PAYE Tax Refund

After a lot of hard work and testing I am proud to launch our Tax Refund website.

If you are an employee you may be entitled to a refund if any of the following apply to you.

* Tax Refund claims for Medical Expenses
* Tax Refund Claims for Medical Insurance
* Home Carers Tax Credit
* Single Parent Tax Credit
* Rent Relief & Tax Refunds
* Incapacitated Child Tax Credit
* Maternity Benefit & Tax Refunds
* Tax Refund claims for Employment Expenses
* Tax Refunds for Bins and Service Charges

Reduce your Capital Gains Tax Bill – Accountants Galway

If you are lucky enough to have some shares which have increased in value one way of reducing your liability to capital gains tax is to make full use of your annual exemption every year. (and your spouses if married)

Every year each tax payer has an annual exemption of €1270
For example if you bought some shares in January 2009 for €1000
and sell those shares in January 2010 for €3000 the CGT due is calculated as follows

€3000 – €1000 = €2000 Gain.
€2000 less annual exemption of €1270 is a taxable gain of €730 which is taxed at 25% so capital gains tax due is €182.50

Now if you have shares which have gained in value in 2010 but aren’t planning on disposing of them them you will loose the benefit of your €1270 annual exemption so my suggestion is every year sell at least just enough shares to have a gain of €1270 which makes full use of your annual exemption and ultimately reduces your capital gains tax liability.

If you require any further information or advice please contact us on
tax@domybooks.ie
or phone 091-442 882

should i register for vat

Do I have to register for VAT ? – Galway Accountant

This is a common question I am asked. Do I have to register for VAT? I have created a very simple decision tree/ Flow chart to help you make this decision.
This diagram is not conclusive there may be other variables to consider before you start trading so its important to complete proper research or take professional advice.
If you have any questions or comments please do not hesitate to post them below or contact me on vat@DoMyBooks.ie

should i register for vat

should i register for vat

Some points to note
1. The €37,500 threshold applies for persons supplying goods liable at the 13.5% or 21.5% rates which they have manufactured or produced from zero rated materials,
2. The €75,000 Threshold applies to persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to at 1. above)

Revenue online ROS Session Timed Out – Galway Accountant

Are you getting this message immediately after logging into Revenue Online?

“Session Timed Out
Your session with ROS has timed out. You will need to log in again to continue using ROS.

Return to the Login Page to continue.”

Try changing your browser when logging in with Chrome and Firefox I get this error if I use Internet Explorer it works fine.


Revenue On Line Session Timed Out

Revenue On Line Session Timed Out


The remittance basis of assessment as regards UK source income and chargeable gains

1.  Income Tax

Under the provisions of Section 73 TCA 1997, the remittance basis of assessment did not apply in respect of UK source income. However, Section 73 ceased to have effect in respect of UK income arising on or after 1 January 2008 (see Section 18 Finance Act 2008).

2.  Capital Gains Tax

The remittance basis of assessment also applies in respect of the foreign chargeable gains of non-domiciled individuals (The remittance basis of assessment for foreign chargeable gains never applied to Irish citizens not ordinarily resident here).

Under the provisions of Section 29(4) TCA 1997, the remittance basis of assessment did not apply in respect of UK source chargeable gains. However, under the provisions of Section 42 Finance (No.2) Act 2008, the remittance basis of assessment applies to chargeable gains arising in the UK as and from 20 November 2008.

3.  Current Issue

Section 18 Finance Act 2008 and Section 42 Finance (No.2) Act 2008 do not have retrospective effect. However, arising from certain matters contained in a recent tax appeal case, Revenue are prepared to examine – on a case by case basis and subject to the statutory 4-year time limit for claiming repayment of tax – claims for repayment of tax where it is claimed that a repayment of tax would be due had the remittance basis of assessment, rather than the arising basis of assessment, applied for a relevant year of assessment in respect of an individual’s UK source income and/or chargeable gains.

A submission may be made to the individual’s relevant Revenue office. Such submission should contain all relevant details as regards the income and chargeable gains assessed and the amount of remittances in respect of which the claim refers.

Note 1 – With effect from 1 January 2006, the income of a non-Irish sourced employment (including UK sourced employment) attributable to the performance inthe State of the duties of that employment is chargeable to income tax under Schedule E and the remittance basis of assessment does not apply in respect of income within the charge to income tax here under Schedule E.

Note 2 – The UK source income and chargeable gains of an Irish resident individual relieved under Paragraph 3 above will, if remitted to the State during a future tax year, be chargeable to tax in that future tax year (assuming that the individual is tax resident here in that future tax year).

Note 3 – Where a lesser figure of UK source income or gains is assessed, the credit previously granted in respect of UK tax paid on such income or gains will also have to be reduced to reflect the lesser figure assessed.

Taken from revenue eBrief 11/10

Do My Books

Galway Accounts and Business Software Providers

1.  Income Tax

Under the provisions of Section 73 TCA 1997, the remittance basis of assessment did not apply in respect of UK source income. However, Section 73 ceased to have effect in respect of UK income arising on or after 1 January 2008 (see Section 18 Finance Act 2008).

2.  Capital Gains Tax

The remittance basis of assessment also applies in respect of the foreign chargeable gains of non-domiciled individuals (The remittance basis of assessment for foreign chargeable gains never applied to Irish citizens not ordinarily resident here).

Under the provisions of Section 29(4) TCA 1997, the remittance basis of assessment did not apply in respect of UK source chargeable gains. However, under the provisions of Section 42 Finance (No.2) Act 2008, the remittance basis of assessment applies to chargeable gains arising in the UK as and from 20 November 2008.

3.  Current Issue

Section 18 Finance Act 2008 and Section 42 Finance (No.2) Act 2008 do not have retrospective effect. However, arising from certain matters contained in a recent tax appeal case, Revenue are prepared to examine – on a case by case basis and subject to the statutory 4-year time limit for claiming repayment of tax – claims for repayment of tax where it is claimed that a repayment of tax would be due had the remittance basis of assessment, rather than the arising basis of assessment, applied for a relevant year of assessment in respect of an individual’s UK source income and/or chargeable gains.

A submission may be made to the individual’s relevant Revenue office. Such submission should contain all relevant details as regards the income and chargeable gains assessed and the amount of remittances in respect of which the claim refers.

Note 1 – With effect from 1 January 2006, the income of a non-Irish sourced employment (including UK sourced employment) attributable to the performance inthe State of the duties of that employment is chargeable to income tax under Schedule E and the remittance basis of assessment does not apply in respect of income within the charge to income tax here under Schedule E.

Note 2 – The UK source income and chargeable gains of an Irish resident individual relieved under Paragraph 3 above will, if remitted to the State during a future tax year, be chargeable to tax in that future tax year (assuming that the individual is tax resident here in that future tax year).

Note 3 – Where a lesser figure of UK source income or gains is assessed, the credit previously granted in respect of UK tax paid on such income or gains will also have to be reduced to reflect the lesser figure assessed.

Pre-Trading Expenses

Prior to officially registering your business with the revenue comissioners you may incurr expenditure. This expenditure may be allowable as a business expense subject to the following conidtions:

Introduction
Section 82 TCA 1997 provides that certain pre-trading expenses of a trade or profession are allowable in calculating the trading income of that trade or profession once it commenced. The relief applies to trades or professions, whether incorporated or not, which commence on or after 22 January 1997.
Under Section 82, a deduction is available in respect of pre-trading expenses which:
• are incurred in the three years prior to commencement of the trade or profession, and
• apart from Section 82 would not be allowable, but would have been allowable if they had been incurred after the date of commencement of the trade or profession.
Accordingly, the provisions of Section 81 TCA 1997 apply for the purposes of calculating the deduction. For example, only pre-trading expenses which were wholly and exclusively laid out or expended for the purposes of the trade or profession are allowable.
No relief is allowable under any other provision in respect of a payment which qualifies for relief under Section 82.
Expenses
Examples of pre-trading expenses are:
• Accountancy fees
• Advertising costs
• Costs of feasibility studies
• Costs of preparing business plans
• Rent paid for the premises from which the trade or profession operates.

Galway Accountant – VAT Refund from EU Member States

New Electronic VAT Refund (EVR) procedures with effect from 1 January 2010
The following is some information on the new EVR procedures for both Irish and Foreign Traders and their agents.

New and existing agents, acting on behalf of Irish traders can make an application on behalf of a client for a refund of VAT incurred in another Member State, provided that they:

  • have a TAIN number (Tax Advisor Identification Number) and
  • are registered with ROS and
  • have been linked to their client for EVR.

Agents must register with Revenue by obtaining a TAIN number (Tax Advisor Identification Number). This function is handled by Dublin North City District, TAIN Section, 14-15 Upper O’Connell Street, Dublin 1, Tel: 01-865 5000, e-mail: dublinagents@revenue.ie. To register, Agents must apply in writing stating their tax number, their full Name, Address, Tel/Fax/E-mail and supply a list of their clients which should include each clients’ VAT number.

Once registered, the Agent will be linked to their client(s) on Revenue’s Online Service (ROS). If not already registered, an Agent must register for ROS through www.ros.ie.

A new tax head “EVR” will be available on ROS from 1 January 2010. Agents (or their clients, if registered on ROS) can make an application for refund of VAT online under EVR. An agent may submit a maximum of 5 applications to each Member State in any calendar year.

When an application is submitted online, a message is forwarded to the applicant’s ROS inbox stating that their application has been received by Revenue and that it has been forwarded to the relevant Member State for refund.

If an application is successful, a decision message will be forwarded to the applicant’s ROS inbox.  Payment will then be made (by electronic fund transfer) to the bank account provided in the application.

EU Member States have different requirements. Some States may require that invoices/importation documents be forwarded with the application as a scanned attachment. These attachments must not exceed 5MB in size. If attachments exceed this amount, then only the largest invoices should be attached. The Member State of Refund may request that the remaining invoices be forwarded for examination.

The Tax Authority of the Member State of Refund may also request additional information before a final decision is made on an application. The applicant will be notified directly via the contact details provided in their application i.e. e-mail or telephone.

Allowable expenditure may differ from State to State. If in doubt, you should contact the Member State for clarification.

ROS allows for the submission of a maximum of five applications to each Member State in a calendar year. However, some States may only accept four.

If errors occur when completing the application or you are prevented from submitting the application, you should direct your enquiries to the ROS helpdesk at: roshelp@revenue.ie or telephone 1890 201 106.

Queries relating to refund procedures operated by other Member States, should be directed to the Tax Authority of that State.

Further information is available on the Revenue website atwww.revenue.ie/eu-vat and the European Commission website: www.ec.europa.eu

Enquiries can also be addressed to: unregvat@revenue.ie or telephone Lo-call 1890 252 449.

Reduce your tax bill as an employee

As A PAYE there is limited opportunities to reduce your tax bill but one thing you may be able to do is claim flat rate expenses based on your employment category. The list below is the most up to date on Revenue.ie

List of expenses from Revenue.ie

If you require any further information please do not hesitate to contact us at

taxhelp@domybooks.ie

As Accountants based in Galway we can assist you in reducing your tax liability

VAT Rate change from 21.5% to 21%, Budget 2010

As im sure you are now all aware the higher rate of VAT is decreasing from 21.5% to 21% as of the first of January.  Please find below the Domybooks quick guide for VAT registered companies to deal with this change:

Firstly traders whom account for VAT on the ‘invoice basis’ should use the rate in force on the date the invoice is raised even if the goods were supplied before that date.

In transactions with private individuals, traders should use the VAT rate in force on the date of supply.

Traders whom account for VAT on a ‘Cash receipts basis’ should use the rate in force on date of supply so 21.5% rate for payments received in 2010 but relate to supplies made in 2009.

Credit notes raised with a VAT amount should use the same rate as the invoice they relate to regardless of when raised.

That covers the common scenarios there is obviously further complexities in relation to hire purchase agreements, advance payments and contracts which I wont get into right now.

As always if you require any further information please email

vat@domybooks.ie

This is the Blog of an Accountant based in Galway providing Bookkeeping services and accountancy software

P60 Forms



Coming to that time of year again folks! If anyone needs to download blank P60 forms they are available here http://www.ros.ie/schemas/p60/laser/Form%20P60%20Laser.doc (English laser format right click and save target as)

My advice is to get the P60 ‘s out quick and not have staff harrasing you for them in February!

Anyone needs any assistance please do not hesitate to contact p60help@domybooks.ie

Or the usual numbers 086-3336665 and 091 – 639970


Cork Accountants