The Tax Department
only to file your tax return!
 

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01 8527784

 

Who are you?

Employee

You may think that as an employee or ‘PAYE worker’ that every area of your taxes are handled by your employer. Most of your tax is but even then mistakes can be made and you may end up paying an incorrect amount of tax (too much, or too little).

Basically, your tax credits and SRCOP (standard rate cut-off point, the amount up to which you pay tax at the lower rate on, which is currently 20%) are sent by Revenue to your employer. Your payroll department then applies the tax credits and SRCOPs to your pay and deducts the necessary amount of tax. However, if Revenue aren’t aware of all your entitlements then your salary may be over-taxed.

Some of the common tax credits that people miss out on include:

  • Medical Insurance Premiums
  • One Parent tax credit
  • Dependant Relative tax credit
  • Home Carer’s tax credit
  • Rent tax credit
  • Flat Rate Expenses credit
  • Blind Person’s tax credit
  • Service Charges tax credit
  • Trade Union Subs tax credit

Remember, tax credits are amounts of money you don’t pay any tax on (ie tax free) each year. So, even adding a few of these tax credits to your tax certificate of credits could easily put more money in your pocket. Wouldn’t that be nice for a change!

Also, bear in mind that we can review your taxes with Revenue for the last 4 years

An employee may also receive stock options, shares and RSUs (restricted stock units). We work with employees all over Ireland advising them on the tax treatment of each type of award.

Remember if you have income other than your salary and it is not coded into your tax credits or exceeds €3,174 then you will be required by Revenue to submit an annual tax return.

How can we help?

Having one of our friendly tax experts carry out a full review of your tax credits and allowances could result in a nice refund from Revenue. Not only that, we can explain your taxes to you in plain English, with no jargon so you understand exactly what we’re doing for you. Also, based on the information you give us we may find other tax credits, allowances or savings which you were not aware of.

So, call us now on 01 8527784 to book your FREE tax consultation.


Self-Employed

The key difference between an employee and a self-employed person (or Sole Trader) is that your taxes are dealt with on a yearly basis, as part of your tax return. This is because as a self-employed person you are under the Revenue “self-assessment” system . The income of a sole trader is classed as either “Schedule D Case I or II”, being from a trade or profession.

Being self-assessed means you must submit a tax return (Form 11) every year to Revenue, outlining your income, expenses and profit (if any). You must pay tax on your profit and file your tax return by the 31st of October each year (Revenue recently extended this deadline to the second week in November, but only for people who submit their return electronically using the Revenue Online System or ROS).

You may however deduct certain expenses from your income, as long as they were “wholly and exclusively incurred” for your trade or profession. There is no set list of allowable expenses though our tax experts can advise you as to what may be allowed as a deduction.

you are not entitled to the PAYE tax credit of €1,650 (2014) and have a different PRSI class, payment levels and entitlements to social welfare benefits.

Unlike an employee, a sole trader may register for VAT also. This may enable you to claim VAT on your business purchases but means you may have to charge your customers VAT and pass it to Revenue. There are thresholds under which you are not obliged to register for VAT. This is turnover/revenue of €37,500 in 2014 for those providing services.

How can we help?

If you are already self-employed or thinking of becoming self-employed then we strongly suggest you speak with one of our tax advisers. It could save you a lot of money and stress in the future. We can help get you registered as sole trader, as well as for VAT and as an employer. We can also do your annual tax returns and advise you along the way.

So, call us now on 01 8527784 to book your FREE tax consultation.


Company Director

A company director is often thought of as self-employed yet a company is considered separate to a sole-trader so a company director is also an employee in this case. Unfortunately however, a company director is not entitled to the PAYE tax credit.

A company director is obliged to file a self-assessment return every year, in the same way a sole-trader must. A non-proprietary director (someone who owns less than 15% of the shares in the company) must submit a Form 12 while a non-proprietary director must file a Form 11.

Also, a proprietary company director is treated differently for PRSI from a PAYE worker. He/She will pay PRSI at a different level, as Class “S” and will therefore have different entitlements to social welfare benefits.

On the other hand a company director may have more options when it comes to retirement planning. The company may contribute tax efficiently to their pension plan (by getting 12.5% corporation tax relief), as can the director, at the higher rate of tax, as an employee of the company. The benefit of being a company director in this case is that the company may fund for a pension several times his/her salary, up to certain limits.

A company director may also receive stock options and RSUs (restricted stock units). We work with directors all over Ireland advising them on the tax treatment of each type of award.

How can we help?

If you are a company director or are planning to become a company director in the near future then why not speak with one of our tax advisers (who are all Qualified Financial Advisers too by the way). We can help you make the most of your position as well as process your annual tax returns and advise you along the way.

So, call us now on 01 8527784 to book your FREE tax consultation.


Retired

If you have retired from employment (or indeed from self-employment) then congratulations! We hope that you are enjoying this time in your life.

We’re sure that taxation is the last thing on your mind at retirement. However you’re not out of the tax net just yet. If you are receiving a pension from your former employer then you are receiving what is classed by Revenue as “Schedule E” income which you must pay tax on. The good news is that you will be entitled to the PAYE tax credit, which in 2014 was 1,650.

Revenue have stated that in 2014 you will be exempt from paying income tax if you are over 65 and earning less than €18,000 as a single person and €36,000 as a married couple. Income received above these levels may be entitled to “Marginal Relief”.

Also, if you have deposit accounts that suffer DIRT (deposit interest retention tax) at source then you may also be entitled to reclaim the tax deducted (DIRT tax is currently 41% in Ireland in 2014).

If you are about to retire then we highly recommend you to speak with one of our advisers before doing so. There are a number of ways you may be able to take your retirement benefits. Tax free lump sums, annuities and ARFs/AMRFs can be a bit overwhelming to understand at one time. We take the stress out of planning your retirement. We can advise the most tax efficient ways to take and invest your hard earned money.

So, why not avail of a FREE tax consultation with one of our advisers? You’ll be glad you did.

Call us now on 01 8527784 to arrange a time that suits you.


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All tax services are brought to you by an AITI Chartered Tax Adviser.
OCC Tax Department Ltd trading as The Tax Department. Registered in Ireland number 515203.

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