November 2013 Newsletter
No change to Pay and File Deadline
The Minister for Finance issued a statement on Wednesday afternoon that there will be no changes to the pay and file regime in 2014.
This follows a consultation process on proposals by the government to bring forward the pay and file date from October/November to September or June.
However, according to the Minister’s statement changes to the pay and file regime are still planned and will take effect in 2015. The supporting legislation will be included in next year’s Finance Act.
Reduced Frequency of Filing Tax Returns and Payments
Revenue contacted businesses regarding their eligibility for a reduction in the frequency of filing their VAT, PAYE/PRSI, & RCT tax returns and payments from 1 January 2014.
This will mean that eligible businesses will only have to make payments at the end of each 3, 4 or 6 monthly period, as appropriate.
The criteria for less frequent filings are as follows:
Total annual VAT payments of less than €3,000 are eligible to file VAT returns and make payments on a 6 monthly basis;
Total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make payments on a 4 monthly basis;
Total annual PAYE/PRSI payments of up to €28,800 are eligible to make payments on a 3 monthly basis;
Total annual RCT payments of up to €28,800 are eligible to file RCT returns and make payments on a 3 monthly basis.
LPT Exemption
The LPT First Time Buyer Exemption extends to all property buyers in 2013, who occupy the property as their main residence. The exemption was originally only to apply to first-time buyers and those who bought new or unoccupied property.
The extension is a result of a legislative drafting error and the impact is that anybody who purchases a property in the period 1 January 2013 to 31 December 2013 and occupies the property as their sole or main residence can claim the exemption from local property tax as provided for in section 8 of the legislation.
According to the Revenue Local Property Tax Manual “properties bought in the period 1 January 2013 to 1 May 2013 by ‘non first-time buyers’ who filed a return and paid LPT for 2013 as they did not realise that the property was exempt are entitled to a refund of the tax paid. Revenue will be contacting those concerned as soon as possible”.
Guidance on new Home Renovation Incentive
Guidance from Revenue on the new Home Renovation Incentive covers general information on the scheme, specific information for homeowners and for builders, and details on how the online system will operate. The guidance is published on the Revenue website.
General Guide to Tax for People with Disabilities
This guide from Revenue sets out details of the credits that may be available and how an individual can claim such credits. Information on exemption from tax for certain income and gains is also covered. The guide, IT12, is published on the Revenue website.
Social Welfare and Pensions Act 2013
The Social Welfare and Pensions Act 2013 (Act No. 38 of 2013) was signed on 9 November, 2013 The Act provides for the abolition of the exemption from PRSI applying to chargeable persons whose only additional income is unearned income i.e. investment income, from 1 January 2014. The Act will be available on the Oireachtas website in due course.
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