Friday, November 27, 2009
Flat Rate (employment) Expenses
These are expenses that are incurred in the performance of the duties of the employment and are directly related to the 'nature of the employee's employment'. A standard flat rate expenses allowance (deduction) is set for various classes of employee. For example, airline cabin crews are granted flat rate expenses of €64 per annum. The amount of the deduction is agreed between Revenue and representatives of groups or classes of employees (usually the employees are represented by trade union officials). The agreed deduction is then applied to all employees of the class or group in question.
Cycle to Work Scheme
From 1 January 2009, the provision of bicycles and associated safety equipment by employers to employees and directors who use the bicycles wholly or mainly for travelling to and from work or between work places will be treated as a tax-exempt benefit in-kind.
This tax exemption may only apply once in every 5-year period in respect of any one employee/director. The provision of bicycles/safety equipment must be generally available to all employees and directors. There will be a limit of €1,000 on the amount of expenditure an employer can incur in respect of any one employee/director. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of her or her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented they must be completed over a maximum period of 12 months and the maximum amount that can be forgone is €1,000.
This tax exemption may only apply once in every 5-year period in respect of any one employee/director. The provision of bicycles/safety equipment must be generally available to all employees and directors. There will be a limit of €1,000 on the amount of expenditure an employer can incur in respect of any one employee/director. The scheme may also be implemented via salary sacrifice arrangements, whereby an employee agrees to forego part of her or her salary to cover the costs associated with the purchase of the bicycle and associated safety equipment. Where such salary sacrifice arrangements are implemented they must be completed over a maximum period of 12 months and the maximum amount that can be forgone is €1,000.
Childcare Services Relief
Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare service does not exceed €15,000 in 2007, 2008 or 2009 the income is exempt from tax. The childcare service must be provided in the carer’s home, not the children’s home and no more than 3 children may be cared for at any time.
Taxation of Married People
If you get married, both you and your spouse continue to be treated as single people for tax purposes in that year. If, however, the tax you pay as two single people is greater than the tax that would be payable if you were taxed as a married couple, you can claim the difference. (In other words, you can claim a tax refund). Refunds are only due from the date of marriage and will be calculated after the following 31 December. So for example, if you were married in 2008, any tax refund due to you will be calculated after 31 December 2008. If you get married in 2009, any tax refund due to you will be calculated after 31 December 2009.
Refunds are normally only due where a couple are taxed at different rates and one spouse could benefit from the unused standard rate cut-off point or for some of the unused tax credits of the other spouse.
When you get married therefore, it is important to advise the tax office of the date of your marriage. You will also need to quote your own and your spouse's Personal Public Service (PPS) Number.
For the years following your marriage, there are three options for taxation of married people. All of the options and the outcomes of choosing them are outlined below. The three options are:
-Assessment as a single person (i.e. you are both still taxed as single people)
-Separate assessment
-Joint assessment/aggregation.
Refunds are normally only due where a couple are taxed at different rates and one spouse could benefit from the unused standard rate cut-off point or for some of the unused tax credits of the other spouse.
When you get married therefore, it is important to advise the tax office of the date of your marriage. You will also need to quote your own and your spouse's Personal Public Service (PPS) Number.
For the years following your marriage, there are three options for taxation of married people. All of the options and the outcomes of choosing them are outlined below. The three options are:
-Assessment as a single person (i.e. you are both still taxed as single people)
-Separate assessment
-Joint assessment/aggregation.
Tax relief for disabled drivers and disabled passengers
The Disabled Drivers and Disabled Passengers Scheme provides a range of tax reliefs linked to the purchase and use of vehicles by disabled drivers and disabled passengers in Ireland. Under the terms of the scheme, you can claim remission or repayment of vehicle registration tax (VRT), repayment of value-added tax (VAT) on the purchase of a vehicle and repayment of VAT on the cost of adapting a vehicle, up to a maximum of 9,525 euro for a disabled driver and 15,875 euro for a disabled passenger.
Relief is limited to a vehicle that has been specially constructed or adapted for use by a disabled person and that has an engine size of less than 2,000cc in the case of the driver and 4,000cc in the case of the passenger.
If you qualify for tax relief under the scheme, you can also claim repayment of excise duty on fuel used in your vehicle for the transport of a disabled person, up to a maximum of 600 gallons per year. In addition, if you qualify under the scheme, your vehicle may be exempt from the payment of annual road tax on application to a Motor Tax Office.
Relief is limited to a vehicle that has been specially constructed or adapted for use by a disabled person and that has an engine size of less than 2,000cc in the case of the driver and 4,000cc in the case of the passenger.
If you qualify for tax relief under the scheme, you can also claim repayment of excise duty on fuel used in your vehicle for the transport of a disabled person, up to a maximum of 600 gallons per year. In addition, if you qualify under the scheme, your vehicle may be exempt from the payment of annual road tax on application to a Motor Tax Office.
Unfair Dismissal
A dismissal is considered to be automatically unfair if the employee is dismissed for any of the following reasons:
-Membership or proposed membership of a trade union or engaging in trade union activities, whether within permitted times during work or outside of working hours
-Religious or political opinions
-Legal proceedings against an employer where an employee is a party or a witness
-Race, colour, sexual orientation, age or membership of the Traveller community
-Pregnancy, giving birth or breastfeeding or any matters connected with pregnancy or birth
-Availing of rights under legislation to maternity leave, adoptive leave, carer's leave, parental or force majeure leave
-Unfair selection for redundancy
Under the unfair dismissals legislation, redundancy is considered to be a fair ground for dismissal. However although a redundancy situation exists, you may have grounds for complaint if the manner of your selection for redundancy was unfair. You may qualify to bring a claim for unfair dismissal if you consider that you were unfairly selected for redundancy or consider that a genuine redundancy situation did not exist – see ‘How to apply’ below. Unless your employer can prove there was a genuine redundancy situation and that fair procedures were followed, your dismissal may be found to be unfair. If you make a claim for unfair dismissal, you cannot also claim redundancy.
-Membership or proposed membership of a trade union or engaging in trade union activities, whether within permitted times during work or outside of working hours
-Religious or political opinions
-Legal proceedings against an employer where an employee is a party or a witness
-Race, colour, sexual orientation, age or membership of the Traveller community
-Pregnancy, giving birth or breastfeeding or any matters connected with pregnancy or birth
-Availing of rights under legislation to maternity leave, adoptive leave, carer's leave, parental or force majeure leave
-Unfair selection for redundancy
Under the unfair dismissals legislation, redundancy is considered to be a fair ground for dismissal. However although a redundancy situation exists, you may have grounds for complaint if the manner of your selection for redundancy was unfair. You may qualify to bring a claim for unfair dismissal if you consider that you were unfairly selected for redundancy or consider that a genuine redundancy situation did not exist – see ‘How to apply’ below. Unless your employer can prove there was a genuine redundancy situation and that fair procedures were followed, your dismissal may be found to be unfair. If you make a claim for unfair dismissal, you cannot also claim redundancy.
Short-time working and Jobseeker's Benefit
Example: My working week was reduced to 3 days a while ago and I get Jobseeker’s Benefit (JB) for the days that I don’t work. I have been informed that the JB payment is due to end shortly. Can I re-qualify for this payment after working a 3-day week for the next 13 weeks? What are my options?
This refers to the general rule whereby someone who has used up their entitlement to Jobseeker's Benefit may re-qualify by working and paying the appropriate PRSI contributions for at least 13 weeks.
However, in order to qualify for Jobseeker’s Benefit you need to have suffered a “substantial loss of employment”. When you originally went on a reduced working week you would have satisfied this condition. However, if your employment pattern has not changed during the course of your JB claim you are now classified as a part-time worker for the purposes of assessing any new claim. As a result, the 3 days that you don’t work will no longer be regarded as substantial loss of employment, and you will not re-qualify for Jobseeker’s Benefit after 13 weeks of part-time work.
Depending on your earnings and your family circumstances, you may be able to apply for Jobseeker’s Allowance for the 3 days that you don’t work. Alternatively, you may qualify for Family Income Supplement (FIS) which is a payment from the Department of Social and Family Affairs to help people at work on low incomes to support their families.
This refers to the general rule whereby someone who has used up their entitlement to Jobseeker's Benefit may re-qualify by working and paying the appropriate PRSI contributions for at least 13 weeks.
However, in order to qualify for Jobseeker’s Benefit you need to have suffered a “substantial loss of employment”. When you originally went on a reduced working week you would have satisfied this condition. However, if your employment pattern has not changed during the course of your JB claim you are now classified as a part-time worker for the purposes of assessing any new claim. As a result, the 3 days that you don’t work will no longer be regarded as substantial loss of employment, and you will not re-qualify for Jobseeker’s Benefit after 13 weeks of part-time work.
Depending on your earnings and your family circumstances, you may be able to apply for Jobseeker’s Allowance for the 3 days that you don’t work. Alternatively, you may qualify for Family Income Supplement (FIS) which is a payment from the Department of Social and Family Affairs to help people at work on low incomes to support their families.
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