Category: USC


P60

Now is the time you should be receiving a P60 from your employer or pension provider. They are required by Revenue to issue them between 1st January and the 15th February showing your income for 2016.

What information do they show: A P60 shows your name and Personal Public Service number (PPS), as well as your tax credits. Then the gross amount earned for the year together with the tax deducted by your employer and remitted to Revenue.

Your P60 will also show the amount of income for Universal Social Charge (USC) purposes, which is not always the same as the taxable gross income. For instance, if you received some Benefit in Kind it will be added into your USC gross income. The amount of USC deducted by your employer will also be shown.

Then there is the amount of Pay Related Social Insurance (PRSI) deducted as well. This is what your Contributory State Pension (formerly the Old Age Pension) will be based on in due course. It is important that these are recorded correctly by the Department of Social Protection. If you are in any doubt about the number of contributions that you have paid, or what type of deductions have been made for you, you can request a copy of the record of your contributions held by the Department of Social Protection by phoning the PRSI Records Customer Service Team at 1890 690 690.

What do you do with your P60?
This is the information you need to put into your Return of Income Tax for 2016. If you do not send in a return then there is no way for you to know if the correct amounts have been deducted from your salary. I am aware of one company with 3,500 employees, who did not update their employee tax credits when they received a batch of amendments from Revenue. The result was an incorrect amount of tax was deducted and had to be sorted out at the end of the year.

Do you need to send in a tax return?
If you have untaxed income of more than €3,147 then you are required to submit a tax return. If Revenue have written to you to say that you are required to submit a tax return then you should do so. You could also be due a refund e.g. for incorrect tax credits or correct tax credits applied incorrectly, or you may be due a credit against your tax e.g. for medical expenses, so it is a good idea to send in a tax return.

If you send your tax return in now, you will get your refund back immediately. If you owe tax, then you still have until 31st October 2017 to pay it and it is a good idea to know how much it is so you can budget for it.

If you have any problems with any of the above, or if you do not understand it, then you should contact Cliff Kirker.

P60

Now is the time you should be receiving a P60 from your employer or pension provider. They are required by Revenue to issue them between 1st January and the 15th February showing your income for 2015.

What information do they show?
A P60 shows your name and Personal Public Service number (PPS), as well as your tax credits. Then the gross amount earned for the year together with the tax deducted by your employer and remitted to Revenue.
 
Your P60 will also show the amount of income for Universal Social Charge (USC) purposes, which is not always the same as the taxable gross income. For instance, if you received some Benefit in Kind it will be added into your USC gross income. The amount of USC deducted by your employer will also be shown.
 
Then there is the amount of Pay Related Social Insurance (PRSI) deducted as well. This is what your Contributory State Pension (formerly the Old Age Pension) will be based on in due course. It is important that these are recorded correctly by the Department of Social Protection. If you are in any doubt about the number of contributions that you have paid, or what type of deductions have been made by you, you can request a copy of the record of your contributions held by the Department of Social Protection, by phoning the PRSI Records Customer Service Team at 1890 690 690.
 
What do you do with your P60?
This is the information you need to put into your Return of Income Tax for 2015. If you do not send in a return then there is no way for you to know if the correct amounts have been deducted from your salary. I am aware of one company with 3,500 employees, who did not update their employee tax credits when they received a batch of amendments from Revenue. The result was an incorrect amount of tax was deducted and had to be sorted out at the end of the year.
 
Do you need to send in a tax return?
If you have untaxed income of more than €3,147 then you are required to submit a tax return. If Revenue have written to you to say that you are required to submit a tax return then you should do so. You could also be due a refund e.g. for incorrect tax credits or correct tax credits applied incorrectly, or you may be due a credit against your tax e.g. for medical expenses, so it is a good idea to send in a tax return.
 
If you send your tax return in now, you will get your refund back immediately. If you owe tax, then you still have until 31st October 2016 to pay it and it is a good idea to know how much it is so you can budget for it.
 
If you have any problems with any of the above, or if you do not understand it, then you should contact Cliff Kirker.

Deadline• Due date for self-assessed Income Tax and Capital Gains Tax returns for the year of assessment 2014.
• Due date for the payment of any balance of Income Tax for the tax year 2014, if inadequate preliminary tax was paid for 2014.
• Due date for the payment of Preliminary Income Tax (inclusive of USC) for the tax year 2015.
• Due date for the payment of Capital Acquisitions Tax and filing returns in respect of gifts and inheritances taken in the 12 month period ended on 31st August 2015.
• Due date for the payment and return of €200,000 Domicile Levy for 2014.
• Latest date for making contributions to a PRSA, an AVC or an RAC for the tax year 2014.

Some of the above dates are extended to 12th November 2015 if using ROS.

Other relevant dates:

1st November 2015:
Date on which residential property must be held in order to be liable for the 2016 Local Property Tax.

31st December 2015:
General deadline for qualifying work under the Home Renovation Incentive.
Claims for repayments of Income Tax for the year of assessment 2011 must be submitted by this date.

As usual if you have any questions about your tax then contact us.