Welcome to our monthly newsletter, TOPICS.
This month it includes the following three Topics:-
- 5 Tax matters
- Recruitment of Job Seekers
- Local Property Tax payment dates
5 Tax matters
Some Budget 2018 measures which take effect from 1st January 2018
- Increase in standard tax band to €34,550 (single) & €43,550 (married one earner)
- Increase in Earned tax credit (proprietary directors / self -employed) to €1,150
- Increase in Home carers tax credit to €1,200
- USC rates 2018 are 0.5%: 2%; 4.75% and 8%
- USC band / threshold No.2 increased to €19,372 (€12,012 to €19,372 at 2%)
- VAT on sunbed services increases to 23%
Invalidity pension & Treatment benefits (limited dental / optical treatments) reinstated for Class S PRSI contributors (proprietary directors / self employed). The full list of class S benefits are listed below:-
Class S benefits
- State Pension (Contributory)
- Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension
- Maternity Benefit
- Adoptive Benefit
- Paternity Benefit
- Treatment Benefit (since March 2017)
- Invalidity Pension (since December 2017)
- Guardian’s Payment (Contributory)
- From 1st of January 2018, where an employer provides a director or an employee with an electric car or van, no taxable benefit will arise for the employee or director. This exemption is limited to cars or vans which derive their power solely from electricity.
- An enhanced scheme of Capital Allowances is also available for expenditure incurred on electric cars. This scheme provides for an accelerated capital allowance, meaning that 100% of the cost can be offset against profits in the year of purchase.
Key Employee Engagement Programme (KEEP):
The recent budget provided for the introduction of the KEEP scheme, which provides for significant tax incentives around share based remuneration incentive schemes for unquoted SME companies. Under this scheme, any qualifying share options under the scheme will be exempt from Income Tax, and rather subject to Capital Gains Tax (CGT) at a rate of 33%, which will only arise on the future disposal of the shares acquired under such as scheme.
Seven Year/Four Year Relief from Capital Gains Tax (CGT):
- A exemption from CGT was introduced in Finance Act 2012 and provides for an exemption from CGT on the disposal of a property that was purchased within the period 7th December 2011 to 31 December 2014. In order to qualify for this exemption, the property must have been held for seven years from the date of acquisition.
- Budgetary changes have now reduced the requisite holding period from 7 years to 4 years, with effect from 1st January 2018. It is crucial that the timing of disposals eligible for this relief are managed correctly for that the relief is not inadvertently lost.
Recruitment of persons receiving Job Seekers benefits
There are a number of supports available to employers who may consider hiring persons who have been receiving Job Seekers benefits or signing for credits over a period of 18 months (over 25s) or 4 months (under age 25)
More information is available from the link below
Local Property Tax 2018 payment dates
1st January 2018 – Date on which you start to pay if you are paying by deduction at source from salary, pension, or certain Government payments, or making regular payments to a payment service provider
10th January 2018 – Latest date for paying in full by cash, cheque, postal order, credit card or debit card
15th January 2018 – Date on which you start to pay if you are paying in instalments by direct debit
21st March 2018– Date on which a bank single debit authority or annual debit authority will be debited