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Friday 18th May 2012
PRSI Refunds News
26,000 receive PRSI Refunds
A Story that was quietly building across the last few months broke loose today, as it was reported that more than 26,000 people shared in PRSI refunds of over €10m.
Exempt from Health Levy
The main reason you may be due a refund is for earning under the annual threshold, but earned over the weekly threshold for the health levy. For example, if you earned less than €26,000 in the year 2010, but more than €500 in any given week, you will be due a refund of at least €20 for each of those weeks.
The refunds are due for years 2008, 2009 & 2010. Why not try calculate your PRSI refund here.
Medical Card Refunds
If you had a medical card in those years and also held a full…Read more [...]
2012 Tax Refunds
Claiming Tax Back from your P60 in 2012
Most people (in the private sector at least) will see their P60's arrive now or in the next few weeks, as the Tax Refunds season starts.
So what are we expecting people to get tax back for in 2012. Here are the main things we are looking out for.
Universal Social Charge (USC)
This year the P60 is changing for the first time in my memory, with the addition of the Universal Social Charge. And we are expecting a lot of people to be due refunds of Universal Social Charge. Firstly, as it was charged on a week by week basis in 2011, if you changed jobs or were out of work for a period, you are very likely due a refund.
Secondly, a lot of Medical Card…Read more [...]
Boom to Broke: Tax Take from Construction
We were having a look at some of Revenue's Annual reports lately and thought this would interest some of you out there.
Here is Revenue's tax take for 2010 by industry sector, below that we have the same table for 2007. (Sourced from Revenue)
No prizes for guessing which sector plummeted in share of tax over the period, construction. But it really does highlight the knock on effect it had on other sectors, when you judge the table by the total tax take per year, as shown in the smaller box within the image. Lastly, see the size of those tax refunds reported in the text?
Click on the images to see the details in full size.
…Read more [...]
2012 Tax changes to your Payslip
Why your net pay per payslip may change
In Budget 2012, it was announced that no new changes to Income Tax would be introduced for 2012. So why has your Net Pay per your Payslip changed? Here are 8 likely reasons.
1. You Are Renting
If you are renting, then annual reductions in Rent Relief leading to it's eventual abolishment were announced in Budget 2011. So what does that mean in 2012? For a single person under 55, the rent relief tax credit you receive will be reduced by €80 per annum this year, double that if you are married - doubled again if married and over 55.
2. Bins Tax Credit
If you are a home owner, you probably knew your home was going to cost you more in 2012 due to the Household…Read more [...]
Posted in Bin & Service Charges, Budget 2012, Income Tax, Paye Tax, PRSI, Rent Relief, Single Parents, Tax Refunds, Universal Social Charge
Tagged budget 2012, pay 2012, payslip 2012, tax 2012
1 Comment
Jan 2012 Mortgage Interest Relief
TRS Doubles in 2012 - Just not in January?
If you are looking for tax refunds, or stuff you can claim back this January, Budget 2012 had one important sweetener for a lot of mortgage holders.
If you took out your 1st mortgage between 2004 & 2008, you probably know by now that mortgage interest relief at source is being double from 15% to 30% in 2012.
With most of the Banks, the Tax Relief at Source (TRS) is seen as a separate payment into your bank account on the day the mortgage payment leaves. If you are not seeing a separate payment, do double check to make sure you are receiving it if it is due! But if not, you can look back 4 years for a refund of unpaid mortgage tax relief at source.
January 2012…Read more [...]
Posted in Mortgage Interest Relief
Tagged Budget 2012 Mortgage, mortgage interest relief, TRS 2012
4 Comments
VAT Changes in Budget 2012
How much will the increase in Vat per Budget 2012 cost you? Read how we have estimated this charge to you in our Budget 2012 Calculator.Read more [...]
Universal Social Charge Budget 2012
USC Exemption Threshold increased in Budget 2012
Budget 2012 was kind to your paypacket. No changes to PRSI or Income Tax to reduce your pay, with only one change to the Universal Social Charge - and that will reduce the charge for some people.
Universal Social Charge Exemption Level
The level at which you do not have to pay the USC has been increased from €4,004 to €10,036 per annum.
This means you do not have to pay any USC if you earn less than €10,036, but will pay 2% on that of your earnings if you earn more than that.
So if you earn €10,000, instead of a €200 USC charge, you now have a charge of zero.
But if you earn €11,000, you pay the full 2% on the €11,000, which is €220.
This…Read more [...]
Posted in Budget 2012
Tagged Universal Social Charge, USC 2012, USC budget, USC ireland
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Motor Tax New Rates – Budget 2012
Motor Tax increases in Budget 2012
See below for the new rates for motor tax that will apply following Budget 2012.
Motor tax is charged on engine size for 2008 cars and before, with all cars 1st July 2008 onwards charged based Co2 emissions.
New Cars - registered between 1 January 2008 and 30 June 2008 where CO2 rate is lower than engine capacity (c.c) rate.
Motor Tax Based on Co2 Emissions
Motor Tax Based on Engine size
check how the Motor Tax changes in the budget affect you with the Red Oak Budget 2012 Calculator for Ireland.…Read more [...]
Posted in Random posts
12 Comments
Budget 2012 Household Charge
Household bill introduced in Budget 2012 as precursor to a Value based Property Tax later in 2012Read more [...]
Child Benefit Changes in Budget 2012
Chilld Benefit for 3rd and additional children to be cut in Budget 2012 and Budget 2013 to bring them into line with the payments for 1st and 2nd child.Read more [...]
Expected Child Benefit Changes in Budget 2012
Update
Find out what changes were made to Child Benefit in Budget 2012 in our Budget 2012 Child Benefit update
Further cuts likely to Child Benefit
In Budget 2011, the Government introduced cuts to Child Benefit with a €10 cut across the board, except for the third child for whom Child Benefit was cut €20. Coming into Budget 2012 even more discussion centres around what should be done with Child Benefit.
Commission on Taxation & Other Views
The Commission on Taxation for Ireland recommended that systems in Social Welfare be developed to the extent that some benefits, such as Child Benefit could be taxed at source. But we are a long way from that.
TASC, the Irish equality conscious economics…Read more [...]
Posted in Budget 2012
Tagged budget 2012, Budget Ireland, Child Benefit, Child Benefit Vouchers
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Budget 2012 – Possible PRSI Changes
PAYE Taxpayers to be charged PRSI on Unearned Income?
It has been confirmed that PAYE tax will not be subject to much change in Budget 2012. However there are suggestions that an increase in PRSI is likely.
Rental Income & Dividends charged PRSI
In addition to an increase in high earners PRSI there is also talk that any non-earned PAYE income will be subject to PRSI.
As it stands if you are a PAYE employee and have investment income, for example Rental Income or Dividends, you are not liable to PRSI on this Income. However, as mentioned above, this is set to change and if the proposal goes ahead in the Budget the exemption from PRSI on investment income for employees will be cancelled.
This…Read more [...]
Posted in Budget 2012, PRSI
Tagged budget 2012, Budget PRSI, PRSI 2012, PRSI Dividends, PRSI Rental income
1 Comment
Motorists Targeted in Budget 2012
Motorists to feel the pain in Budget 2012 with ...
Vat, Carbon & Motor Tax Changes on the Budget Agenda
The 2012 Budget is almost here and there has been speculation surrounding areas/sectors which may be affected. Taking on board speculation and leaked reports it seems that motorists may be hit with numerous hikes.
Carbon Taxes Up ...
It is evident from the last budget that Carbon Taxes are a targeted area and once again it is expected to be the same in this year’s budget. It has been projected that carbon taxes are due to double meaning an increase of up to 2% to a litre of petrol and diesel.
... Plus VAT Increase
In addition to the increase in carbon taxes a leaked report to the IMF revealed that the VAT…Read more [...] Income Tax Change #2 – Rent Relief Tax Credit
Rent Relief in Budget 2012
Rent Relief is a very important tax credit for tax payers who are renting and paying tax. For a single person in 2010, this was typically €400. The Rent Relief Tax Credit was cut in Budget 2011 to €330, but could still be worth as much as €1,320 to you (calculate your own with this Rent Relief Tax Credit Calculator).
In reducing the Tax Credit in Budget 2011, the FF led government of the time indicated that they were phasing out the tax credit completely. But they also snuck in a condition that the Tax Credit was not available to those who started renting for the first time after the 10th December 2010. So anyone who started renting for the first time in 2011…Read more [...]
Posted in Random posts
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Budget 2012: Income Tax Change #1: Bins.
No Changes to Income Tax?
The Minster of Finance has told us, repeatedly now, that there will be no changes to Income tax in Budget 2012. Should we bother with the Red Oak Budget 2012 Calculator then? We think he'll manage to squeeze in a few changes. First Up, the Bin Charges Tax Credit.
Service Charges Tax Credit
In Budget 2010 (December 2009), we were told that the Service Charges tax credit was to be abolished in Budget2011. This was after the Commission on Taxation recommended the tax credit be abolished (in case you missed it, they repeated the recommendation no less than 6 times in the report). In their own words:
"We consider that there is no sound rationale for tax relief on service charges.…Read more [...]
Posted in Bin & Service Charges, Budget 2012, Paye Tax
Tagged bin charges, budget 2012, Ireland Budget, service charges tax credit
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Budget 2012: UK Vat v Irish VAT
We mentioned in a previous article that VAT is considered a regressive tax, disproportionately harder on the less well off. The second hatchet being thrown at the proposed VAT increase in the Ireland Budget 2012, is that it will take people out of Irish shops and encourage them to go over the border shopping.
So we decided to look back at how UK and Ireland VAT rates have moved in the last 10 years.
UK VAT: Since 3-Jan-2011 this year, the standard VAT rate in the UK has stood at 20%
From 1-dec-2008 through 31st dec 2009, uk vat rates were at 15% as they tried and failed to stimulate themselves out of a recession. Other than that, it’s been 17.5% since 1991.
See UK Vat Rates
VAT in Ireland: Irish VAT rates…Read more [...] Budget 2012 – VAT Changes
Predictions for VAT in Budget 2012.
Most years, VAT is not a topic of discussion come Budget day, But this Government has targeted VAT as an area in which they can influence economic activity & income generation and we're expecting changes in Budget 2012.
Already this year, we have seen the introduction of a new VAT rate of 9%, which applies to services such as hairdressing, cinema, food & drink including hotels & takeaways, newspapers & magazines. These were previously charged at 13.5%. The govt expects that this will cost €120m this year and about €350m next year, but thinks it will boost activity in the tourism sector.
Now, as confirmed by the German parliament, it seems likely that we will…Read more [...]
Posted in Budget 2012
Tagged budget 2012, Budget Ireland, standard rate Vat, Vat Budget
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Revenue Error – Calculating Incorrect Tax Rumour
Have you seen this posted on your wall in facebook or on an email?
I have recently found out that everyone who was working in ROI in the past 4 years can claim PRSI refund(not tax!). PRSI was counted incorrectly due to some error in the calculator in years 2007-2010.
It's not being advertised but it's being incorrectly calculated for everyone!!
... ... The only thing you need to do is to write simple letter with an application for your refund to below address(include PPS number):
PRSI Refunds Section, Department of Social Protection, Oisin House, 212-213 Pearse Street, Dublin 2.
Payment for refund is done by cheque and it's being processed in 3-4- weeks.
is it true?
So was there a calculation error…Read more [...]
more on High Earners Restriction & Tax Relief.
As mentioned here, we wanted to give more information on the high earners restriction and it's likely impact on charitable contribution.
High Earners Relief & Donations
Finance Act 2006 brought in a restriction aimed at High Earners for the tax year 2007 and subsequent years. High Earners Restriction limits the use of tax relief's a tax payer can use to reduce their tax liability in any one year. This means they will have to pay an effective tax rate of 30% (effect from 1 January 2010) regardless of tax reliefs they may be eligible for.
How High Earners Restrictions Work
For the tax year 2010 individuals who have income greater than €125,000 and who are availing of certain tax incentives amounting to more…Read more [...]
Budget 2012 needs changes to protect charities
High Earners likely to cut Charitable contributions due to High Earner Restriction
After Senator Crowne was in the newspapers for donating his senate salary to charity, we looked at the donation to see how much the charity would actually receive. One of the main variables that came into play was the restrictions to reliefs allowed for high earners.
A high earner is someone with earnings of over €125,000 and he will be subject to restrictions on tax reliefs, if his reliefs exceed €80,000. The restrictions are implemented partially until at an earning level of €400,000, it is set that as a high earner you must pay minimum 30% tax.
Which got us thinking, there could be a lot of people with reliefs out there…Read more [...] 
