Businesses that purchase outright certain new equipment can get full capital allowances in year 1 instead of the normal period of 8 years. Examples include certain types of lighting, IT, heating, ventilation, refrigeration, catering and hospitality equipment. Full list can be viewed on www.seai.ie.
Reduced Capital Gains rate of 10% will apply to individuals on the disposal in whole or in part of qualifying business assets up to a limit of €1m of chargeable gains. Assets must be owned for at least 3 years, certain other criteria apply.
Employment and Investment Incentive (EII)
The EII provides up to 40% tax relief for investments in certain corporate trades. The scheme allows an individual to obtain tax relief on investments for shares in certain companies up to €150k p.a. Initially relief is allowed on 75% of the investment. The balance is allowed in year 4 once conditions are met.
Tax-free payments of €7,500 over 2 years for each recruit who was unemployed for more than 12 months and €10,000 for each recruit who was unemployed for more than 24 months. Since 01.01.15 the qualifying period for jobseekers aged under 25 has been reduced to 4 months. Terms apply.
Consider Employing Spouse or your child
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 €24,800 at the low tax rate. Your children would have personal tax credits to use if employed and work in the business.
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 for income tax purposes is €24,000, regardless of the actual cost.
Subsistence / Mileage
An employee or company director may claim tax free subsistence from their company when away from base on business purposes for more than 5 or 10 hours respectively, from 1st July 2015 distance must be 8km or more, rate is €14.01 for 5hrs but less than 10hrs. They may also claim mileage for business use of a personal car up to 59c per km depending on engine size and amount of annual travel.
Rent a Room Relief
Income from renting a room in your home is exempt from tax, provided it does not exceed the limit of €12,000 in 2016 and €14,000 from 2017. Where more than one person is entitled to the rent the limit is divided between them.
BIK – €500 annual exemption
Where an employer provides an employee (including directors) with a small benefit such as gift vouchers with a value not exceeding €500 no tax is due.
You can claim for medical expenses and prescriptions against the lower rate of tax. Eg GP, hospital, some dental, even food for coeliacs/diabetics. Nursing home fees are allowed at the high rate of tax.