Advice

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Capital Gains Tax Deadline – 15th December

Have you sold, gifted or transferred any assets between 1st January – 30th November 2019?

If Capital Gains Tax (CGT) is due on these, this must be paid by 15th December 2019

Payment deadlines for CGT are as follows:

  • Disposals between 1st January & 30th November due by 15th December same year
  • Disposals between 1st December & 31st December due by 31st January the following year

How do I know if CGT is due?

Firstly, you need to calculate if you made a chargeable gain on your asset. CGT is calculated on the chargeable gain only and not the full amount you receive and is calculated as follows:

Chargeable gain = disposal price less purchase price & costs

There are various expenses, exemptions and relief available from CGT, which you should seek advice on in preparing your CGT return. Each individual is entitled to a personal exemption of €1,270 for each tax year, any gain over this threshold is subject to Capital Gains Tax. Some allowable expenses can also be deducted from the sale of an asset such as; enhancement expenses or professional fees i.e. solicitor.

What if I made a loss?

If you have made a loss on the disposal of an asset, you can carry this forward to be offset against any future gains. You should still file this loss with Revenue Commissioners to place it on record.

When and how do I file CGT?

Your CGT payment is due on the above deadline dates. However, the figures involved in reaching your CGT liability is required to be included in your Income Tax Return by the 31st October the following year.


Have a question on CGT or need assistance? Should you have any queries on this issue, please contact us on 01 5397999 or info@itasaccounting.ie

Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.

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Flat Rate Expenses to be abolished from 2020

Do you qualify for Flat Rate Expenses in relation to your profession?

Flat Rate Expenses are employment expenses claimable depending on the profession you are in.

Revenue have undertaken a review of these and despite opposition from many trade unions they will be withdrawn from 1st January 2020. If you qualify for flat rate expenses, you can still claim these for the tax years 2015 – 2019.

Please note the 2015 tax year must be claimed by the 31st December 2019. Ensure you claim this entitlement while it is still available to you.

A list of qualifying professions are available here; https://www.revenue.ie/en/employing-people/employee-expenses/flat-rate-expense-allowances/index.aspx


Why not avail of our ClaimMyTaxBack.ie service for PAYE only?

We can review the last four years for you and calculate if you are entitled to a refund for any of those years.

This review is undertaken on a No Refund/No Fee basis. Therefore, if you are not due a refund, no fee applies.

If a refund is due, our fee is 10% of your refund (minimum of €35) per year.

Should you wish to avail of this service, please request an application form at taxback@claimmytaxback.ie or visit our website www.claimmytaxback.ie


While you’re here…why not read our recent blog, on claiming your tax back for the year 2015 by 31st December 2019 deadline

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Are you claiming the correct tax credits?

As reported in the Independent and various media outlets, over €4bn has been refunded by Revenue to taxpayers since 2010.

Tax Relief due on medical expenses, nursing home fees, etc have been claimed but this figure also includes overpayment of Income Tax. In our experience, taxpayers wrongly assume Revenue will inform them if they have overpaid in tax or their credits need to be amended but this is not the case.

Unless you request a P21 balancing statement from Revenue each year and ensure you are claiming the correct credits, you could be overpaying tax every year.

There are numerous tax reliefs available that taxpayers are not aware of and the Revenue have been called on to make people more aware of their entitlements. This is currently done in the UK through TV, Radio and Newspaper campaigns each year.

Only those who submit a claim with Revenue Commissioners will receive their portion of the overpaid taxes sitting on Revenue’s balance sheet. Once 4 years has passed this refund is no longer available. There is still a “fear factor” with Revenue where a lot of individuals are afraid to file a tax return in case they end up with a liability. This is very rarely the case, however if it does happen it is important that such an issue is addressed ASAP, as it could continue to occur going forward. And the aforementioned 4-year time limit, does not apply to Revenue.

“Sure I’m a PAYE worker, my tax is deducted at source”

This is a common response when we advise taxpayers of the importance in filing an annual tax return claim with Revenue. This is true, however over 80% of PAYE taxpayers overpay their taxes by on average €990 every year, and this is only of the people who actually do file returns.

There are usually 3 reasons why individuals overpay their taxes.

  1. Payroll Errors – yes, on the most part your tax is calculated correctly on payroll software. However, that software relies entirely on the information inputted by the payroll officer, who in turn relies on information from you, the Revenue Commissioners and the employer. With that much human input involved, you can see how human error could result in an over (or under) payment of Tax, USC or PRSI . It happens
  2. Incorrect Allocation of Allowances – whether you are a married couple or a single person with more than one source of income, you have certain rate bands and credits available to you with regards to Tax and USC. In order to ensure you do not overpay tax these allowances should be allocated according to the level of income between spouses and/or different sources of income, subject to Revenue limits. Where these allowances have not been reviewed regularly, more often than not they are allocated incorrectly, which is resulting in overpaid taxes.
  3. Claiming your Tax Credits – Revenue put the onus on the individual taxpayer to research, understand and ensure that they are claiming all their entitlements. Below are just some of the reasons why you might be missing out on tax refunds if you are not filing returns, there are many more:
  • Marital Status
  • Medical Expenses
  • Dependent Relatives
  • Tuition Fees
  • DIRT refunds
  • Age Credit
  • Home Renovation Incentive
  • Pension Contributions
  • Income Protection
  • Investment Incentives
  • Medical Insurance (BIK)
  • PRSI refunds once over 66
  • USC refunds for over 70’s

Contact us to request our Tax Return Application Form and we can review your taxes for the last 4 years

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Why you should file your Tax Return early

The 31st October Income Tax Return deadline….. is just that…. a deadline and not a target!

Your tax return can be filed at any time between 01st January – 31st October.

Here are 5 reasons why you should file your Tax Return early this year

1. Plan Ahead

If you file your return and are due to pay a liability, this is due by 31st October. Therefore, if your liability is calculated in advance, it gives you time to prepare and budget.

2. Less Stress

Submitting your paperwork to your accountant early means there is less pressure on both sides to complete and file your return on time. Giving your accountant more time to prepare and review your return.

If your paperwork is received late or too near the deadline, your accountant may not be able to guarantee filing it on time.

3. Avoid Surcharges

If your return is filed after the deadline of 31st October you will be subject to surcharges and interest owed. You also run a higher risk of being selected for an audit.

4. More efficient

The longer you leave your return nearer the deadline, the busier Revenue will be. If you are due a refund, the sooner you apply for this the better as you may need to wait a lot longer once we approach 31st October deadline due to the volumes of returns Revenue need to process.

5. Peace of mind

Being more organised and submitting your return early, gives you that peace of mind that you have completed your tax obligations and won’t have that rush in October.

Need to file your Income Tax Return and not sure where to start? Contact us now 01 539 7999
Why not read some of our previous blogs here

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