Flat rate expenses for PAYE workers

FLAT RATE EXPENSES 2018 2017
Agricultural Advisers (employed by Teagasc) 671 671
Archaeologists: (Civil Service) 127 127
Architects employed by
(a) Civil Service 127 127
(b) Local Authorities 127 127
Airline Cabin Crews 64 64
Bar trade: Employees 93 93
Building Industry
Bricklayer 175 175
Fitter mechanic, plasterer 103 103
Electrician 153 153
Mason, roofer slater, tiler, floor layer, stone cutter 120 120
Driver, scaffolder, sheeter, steel erector 52 52
Professionals: engineers, surveyors, etc. 33 33
General operatives (labourers etc. incl. Public Sector) 97 97
Bus, rail and road operatives in
Bus Atha Cliath, Bus Eireann and Iarnod Eireann 160 160
Cardiac Technicians
Female 212 212
Male 107 107
Carpentry and joinery trades
Cabinet makers, Carpenters, Joiners 220 220
Painters, Polishers, Upholsterers, Wood Cutting Machinists 140 140
Civil Service
Architectural Technologists & Assistants 166 166
Clerks of Works (incl. Senior and District Inspectors) 142 142
Engineering Technicians for Archaeologists, Architects, Engineers and Surveyors 166 166
Park Rangers and constables employed by the Office of Public Works 77 77
Clergymen (Church of Ireland) 127 127
Consultants (hospital) 695 695
Note: Deduction includes subscription to the Irish Medical Council
Cosmetologists
Obliged to supply and launder their own white uniforms 160 160
Defence Forces Personnel
(All enlisted personnel not in receipt of Uniform Replenishment Allowance) 150 150
Dentists in employment 376 376
Dockers 73 73
Doctors (hospital, including consultants) 695 695
Note: Deduction includes subscription to the Irish Medical Council.
Draughtsmen (Local Authority) 133 133
Driving Instructors 125 125
Note: This amount represents an annual allocation of half the biannual statutory ADI fee payable to the Road Safety Authority
Engineers employed by:
(a) Civil Service 166 166
(b) Local Authorities 127 127
(c) Eircom, Coillte, OPW 166 166
Engineering Industry [and Electrical Industry from 1997/98]
Skilled workers who bear the full cost of own tools and overalls 331 331
Semi-skilled workers who bear the full cost of own tools and overalls 254 254
All unskilled workers and skilled or semi-skilled workers who do not bear the full cost of own tools and overalls 219 219
Firefighters Full-time 272 272
Firefighters Part-time 407 407
Fishermen in Employment 318 318
Foresters employed by Coillte 166 166
 Freelance actors chargeable to PAYE 750 750
Grooms (Racehorse Training) 294 294
Home Helps (Employed directly or indirectly by Health Boards) 256 256
Hospitals Domestic Staff:
To include general operatives, porters, drivers, drivers, attendants, domestics, laundry operatives, cooks, catering supervisors, waitresses, catering staff, kitchen porters
(a) who are responsible for providing and laundering their own uniforms. 353 353
(b) who are obliged to launder the uniforms supplied 185 185
(c) whose uniforms are supplied and laundered free 93 93
Hotel industry
Head hall porter 90 90
Hall porter 64 64
Head waiter 127 127
Waiter 80 80
Waitress 80 80
Chef 97 97
Manager 191 191
Assistant Manager 127 127
Trainee Manager 78 78
Kitchen Porter 21 21
Journalists
Journalists, including those in public relations area of journalism 381 381
Journalists who receive expense allowances from their employers 153 153
Local Authorities
Executive Chemists 115 115
Parks Superintendents 40 40
Town Planners 115 115
Mining Industry
(a)miners/shift bosses underground, mill process workers/shift bosses and steam cleaners 1312 1312
(surface workers) 655 655
Motor repair and motor assembly trades
Assembly workers, greasers, storemen and general workers
(a) who bear the full cost of own tools and overalls 52 52
(b) who do not bear the full cost of own tools and overalls 42 42
Fitters and mechanics
(a) who bear the full cost of own tools and overalls 85 85
(b) who do not bear the full cost of own tools and overalls 42 42
Panel Beaters (See Panel Beaters/Sheet Metal Workers
Nurses:
(a) where obliged to supply and launder their own uniforms 733 733
(b) where obliged to supply their own uniforms but laundered free 638 638
(c) where obliged to launder the uniforms supplied 353 353
(d) where uniforms are supplied and laundered by hospital 258 258
Nurses: Short Term Contracts through an Agency. Additional Amount Due 80 80
Nursing Assistants(including attendants, orderlies and nurses’ aides)
(a) where obliged to supply and launder their own uniforms 526 526
(b) where obliged to supply their own uniforms but laundered free 440 440
(c) where obliged to launder the uniforms supplied 234 234
(d) where uniforms are supplied and laundered by hospital 93 93
Occupational Therapists
(a) where obliged to supply and launder their own uniforms 217 217
(b) where obliged to supply their own uniforms but laundered free 153 153
(c) where uniforms are supplied and laundered by hospital 52 52
Optometrists/Dispensing Opticians in employment
Optometrists
Registration Fee – once off fee paid initially in year 1 250 250
Retention Fee – payable in 1st year and each subsequent year 285 285
Restoration Fee – payable to re-register with the Opticians Board 279 279
Dispensing Opticians
Registration Fee – once off fee paid initially in year 1 200 200
Retention Fee – payable in 1st year and each subsequent year 225 225
Restoration Fee – payable to re-register with the Opticians Board 215 215
Panel Beaters / Sheet metal Workers
(a) Who bear full cost of own tools and overalls 78 78
(b) Who do not bear full cost of own tools and overalls 40 40
Pharmacists 400 400
Pharmaceutical Assistants (formerly known as Assistant Pharmacists) 200 200
NOTE These amounts represent the Annual Retention Fee payable to the PSI
Physiotherapists
(a) where obliged to supply and launder their own uniforms 381 381
(b) where obliged to supply their own uniforms but laundered free 318 318
(c) where uniforms are supplied and laundered by hospital 64 64
Pilots (Airline Pilots Association) 275 275
Plumbing trades
Plumber (non-welder) 177 177
Plumber-welder 205 205
Pipe fitter-welder 205 205
Printing Bookbinding and allied trades
Bookbinders (Hand) 109 109
Bookbinders (Others) 97 97
Compositors, linotype and monotype operators 121 121
Copy Holders, photo lithographers, photo engravers and workers in T and E section of newspapers 114 114
Monotype caster attendants, stereotypes and machine minders 135 135
Readers and revisers 100 100
Rotary machine minders and assistants 150 150
Others (e.g. cutters, dispatchers, rulers, warehousemen) 90 90
Professional Valuers in the Valuation Office 680 680
Radiographers
(a) where obliged to supply and launder their own white uniforms 242 242
(b) where obliged to supply their own white uniforms but laundered free 143 143
(c) where white uniforms are supplied and laundered by hospital 73 73
Respiratory & Pulmonary Function Technicians 191 191
RTE National Symphony Orchestra 2476 2476
RTE Concert Orchestra 2476 2476
Shipping
British Merchant Navy
Foreign-going trade:
(a) First class passenger and cargo liners.
Master 318 318
Chief officer, chief engineer, other officers, including pursers 318 318
Chief steward 318 318
Assistant steward 244 244
Carpenter 194 194
Other ranks 148 148
(b) Cargo-vessels, tankers, ferries
Master 318 318
Chief officer, chief engineer, other officers, including pursers 318 318
Chief steward 318 318
Assistant steward 244 244
Carpenter 194 194
Other ranks 148 148
British home or coasting trade:
Master 318 318
Chief officer, chief engineer, other officers, including pursers 318 318
Chief steward 318 318
Assistant steward 244 244
Carpenter 194 194
Other ranks 148 148
Mercantile marine officers and crews of Irish ships
Foreign-going trade: cargo vessels
Master 98 98
Chief officer, chief engineer, radio officer 90 90
Other officers including pursers 73 73
Chief steward 73 73
Assistant steward 55 55
Carpenter (to include tools) 55 55
Other ranks, including boys 37 37
Home trade:
(a) Cross channel and continental
Master 98 98
Chief officer, chief engineer, radio officer 90 90
Other officers, including pursers 73 73
Chief steward 73 73
Assistant steward 55 55
Carpenter (to include tools) 55 55
Other ranks including boys 37 37
(b) Coasting vessels
Master 98 98
Chief officer, chief engineer, radio officer 90 90
Other officers,
including pursers 73 73
Chief steward 73 73
Assistant steward 55 55
Carpenter (to include tools) 55 55
Other ranks, including boys 37 37
Shop Assistants
(including supermarket staff, general shop workers, drapery and footwear assistants) 121 121
Surveyors employed by:
Local Authorities 127 127
Civil Service 127 127
Coillte 127 127
Teachers
Teachers [excluding guidance counsellors, third-level academic staff and physical education teachers]
School principals 608 608
Other teachers 518 518
Part-time teacher (on full hours) 518 518
Part-time (not on full hours) 279 279
Guidance Counsellors
(a) employed full-time in second level schools 518 518
(b) engaged mainly in teaching general subjects but also doing part-time guidance counselling (additional allowance) 126 126
Third level academic staff
Professor, Heads of Schools/Departments 608 608
Senior lecturer 518 518
College lecturer 518 518
Assistant lecturer 518 518
Part-time lecturer (on full hours) 518 518
Part-time lecturer (not on full hours) 279 279
Physical education teachers (teacher must hold qualification in physical education)
(a) fully engaged in teaching P.E. 518 518
(b) engaged mainly in teaching general subjects but also doing part-time P.E. (additional allowance) 126 126
NOTE: Teachers who are employed by the Department of Education may also claim a deduction in respect of the subscription to the Teacher’s Council of Ireland
Veterinary Surgeons in Employment
Employed vets who incur, and are not reimbursed the cost of the Registration Fee to the Veterinary Council 621 621
Employed vets who do not incur, or are reimbursed the cost of the Registration Fee to the Veterinary Council 171 171
Veterinary Nurses
Where obliged to supply and launder their own uniforms 400 400
Where obliged to launder the uniforms supplied 150 150

What happens if you sell a section 23 property early

If you have a section 23 property and you dispose of it within 10 years of the first qualifying lease the relief already granted is clawed back. All relief previously granted is treated as rental income in the year you dispose of the property.

Revenue – Taking care of business events

Revenue are running their taking care of business event again in 2014.

This is a great free event which I highly recommend for Small Business owners

The dates are
11 March Limerick Strand Hotel
25 March Galway Radisson Blu
1 April Cork Silver Springs

Further details are available on the revenue website
http://www.revenue.ie/en/business/taking-care-of-business-event.html

When is the pay and file deadline for income tax

Pay and file deadline is the 31st of October 2013. Tax payers and their agents who file using Revenue Online get an extension to Thursday the 14th of November 2013

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$remaining = $date – time();
$days_remaining = floor($remaining / 86400);
$hours_remaining = floor(($remaining % 86400) / 3600);
echo “There are $days_remaining days and $hours_remaining hours left until the pay and file deadline”;

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If you have to file an income tax return and require a quotation please do not hesitate to contact us on 01-4800531

Late filing penalty on income tax returns and the local property tax

There’s a small section in the local property tax legislation which is very relevant to the self employed.

For example a single person with self employed income of €50,000 would pay approximately €16,781 in income tax. If your local property tax return isnt filed your income tax return can be hit with a late filing penalty. This penalty starts at 5% and after two months goes up to 10%.

So in the case above the late filing penalty could be €1,678 + interest on the local property tax + penalties.

This penalty appears to be capped at the amount of the local property tax due:
Full details :
http://www.irishstatutebook.ie/2012/en/act/pub/0052/print.html#sec38

How does the seed capital scheme work

The seed capital scheme allows a refund of tax already paid for an investor who sets up and takes up employment in a new qualifying business.

For example:

Nicola earned €400,000 over 2011 / 2012 in PAYE income and paid €144,000 income tax

She sets up a business in 2013 which qualifies for the seed capital scheme and invests €200,000

Provided she qualifies with the conditions (I have a very broad outline below, further details available on the revenue website) Nicola will now receive a refund from the Revenue of €82,000 (41% income tax on the €200,000 investment.)

Nicola must enter into a full-time employment contract for at least one year with the company as an employee or a director starting either within the tax year in which the investment is made.

Nicola must subscribe to the shares of the company

She must acquire at least 15% of the issued share capital of the company and must maintain the level of shareholding at that percentage for at least one year, even if the share capital of the company should expand.

Nicola’s company must be set up with the intention to carry on qualifying trading operations. Qualifying trading operations are listed on the revenue website.

This is a very broad outline of a complicated tax area, First step is to read the full guide on the revenue website and then consider speaking to your accountant or tax advisor. If you would like to discuss the seed capital scheme further please do not hesitate to contact us on 01-4800531

Professional Service Company Surcharge

Section 441 TCA 1997 provides for a surcharge on undistributed income of certain service companies.

The section defines a service company as including close companies where the principal part of the company’s income is derived from:

The carrying on directly of a profession
The provision of professional services
Or a company

Which has or exercises an office or employment.
Also included are:

The provision of services or facilities to such companies, or
The provision of services or facilities to an individual or partnership carrying on a profession. However, not included in the latter are genuine cases where the services or facilities are provided for persons not connected with the company.
As the tax acts do not define “profession” it must be given its ordinary meaning in accordance with the general principles of statutory construction. In the tax case of CIR V Maxse, 12 TC 41, it is stated that profession involves an occupation requiring either intellectual skill, as in painting, sculpture or surgery or skill controlled by the intellectual ability of the operator. It distinguishes this from an operation, which is substantially the production or sale of commodities.

While some activities obviously fall within this definition and are easily accepted as being the exercise of a profession, such as medicine or law, there may be questions about the status of others. Each case should be examined with regard to its own particular facts and the question of degree is important.

However the following are regarded as being professions and as falling within the provisions of Section 441:

Accountant
Actor
Actuary
Archaeologist
Architect
Auctioneer/Estate Agent
Barrister
Computer programmer
Dentist
Doctor
Engineer
Journalist
Management Consultant
Optician
Private School
Quantity Surveyor
Solicitor
Veterinary surgeon.

While the above are considered to be providing professional services, the list is not intended to be an exhaustive list of all possible professions.

The following activities are generally not considered to constitute the carrying on, of a profession:

Advertising Agents1
Auctioneers of livestock in a cattle mart
Insurance brokers2
The operation of a retail pharmacy
Public relations companies
Stockbrokers.

Accountancy
It is also considered that whereas accountancy comes within the meaning of profession, bookkeeping, payroll and VAT compliance activities would not in themselves constitute a professional activity. Any business involving tax planning, be it investing or structuring, would come within the general heading of accountancy. It is considered that this encompasses financial services.

Insurance Brokers
It should be noted that while it is accepted that the Case 1 income of insurance broking companies is not within the scope of Section 441, deposit interest on deposits held by such companies are not regarded as arising in the course of the company’s trade unless the company can satisfy the very high burden of proof that the deposits are integral to its trade. (See Revenue Information Notice “Deposit interest – Whether a trading receipt”). As such, therefore deposit interest is assessable Case III and is within the scope of the Section 440 surcharge on undistributed investment income.

Is there VAT on the plastic bag levy?

No. When calculating a VAT liability, retailers who account for VAT under a retailer’s scheme should simply exclude the levy from the sales / turnover figure. Retailers who do not use a retailer’s scheme should ensure that the levy is not included in the taxable amount for VAT.

Where do I get a VAT certificate?

Sometimes when dealing with suppliers in the EU you will be asked to provide a VAT certificate. This is simply a certificate of taxable status which can be ordered from the revenue on the following link

 

http://www.revenue.ie/en/tax/vat/forms/vat66a.pdf

 

In the short term the vendor can verify your VAT registration details on the following link

 

http://ec.europa.eu/taxation_customs/vies/

Corporation tax exemption for start up companies

Section 34 of the Finance Act 2011 provides for the extension of the 3-year tax relief for start-up companies to those companies which commence a trade in 2011. It also modifies the existing relief so that the value of the relief will be linked to the amount of employers’ PRSI paid by a company in an accounting period, subject to a maximum of €5,000 per employee and an overall limit of €40,000. This has changed the attractiveness of this system as most start up’s will not expend enough employers PRSI to avail of a significant exemption.

 

Credit is also given for any employers’ PRSI exempted under the Employer Job (PRSI) Incentive Scheme in respect of a company’s employees in determining the amount of corporation tax relief available to the company. The purpose of these changes is to better target the relief at start-up companies generating employment.

 

The Finance Act changes mean that where the total corporation tax payable by a qualifying start-up company for an accounting period does not exceed €40,000, the aggregate amount of corporation tax referable to income and gains of the qualifying trade in that period will be reduced to nil or, if greater, to that aggregate as reduced by the amount of qualifying Employers’ PRSI. Where the total corporation tax payable exceeds €40,000 but does not exceed €60,000, the aggregate amount of corporation tax referable to income and gains of the qualifying trade will be reduced to an amount as calculated in accordance with the existing marginal relief formula or, if greater, to that aggregate as reduced by the amount of qualifying Employers’ PRSI. For accounting periods of less than 12 months, the various limits are proportionately reduced. Some examples of how the modified relief is computed are given below.

To ensure that the scheme is focussed appropriately on new business activities, the section contains a provision which excludes from relief a trade set up by a new company, the activities of which, if carried on a by an associated company of the new company, would form part of an existing trade carried on by that associated company.

The changes introduced in Finance Act 2011 apply to all qualifying companies for accounting periods beginning on or after 1 January 2011. However, companies which set up and commenced a qualifying trade in 2009 or in 2010 will be able to obtain relief on the previous (i.e. pre-Finance Act 2011) basis for profits earned in accounting periods commencing before 2011.