Budget 2015 Highlights
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JobsPlus Incentive
This incentive will provide a payment of €7,500 over two years to an employer for each person recruited who has been unemployed for 12 months but less than 24 months and €10,000 over two years for each person receuited who has been unemployed for more than 24 months, Terms apply
Consider Employing Spouse
Many spouse’s perform administration / credit control / bookkeeping work. If so consider making them an employee as a married couple with two incomes can earn an extra €23,800 at the low tax rate.
Capital Allowances for Cars
Where a car is used for business capital allowances may be claimed for the cost of the car. For cars bought after 01.07.08 with CO2 emissions less than 156 g/km the deemed cost is €24,000, regardless of the actual cost.
Subsistence
An employee or company director may claim tax free subsistence of €13.71 or €33.61 p.d. when away from base on business purposes for more than 5 or 10 hours respectively.
Mileage
An employee or company director may claim tax free mileage for business use of personal car up to 59c per km depending on engine size and amount of annual travel.
Single Parent Tax Credit
A tax credit of €1,650 can be claimed by a person who proves that a qualifying child resided with them for the whole or part of that year. From 2014 this will only be given to the main carer.
Corporation Tax Exemption for New Company
Exemption is for 3 years for certain companies commencing trade in 2013 or 2014 – linked to amount of Employer’s PRSI payments.
Year Capital Gains Tax Exemption
This new relief applies to residential and commercial properties situated in an EEA state purchased between 07.12.11 and 31/12/14 where that property is held for seven years or more.
Partial refund of VAT on cars
Normally you cannot reclaim VAT on cars. However, a partial reclaim of 20% of the VAT paid can be reclaimed if the vehicle is used at least 60% for business and emissions are below 156 g/km.
BIK – €250 annual exemption
Where an employer provides an employee (including directors) with a small benefit such as gift vouchers with a value not exceeding €250 no tax is due. Only one such benefit p.a. is allowed.
TERMS AND CONDITIONS APPLY TO THE ABOVE – FOR MORE INFO CONTACT FHM.
Budget 2014 News
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Tax Reform for SME’s
During his recent budget speech Minister Noonan announced a 10 point tax reform plan for SME’s comprised of the following:
1. Start up Exemption for Corporation Tax to be extended to allow unused relief arising in the first three years of trading, due to insufficient profits, to be carried forward.
2. Increase in minimum threshold for close company surcharge in relation to undistributed investment and rental income of a close company from €635 to €2,000. The new limit will also apply to undistributed trading or professional income of certain service companies.
3. Increase in R&D relief – first €200,000 of qualifying expenditure to qualify for relief without reference to the base year of 2003.
4. VAT threshold for cash receipts basis to increase from €1m to €1.25m from 1st May 2013.
5. Foreign Earnings Deduction for work-related travel to the BRIC countries to be extended to eight African countries including Egypt, Nigeria and Algeria.
6. Extension of the EII scheme from 2014 to 2020, subject to EU approval.
7. Extension of stock relief for farmers until 2015, subject to EU approval.
8. CGT relief for farm restructuring – a form of roll over relief where the proceeds of a disposal of farmland are re-invested in other farmland within 24 months – initial sale must be between 01.01.13 and 13.12.15 to qualify. Once again, EU approval is required.
9. Review of ‘carried interest’ in the tax code which provides for a favourable rate of CGT to apply to certain venture fund managers – it is hoped that reform in this area will help small businesses access funding.
10. Public consultation on the taxation of micro enterprises to take place with a view to reducing compliance costs. Closing date for submissions is 28.02.13.
Any news updates appearing on this page should not be construed as professional advice and no steps should be taken in relation to any item herein without obtaining detailed professional advice. FHM Accountants accepts no liability whatsoever to any persons acting or failing to act as a result of anything contained or not contained within these updates – they are for general information purposes only.
Budget 2014 News
DOWNLOAD A COPY OF OUR BUDGET HIGHLIGHTS 2014
