Welcome to the January edition of our bimonthly tax update. In todays issue we have highlighted some tax considerations you should bear in mind for the year ahead.
We hope you'll find the update useful and if you have any queries don't hesitate to contact us by email at email@example.com or call 021 4641400.
Tax Update - 2016 Early Tax Considerations by Dave O'Brien, Tax Director
CGT Payment Date – If you have disposed of an asset which has given rise to a gain during the period 1st December to 31st December 2015, you are obliged to pay Capital Gains Tax on this gain by the 31st January 2016.
Payroll Direct Debits – Please be aware that Direct Debits for Wages or Salaries and payment of PAYE to the Revenue may need to be amended from the 1st January 2016 as a result of changes to USC and PRSI in the most recent budget.
Earned Income Tax Credit – A new Earned Income Tax Credit has been introduced for 2016 which applies to persons with Self – Employed Income or directors who are not entitled to the PAYE Credit on their Salary Income. This credit amounts to €550 per annum. If the above credit applies to you please review your 2016 tax credit certificate from Revenue to ensure it is correctly included.
Home Carer’s Credit – This credit has increased to €1,000 per annum in 2016 from €810 in 2015 where a home carer’s income is below €7,200 (Previously €5,080 in 2015). (Note that a wife or husband staying at home minding the children would be considered a home carer). Again, if the above credit applies to you please review your 2016 tax credit certificate from Revenue to ensure it is correctly included.
Capital Acquisitions Tax Free Thresholds – The lifetime Tax Free Threshold for gifts and inheritance from parents to children has increased from €225,000 to €280,000 and applies to gifts and inheritance taken on or after 14th October 2015.
CGT Entrepreneur Relief – Business Owners can now avail of a lower CGT Rate of 20% (Standard Rate 33%) on the chargeable gains that arise from the disposal or part disposal of their business/company. The reduced rate is subject to a lifetime limit of €1m on such gains. This relief is available from the 1st January 2016.
Should you wish to discuss any of the above further, please do not hesitate to contact the Tax Department on 021-4641400.
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