The document provides information about filing taxes in Ireland, including deadlines, penalties, and tips to reduce tax bills. Some key points: - The deadline for paper tax returns is October 31st and the deadline for online returns is November 15th. Filing late can result in penalties of 5-10% of the total tax liability. - Individuals must file if they are self-employed, have rental income, investment income, shares/options, or other non-PAYE income. - Taxpayers can reduce their bills by claiming all eligible tax credits, contributing to a pension, splitting income with a spouse, carrying losses forward, and considering setting up a limited company. - Tax

2. Agenda
• Do I have to file?
• When do I file?
• What are the penalties?
• How can I reduce my tax bill?
• Rental property issues
• Who are TaxAssist Accountants?

3. Do I have to file?
Yes if you are…
•Self employed
•Director and you own more than 15%
shareholding in a company
•Have rental income

4. Do I have to file cont.…
Yes if you have…
•Investment income
•Shares or share options
•Other non PAYE income

5. Deadlines
• 31st October 2012- Paper Filing
• 15th November- Online Filing
Filing on time is crucial!

6. Compulsory online filing
• New scheme introduced by Revenue- will
have impact on anyone doing their own return
• Applies to anyone claiming tax relief such as:
• Pension contributions
• Covenants
• Maintenance payments

7. What is due on October 31st?
• Tax return- form 11 or form 12
• CGT return if applicable
• Tax Liability- cheque, credit card, online bank
transfer
• Preliminary tax for 2012

8. What is preliminary tax?
• Advanced payment of your 2012 liability
• Can be calculated using 3 methods. 2 most
common
– 100% of 2011 liability
– 90% of 2012
 Not paying opens you to late payment interest

9. Penalties for filing late
• 5% surcharge of tax liability for the year
• More than 2 months late increased to 10%.
Example:
3 months late, tax liability for the year was
€15,000 paid through the PAYE system. A
surcharge of €1,500 would be payable.

10. Tax Tips: Claim all your
credits
Tax credits people tend to forget
•Health- 20% of expenses. Remember to
claim for your family
•Home carers credit- €810
•Nursing home costs
•Convenant

11. Tax planning
• Contribute to a pension scheme
• Split income with your spouse
• Claim trading losses against other
income
• Consider setting up a limited company

12. Pension Limits
• The maximum pension contribution, in any one year, for which you are entitled to tax relief,
is related to your age and is expressed as a percentage of your gross income.
Age % of Net Relevant Earnings
Under 30 years 15%
30 – 39 years 20%
40 - 49 years 25%
50 - 54 years 30%
55 – 59 years 35%
60 years and over 40%

13. Split Income With Your
Spouse
• Partnership- PRSI Class S
• No entitlement to Social Welfare
• Credits for State Pension
• Sole Trader – employ spouse – PRSI Class
M- Not entitled to Social Welfare or state
pension
• Company – Where spouse has <15%
• PRSI Class A, full social welfare entitlement
• (€65,600 @ 20% as opposed to €41,400 @20% if only one spouse is earning an income)

14. Income Tax Loss Relief
( Sole Trader /Partnerships)
• A tax adjusted loss can be claimed against
other income in the year it arises. Section 381
Relief
• If it is not claimed or excess loss- carried
forward against future profits for same trade
• Optional Relief , 2 years to claim
• Loss can be increased by Capital Allowances

15. Consider Setting Up A Limited
Company
• Advantages:
• Profitability: incorporation makes sense from a tax perspective if
your level of drawings/salary are less than profits earned.
• Reinvestment: Any profits not utilised by way of salary can be
taxed at 12.5% and then left in the company for reinvestment
purposes. This is possible when operating as a sole trader
however all profits will be taxed at 41% plus PRSI and USC and
thus reducing the amount of funds available for reinvestment.
• Taxation: The corporation tax rate is currently 12.5%
compared to a marginal income tax rate of 41%,
PRSI of 4% and up to 7% USC on earnings.

16. Limited Company Continued
• Limited liability: incorporation of a business provides limited
liability. In the event of a claim against the company, in most
circumstances you will not be held personally liable for the debt.
• Pension funding: A company can get a deduction for
contributions made on your behalf to a pension scheme.
• Employees: There are no restrictions on employing your spouse
who will have their own tax allowance and PRSI limits.
Therefore the maximum married tax bands can be utilised
(€65,600 @ 20% as opposed to €41,400 @20% if only one
spouse is earning an income)

17. Companies Continued
• Mileage: Current civil service mileage rates can be claimed if
using a privately owned motor vehicle for business use.
• Start-up companies: companies which are incorporated and
commence trading after April 2009 and whose business is not
the provision of services (i.e. accountants, solicitors etc) get a
three year exemption which can reduce the company's
corporation charge to Nil. In practical terms the company can
earn profits of €320,000 before corporation tax is payable. Max
saving @ 12.5% is €40,000.
• Insurance: the directors are also covered by the company's
public and employer liability insurance.

18. Limited Company-
Disadvantages
• Low level of profits: If profits levels remain at a low level, the
benefits to be gained from incorporation are lost
• BIK: Benefit in kind tax is extremely expensive from a personal
taxation perspective if the company purchases assets which are
used by the directors e.g motor vehicles.
• Premises purchase: A company is from a tax perspective an
unattractive vehicle to use to purchase premises for the
company to trade from. If there is a gain on disposal the profit
will be subject to tax on the gain within the company and the
shareholders will pay income tax on funds extracted from the
company following the sale.

19. Companies Disadvantages
Continued
• Directors' loans: Directors are prohibited from taking loans or
having the company guarantee liabilities on their behalf. This is
prohibited by Section 31, Companies Act, 1990.
• Administration costs: The costs of incorporation, annual
accounts preparation and filing fees must be met. There is also
a loss of confidentiality as the company's accounts can be
viewed by anybody in the Companies Registration Office.

20. Rental Property
• Up to € 10,000 relief from room in your own
house
• Capital allowances on furnishings- don’t
forget
• Interest relief- 75% of interest only not capital
• Must be registered with PRTB to claim
interest relief

21. Difficulty paying tax
• File your return anyway
• Contact Revenue Commissioners
• Agree installment arrangement- Be
realistic

22. Who are TaxAssist
Accountants?

23. Who are TaxAssist Accountants?
• We are Ireland’s leading accountancy network with
over 20 branches across Ireland
• We specialise in helping Small Businesses and as a
network are servicing close to 3,000 clients
• We offer clients Fixed Fees – no hidden costs, so you
know what you are paying in advance
• Our Fees include all correspondence and free
business advice to clients

24. • We focus only on the SME sector
• Friendly and approachable
• Fixed fees agreed in advance
• Prompt completion of accounts and returns
• Tailored service
• No jargon
• Regular and flexible appointments

25. Our core services:
• Business accountancy
• Tax returns and advice
• Bookkeeping services
• Payroll
• Business plans and financial projections
• Company formation

26. Thanks for listening
Questions?