Mr Noonan the Minister for Finance has confirmed that Budget 2014 will be brought forward to 15th October 2013.

The move in the budget date to October from December is necessary under new eurozone surveillance rules known as the “two-pack”.

There will be a transitional eighteen month period to bring the pay and file self assessed tax returns into line with the new budget date.

2013:The file and pay date will remain the same this year.

2014: The self assessed tax returns will be filed earlier in 2014 

               It is unclear at present whether any tax payable will be due to be paid earlier.

2015: Both pay and file of self assessed tax returns will be due at the earlier date.

              This will give the Government all the information it needs before Budget 2016.

The Revenue have begun to issue the Local Property Tax (LPT) forms and information to residential property owners.

Included with this form is  Revenue’s estimate of the LPT  owed by the home owner.

This is a guide only and home owners must assess what their home is worth based on:

• the property valuation guidelines.
• propertypriceregister.ie which is a register of residential property sales based on Revenue stamp duty data.
• A valuation from a competent professional valuer

The property owner should retain a copy of the information used to determine his or her self-assessment of the value of the property as proof of compliance with his or her LPT obligations.

The initial valuation of your property on 1 May 2013 will be valid up to and including 2016 and will not be affected by any repairs or improvements made to your property, or any general increase in property prices, during this period.

The LPT form must be returned to the Revenue by:

• 7th May 2013(paper returns)
• 28th May 2013 (online returns)

There are various methods of payments which begin from 1st July 2013

How will Revenue ensure the self employed comply?

If you are self employed and don’t submit your LPT return form and your self assessment liability, the Revenue will collect  the tax set out in the Revenue estimate using normal collection/enforcement options – sheriff, court action, attachment orders.

If you are self employed and do not pay the LPT:

• You will be liable for a  surcharge for late submission of your income tax return regardless of whether or not the income tax return is submitted on time.
• You will not be able to get a tax clearance certificate
• The LPT remains as a charge on your property to be discharged on the sale or transfer of that property.

Budget 2013 announced details of the Local Property Tax being introduced from July 2013.

The Finance(Local Property Tax) Bill was enacted into law this week

The Revenue are administering the tax and the first payment will be for the six months to 31.12.13.

The Local Property tax will be based on the market value of residential property.

The Revenue plans to send a form and explanatory booklet to all home owners in March 2013.

The booklet will give guidelines on assessing the value of your property.

The value of your property for Local Property Tax purposes will stay the same for 2013-2016 no matter what improvements are made to the property.

Exemptions:

• New and previously unused properties that are purchased from a builder between 1st January 2013 and 31st October 2016 will be exempt until the end of 2016.
• Properties purchased by a first time buyer in 2013 will be exempt until the end of 2016
• A builder trading stock
• Certain properties situated in unfinished housing estates (Ghost Estates)
• Residential properties that are owned by a charity or a public body.
• Registered Nursing Homes
• A property that was occupied a person as his sole or main residence and has been vacated by the person for 12 months of more due to long term mental or physical infirmity.
• Mobile home
• Property fully subject to commercial rates
• Diplomatic property

This form must be returned by 7th May 2013(paper returns) and 28th May 2013(online)

It will be mandatory for the following groups of property owners to file and pay online:

• If you own more than one residential property
• If you are already required to submit tax returns online
• A company that owns residential properties

If paying by direct debit, the payments will commence on 15th July 2013.

The Single Debit Authority will be deducted on 21st June 2013.

The tax can also be deducted at source from salary or pension payments and from payments from the Departments of Social Protection and Agriculture.

If you are a low income earner, there are provisions made for a deferral of the tax to be applied for.

When the Revenue sends out the form it will also include an estimate of your liability. This estimate of liability will be used by the Revenue if you don’t send back the Local Property Tax Return form and your own self assessment of your liability. It will be collected using normal collection/enforcement options.

Valerie Kenny and Patrick Keane at the graduation ceremony on Saturday

Congratulations to a member of our staff Valerie Kenny on her achievements. On Saturday 8th December 2012, she was awarded first prize in the Professional Stage 2,  Advanced Taxation Examination 2012 with The Institute of Certified Public Accountants in Ireland as well as receiving her Certificate of Membership.

The budget for 2013 was announced by Michael Noonan

 The key points are:

CAPITAL TAXES

•  Capital Gains Tax and Capital Aquisitions Tax increased to 33%
• The thresholds for these taxes has been reduced by 10%

DIRT TAX

• DIRT tax has been increased to 33%

INCOME TAX

• Tax bands and Tax credits remain unchanged
• Maternity Benefit will be taxable from 1st July 2013
• Reduced rate of USC for those over seventy and for medical card holders with an income in excess of €60,000 will be discontinued from the 1st of January 2013 and the standard rates of USC will apply.
• The minimum level of annual contribution from the self-employed from €253 to €500 and abolishing the weekly allowance for employees.
• Where modified PRSI rate payers (Public sector employments on Class B,C,D and H) have income from a trade or profession, such income and any unearned income they have will be made subject to PRSI with effect from the 1st of January 2013.
• Unearned income for everyone else will become subject to PRSI in 2014. This means that PRSI will be payable on income generated from wealth such as rental income, investment income, dividends and interest on deposits and savings.

VAT

• The annual Vat cash receipts basis threshold for small and medium enterprises is being increased from €1 million to €1.25 million with effect from 1 May 2013.
• The reduced rate of 9% applicable to the tourism sector will continue for 2013.

PROPERTY TAX

• The local property tax will be introduced from 1st July 2013 for the second half of the year.
• It will be collected by the Revenue.
• The owners of the property will be responsible for the payment of the tax
• The rate of the tax will be 0.18 per cent of market value up to €1 million and 0.25 per cent on values above that level.
• The Household Charge will cease with effect from the 1st of January 2013 and the NPPR Charge or “second homes charge” will cease with effect from the 1st of January 2014.
• The Household Charge will cease with effect from 1 January 2013.
• The Non Principal Private Residence Charge will cease from effect from 1 January 2013

FARMING

• Stock relief has been extended for another three years to 2012
• The young trained farmers relief extend for another three years
• Relief from capital gains tax arising on disposals of farm land for farm restructuring purposes. This is a once-off relief which will apply in respect of transactions initiated in the period from the start of January 2013 to end-December 2015,
• Farmers flat rate addition will be reduced from 5.2% to 4.8% with effect from 1 January 2013

SMALL BUSINESS SECTOR

• Reforming the 3 Year Corporation Tax Relief for Start Up Companies to allow unused credits to be carried forward. This will help SMEs and start ups navigate their early years.
• Increasing the cash receipts basis threshold for VAT from €1 million to €1.25 million and amending the Close Company Surcharge de minimis level. Both of these measures will improve cash flow.
• Amending the R∓D tax credit by doubling the initial spend eligible for the credit from €100,000 to €200,000 to encourage innovation and business expansion.
• Extending the Foreign Earnings Deduction for work related travel to certain countries beyond the BRICS, which will support exports

All owners of domestic wastewater treatment systems are required to register their systems with the water services authority in the area they are located.

A website has been set up by the Department of Environment,Community and Local Government called protectourwater.ie to facilitate payment of the charge. Registration forms are available for those who are not able to register online from City/County councils, Libraries,Citizens Information centres or Lo Call 1890 800 800.

The registration fee is €5 if registered by 28th September 2012 and €50 from 29th September onwards.

The deadline for registration is 1st February 2013.

The maximum penalty for not registering is €5,000.

The certificate of registration is valid for five years. It will then be necessary to reregister. There will be no fee for subsequent registrations

All residential premises including buildings, caravans and mobile homes or other structures connected to a domestic wastewater treatment system must be registered. This includes unoccupied dwellings as well.

However owners of properties connected to larger on site systems which discharge in excess of 5 cubic metres per day do not need to register. Such systems which serve sports clubs, pubs , hotels and other businesses require a licence from the relevant local authority under Section 4 of the Water Pollution Act 1997

The owner of the property must register and there are no exemptions, If a owner is physically or metally incapacitated, registration must be done on their behalf.

The Revenue have issued e-brief 12/12 to clarify certain issues relating to capital allowances and the universal social charge.

The capital allowances that are deductible are those incurred on the provision, for trading purposes, of Plant and Machinery,Vehicles used for business purposes, Certain types of buildings, such as factories or farm buildings.

Any capital allowances due to individuals that do not actively carry on a trade are not deductible

Therefore, lessors and other passive investors, such as non-active partners in a partnership trade must calculate the USC due on gross income before the deduction of capital allowances.

Capital allowances such as milk quotas,dredging,mine development, petroleum development/exploration, patent rights, scientific research and know how are not deductible. 

This article looks at how Budget 2012 affects farmers in Ireland.

In his Budget Day speech, Mr Noonan said ‘Active ,energetic and profitable farming is fundamental to the agri-food sector.’

The main taxation changes that affects farmers and their families are:

INCOME TAX

• Stock relief of 50% (100% for certain young trained farmers) for registered farm partnerships is being introduced and will run until 31.12.15.
• A milk levy is being proposed for the New Year. This is to fund a marketing campaign to promote dairy products in preparation for the end of quotas in 2015.
• From 1st January 2012 the refund order for flat rate farmers will be extended to cover micro-generation wind turbines.
• Admission fees to pet farms will now be liable to 9% vat
• Changes to the means test for farm assist-the income disregard figure is now 15% down from 30%. The deduction from income for children is halved to €127 per year for first two children and €190.50 a year for third and subsequent children.

CAPITAL TAXES

• The rate of stamp duty applicable to the transfer of non residential property including farmland has been reduced to 2%
• Consanguinity relief will be abolished in 2014
• Capital Acquisitions Tax-this has been increased from 25% to 30%. The threshold for parent to child has been reduced to €250,000. With 90% agricultural relief the maximum tax- free transfer of property is €2.5 million.
• Capital Gains tax retirement relief-full retirement relief from CGT for intra – family transfers will be maintained for individuals aged 55 to 66. An upper limit of €3 million on retirement relief for business and farming assets disposed of  within the family where an individual is over 66 years of age.
• Carbon tax- the rate of carbon tax is being increased to €20 a tonne. Farmers will be allowed a double income tax deduction to take account of increased costs

Full details of these measures will be set out in the Finance Bill

6th December 2011

Mr Michael Noonan announced details of tax adjustments.

Corporation Tax

• Corporation tax to be kept at 12½%

Income tax

• no change in rates, bands or credits

Universal Social Charge

• Increase of lower exemption from €4,004 to €10,036
• Move USC to a cumulative system

Illness Benefit

• The tax exemption currently applicable to Illness Benefit is abolished with effect from 1 January 2012.

Stamp Duty

• Rate of stamp duty for the transfer of non residential property reduced to 2%
• The current exempt threshold has been abolished
• Consanguinity relief on transfer of non residential properties  to end in 2014

Capital Gains Tax

• Capital Gains Tax increased to 30% from midnight 7 December 2011
• A new incentive relief from CGT is being introduced for those who purchase property between now and end of 2013 and hold it for seven years. Where such property is held for more than seven years the gains accrued in that period will not attract CGT.

Capital Acquisitions tax

• Capital Acquisitions tax incresed to 30%
• Group A tax free threshold is being reduced from €332,084 to €250,000
• Group B and Group C will remain the same as last year ar €33,208 and €16,604 respectively.

VAT

• Standard rate of Vat increased to 23%

DIRT

• Has been increased to 30%

Property legacy reliefs

• Section 23 reliefs maintained for those with under €100,000 income
• Property relief surcharge of 5% to apply to large investors

 More detailed explanations of the above will be published in the Finance Act

5th December 2011

Brendan Howlin the Minister for Public Expenditure and reform has announced the spending measures the Government plan to cover for 2012

Here are some of the measures:

Child Benefit:

• Phase out the higher rates for third and subsequent child over two years.
• Discontinue one off grants in respect of multiple births

Back to school Clothing and Footwear Allowance

• Raise the qualifying age to 4
• Reduce rates of payment to €250 secondary school and €150 Primary School

Jobseekers Benefit

• Base payment entitlement on a five day week rather than a six day weekwhere a person is working for part of a week
• From 2013 take employment on sunday into account when determining the level of entitlement.

Farm Assist

• Amendments to means test

Redundancy and Insolvency Scheme

• The rate of employer rebate has been reduced from 60% to 15%

Fuel Allowance

• The fuel season is being reduced from 32 weeks to 26 weeks for new and existing recipients

Household benefits

• The expenditure will be reduced on the electricity/gas allowances

Late claims

• Reduce statutory backdating for late claims from 12 to 6 months for full entitlement and remove proportionate provision.

Drug payments scheme

• The monthly payment has been increased from €120 to €132

One Parent Family

• Entitlement will be restricted to cases where the youngest child is 7 years of age over the period to 2014

Rent Supplement

• Increase minimum contribution and review rent limits

Mortgage interest supplement

• Increase minimum contribution and further restrict expenditure