1. All you need to know about Tax……
LEO WORKSHOP 25TH
JUNE 2015
Presented by: Frances Brennan AITI Chartered Tax Advisor (CTA) TEP
The Tax Studio
25/06/2015
2. Self-Assessment.
Sole trader or limited company?
Annual Compliance Issues, and payment of Preliminary Tax.
Importance of paying and filing on time.
Allowable Business expenses and tax deductions
Withholding tax.
VAT – do you or should you register?
Home Renovation Scheme.
SURE
3. Self Assessment. What does this mean?
Self-Employed Income, Rents, Investment Income,
Maintenance payments, Fees outside of PAYE.
TRI form to register for first time or online via ROS.
5. Register for ROS - Self-Employed
Individuals, Business and Practitioners
www.revenue.ie
There are 3 Steps to becoming a ROS customer. All three steps must be completed
before you can access ROS.
If you wish to view your own personal tax details or if you wish to file your tax returns
on-line you must first apply to become a ROS customer.
You must also apply if you are a tax agent or receiver and require access to view the
records or file returns on behalf of your clients. To ensure that your client list is up to
date please contact the relevant tax office.
When you successfully apply, a letter will be issued to you with your personal ROS
access number. This number will enable you to proceed.
Click on symbols below for information about each of the steps
Steps to Becoming a ROS Customer Contd:-
in:
6. Register for ROS - Self-Employed Individuals,
Business and Practitioners Contd:-
Step 1: Apply for your ROS Access Number (RAN)
Further Information: Applying for a ROS Access Number involves entering various tax
registration numbers. Revenue will then post your access number to you which will
enable you to apply for your Digital Certificate.
Further Information: Applying for your digital certificate involves entering your access
number along with your registration numbers and email address. When this step of
your application has been processed, a ROS system password will be generated and
posted to you.
Step 3: Retrieve your Digital Certificate
Contd:-
Apply for your RAN
Apply for your Digital
Certificate
Retrieve your Digital
Certificate
7. Register for ROS - Self-Employed Individuals,
Business and Practitioners Contd:-
Further Information: Retrieving your Digital Certificate involves entering your ROS
system password and installing your digital certificate.
Revenue On-Line Services Requirements
ROS Requirements
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Eolas as Gaeilge
ROS
Requirements
8. Pay and File – 31st
October/12th
November for sole
trader/Income Tax
Pay VAT bi-monthly and PAYE/PRSI monthly, and end of
year P35 by February.
File Corporation Tax Return within 9 months of year end.
Pay balance due for previous year.
9. Example:
By 12th
November 2015.
Pay Preliminary Tax 2015.
File 2014 Tax Return (Based on last years income).
Pay balance of Tax due for 2014.
10. Early Bird
If you file before 31st
August, 2015, Revenue compute your
liability and you are in a better position to decide on
Preliminary Tax due in Oct/Nov 2015.
You will not have to pay the tax early.
11. Payments must be made on line – This is now mandatory.
IBAN and BIC required.
Automatically Debited from your Bank Account by
Revenue.
12. Preliminary Tax.
100% of previous year, 2014.
or
90% of 2015.
To avoid being charged interest.
What if I am late?
5% Surcharge up to Max of €12,695 up to two Months after Tax Deadline.
10% Surcharge thereafter, up to a max of €63,485.
If you have not paid your LPT, you will be surcharged.
13. You do not submit accounts with the tax return but complete extracts
from the accounts on Tax Return.
Business expenses allowable are telephone,internet,travel to a job,
portion of light & heat, accountancy & tax agent fees, legal
fees,stationery & office costs etc. Private use not allowable e.g. motor
expenses say 1/3 business, 2/3 private.
Working from home – apportion the expenses on square footage basis for
light & heat, full amount for broadband and telephone if for business use.
Equipment and furniture - Capital items with 12.5% Wear & Tear
allowable each year.
Entertainment specifically not allowed.
14. PRSI
4% - 16 – 66 years
USC First 12,012 @ 1.5%
Next 5,564 @ 3%
Next 52,868 @ 7%
Income over 70,044 @ 8%
15. Medical Expenses – 20% Tax Relief.
Tuition Fees – Max is €7,000 per individual.
First €3,000 not allowable – Overall.
Pension contributions –up to 41% Tax Relief.
16. Professional Services Withholding Tax (PSWT).
State and Semi State Bodies, Government Departments,
School Authorities, HSE - 20% on Total Payment.
F45 Form (Provide your PPS number) Valuable Documents
and should be retained.
17. PSWT – Applies to entire payment, including any element
of the reimbursement of expenses, even if separately
invoiced.
Vat charged should be excluded for the purposes
of calculating PSWT.
18. VAT Registration
You MUST register if your income exceeds €37,500
in a twelve month period.
Apply online similar to income registration giving
date of registration and your annual turnover
(Gross Income).
19. S U R E
Previously known as Seed Capital Relief.
If you are starting your own business through a company.
Have mainly PAYE income in the previous 4 years.
Take up full time employment in the company.
May be entitled to an income tax refund of up to 41% of
the capital you invest under SURE, up to six years prior to
the year in which you invest.
20. What is a Tax Clearance Certificate?
This is written confirmation from Revenue that your tax affairs are in order at
the date of issue of the certificate.
The requirement arises where you might be seeking state funds, e.g.
government contracts, grants or obtaining a licence.
Applicants are made online and take up to 10 days.
21. Home Renovation Scheme (HRI)
Tax relief claimed for qualifying work @ 13.5% on repair, renovation or improvement works – e.g.
painting and decorating, tiling, attic conversations, plumbing. These works must be carried out on
your main house that you live in or rental property by qualifying HRI Contractors. Must be paid for
by 31st
December, 2015.
You need to spend over €4,405 (before VAT) up to a max. of €30,000 (before VAT) The highest Tax
Credit is €4,050 per property. Example: Spend say €3,000 on rewiring and €2,000 on painting =
€5,000 X 13.5% = €675 Tax credit allowable.
Must engage Tax compliant contractors – ask them are they participating in the scheme and they
enter the work details on HRI online.
You can then login to HRI online to check that the work details have been entered. You provide your
property ID and LPT.
22. HRI
The year after the work is carried out and paid for you login to HRI online to claim HRI Tax credit –
provided your local property tax is up to date.
What does not qualify?
Carpets, furniture, white goods and services e.g. architects’ fees, materials you purchase yourself.
No HRI relief on holiday homes, new builds, refurbishment of an uninhabitable house.
How do you receive the benefit of the Tax credit?
Under self-assessment, your HRI credit will be divided evenly between two years. If taxed under
PAYE, HRI credit will be spread over two years.
In practice half the Tax credit is offset against your preliminary tax for 2015 and half against 2016.
