Using life insurance to beat inheritance tax. Open Gallery 1 If you stand to inherit property or assets from parents but are worried about getting caught in the current inheritance tax 'trap', a life insurance policy might be an effective way to avoid paying the full whack. Over the last few years, the Government has reduced the tax-free threshold for capital acquisitions tax (CAT) to €225,000 for people who stand to inherit assets when their parents die. So if a deceased husband and wife willed their family home worth €1,000,000 to their three children, then (and as long as they had not been living there) they would each be facing an inheritance tax bill of €35,725 on the last death of either spouse, according to Michael Bradley of Clear Financial.
"This begs the question, where do the children find the funds to pay this tax bill? " he said. However, there is a simpler and more cost-effective solution, which is to take out a Section 72 life insurance policy that will pay the tax bill for them. The five things to remember if you're claiming R&D tax credits. Open Gallery 1 1. Remember the deadline: Don't miss out 2. Documentation, documentation, documentation 3.
Understand the science 4. 5. Your questions: Can I write off the cost of an account on my self-employed tax bill? New tax refund scheme announced for start-ups. A new tax refund programme aimed at encouraging more people to start up tThe StartUP Refunds for Entrepreneurs (SURE) initiative allows individuals to obtain a refund from the Government of up to 41 per cent of the capital they invest in establishing their own company over a six-year period. It replacest the much criticised Seed Capital Scheme. The new programme is targeted particularly at individuals in PAYE employment, the unemployed and retired people. “Two thirds of all new jobs across the economy are created by start-ups in their first five years of existence, and that is why we are putting in place a range of new measures specifically aimed at encouraging more people to start their own businesses.
In Ireland we have great start-ups, we just don’t have enough of them,” said Minister for Jobs, Enterprise and Innovation Richard Bruton. The general conditions for SURE are that individuals must: 1) Establish a new company and engage in a qualifying trading activity(s); and, New tax refund scheme announced for start-ups. Operation of PAYE for Non-Resident Employees - Chartered Accountants Ireland. According to Revenue eBrief No. 03/15 an Irish resident employer will not be obliged to apply for a PAYE Exclusion Order in respect of remuneration paid to a non-resident employee in certain circumstances. Where the employee: is not resident in the State for tax purposes,has been recruited abroad,carries out all the duties of employment abroad,is not a director of the employer, andis outside the charge to tax in the State, the employer is not required to apply for an Exclusion Order under section 984 TCA 1997 and accordingly does not need to operate Irish PAYE.
Tax Tips | PKF – FPM. By Ailish Treanor, PKF-FPM Accountants Limited Q: I am a local employer and employ 10 full-time and 5 part-time staff. I process the payroll each week but have not yet sent a Full Payment Submission to HMRC. Can you tell me what this is and if I am exposed to any penalties to date? A: A Full Payment Submission (FPS) is a return to HMRC detailing PAYE, NIC and Student Loan Deductions in each pay period. A FPS must be submitted to HMRC on or before each payment is made to an employee.
From 6th October 2014, new late filing penalties will apply to returns due from employers that have not been submitted on time. Where payment information is not received as expected on an FPS, or you haven’t told HMRC that no employees have been paid in a tax period by sending an Employer Payment Summary (EPS) then, late filing penalties will apply. However, no penalty will arise for the first month in each tax year where there is a filing default. For more details contact: a.treanor@pkffpm.com. Christmas Gifts | PKF – FPM. Question. I run a small company and would like to treat my employees over Christmas as a thank you for their hard work and commitment over the past year.
How I can I do this tax efficiently? Answer. Christmas presents paid in cash to employees will always be taxable at source under Pay as You Earn and are subject to tax and national insurance. The same treatment also extends to vouchers that can be spent in either one or a number of different shops of the employee’s choice. If however employees are given a seasonal present, such as a turkey, an ordinary bottle of wine or a box of chocolates, as long as the cost is trivial, HM Revenue & Customs (HMRC) will not seek to tax it. A mobile phone will not be subject to any tax or national insurance on the individual as it is not classed as a benefit in kind and it is deductible from the total profits of your business when calculating taxable profits.
Do any of your company cars need replaced? Email j.burns@pkffpm.com. The 10 worst budget blows since austerity hit. This Tuesday's Budget is unlikely to be as hard on our pockets as the last seven have been. A tax cut certainly seems to be on the cards. So too do tax breaks for builders - a bid by the Government to step up house building around the country and ease the housing shortage crisis.
It also looks like pensioners will be getting back some of the Christmas bonus - five years after it was dropped. Although these are the first snippets of good news that Irish people have had in the last six years, it will only undo a fraction of the damage done to our pockets since austerity kicked in. Let's not forget just how bad it got. Take-home pay slashed Many workers have seen their take-home pay slashed by about a tenth over the last six years - thanks to the tax hikes which have been thrown at them.
Tax levies were around before the first austerity budget of 2009 - but not to the same extent as they are today. As USC is 7pc for anyone earning more than €16,016, it has hit workers hard. Death tax hiked.