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Sunday 5th February 2012
Charitable deductions & Tax – Who Claims?
Giving to charity is good - and saves on tax!
Giving to Charity and supporting charities, particular home based charities, is so much more in the public domain now, at least compared to my childhood when charity meant the Lenten box for Africa.
Fortunately, the tax system supports us giving to charity. But in some instances, you receive the tax refund and in others it's the charity. Let's see how it works.
Paye Only Individual
When a Paye taxpayer makes a donation out of their net salary to an eligible charity, the charity receives the net amount but can then make a claim from the Revenue in order to claim any tax foregone by the donor. This may be better illustrated as follows:
Individual gets paid €500…Read more [...]
Posted in Income Tax, Paye Tax
Tagged charitable deductions, charity tax, income tax
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Mortgage Arrears in Ireland
Home Mortgage Arrears Cases Rise Again
Really was astonished at the latest report on mortgage arrears cases in ireland by the independent.ie today. We've had a lot of talk lately on 'debt forgiveness' for home owners recently - Todays reports really brings home how common and pervasive the problem in. For example:
More than 55,000 home owners are more than 3 months behind in making their mortgage payments. That's 7% of all people with home mortgages
Over 39,000 have avoided going into arrears by restructuring their home mortgages, many of these are now on interest only mortgages i.e. not paying any part of their mortgage loan back.
Between those in arrears and those restructing their mortgages, that's over 11%…Read more [...]
Posted in Mortgage Interest Relief
Tagged mortgage arrears, mortgage default, mortgage Ireland
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Budget 2012 – What’s rumoured
Latest Budget 2012 News
Early Days yet, but already a strong message coming out as to what changes we will see in Tax and charges in 2012 from the Budget in December.
Already in the Pipeline - Cuts in Budget
It has already been indicated from the Bin Charges Tax Credit will be gone from 2012 (per last government, but I don't expect the current government to change that!). This will mean you will pay up to €80 more a year in tax.
The Rent Tax Credit is being phased out, and for a married couple the amount allowed will be down from €640 this year to €480 next year. Of course, first time renters receive no rent relief tax credit if they only started renting since december 2010.
A new property tax at…Read more [...]
Posted in Bin & Service Charges, Budget 2012, Income Tax, Paye Tax, Rent Relief, Tax Refunds
Tagged budget 2012, Ireland Budget
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Getting it off your Chest about Taxes
Dear Mr Taxman ...
Sometimes you just don't want to talk to Revenue. In fact, you maybe shouldn't be talking to anyone! So write a Letter. But maybe not this one...
Previously published in the UK, here you can see how Her Majesty's Revenue respond to those types of letter. Too much time on their hands if you ask me.
Enjoy!
Dear Mr Addison,
I am writing to you to express our thanks for your more-than-prompt reply to our latest communication, and also to answer some of the points you raise.
I will address them, as ever, in order.
Firstly, I must take issue with your description of our last as a "begging letter". It might perhaps more properly be referred to as a "tax demand". This is how we, at the…Read more [...]
What is the Pension Levy?
Pension Levy in Brief
The Pension Levy was introduced by the Minister of Finance, Michael Noonan (picture), to fund the Goverments 'Jobs Initiative' of May 2011 as a 0.6% charge on Pension Fund assets held in the state. It will be charged for a period of 4 years only.
Its impact on your Employment Pension Fund Contributions
If you are working and you or your employer are putting funds into a Pension Fund, the impact on you will differ depending on whether you are contributing to a Defined Benefit (DB) scheme or a Defined Contribution (DC) scheme. Because depending on what type of scheme you are on, either you take the hit for the Pension Levy, or your employer takes the hit. Let's see why...
Defined Benefit…Read more [...]
Public Sector payslip 2011
Example impact of changes from Decembers Budget for a Teacher
If you are working in the public sector, and particularly as a teacher, you will find the following video useful. It illustrates the impact on a Teachers payslip of the changes implemented in Budget 2011.
Hope you find this useful, but remember no matter how much tax you pay, you are likely due a tax refunds with 80% of Red Oak clients due a tax refund.
Don't forget to apply for your tax refund with us today!…Read more [...]
Posted in Budget 2012, Paye Tax, Tax Refunds
Tagged Public sector budget, public sector tax, teacher tax
1 Comment
2011 NPPR notification
NPPR payment due on second properties
If you have a second property and have registered it as a Non Principal Private Residence, then you will have received a notification today that your NPPR for 2011 is now due.
The NPPR payment can be made anytime from now until the end of June without penalty - after June 30 you will have to make a late filing payment of €20 per property.
To make an online payment you will need your nppr.ie account reference number and pin number.
To find out more about the NPPR, why not check out the dedicated section about Rental Income & NPPR on rentalincome.ie…Read more [...]
USC & northern medical cards
Universal Social Charge limited to 4%
This was brought to our attention on our facebook page (thanks to Rob for that).
Under the USC, if you have a Northern Ireland Medical Card, you can avail of the same benefits offered to Irish Medical Card Holders in the application of the Universal Social Charge (USC).
i.e. instead of having to pay 7% on all earnings above €16k a year, you will only have to pay 4%.
What to Do
If you are living in the north and working down south, make sure you inform your employer/payroll of this. You will save about €300 a year for a salary of €26,000 and €300 for every €10k more than this you earn.…Read more [...]
Posted in Universal Social Charge
Tagged Medical Card, Universal Social Charge, USC, USC exemption
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Trends in Tax Refunds in 2011
Who's Claiming Tax Refunds in 2011?
With all the changes in the Tax System in the last few years, you can easily lose track of what you can claim with in excess of 200 Tax Credits and Income Deductions available to regular tax payers.
But beyond the regular tax refunds we see, these are what we are seeing a lot more of this year
1. Income Levy Refunds
Lots of Income Levy refunds being paid. Things we look out for are:
If you only worked part of the year;
If you changed job/doubled jobbed during the year;
If you earn less than €15k over the year;
If you have a medical card;
If you received bonuses/Lump sum/Paid tax on a Redundancy -
If any of the above apply to you, then there's a good…Read more [...]
Posted in Health Levy, Home Carers, Income Levy, Income Tax, Paye Tax, PRSI, Redundancy, Tax Refunds
Tagged 2011 tax back, 2011 tax claim, health levy, income levy, Medical Card, Redundancy
10 Comments
Jan 2011 Payslip Cuts
Budget 2011 changes in Monthly Payslips
How much are you down? We've done an analysis of how much your pay packet will change for different pay levels and personal situations.
Married, Single Income
First up If you are married, your monthly take home pay will change by at least the amounts below.
These are minimum reductions in income. So if for example, you contribute to a pension, have a medical card, are a member of a trade union or rent for example, you will be worse off that the examples given.
Single Person
If you are single, your income levels will change as below. Similarly, these are the minimum reductions in salary levels and you could be even worse off depending on your personal situation.
But,…Read more [...]
Posted in Budget 2012, Income Tax, Paye Tax, Universal Social Charge
Tagged budget pay cuts, january 2011 pay, january pay
2 Comments
2011 Bin tax refunds
Service Charges Tax Credit.
Way back in the Budget in December 2009, it was announced that the services charges tax credit would be abolished in 2011.
But there was no mention of Service Charges in the 4 year plan, which I found strange. But even stranger it wasn't mentioned in Budget day in Dec 2010 either. But like most others out there we thought "Bins are gone, they just didn't mention it."
But in a rare piece of good news, it seems that the Bin Charges Tax Credit has been given a reprieve and is still eligible for 2011!
The Tax Credit will not though be available for 2012 onwards. so enjoy it while you can.
The bins tax credit is a maximum of €80 for 2011 as in the previous 4 years, so if…Read more [...]
Rent Relief – 2011 tax credit reduction
2011 Rent Relief
Currently renting
If you are currently receiving rent relief, Budget 2011 announced changes in the maximum amount of rent paid that you can get relief upon as follows:
So, for a single person under 55 in 2010, you will be able to get relief on a maximum of €2,000 at 20%, which gives a rent tax credit of €400.
For a single person under 55 in 2011, this is reduced to a maximum of €1,600 at 20%, which gives a rent tax credit of €320.
and so on, through to 2018 when no rent relief is allowed.
Not Currently Renting?
Revenue have an additional statement added to the Budget 2011 summary, rent relief section, as follows:
"Claimants who were not renting at 7 December 2010 and who…Read more [...]
Posted in Budget 2012, Paye Tax, Rent Relief, Tax Refunds
Tagged rent relief, rent tax credit, rent tax refunds
1 Comment
Universal Social Charge & Over 70
Liability to Universal Social Charge (USC)
The Universal Social Charge was introduced in Budget 2011 and will be charged on your income in 2011. It replaces the Income Levy & Health Levy charges from previous years.
But how will this affect you if you are over 70?
once you reached 70 you were not charged the Health Levy under the old regime.
But you did have to pay the Income Levy even if over 65, unless your income was less than the exemption Thresholds for older people of €20,000 for single and €40,000 for married. And of course, if were any age and held a Medical Card, you did not have to pay Income Levy.
However the new Universal Social Charge has to be paid regardless of your income…Read more [...]
Posted in Universal Social Charge
Tagged 2011 pay, 2011 tax, over 70 tax, pensioner tax, Universal Social Charge
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10 things you should know about your 2010 P60
Welcome to 2011! If you were working at the end of the year, you will receive a P60 from your employer soon.
2010 P60
Probably the most important and most talked about bit of post you will receive this time of year is your P60. Here are 8 things you should know about your P60:
Your P60 is your summary of your Pay and Income Tax for that year.
It will have all your pay from your current employer, but will also show the pay and tax from previous jobs if you gave a copy of your P60 to your current employer.
Details of PRSI paid (including Health levy) by you and the employer is on the left hand side.
In the PRSI section, they also include number of weeks contribution - this is very important from a social…Read more [...]
Posted in Health Levy, Income Levy, Paye Tax, PRSI, Tax Refunds
Tagged 2010 P60, 2010 tax refund, claim tax back 2010, P60
7 Comments
2011 – Pension Charges & Tax
What's new for Pension Contributions in 2011?
in 2010, if you were a higher rate tax payer and made contributions to a pension, you were allowed relief of income tax at 41% - but also you did not have to pay PRSI or Health Levy. You would have been paying Income Levy on the contributions. All pension contributions are subject to maximum allowable contributions.
4 Year plan - pension changes
Under the 4 year plan, the amount of relief from Income Tax will be reduced from 2012 onwards. With 34% relief in 2012, 27% relief allowed in 2013 and down to just 20% in 2014.
But no change to the amount of relief you are allowed from Income Tax in 2011.
Budget 2011 - Pension Changes
Following Budget 2011, Tax Relief…Read more [...]
Posted in Budget 2012, Income Tax, Paye Tax
Tagged 2011 pension tax, budget 2011 pensions, tax on pension contributions
1 Comment
P60 Example 2010
Aaaaahhhh! It's my P60!
So many numbers, so much information, I don't understand it, I think I'll file it away for now.
If you were working at the end of the year, you should be getting a copy of P60 in the next 1-8 weeks. So what should you be looking at?
Let's look at an example P60 for singleton Corey Amos, an angst ridden musical type who had two jobs in the last year and doesn't get the tax thing. What should Corey be looking for in his P60? Here are 5 things to look out for.
1. Is it Me? - P60 Personal Details
First up - an easy one for you highlighted in Green in the sample P60 below.
Check that your P60 has your Name and address right. Oh, and can you see the year 2010 on the…Read more [...]
Posted in Health Levy, Income Levy, Income Tax, Paye Tax, PRSI, Tax Refunds
Tagged 2010 P60, 2010 tax refund, health levy, P60, P60 tax refund, prsi
1 Comment
Paying Tax for the 1st Time?
You may be one of 140,000 to receive a nasty surprise in your first payslip of the new year 2011.
The recent changes in tax from Budget 2011 will mean that many will see a tax charge on your payslip in January 2011 for the 1st time. All down to the reduction in Tax Credits pushed through in Decembers Budget.
If you are a low paid worker, you will also find the Universal Social Charge on your payslip. This charge affects those earning less than €26,000 harder than the old Health Levy / Income Levy combo.
But if you have not being paying tax before and are required to do so now, you may not have had the right tax credits in the past. Why not check to see if you are due additional tax credits and a tax…Read more [...]
Posted in Paye Tax, Tax Refunds
Tagged 2010 P60, 2011 tax, Tax Refunds, Universal Social Charge
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2010 Tax Refunds
Start your Tax Refund Claim Now!
Best wishes to all of you in this New Year. Revenue have now updated their systems and we can now start your full Tax Refund review for 2010.
Just a few helpful hints to help you claim tax refunds.
Existing Customers:
If you are an existing Client of Red Oak Tax Refunds and we reviewed your taxes in the last year, you should use the 2010 Tax Refund Application Form - click here to open this.
New Customers:
For new customers, we can review the last 4 years, back as far as 2007, for you. In this case, use our full Tax Refund Application Form - click here to open.
2010 P60's and other forms
If you were working at the end of the year, you will…Read more [...]
Posted in Paye Tax, Tax Refunds
Tagged 2010 Tax refunds, tax 2010, tax claim 2010, tax refund 2010
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Universal Social Charge and Medical Cards
Paying more Tax in 2011?
For the years 2010 and before, if you received a Medical Card, you were exempt from having to pay Income Levy and Health Levy.
However, under the new Universal Social Charge which is replacing the Medical Card, this has been changed. Now you will have have to pay Universal Social Charge on any PAYE income you earn as follows:
Universal Social Charge & your Salary
Have you wrongly paid Income Levy or Health Levy in the past few years?
Make sure you check if you have been receiving your exemptions from Income levy and Health Levy in your pay. Income Levy is straighftorward to check - if you were charged income levy in your payslips, you are due a refund of this for the period…Read more [...]
Posted in Budget 2012, Income Tax, Tax Refunds, Universal Social Charge
Tagged budget 2011, health levy, income levy, Medical Card, Universal Social Charge, USC
3 Comments
Budget 2011 – Tax Cuts and Levy increases
So you have checked on the Budget Calculator how you are affected by Budget 2011 - see below how some other people are affected by the changes.
Single person Earning €30,0000 - Better Off!
Jenny earns €30,000 a year and lives with her parents
With the changes in tax credits, Jenny's income tax bill will increase by €360.
But the new Universal Social Charge, which replaces the Income Levy and Health Levy, is Jenny's saving grace - this saves her €380.
So overall, Jenny will be €20 Better off over the year from the Budget Changes.
Single person Earning €20,0000 - A black day
Jack earns €20,000 a year, rents from a Private Landlord and is a member of SIPTU
Rent Relief is being phased out…Read more [...]
Posted in Budget 2012, Health Levy, Home Carers, Income Levy, Paye Tax, PRSI, Rent Relief, Tax Refunds
Tagged budget 2011, budget calculator
3 Comments
