KHR Chartered Accountants

RCT – end of freeze on rates

khr — Fri, 13 Apr 2012 16:14:24 +0000

As of 1 April, Revenue’s freezing of RCT rates for subcontractors has come to an end. Rates were frozen for the first three months to allow a bedding-in period for the new system.

Principal contractors and subcontractors should now have received notification of their applicable rates from this date on. As per eBrief 14/12, Revenue have advised that they may change rates at any time from 1 April and will advise the relevant parties when new rates come into force.

The rate applicable from now on will depend on the compliance record of the subcontractor and rates are as before – 0%, 20% and 35%.

Mandatory e-Filing: Phase 4

khr — Fri, 13 Apr 2012 15:58:59 +0000

Revenue has issued notification of the next phase of the mandatory e-filing roll-out to begin on 1 June 2012.

Phase 4 introduces mandatory electronic filing of returns for two more categories of tax payer:

VAT registered cases and;
Individuals who availed of the reliefs set out below in their 2010 returns.

For more information, click here.

Description of Relief/exemption	Section in TCA 1997
Retirement annuity contract payments	Section 787
PRSA contributions	Section 787C
Overseas pension plans: migrant member relief	Section 787N
Retirement relief for sportspersons	Section 480A
Relief for AVCs	Sections 774 and 776
Artists exemption	Section 195
Woodlands exemption	Sections 140 and 232
Patent income exemption	Sections141 and 234
Income on which transborder relief is claimed	Section 825A
Business expansion scheme relief	Section 489(3)
Seed capital scheme relief	Section 489(5)
Film relief	Section 481
Significant Buildings/gardens relief	Section 482
Interest relief: loan to acquire share in company or partnership	Sections 248, 248 (as extended by Section 250) and 253

Personal Insolvency Bill

khr — Thu, 02 Feb 2012 12:34:13 +0000

Ministers Alan Shatter and Michael Noonan recently announced plans to introduce new methods of dealing with personal insolvency via non-judicial methods, in addition to the proposed reduction of the current bankruptcy period from 12 to 3 years via the continuing reform of the Bankruptcy Act. The Personal Insolvency Bill, it is hoped, will be signed into law by the end of April.

For more detailed information, please click here.

Mortgage Interest Relief

khr — Wed, 18 Jan 2012 12:36:05 +0000

Following Budget 2012, the government issue guidance on how the new mortgage interest relief is to work. The document clarifies through tables the effect of the changes on single people and married couples who took out their mortgages between 2004-2008. It also outlines the relief available to those who take out mortgages in 2012.

The document is available for download here.

Revenue publishes guide on job creation

khr — Wed, 18 Jan 2012 12:22:14 +0000

Revenue has issued a document detailing the various job creation measures available and the benefits of these to both employees and employers.

The measures include:

The Revenue Job Assist scheme
Tax relief for new start-up companies
The Seed Capital Scheme
Employment and Investment Incentive
Retraining relief.

The document is available for download here: Supporting job creation

Online RCT – the new system

khr — Mon, 16 Jan 2012 13:19:19 +0000

The new online system for relevant contracts tax came online as of 1 January 2012. The system is now mandatory and paper returns will no longer be accepted. For more detail on what constitutes a relevant contract, please click here.

In order to use the new service, principals are advised to register for the Revenue Online Service which will allow individuals to liaise with Revenue on all matters related to RCT or any other taxes relating to their business.

The principal new requirements of the online system are the “contract notification” and “payment notification” obligations, outlined below.

Contract notification

When a principal enters into a relevant contract with a subcontractor, he/she will be obliged to provide Revenue with details of the contract online, including a declaration that the contract being entered into is not a contract of employment. Revenue have issued a guidance note for people entering into relevant contracts from 2012 onwards. It is available here.

Payment Notification:

Under the new system, principals must notify the Revenue before they make payments to subcontractors. Once Revenue has received the notification, they will issue a Deduction Authorisation which advises the principal what level of tax should be withheld and paid over to Revenue. The amount to be deducted will be one of the following percentages:

0% – for subcontractors who are registered and up to date with their taxes.

20% – for subcontractors who are registered and substantially compliant.

35% – for subcontractors who are not registered and/or not compliant with their tax obligations.

Revenue has produced a video illustrating online payment notifications below:

eRCT – payment notifications

Subcontractors

The system is also available for subcontractors to use. Among the services available, registering will allow them to check online to see contracts that have been registered with Revenue and that tax withheld from payments has been paid by the principal over to Revenue. The system will facilitate more speedy reclaims and allow the subcontractor to have immediate oversight of his or her RCT position.

Revenue has also produced a video guide as to how subcontractors can avail of the service.

eRCT – guidance for subcontractors

Civil Partnerships and co-habiting couples – UPDATE

khr — Tue, 06 Sep 2011 14:41:36 +0000

Revenue have issued a list of frequently asked questions relating to civil partnerships. Click here to download.

For more general information on civil partnerships, click here.

Gift/inheritance tax – deadline 30 Sep 11

khr — Mon, 05 Sep 2011 16:47:46 +0000

The new capital acquisitions tax pay and file deadline is rapidly approaching.

Finance Act 2011 brought forward the payment date from 31 October, meaning that all gifts and inheritances received in the 12 month period to 31 August should be included in the return now due at the end of September. It is the valuation date that applies.

For 2011, tax payable on all gifts or inheritances received will have to be paid by 30 September. The pay and file deadline for gifts and inheritances received with valuation dates after 31 August 2011 will form part of the return for the year to 31 August 2012.

RCT Update – eBrief 43/11

khr — Mon, 18 Jul 2011 08:42:32 +0000

Revenue have issued eBrief 43/11. As part of Revenue’s change management plan for the introduction of the new RCT system, a mail shot is being issued to principal contractors to inform them of the main RCT changes, the potential implications for their business and what they should do to prepare for these changes. Principal contractors can expect to receive their letter and an information leaflet from Revenue from 19th July onwards.

A copy of the eBrief is available here and a full list of links detailing the changes in the entirety can be found here.

Locums – Tax Briefing 82

khr — Wed, 29 Jun 2011 15:55:35 +0000

Revenue has issued guidance on the treatment of locums in the medical sector and when they are to be considered employees. The Tax Briefing represents the Revenue’s final position on the matter following two years of consultations.

In summary, a locum will be considered a full-time employee, a temporary employee, a part-time employee or a casual employee in the majority of cases. The guidance does not preclude the fact that the locum may be self-employed. However, it seems unlikely they will be considered as such following Revenue’s victory at the Appeal Commissioners in the MIDOC case.

The Revenue have made particular reference to locums who do not consider themselves employees and make the point that it does not necessarily matter. As far as Revenue are concerned, the employer will be obliged to operate PAYE/PRSI as with any other employee.

The Tax Briefing in full can be accessed here.