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Christmas Quiz 2017

If you know everything about tax, then this quiz is for you. But – if you know nothing about tax, then this quiz is also for you!

1. What do the letters PAYE stand for?

 
 
 

2. Which of the following are the rates for Income Tax:

 
 
 

3. The date of payment for Capital Gains Tax for the period 1st January 2017 to 30th November 2017 is/was:

 
 
 

4. In an effort to help climate change and reduce electricity consumption, the Government intend, in 2018, to reduce VAT on Christmas Tree lights which have fewer than 50 lights in a set to:

 
 
 

5. What do the letters ROS stand for?

 
 
 

6. The average yearly number of PRSI contributions (since you started working) necessary to get the full Contributory State Pension is:

 
 
 

7. Santa Claus is entitled to claim travel expenses from his home in the North Pole to his first house call on Christmas Eve.

 
 
 

8. Directors / Trustees of charities are responsible for how their charity is governed.

 
 
 

9. From 1st January 2018 there is no Benefit in Kind where an employer gives an employee a hybrid car to use.

 
 
 

10. The correct VAT rate on Christmas Puddings is:

 
 
 

11. The tax credit that most frequently NOT claimed is:

 
 
 

12. What do the letters HRI stand for?

 
 
 

13. A “toll” is:

 
 
 

14. A registered Irish charity who has received €250 or more from an individual in one year, is entitled to reclaim tax from Revenue.

 
 
 

15. If you are a PAYE earner you do not have  to send in an Income Tax return every year.

 

 
 
 

Question 1 of 15

1 cent and 2 cent coins will soon be history. From the end of October 2015 retailers will be rounding your bill up or down to the nearest 5c, thus eliminating the need for the 1c and 2c. This will apply to the final total on your bill, not the individual cost of items. You will still find an item costing 99cent and that will remain.

You will not be asked about this. As long as there is a public notice in the shop, the retailer can round your bill up or down to the nearest 5c. Notices will start appearing in mid-October as the public are informed about the change.

Experiments have been on-going in the South East and proved to be cost-effective and are now being extended country-wide.

The following shows the effect:
Bills ending in 1c will change to 0c.1-cent 2-cent
Bills ending in 2c will change to 0c.
Bills ending in 3c will change to 5c.
Bills ending in 4c will change to 5c.
Bills ending in 5c will still end in 5c.
Bills ending in 6c will change to 5c.
Bills ending in 7c will change to 5c.
Bills ending in 8c will change to 10c.
Bills ending in 9c will change to 10c.
Bills ending in 10c will still end in 10c.

What to do if you have 1c or 2c
You will still be able to use these in shops e.g. 2 X 2c and 1 X 1c to make 5c. As the shops take them in they will be lodged in the banks. The banks will pass them on to the Central Bank who will withdraw them from circulation.

Many of these coins end up in charity piggy banks which means that many new ones had to be minted which put costs up. These piggy banks can be emptied and the contents lodged in the banks.

There will be a substantial amount of time where the coins still remain legal tender and so can still be used.

The deadline for sorting out your rental income through Airbnb is looming. Any income earned in 2014 needs to be entered on your 2014 Income Tax return which is due to be filed by 31st October 2015.

If you are not in the habit of filing Income Tax returns then you need to start now. Don’t leave it until the end of October as you will need to register for filing online and this takes up to two weeks. You will have a penalty to pay if your return is late.

If you have already filed then you need to send in your rental details and ask for an Amended Assessment.photo

2013 Income
If you had income in 2013 which you have not declared, then you need to declare it now, before Revenue come to you. Otherwise the penalties and interest you have to pay will be a lot steeper.

2015 Income
You need to be setting aside up to 58% to pay your Income Tax when it becomes due.

You cannot afford to ignore this. As you know, Airbnb are supplying names and addresses to Revenue of all those who rent out a room / house through them so Revenue will most certainly be aware of the income. If you do not go to Revenue first, they will come to you, and the result will not be pleasant!

Capital Gains Tax
Be aware that if you are renting part of your Principal Private Residence then you may have a Capital Gains Tax liability if you sell your premises. Normally, there is no liability on your Principal Private Residence but there may be on the part used for a business (in this case renting).

Rent A Room Allowance
Please see the separate blog below about this. It is a connected area and can cause confusion.

If you have any questions about any of the above or if you want help to get your tax affairs sorted out, then please Contact us.

With the first round college offers out, it is timely to be reminded of a tax credit that is often forgotten about. This is a tax credit in respect of tuition fees for third level tuition fees.

Tax relief at the standard rate of income tax (20%) is available for tuition fees which includes the Student Contribution but does not include examination fees, registration fees and administration fees.Mortar Board

The maximum limit on such qualifying fees for the academic years 2014/2015 is €7,000 per individual per course.

Some of the qualifying tuition fees are disregarded in respect of each claim and these are:

(Where any one of the students in respect of whom relief is claimed is a full-time student)
2014 €2,750
2015 €3,000

If you have one student doing a full time course in 2015 then the first €3,000 of their fees is disregarded. If you have two students doing courses then any amount above €3,000 and below €14,000 will be allowed.

Where fees are paid in instalments and any such amounts are paid in a tax year following the year in which the academic year of the approved course commenced, the relief for fees relating to that academic year may be granted either:
• in the tax year during which the academic year of the approved course commenced or
• in the tax year in which the instalment was paid.

However, relief will only be granted in respect of amounts actually paid, subject to the maximum relief available in that academic year.

Therefore if some of the fee is paid in September 2015 and some in January 2016, both can be added together in 2015 and a tax credit claimed, or the amount paid in January 2016 can be added to any further fees paid in 2016 and claimed in 2016 instead.

Relief can also be claimed for part-time courses but these amounts are less.

Questions
As usual, if you have any questions about this area, then please Contact us.

Post Codes

The new post codes will bring major benefits to both the Irish business world and private individuals. Codes will identify not just a locality but an individual address, whether that is a house, bungalow, apartment or office. There are 2.2 million residential and business addresses in Ireland including both urban areas and rural areas and each will receive a unique code.

The new codes are called Eircodes and will consist of seven letters and numbers e.g. B45 C5G7. The first part, B45 in this example, is known as a Routing Key and consists of three characters and defines a principal post town span of delivery. The second part, C5G7 in this example, is known as a Unique Identifier and is unique to an address and distinguishes one address from another.

The correct way to write it is with a space after the first three characters. It is placed after the address for Irish addresses or above the word Ireland in international communications e.g.

45 Sample Road

Glenageary

Co DublinPost code

C39 D2K4

 

Or

37 Main Road

Cork

D33 G4K2

Ireland

 

Eircode is launching within the next two months. During the launch phase, all residential and business addresses will receive a letter notifying them of the Eircode for their address. Addresses themselves will not be changing, an Eircode will simply be added to current addresses.

Individuals will not need to do anything. Businesses will need to change their headed notepaper and signage where required as well as changing calling cards, advertising, customer forms and also websites and anywhere else their address is shown.

There is no deadline for changes to be made. We will find that businesses will be asking for the codes to assist with deliveries or location for taxi drivers or the emergency services so they will be increasingly used.

There is no way your house can be mixed up with your neighbour’s as the last four characters of the code will be completely different from your neighbour’s characters, i.e. they will not be sequential, so a bad figure in the code will not result in your neighbour receiving your delivery.

If you chose to ignore all this you may find that the next time you phone up and order your pizza the delivery person may not be able to find your house!!

To find out more see www.eircode.ie .