Oct 2013
16
Budget 2014 - Overview (due to take effect from 1st Jan 2014 unless otherwise stated)
PAYE, USC & PRSI
- No change
- The reduced rate of 4.25% employer PRSI is due to revert back to 8.5% in January 2014
Maternity Benefit
- Maternity & Adoptive Benefit standardised at €230 for new claimants from January 2014, existing claimants will not be affected
Illness Benefit
- Waiting days for entitlement to Illness Benefit increased from 3 days to 6 days
Medical Insurance
- Tax relief on medical insurance premiums restricted to €1,000 per adult insured and €500 per child insured from 16th October 2013
Pension Contributions
- Tax relief on pension contributions limited to pensions of €60,000 or less
Top Slicing Relief
- Top slicing relief on ex-gratia termination & severance payments abolished
VAT
- Reduced rate of 9% for the tourism sector to be retained
- All other VAT rates remain untouched
- VAT on cash receipts basis threshold increased to €2m with effect from 1st May 2014
GP Care
- Free GP care for all children under 5
Bereavement Grant
- One-off payment of €850 to the families of the deceased discontinued
DIRT Tax
- Increased from 33% to 41%
Prescription Charges
- Prescription charge increased from €1.50 per item to €2.50 per item
Start Your Own Business Scheme
- 2 year income tax exemption for long term unemployed who start their own business subject to terms and conditions
SME’s Training & Mentoring Programme
- Subsidised financial training programme for small businesses consisting of 2 days dedicated offsite training
Corporation Tax
- Corporation Tax will remain at 12.5%
Medical Cards for the over 70s
- Income threshold for medical cards for over 70s lowered to €900 per week for a couple and €500 per week for a single person, medical card in these cases would be replaced with GP only medical card
Telephone Allowance
- Pensioners telephone allowance worth €114 a year is being abolished
Air Travel Tax
- Reduced to 0% from 1st April
Home Renovation Incentive
- An income tax credit to homeowners carrying out work on their home in the next 2 years, the credit will be calculated at 13.5% of the spending cost up to a maximum €4,050
Jobseekers Allowance
- Claimants aged 18-24 will receive a reduced rate of €100 per week, claimants turning 25 from January will receive €144
Cigarettes
- Cigarette packets will be taxed 10 cent more from midnight 15th October 2013
Wine
- A 70cl bottle of wine will be taxed 50 cent more from midnight 15th October 2013
Beer, Cider & Spirits
- Will rise in price by 10 cent from midnight 15th October 2013
Motoring
- No increase in excise duty on petrol or diesel
No increase in motor tax
Oct 2013
11
LOCAL PROPERTY TAX (LPT) 2014
LPT 2013 (half year charge) is still quite topical but LPT 2014 (full year charge) is fast approaching!!!
The liability date for LPT 2014 is the 1st November 2013 - if you own a residential property on the 1st November 2013 you are liable for LPT 2014.
Key Dates for LPT 2014
- 1st January – 31st December 2014
Phased payments e.g. deduction at source from salary will continue
- 1st January 2014
If paying in full by cash, payment must be made by 1st January 2014
- 15th January – 15th December 2014
Direct Debits will continue
- 21st March 2014
Single Debit Authority payment deducted
Payment method for 2014:
If you paid your 2013 LPT liability by a phased payment method e.g. deduction at source, direct debit this payment method will automatically apply for 2014 and subsequent years. There is no requirement to notify Revenue of your payment method for 2014 unless you wish to select a different payment method.
If you chose a different payment method in 2013 e.g. Credit/Debit Card, you must confirm your payment method for 2014 by:
- 7th November 2013 (by paper)
- 27th November 2013 (on-line)
In the case of Credit/Debit Card Payments, the full amount will be charged to the card on the day you select this payment method for paying your 2014 LPT liability. This would mean the latest date for paying using this method would be the 27th November 2013.
Full details can be found on Revenue’s website
Oct 2013
4
CPA Ireland – Practitioners’ Conference 2013
CPA Ireland held their Practitioners Conference in Carton House Friday 20th & Saturday 21st September 2013. Laura Murphy and Audrey Mooney from Thesaurus Software attended the conference. Laura and Audrey enjoyed meeting existing Thesaurus Payroll Manger and Solutions Plus customers – getting their feedback and comments.
It was also an opportunity to show Bright Contracts and our new payroll product BrightPay.
- Bright Contracts is an innovative software package that has everything you need to create and manage your staff handbook and and employment contracts.
- BrightPay is simple to use yet powerful and flexible, it will be offered alongside Thesaurus Payroll Manager giving customers a choice of payroll products.
Laura Murphy (left) and Audrey Mooney at the recent CPA conference
Sep 2013
23
PAYROLL TAX TIP – SEPTEMBER 2013
Employees do you know when your employer pays or partly pays medical insurance on your behalf you do not get Tax Relief at Source (TRS)?
When you pay your own medical insurance premium you automatically receive tax relief at the standard rate of tax, currently 20%. When your employer pays or partly pays medical insurance on your behalf you will not have been allowed Tax Relief at Source. The good news is you are entitled to the relief when your employer has paid the medical insurance on your behalf but you have to claim the relief due from Revenue.
Individual Paying Medical Insurance:
| Gross Premium | €1,000 |
| Tax Relief at Source: | €200 |
| Cost to Individual: | €800 |
Employer Paying Medical Insurance:
| Gross Premium | €1,000 |
| Tax Relief at source (employer pays this to Revenue through Tax Return) | €200 |
| Benefit in Kind | €1,000 |
Using the example above although the employer has only paid €800 to the medical insurance provider the employee will pay benefit in kind of €1,000.
If your employer pays or partly pays your medical insurance you should contact your local tax office to ensure you are receiving the tax relief.
Details can also be found in the help file for Thesaurus Payroll Manager and BrightPay.
Sep 2013
12
FREE BUSINESS EVENT FOR IRISH SMEs – TAKING CARE OF BUSINESS
Very few things in life are free so why not avail of a free event to help your business. If you own or manage a small business or are thinking of starting your own business you should visit www.takingcareofbusiness.ie to register as places are limited.
Attendees will:
- Meet with representatives from a number of State Offices & Agencies
- Get information & advice
- Find out ways to save your business money
- Receive support to help you in your business
Speakers on the day will include representatives from National Employment Rights Authority, Companies Registration Office, Department of Social Protection, Enterprise Ireland, Revenue as well as many others. Please see the eflyer for full details - https://www.takingcareofbusiness.ie/eflyer.pdf
Free Admission
Printworks Conference Centre, Dublin Castle
22nd October 2013 8.30am to 2.30pm
Initiative of the Department of Jobs, Enterprise & Innovation
Aug 2013
28
Irish Payroll Tax Tip - August 2013
EMPLOYERS, DID YOU KNOW THAT YOU CAN PROVIDE EMPLOYEES WITH EQUIPMENT SUCH AS COMPUTERS, PRINTERS, SCANNERS, FAX MACHINES, OFFICE FURNITURE ETC TO WORK FROM HOME WITHOUT A BENEFIT IN KIND CHARGE.
Where the provision of such equipment is for business use, a benefit in kind charge will not arise in respect of incidental private use.
eWorking:
eWorking is regarded as a method of working using information and communication technology in which work carried out is not bound to any particular location.
Ways of eWorking include:
-
Working at home on a full time or part time basis
-
Working some of the time at home and the remainder of the time in the office
-
Working while on the move, with infrequent or occasional visits to the office
eWorking involves:
-
Working for substantial periods outside the employer’s premises
-
Logging onto the employer’s computer remotely
-
Sending & receiving email, data or files remotely
-
Developing ideas, products and services remotely
eWorkers will incur additional costs in the performance of their duties in their home e.g. electricity & heating costs. In addition to providing the necessary equipment an employer can pay these employees up to €3.20 per day without deducting PAYE, PRSI or USC. If the actual expense incurred by eWorking employees is higher the employer can reimburse the employee provided they have the backup documentation, records should always be kept.
Details can be found on Revenue’s website http://www.revenue.ie/en/tax/it/leaflets/it69.html
If you have any queries please email: [email protected]/[email protected]
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
27
PAYROLL TAX TIP - JULY 2013
EMPLOYERS DID YOU KNOW YOU CAN PROVIDE YOUR EMPLOYEES WITH A SMALL BENEFIT TAX FREE?
Revenue Commissioner’s Approved Small Benefit Exemption Scheme:
Employers can provide employees with a small benefit (that is a benefit not exceeding €250); this small benefit is not subject to PAYE, USC or PRSI.
The following rules apply:
- The benefit cannot be cash, cash payments are fully taxable
- Only one such benefit can be given to an employee in one tax year
- Where a benefit exceeds €250 the full value of the benefit is subject to PAYE, USC & PRSI
The small benefit is traditionally given as a voucher, as mentioned above only one such benefit can be given to an employee in one tax year. If for example an employee receives a €150 voucher in January and a €100 voucher in June only the €150 January voucher will qualify for exemption and the €100 voucher given in June will be subject to PAYE, USC & PRSI.
Where a benefit exceeds the value of €250 the full value is subject to PAYE, USC & PRSI. For example if a €260 voucher is given to an employee the full value should be included on payroll as a benefit in kind and therefore subjected to PAYE, USC & PRSI.
Any changes to the scheme will be included in the help file within Thesaurus Payroll Manager and also on the online BrightPay help file http://www.brightpay.ie/docs/2013/benefit-in-kind/one-off-benefits/
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jul 2013
11
JobsPlus - New Irish Employer Incentive
JobsPlus is a new employer incentive which encourages employers to employ jobseekers on the live register. The scheme replaces the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme from the 1st July 2013; the scheme will be operated by the Department of Social Protection.
There are two levels of payment:
- A payment of €7,500 over 2 years to the employer for each employee recruited who has been unemployed for between 12-24 months
- A payment of €10,000 over 2 years to the employer for each employee recruited who has been unemployed for more than 24 months
Payment will be made monthly in arrears by Electronic Fund Transfer over a 24 month period. Income received from the initiative will not be considered as revenue/income for income or corporation tax purposes.
To qualify for JobsPlus, employers must meet the following conditions:
- The employer must be registered for PAYE with the Revenue Commissioners
- The employer must be tax compliant, employers will be requested to give an officer of the Department of Social Protection permission to check their status with the Revenue Commissioners and to obtain a Tax Clearance Certificate using Revenue’s on line service at the time of application
- The employer must offer a full time position for a minimum of 30 hours per week and the employee must work at least 4 days in any 7 day period
- The employer must give details of the company when applying e.g. size of the workforce, bank details etc
To apply for the scheme employers log on to www.jobsplus.ie and complete the online application form, if approved the Department of Social Protection will revert to the employer via email.
Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software
Jun 2013
1
Taxation of Maternity Benefit, Adoptive Benefit & Health & Safety Benefit
From 1st July 2013 Maternity Benefit, Adoptive Benefit & Health & Safety Benefit payable by the Department of Social Protection will be taxable in full. These payments will be taxable but will not be subject to USC or PRSI.
The Revenue Commissioners have confirmed that employees in receipt of Maternity Benefit, Adoptive Benefit or Health & Safety Benefit will have their tax credit and standard rate cut-off point reduced to reflect the benefit they have received. As the benefit will be taxed by Revenue and not at source the recipients will continue to receive the same payment from the Department of Social Protection.
Employers will be advised of the adjusted tax credits and standard rate cut-off points on the tax credit certificates (P2C’s). As the benefit will be taxed by reducing the employee’s tax credits and standard rate cut-off point, employers are NOT to include figures for the benefit on Revenue forms i.e. P45, P60 or P35L.
Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll Software
