Tax Relief

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July Stimulus Plan

The Government has announced a range of tax, loan and expenditure measures in the July Stimulus Plan to support businesses that are affected by Covid-19.

  1. Employment Wage Subsidy Scheme (EWSS)

This will support employers by providing a subsidy per employee. It will replace the Temporary Wage Subsidy Scheme from 01st September. The employer must be operating at less than 70% turnover between July -December compared to last year to qualify. It is due to be in place until March 2021.

  1. Temporary VAT reduction

VAT rate will be reduced from 23% to 21% from 01st September – 28th February 2021

  1. Stay and Spend’ incentive

Aiming to incentivise taxpayers to spend on accommodation and/or food in Ireland. The Taxpayer must spend a minimum of €25 and submit the receipt to Revenue through a new mobile app, spend is capped at €625. Revenue will apply a credit of 20% of the amount paid, subject to a maximum amount of €125. This is due to run from 01st October – 30th April 2021

  1. Corporation tax loss relief for companies

Corporation Tax due to be paid over the next 18 months will be accelerated, providing liquidity supports for businesses. The maximum amount of the expected current year loss which will qualify will be 50%

  1. Income Tax Relief for self-employed

For self-employed individuals, who were profitable in 2019 but due to Covid-19 are now operating at a loss in 2020 will provide a new once-off tax relief of up €25,000 of 2020 losses and unused capital allowances to off-set against 2019 profits.

  1. Enhanced Help to Buy Scheme

Support available to first time buyers will be increased to the lesser of €30,000 (up from €20,000) or 10 per cent (up from 5 per cent) of the purchase price of the new home/self-build property. This will run until December 2020 and is effective immediately.

  1. Cycle to Work Scheme

Expense will be increased from €1,000 to €1,500 for e-bikes and €1,250 for bikes. Other amendments made to this scheme allows the purchase of a new bike every 4 years, reduced from every 5 years.

  1. Reduced interest rate

A reduced rate of 3% to be applied to repayments of tax debt for all businesses, including sole traders once agreed with Revenue

  1. VAT Warehousing

Businesses effected by Covid-19 can delay their payment of PAYE & VAT with no penalties

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

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Home Renovation Incentive

The Home Renovation Incentive Scheme (HRI) was implemented in October 2013 and was originally available for homeowners to apply until 31st December 2015. Subsequently, the scheme was extended in December 2014 to include all homeowners, including landlords and finished in December 2018.

Home improvements carried out in 2019 were also included if planning permission was in place by 31st December 2018.

As the Home Renovation Incentive (HRI) scheme is now finished, we can now take a look at the figures behind this successful scheme.

The HRI scheme was a tax relief available to homeowners, for home improvements and repairs carried out in their property. To qualify, homeowners had to be

  • Taxed under PAYE or self-assessment
  • Local Property tax payments up to date and
  • Work carried out was by HRI qualifying contractors

Between 2013 – 2019, there were over €73,000 homeowners availing of the HRI relief on over 98,000 properties. The total value of these works totaled over €2.5billion with the average improvements valued at nearly €17,000.

You can check your own HRI claims, through MyAccount on the Revenue website.

While you’re here, why not catch up on our recent blogs here

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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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Revenue advising taxpayers to claim their entitlements before 31 December Deadline

Revenue has written to over 125,000 PAYE taxpayers

that have not claimed any additional tax credits/reliefs in the previous four years, reminding them to claim their entitlements for the year 2014 before 31st December 2018.

 

As you may be aware, there is a four-year time limit on claiming tax back on for example; medical expenses,

tuition fees and for claiming tax credits/reliefs on, for example, home carer’s credit.

 

If you have a claim for 2014, you need to submit this by 31st December.

Generally, Revenue are issuing refunds within 5 days so there is still time to claim yours before Christmas!

 

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

 

Should you have any queries on this issue, please contact us on 01 5397999

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