Calculating your profit for tax purposes

When calculating your profit (or loss) for tax purposes you must be aware that your business expenditure falls into 1 of 2 categories: “allowed” and “disallowed”. This is not an exhaustive analysis but a brief overview of the basic concepts that can cause most difficulty. Capital expenditure Any equipment you buy should go into your…

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Domicile levy

31 October 2011 is the due date for return of the domicile levy. This is the first year in which returns of the levy will be made. The levy (of €200,000) applies annually to individuals who are Irish domiciled and Irish citizens: • Whose worldwide income exceeds €1m, • Whose Irish property is greater in…

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Income tax filing deadline approaches

31 October 2011 is the income tax pay and file deadline for 2010 tax returns. This can be extended to 15 November 2011 provided you pay and file online using ROS. It is the deadline for: 2010 tax returns (form 11) Payment of the balance of tax due for 2010, ie 2010 tax liability less…

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Preliminary tax and start-ups

What is it? Preliminary tax applies to self-assessed tax payers and companies. This article deals with preliminary tax for humans as opposed to companies. Preliminary tax is a payment of income tax in advance or on account. It must be paid on or before 31 October of the year to which it relates, eg the…

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SMEs need not apply

The Irish Government appears to recognise the importance of small and medium sized entities (SMEs) to the economy (despite, in my opinion, having too high a bias towards exporting businesses). This recognition is reflected in the various initiatives intended to support the sector: Various tax reliefs for start-ups Funding for start-ups Funding and supports for…

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Back to college: tax relief on tuition fees

If you are in the unfortunate position of not having your or your children’s college fees covered by a grant you may get some help by way of a tax relief. What is it? Quite simply – a reduction in your income tax bill! The reduction is given in respect of certain tuition fees paid.…

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Finance (No.2) Bill, 2011

The Irish Government published Finance (No.2) Bill on 19 May. The main purpose of the Bill is to legislate for the tax changes made in the Government’s jobs initiative.   VAT The Bill provides for a second reduced rate of VAT of 9%. The 9% rate will be temporary running from 1 July 2011 to…

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The new dot com bubble has just got bigger

First Facebook, then Twitter and now Skype. In a previous blog entry I wrote about how valuations put on Facebook and Twitter indicated to me that another dot com bubble was brewing. The latest to join them is Skype with news of an $8.5bn deal with Microsoft. Ebay bought Skype in 2005 for $2.6bn. in…

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VAT for start-up business

Joe sets up a business in January. The business is selling widgets to consumers. None of his sales are to businesses. In January he forecasts his annual turnover to be €35,000. He is not required to register for VAT so decides not to. Joe spends €10,000 plus VAT of €2,100 on new equipment. The cost…

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Help your customers to pay you on time

Getting paid on time is critical to the success of all businesses – even more so in during economic recession and when credit is in short supply. It is important to agree payment terms with customers prior to commencing any work. Things to consider are timing of invoice issue and credit terms offered. For longer…

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