Taxation Ch1, Ch7, Ch8

Home Carer Credit

• Home carer - works at home looking after dependent(s)

• Dependent - child for whom the claimant is in receipt of child benefit; 65+; permanently incapacitated. Normally must reside with couple but could be within 2km

• Income <7,200 = max; income 7,200 - 10,800 - restricted 50%

  e.g. 1,800 - ((7400 - 7200) x 0.5) = 1,700

• Must choose between this and the tax band difference where the home carer has any income

Proprietary director

A director that owns more than 15% of share capital of company. Cannot claim PAYE tax credit in respect of company income but can claim Earned Income. Their spouse cannot claim PAYE based on employment with this company. Child can claim if they work full time throughout tax year and have employment income of 4,572 or higher

Incapacitated child

For EACH incapacitated child. If over 18, must have been incapacitated before 21 or when in full time education

Dependent Relative

• Relative or spouse relative incapacitated

• Widowed parent

• Taxpayer is elderly/incapacitated and dependent on their son/daughter who they live with

Rent Tax Credit

20% of rent payment to limits

• Principal residence

• Second home for approved course/work

• Taxpayer’s child - for approved course - under 23 at start of first year

Occupational Pension Scheme

employees make contributions and can deduct through gross salary or PAYE

Personal Pension Plans and Retirement Annuity Contracts

personal plans contributed to by self-employed individuals

Personal Retirement Savings Accounts

employers, employees, and self-employed indivuals can make qualifying contributions

Net relevant earnings (Schedule E)

Employment income less charges

Net relevant earnings (Schedule D)

Trade or profession income less capital allowances, losses and charges

Deed of covenant

• Receiving covenant - perm. incapacitated child from someone other than parent, permanently incapacitated adult, or adult 65+ (5% limit)

• Covenantee - Gross amt case IV, refundable tax credit for tax amt

• Covenantor - Reduce gross from charges on income, pay tax portion (x 20%) right after NRTC

Marginal relief

Excess of limit at 40% - this is the most tax that can be paid and so if their tax comp is higher, limit it to this

Tax credits divided evenly under separate assessment

Age, Permanently Incapacitated child, blind person, personal

Direct Taxation

Taxes on earnings or gains e.g. income tax, corporation tax, capital acquisitions tax, capital gains tax

Indirect Taxation

Taxes on transactions e.g. VAT, Stamp Duty, Customs and Excise Duty

Exempt income

• Child Benefit payment, jobseeker’s allowance, disability allowance

• statutory redundancy

• Lottery/betting

• Qualifying artist income

• Rent a room

• Qualifying childcare up to 15K

• Life assurance proceeds

• An Post saving cert and instalment saving scheme

• 65+ or spouse and income not exceeding relevant limit

Withholding taxes

DIRT 33%, PWT 20%, RCT 0%-35%

Books and records

• Full and accurate records for 6 years after completion of transactions to which they relate and when legal stuff is happening. If you file late, keep until 6 years from tax year when return filed

• Payments and receipts, assets and liabilities, sales and purchases, acquisition/disposal for CGT; linking documents

5 fundamental principles ATI

Integrity, Objectivity, Confidentiality, Professional Competence and Due Care, Professional behaviour

Revenue duties

1) Assessing/collecting/managing taxes

2) Administering Customs regime on EU behalf

3) Cooperating in fight against drugs and other cross dept initiatives

4) Agency work for other governmental departments

5) Collect PRSI for DPS

6) Provision of policy advise on taxation issues

Tax Appeals Commission

Independent statutory body that receives written appeals from taxpayers. They accept cases that are not invalid, that have substance and generally are not late. They adjucate and may have a hearing, and then determine the case outcome. Written notifications to parties will be issued and findings will be published anonymously