Professional subscriptions benefit in kind

Finance Act, 2011 removed the tax exemption from payments or reimbursements of professional subscriptions paid by an employer on behalf of employees. Professional subscription fees are now a taxable benefit and subject to PAYE, PRSI and USC. However, it is still possible for an employer to pay an employee’s professional fees without a benefit in…

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Start-up companies – corporation tax exemption

The exemption from corporation for start-up companies was first introduced for new businesses incorporated and commencing trade in 2009. This was extended to 2010 and Finance Act 2011 extended it further into 2011 (with some significant changes). The original scheme granted an exemption of up to €40,000 from corporation tax for the first 3 years…

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Share based remuneration – Revenue extends deadline for PAYE/PRSI payment

Following from a Department of Finance announcement earlier in the month regarding “grandfathering” rules for share schemes entered into before 1 January 2011, Revenue has issued an e-brief on the subject. As and from the 1 January 2011 share based payments to employees are subject to PAYE/PRSI and USC. Department of Finance announced previously that…

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UK Budget 2011 – summary of business tax measures

Business taxation measures announced in Budget 2011: Corporation tax Reduced by 2% from April 2011 To be reduced by a further 1% per annum for the following 3 years Small profits rate to be reduced to 20% from April 2011 Corresponding increase in bank levy from 2011 Capital allowances Short life asset election to be…

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New VAT rules for scrap metal industry

Revenue has confirmed that new VAT rules are to apply to supplies of scrap metal from 1 May 2011. The new rules will effect: VAT registered scrap metal dealers who buy scrap metal from VAT registered businesses in Ireland; and VAT registered businesses that supply scrap metal to scrap metal dealers in Ireland. The “reverse…

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Tax aspects of the new programme for government

The new programme for government contains over 15 taxation proposals. Included in those are several aimed at small businesses: Establishment of a Tax and Social Welfare Commission to examine entitlements of self-employed persons and the elimination of disincentives to employment Halve the lower employer’s PRSI rate of 8.5% up to the end of 2013 Feasibility…

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Tax simplification measures proposed for small UK business

The UK Office of Tax Simplification has published its interim small business tax review. It finds that simplification can only be achieved through major structural reform of the UK taxation system. It identifies 2 key areas that need attention: The integration of income tax and national insurance contributions Introducing a radical new approach to taxation…

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Revenue notification of changes to RCT (C2) system

Revenue has issued a notifcation of forthcoming changes to the Revelant Contracts Tax System (RCT). It doesn’t give very much more information than was contained in the Finance Act. Interested parties should be making representations to their respective industry bodies to ensure their concerns are addressed. Read Revenue’s announcement here; or view my previous blog…

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Artist’s exemption Finance Act 2011 changes

Finance Act, 2011 introduced a cap of €40,000 on the amount of profits or gains in respect of which an individual is entitled to claim the artist’s exemption. The benefit of the exemption had been reduced since 2007 by virtue of the specified relief restriction. The specified relief restriction is the mechanism for ensuring high…

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Radical changes to relevant contracts tax (RCT)/C2

A radical change to the current RCT/C2 regime was announced in Budget 2011. Under the current system principal contractors must deduct tax at 35% from payments to subcontractors unless the subcontractor holds a C2 card and the contractor holds a RCT payments card for that subcontractor. The Minister for Finance announced on Budget Day that…

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