Budget 2011

Jobs Initiative

The Irish Minister for Finance, Michael Noonan, introduced a Jobs Initiative yesterday, designed to improve Irish economic competiveness and stimulate job creation. The Jobs Initiative included a number of measures dealing with business and employment taxes, including: Commitment to keeping the 12.5% Corporation Tax Rate Abolition of Employer’s PRSI charge on share based remuneration Temporary halving of the lower rate of Employer’s PRSI Amendment of the R&D tax credit regime to enhance flexibility in how companies can account for the credit Introduction of a new lower rate of VAT of 9% in respect of tourism-related services Air Travel Tax reduced to zero The measures introduced in the […]
By |May 11th, 2011|Budget 2011, Jobs Initiative, PRSI|Comments Off on Jobs Initiative

Annual membership fees of a professional body

Finance Act 2011 – change to section 118(5E) Taxes Consolidation Act 1997For the tax years 2004 to 2010, Section 118(5E) TCA 1997 provided that expenses incurred by an employer on behalf of an employee in connection with the payment (or reimbursement) of annual membership fees of a professional body were exempt from tax where such membership was regarded as “relevant to the business” of the employer. Following the enactment of Section 7 of the Finance Act 2011, this tax exemption is not available for the tax year 2011 and subsequent tax years. Accordingly, the deductions of tax, PRSI […]
By |March 30th, 2011|Budget 2011, Irish Payroll|Comments Off on Annual membership fees of a professional body

Share-Based Remuneration – Finance Act 2011 Changes

The Budget and Finance Act 2011 made several changes to share-based remuneration, in particular charging certain gains made by employees to universal social charge (USC) and to PRSI. These changes also impact on employers who are to be responsible for deduction and payment of most of the relevant charges. Department of Finance statement on PRSI The Department of Finance published a statement on its website (http://www.finance.gov.ie/) on 14 March 2011 in relation to the ‘grandfathering’ of the new PRSI provisions. This states that the charge to PRSI (both employer and employee) will not apply where share-based remuneration was […]
By |March 28th, 2011|Budget 2011, Irish Payroll|Comments Off on Share-Based Remuneration – Finance Act 2011 Changes

Changes to the operation of Relevant Contracts Tax (RCT)

On Budget day, 7 December 2010, the Minister for Finance announced that significant reforms would be made to the Relevant Contracts Tax (RCT) scheme to enhance its effectiveness, reduce opportunities for fraud and help decrease the administrative burden for businesses and Revenue. The Finance Act (enacted on 6 February 2011) gives a legislative base to the reform of the RCT scheme. The provisions are contained in Section 20 of the Act. In essence, the Finance Act amends the Taxes Consolidation Act in Chapter 2 of Part 18 by inserting twenty-two new sections after Section 530. These sections comprise a […]
By |February 28th, 2011|Budget 2011, RCT|Comments Off on Changes to the operation of Relevant Contracts Tax (RCT)

Special Contributors to PRSI

Following consultations between the Revenue Commissioners and the Department of Social Protection (http://www.welfare.ie/EN/Topics/PRSI/Pages/specindex.aspx), it has been decided that PRSI should be returned through normal P30/P35 procedures in cases subject to PAYE Exclusion Orders. Heretofore, PRSI for these employees were remitted separately to the Special Collections Section in Waterford. This change will simplify the current arrangements where employers must account for PRSI through the Special Collections System and for the Universal Social Charge through the P35 system. This change is effective from the 2011 year. The P30 screen within EuroPayX, […]
By |February 21st, 2011|Budget 2011, PRSI|Comments Off on Special Contributors to PRSI

New changes proposed to USC

The minister for finance Mr Brian Lenihan has said that he will introduce the following changes to the implementation of the Universal Social Charge Medical card holders will not have to pay USC at the top 7% rate only at the lower rates The self-employed will pay an extra 3% surcharge on earnings over €100,000.00 We will post further details as they become available.
By |January 25th, 2011|Budget 2011, USC|Comments Off on New changes proposed to USC

Budget 2011 – Share Schemes

Budget 2011 made a number of changes to the tax treatment of gains arising from various types of share schemes, including making such gains chargeable to the new Universal Social Charge (USC). This note from Revenue outlines these changes and provides some general guidance on their likely impact. Share awards Before Budget 2011, share awards in various forms were dealt with under the self-assessment system. Most other types of perquisites are dealt with under the PAYE system. From 1 January 2011 share awards will be within the PAYE system and will be treated in the same […]
By |December 24th, 2010|Budget 2011, Share Schemes|Comments Off on Budget 2011 – Share Schemes

Budget 2011 – Year-End 2010 Check List

This is check list of reports and functions to be performed in your EuroPayX or PayDay payroll when closing off 2010 Tax Year and entering 2011 Tax Year. For more information see the documentation provided and/or manual. Once again if you have a week 53 ( In 2010 a payroll run date of 31st December) it must be done as a separate payroll  run and not be included in holiday weeks. Import Tax Credit file as downloaded from ROS. (Check that the Tax Registration number on the file is the same as your DataSet.) In 2011 Due to the […]
By |December 20th, 2010|Budget 2011, Check List, Irish Payroll, Year-End|Comments Off on Budget 2011 – Year-End 2010 Check List

EuroPayX and PayDay Budget Update CD’s

Ardbrook will post out the Budget update CD’s for 2011 Today. If you require the update sooner please contact us, you can collect your CD by courier or receive your update via email or by download.
By |December 17th, 2010|Budget 2011, EuroPayX, PayDay|Comments Off on EuroPayX and PayDay Budget Update CD’s

Budget 2011 – PRSI Class K

As part of Budget 2011 Office Holders for the purposes of PRSI are to be assigned to class K. Emoluments paid by public bodies to public office holders. “public office holder” means – (a)        the President,(b)        the holder of a qualifying office, e.g. Ministers(c)        a member of either House of the Oireachtas,(d)        a member of the judiciary,(e)        a military judge appointed under Chapter IVC of Part V of the Defence Act 1954 (amended by the   Defence (Amendment) Act 2007),(f)         a member of a local authority (within the meaning of the Local Government Act 2001),(g)        a member of the European Parliament […]
By |December 16th, 2010|Budget 2011, PRSI|Comments Off on Budget 2011 – PRSI Class K