balance due on APs ending between 1-31 may 2007
1-29Corporation Tax: Returns of Third Party Information for APs ending between 1-31 May 2007
http://www.revenue.ie/publications/key-dates.htm
March 2008
14PAYE/PRSI: P30 monthly return and payment for February 2008
14DWT: Return and payment of DWT for February 2008
14PSWT: F30 monthly return and payment for February 2008
14RCT: RCT 30 monthly return and payment for February 2008
19VAT: VAT 3 return plus any payment for period January/February 2008
1-21Corporation Tax: PT for APs ending between 1-30 April 2008
1-21Corporation Tax: Returns for APs ending between 1-30 June 2007
1-21Corporation Tax: Pay Balance due on APs ending between 1-30 June 2007
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-30 June 2007
31Income Tax: Return of Share Options and other Rights for 2007
31Income Tax: Deadline for claiming Separate Assessment for 2008
31Income Tax: Deadline for nominating Assessable Spouse for 2008
http://www.revenue.ie/publications/key-dates.htm
April 2008
14PAYE/PRSI:
P30 monthly return and payment for March 2008
P30 quarterly return and payment for January-March 2008
14DWT: Return and payment of DWT for March 2008
14PSWT: F30 monthly return and payment for March 2008
14RCT: RCT30 monthly return and payment for March 2008
1-21Corporation Tax: PT for APs ending between 1-31 May 2008
1-21Corporation Tax: Returns for APs ending between 1-31 July 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-31 July 2007
1-30Corporation Tax: Returns of Third Party Information for APs ending between 1-31 July 2007
http://www.revenue.ie/publications/key-dates.htm
May 2008
14PAYE/PRSI: P30 monthly return and payment for April 2008
14DWT: Return and payment of DWT for April 2008
14PSWT: F30 monthly return and payment for April 2008
14RCT: RCT30 monthly return and payment for April 2008
19VAT: VAT 3 return and payment for period March/April 2008
1-21Corporation Tax: PT for APs ending between 1-30 June 2008
1-21Corporation Tax: Returns for APs ending between 1-31 August 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-31 August 2007
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-31 August 2007
http://www.revenue.ie/publications/key-dates.htm
June 2008
14PAYE/PRSI: P30 monthly return and payment for May 2008
14DWT: Return and payment of DWT for May 2008
14PSWT: F30 monthly return and payment for May 2008
14RCT: RCT30 monthly return and payment for May 2008
1-21Corporation Tax: PT for APs ending between 1-31 July 2008
1-21Corporation Tax: Returns for APs ending between 1-30 September 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-30 September 2007
1-30Corporation Tax: Returns of Third Party Information for APs ending between 1-30 September 2007
http://www.revenue.ie/publications/key-dates.htm
July 2008
14PAYE/PRSI:
P30 monthly return and payment for June 2008
P30 quarterly return and payment for April-June 2008
14DWT: Return and payment of DWT for June 2008
14PSWT: F30 monthly return and payment for June 2008
14RCT: RCT30 monthly return and payment for June 2008
19VAT: VAT 3 return and payment for period May/June 2008
1-21Corporation Tax: PT for APs ending between 1-31 August 2008
1-21Corporation Tax: Returns for APs ending between 1-31 October 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-31 October 2007
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-31 October 2007
http://www.revenue.ie/publications/key-dates.htm
August 2008
14PAYE/PRSI:
P30 monthly return and payment for July 2008
14DWT: Return and payment of DWT for July 2008
14PSWT: F30 monthly return and payment for July 2008
14RCT: RCT30 monthly return and payment for July 2008
1-21Corporation Tax: PT for APs ending between 1-31 September 2008
1-21Corporation Tax: Returns for APs ending between 1-30 November 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-30 November 2007
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-30 November 2007
http://www.revenue.ie/publications/key-dates.htm
September 2008
14PAYE/PRSI:
P30 monthly return and payment for August 2008
14DWT: Return and payment of DWT for August 2008
14PSWT: F30 monthly return and payment for August 2008
14RCT: RCT30 monthly return and payment for August 2008
19VAT: VAT 3 return and payment for period July/August 2008
1-21Corporation Tax: PT for APs ending between 1-31 October 2008
1-21Corporation Tax: Returns for APs ending between 1-30 December 2007
1-21Corporation Tax: Pay balance due on APs ending between 1-31 December 2007
1-30Corporation Tax: Returns of Third Party Information for APs ending between 1-31 December 2007
http://www.revenue.ie/publications/key-dates.htm
October 2008
14PAYE/PRSI:
P30 monthly return and payment for September 2008
P30 quarterly return and payment for July-September 2008
14DWT: Return and payment of DWT for September 2008
14PSWT: F30 monthly return and payment for September 2008
14RCT: RCT30 monthly return and payment for September 2008
1-21Corporation Tax: PT for APs ending between 1-30 November 2008
1-21Corporation Tax: Returns for APs ending between 1-31 January 2008
1-21Corporation Tax: Pay balance due on APs ending between 1-31 January 2008
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-31 January 2008
31Income Tax: Preliminary Tax 2008
31Income Tax: Pay balance of 2007 tax liability
31Income Tax: Return of income for 2007
31Capital Gains Tax: Payment due on gains arising between 1 January 2008 to 30 September 2008
31Capital Gains Tax: Return of Capital Gains for 2007
http://www.revenue.ie/publications/key-dates.htm"
November 2008
14PAYE/PRSI:
P30 monthly return and payment for October 2008
14DWT: Return and payment of DWT for October 2008
14PSWT: F30 monthly return and payment for October 2008
14RCT: RCT30 monthly return and payment for October 2008
19VAT: VAT 3 return and payment for period September/October 2008
1-21Corporation Tax: PT for APs ending between 1-30 December 2008
1-21Corporation Tax: Returns for APs ending between 1-29 February 2008
1-21Corporation Tax: Pay balance due on APs ending between 1-29 February 2008
1-30Corporation Tax: Returns of Third Party Information for APs ending between 1-29 February 2008
http://www.revenue.ie/publications/key-dates.htm
December 2008
14PAYE/PRSI:
P30 monthly return and payment for November 2008
14DWT: Return and payment of DWT for November 2008
14PSWT: F30 monthly return and payment for November 2008
14RCT: RCT30 monthly return and payment for November 2008
19VAT: VAT 3 return and payment for period September/October 2008
1-21Corporation Tax: PT for APs ending between 1-31 January 2008
1-21Corporation Tax: Returns for APs ending between 1-31 March 2008
1-21Corporation Tax: Pay balance due on APs ending between 1-31 March 2008
1-31Corporation Tax: Returns of Third Party Information for APs ending between 1-31 March 2008
CPA criticises 'paltry' increase in VAT threshold
The Institute of Certified Public Accountants (CPA) has criticised the low increase in the VAT threshold for small business in the budget and CPA President Brendan Allen said that the small increase was a missed opportunity to reduce the burden of regulation on small business.
“The Government could have been stronger in its defence of indigenous small business when framing its budget and the increase in the VAT threshold, particularly for services, is paltry”, said CPA President Mr Brendan Allen. “We welcome measures such as the increase in the taxation liability threshold for smaller businesses and start-ups, but we believe that Mr Cowen could have gone much further in easing the regulatory burden on small businesses.”
“Support to indigenous industry leads to growth, job creation and opening up international markets for Irish goods and services. The low increase in the VAT registration threshold, particularly services, was a missed opportunity to reduce the burden of regulation on small business and is a worrying sign that the current taxation regime is less than supportive to indigenous business."
The CPA has however welcomed the Government's announcement of stamp duty reforms as a bold but positive move to reenergize the economy. "The service sector is now growing at its slowest pace in more than four years, and has obviously been impacted by the slide in building activity, said Mr Allen. This much anticipated reduction in stamp duty will play a vital role in restoring overall economic confidence".
Budget 2008
- Increase in personal tax credit by €70 (single) and €140(married) to €1,830 and €3,660 respectively
- PAYE Tax Credit increased by €70 to €1,830
- Band for 20% standard rate widened by €1,400 to €35,400
- Mortgage interest relief to rise by €2,000 for a single person and €4,000 for a married couple
- New residential stamp duty rate of zero up to €125,000 and a 7% on the excess up to a limit of €1m
- A 9% stamp duty rate will apply on the balance of house prices over €1m
- Duty on credit cards to fall from €40 to €30
- Increase in small company corporation tax liability threshold from €150,000 to €200,000
- VAT registration thresholds increased to €37,500 (services) and €75,000 (goods)
- Excise on cigarettes to rise 30 cents from midnight
- With effect from 1 July 2008, VRT will be based on CO2 emissions levels
- New VRT system will have 7 bands, ranging from 14% to 36%
- Non-contributory pension to rise €12 to €212 a Contributory pension to rise €14 to €223 a week
- New capital gains tax relief for the break-up of a farm
- Film relief extended for another four years to 31st Dec 2012
- Child benefit to rise €6 per month for first and second child and €8 per month for third and subsequent children.