Changing Jobs?

If you are changing your job, (that is, leaving your existing job and commencing a new one), there are a number of steps you should take in relation to tax and social insurance contributions (PRSI). In addition, there are important issues to be aware of, regarding your pension.

Whenever you leave a job you should get a form P45 from your employer. From 2009 you will also be given an Income Levy Certificate for your own records. Your new employer then takes some details from your P45 and then sends your P45 form to the tax office on your behalf. If you do not submit a P45 your new employer will deduct emergency tax.

If you have an occupational pension your benefits from the pension scheme may be preserved within the scheme or transferred to another scheme. Legislation requires that when a member leaves a scheme that they must be provided with a Leaving Service Options letter within 2 months of their exit from the scheme. Before you leave your employment, you should talk to the person in the company who has responsibilty for administering the pension scheme, as each scheme has its own rules.

If you have any comments or queries please use the comments or email link below or visit our website @ http://www.cops.ie

I was Self-Employed, can i claim Job Seekers Allowance?

If you were Self-employed (i.e. your business has to close down) or you continue to be self-employed but your work has reduced so much that it no longer provides you with a sufficient income, you may qualify for a social welfare payment. You do not need to de-register as self-employed to get a social welfare payment.
Self-employed people pay Class S PRSI. Class S PRSI only covers you for certain social welfare payments. It does not cover you for Jobseeker’s Benefit, however, if you worked as an employee in the last 4 years, you may have paid Class A PRSI and should apply to your Social Welfare Local Office for Jobseeker’s Benefit.

You may however be entitled to Jobseeker's Allowance, depending on your earnings from your business. You do not need to close your business or stop working as self-employed for you to get Jobseeker’s Allowance. The allowance is means tested however, and will depend on existing household income, audited accounts from your business will need to be produced. Contact your local Social Welfare office for details.

If you have any comments or queries please use the comments or email link below or visit our website @ http://www.cops.ie

Tax Return Forms, Where can i Find them?

Most of your Tax claim forms can be found on Revenue's website, click here for a full list of available forms to download.

What Medical Expenses Can i Claim?

You may claim tax relief in respect of the cost of certain medical expenses paid by you. You cannot claim tax relief for any expenditure which has been, or will be, reimbursed by another body such as the VHI, Quinn Healthcare etc. Also be aware that claims can be made for the previous 4 tax years. Many people are not aware of certain appliances which can aslo be claimed for, for example; Wheelchair and/or Wheelchair Lift, Exercise bicycle and Computers. You may only claim relief based on the advice of a medical practitioner or where medical evidence indicates that an item is necessary.

Claims can be made via Revenue's PAYE anytime website, by completing form Med 1 or Form 11. There are many more medical expenses you can claim, further articles will be posted shortly.

If you have any comments or queries please use the comments or email link below or visit our website @ http://www.cops.ie/payrolltraining.html

Tax Refunds after Marraige

If the tax you pay as two single people is greater than the tax payable if you were taxed as a married couple, you can claim the difference. If you were married in 2009, any tax refund due to you will be calculated after 31 December 2009. If you get married in 2010, any tax refund due to you will be calculated after 31 December 2010. The standard rate cut-off point for married couples is €45,400 in 2010 (the same rate applied in 2009). This amount is taxed at 20% and the balance is taxed at 41%. Where both spouses have income, this standard rate cut-off point can be increased by the lower of the following:

-€27,400 in 2010 (the same rate applied in 2009) or
-The amount of the income of the spouse with the smaller income.

Example of Taxation of a Married Couple:

Thomas Income €48,000 + Donna's Income €24,000 = €72,000
Standard rate band
Thomas €45,400 x 20%   = €9,080
2,600 x 41%                   = €1,066
Donna €24,000 x 20%      = €4,800
                                     = €14,946

Tax Credits Married Tax Credit  €3,660
PAYE Tax Credit x 2                  €3,660
                                             = €7,320

Tax Payable €14,946 - €7,320 = €7,626

If you have any comments or queries please use the comments or email link below or visit our website @ http://www.cops.ie/payrolltraining.html

What is Benefit-in-Kind on a Car?

The Benefit-in-kind on a car, made available by an employer for an employee's private use, is 30% of the original market value of the car, where the employer also pays for all the normal running costs. The original market value is the cost of the car when purchased new and includes Vehicle Registration Tax. However, if the employee pays any of the following costs, the 30% Benefit-in-kind is reduced by:

4.5% (to 25.5%) where employee pays for all private motoring fuel
3% (to 27%) where employee pays for all insurance
3% (to 27%) where employee pays for all servicing and repairs
1% (to 29%) where employee pays for all road tax.

In effect, if an employee pays all of the above running costs of the car, the Benefit-in-kind is 18.5% of the original market value of the car.

This does not take into account further reductions for buisness mileage, also a new system for calculating the taxable benefit arising from the provision of a company car based on CO2 emissions came into effect from 1 January 2009. It only applies to new cars which are provided after that date. Both will be discussed in a furture article.

If you have any comments or queries please use the comments or email link below or visit our website @ www.cops.ie/benefit-in-kind

Employers' PRSI Exemption Scheme

What does the Employers' PRSI Exemption Scheme mean?
The Employers' PRSI Exemption Scheme means that when you employ eligible workers you will not have to pay your share of their PRSI contributions for the first two years of their employment.
There is no limit to the number of people you can employ under the Scheme. To qualify, the employer must take on an employee who is getting the Back to Work Allowance for the first time on the day he or she starts work with the company.

Click Here for more on the exemption scheme

If you have any comments or queries please use the comments or email link below or visit our website @ www.cops.ie