‘TOPICS’ – October 2017

Welcome to our monthly newsletter, TOPICS.

This month it includes the following three Topics:-

  • 5 Tax savings tips
  • Budget 2018 – The extra bits
  • BREXIT – the latest

5 Tax savings tips

As the income tax ‘file and pay’ deadline (14th November 2017) approaches, listed below are some tax tips to help you reduce your 2016 income tax liability / basis for 2017 preliminary tax.

Once off / additional lump sum pension 

  • Once off / additional lump sum pension / PRSA / AVC contributions can be made to a Revenue approved pension scheme by 14th November 2017 to reduce your 2016 tax liability / basis for preliminary tax 2017.
  • The maximum contributions allowable against tax are subject to a percentage of the taxpayers’ ‘relevant earnings’ and their age and are allowable at their marginal tax rate.

Medical expenses

  • Most medical expenses (excluding ‘routines dental’)  incurred in Ireland and abroad, subject to certain conditions, are allowable as a tax credit against income tax.
  • The claim is reduced by any reimbursement of expenses, for example by a health insurance policy.

Single Person Child Carer Credit (SPCCC) – 

  • You can claim the SPCCC if you care for a child on your own. This child may be your own child, an adopted child or any child that you support and maintain.
  • Only one parent can claim the SPCCC in a tax year. The SPCCC is only granted to one claimant for the full tax year.
  • The value of this tax credit is €1,650 per year. This will reduce the tax you pay by €31.73 per week.
  • You may also be entitled to an increased rate band of €4,000 per annum. This is an additional €4,000 at the 20% tax rate. If you are due the SPCCC, then you are automatically due the increased rate band.

Rent a Room Relief

  • If you let a room in your home, the income you receive may be exempt from tax.
  • The income you receive must not exceed the exemption limit, currently €14,000 per annum (€12,000 for 2016) . If it does then you are taxed on the total amount.
  • See link below for more information.


Tuition fees paid for third level education

  • You can claim tax relief on fees that you have paid for third level education courses. Tuition fees (including the student contribution) qualify for this relief.
  • You may be the student, or you may pay the fees on the student’s behalf.
  • No relief is available for examination fees, registration fees or administration fees.
  • Certain restrictions apply to the amount of the relief claimable. See link below for more information.
  • https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/restrictions.aspx

Budget 2018 – The extra bits

  • Finance Bill 2017 was published yesterday reflecting measures announced in Budget 2018 along with a number of additional tax and anti-avoidance measures.
  • Details some of the provisions announced on Budget Day such as the increase in the rate of stamp duty on non-residential property and also provides details of transitional arrangements where binding contracts were entered into prior to 11 October 2017.
  • A stamp duty refund scheme in relation to land purchased for the development of housing is promised at Committee Stage.
  • In a move to protect the position where family farms are transferred, consanguinity relief is being extended for another three years at a fixed rate of 1 percent and the 67 years age restriction for the relief has been removed.
  • The Bill also legislates for the taxation of mergers and divisions under Companies Act 2014 as well as interest deductions for structures containing holding companies.
  • See link below for more information
  • http://www.finance.gov.ie/wp-content/uploads/2017/10/Finance-Bill-2017-Appendix-List-of-Items.pdf

BREXIT – the latest 

  • EU leaders have gathered in Brussels for a crucial EU Summit and are assessing the progress made so far in the Brexit negotiations.
  • A decision will be made at the end of two days of meetings as to whether the talks can move on to trade.
  • The EU has made it clear that this can only happen if there is sufficient progress made on the financial settlement, citizens’ rights and Northern Ireland.
  • Revenue has published a paper “Ireland and UK – Tax and Customs link” which examines the customs implications of trade flows between Ireland and the UK and the tax contributions of Irish based businesses that have links to the UK.
  • The report looks at the tax paid by businesses in border counties and finds that PAYE and VAT make up the largest contributions, with the biggest employers operating in the agri-food, retail and construction sectors.  The report also notes the importance of multinational companies for Irish tax receipts.
  • In terms of trade, 86 percent of excisable products such as alcohol, tobacco and oils come into Ireland from the UK under the EU duty suspended regime. This is significant.
  • See link below for more  information.
  • https://www.revenue.ie/en/corporate/documents/research/ireland-uk-tax-and-customs-links.pdf