CACM Accountants — Certified Public Accountants

Dear Reader ,

October is going to be a busy month with the Income Tax deadline fast approaching. It is worth noting that the deadline submission of income tax returns is 31st October 2010. The extended deadline of 16th November 2010 is only available to individuals that both submit the return on ROS (Revenue On Line Service) and pay any liabilities using ROS also. If you file on ROS after the 31st October 2010 and pay your liability by other means, you are not entitled to avail of the extended deadline and can face interest charges as well as a surcharge of 5% (up to 10%), so don’t delay, know your deadline dates and get your income tax returns submitted on time.

With Income Tax on a lot of people’s mind, I have also included some of my top tax tips to help you minimise your tax liability – while there is still some time! For those of you that maybe considering starting your own new business, I am looking at some of the new business start up schemes and assistance that is currently available. If you have any queries or require further information or assistance with any of the topics below, please do not hesitate to contact me on 021 421 7474 or e-mail: info@CACMaccountants.ie Alternatively, you can contact us and keep up to date with our latest news, reminders and events through LinkedIn, Twitter and Facebook. Just click on the links to the left of the page.

Carla Manning ADCA, CPA

KBC Ireland/ESRI Consumer Sentiment Index weakens in August.

The overall KBC Ireland/ESRI Consumer Sentiment Index weakened in August to 61.4. This compares to a figure of 66.2 in July, and a value of 48.7 in August 2009. The August reading remains above the all time low in July 2008 of 39.6.

Commenting on the results David Duffy, ESRI, said
• “Consumer sentiment weakened again in August. The decline is mainly due to a more negative perception by consumers of the current buying climate. This may well reflect a post-summer sales effect.”
• “In general consumers remain cautious. The forward looking Expectations index weakened to 52.1 from 53.1 in July, on the back of a more negative view of the outlook by consumers for the economy. Nearly half of consumers expect no improvement in the economy over the next 12 months”
• The Index of Current conditions, which includes consumer’s perceptions of the buying climate, weakened to 75.3 from 85.7 in July. Again this may be the result of a post-summer sales effect.”

In addition, Austin Hughes, KBC Ireland, noted:
• The broad message from the August sentiment data is one of renewed nervousness among Irish Consumers. The main driver was a sharp pullback in spending intentions. Because this is the most volatile element of the survey, it may be that last month’s drop was exaggerated. However, it is clear that confidence remains very fragile and increased uncertainty is likely to make Irish consumers more cautious, implying downside risks to spending prospects in the months ahead.
• The weakening in the Irish consumer sentiment in August contrasts with improved confidence readings in many other countries. So, domestic factors appear to have played the dominant role. The pull back in the buying climate probably owes something to the end of the summer sales as well as holiday spending and back to school bills. However, weaker sentiment probably also reflects a broader sense of unease that owes much to increased nervousness about the banking and budgetary outlook.


Note:- Since May 2008 the KBC Ireland/ESRI Irish consumer sentiment survey was prepared using a slightly different methodology. While this may have a minor impact on the precise numerical estimates of various survey components, it should not have any significant effect on the broad trend reported.
 

Download the full report here. Size: 34.9Kbytes

Download the Indiceis report here. Size: 28.9 kbytes

RETURN AND PAYMENT DATES FOR THE MONTH OF SEPTEMBER 2010

14th October 2010        PAYE/PRSI:
                                          P30 monthly return and payment for September 2010
                                          P30 quarterly return and payment for July/September 2010 
                                          DWT: Return and payment of DWT for September 2010
                                          PSWT: F30 monthly return and payment for September 2010
                                          RCT: RCT30 monthly return and payment for September 2010
 

21st October 2010        Corporation Tax
                                          Preliminary Tax for Accounting Periods ending between 1st to 30th November 2010
                                          Returns for Accounting Periods ending between 1st to 31st January 2010
                                          Pay balance due on Accounting Periods ending between 1st to 31st January 2010
 

31st October 2010        Returns of Third Party Information for Accounting Periods ending between 1st to 31st January 2010
                                          Income Tax
                                          Payment due for Preliminary Tax 2010
                                          Pay balance of 2009 tax liability
                                          Submission of Return of income for 2009
 

31st October 2010        Capital Gains Tax
                                         Return of Capital Gains for 2009
 

Starting a new business.

If you are unemployed or have recently been made redundant, you maybe considering starting your own business. There are so many things to consider when starting your own business, but the main concern people have is how will they continue to pay the bills while getting your business off the ground? This is particulurly true if you are in receipt of Social Welfare benefits/payments. It maybe useful to know that there are a number of “Back to Work Schemes” in place that help combat this initial start up phase.
The two main schemes are:
1. Back to Work Enterprise Allowance (BTWEA)
2. Short Term Enterprise Allowance (STEA)

People taking part in the Back to Work Enterprise Allowance scheme can keep a percentage of their social welfare payment for up to 2 years, while those participating in the Short Term Enterprise Allowance can receive this allowance for up to 1 year.
1. Back to Work Enterprise Allowance
Since 1st May 2009, you must be unemployed for a period of at least one year and have an underlying entitlement to Jobseekers Allowance to be able to avail of the Back to Work Enterprise Allowance. It must be approved in advance in writing by a Job Facilitator or Partnership Company, are getting a Jobseeker's Allowance for 12 months or have been unemployed for 2 years and getting Jobseeker's Benefit.
Rates
If you take part in the Back to Work Enterprise Allowance scheme from 1 May 2009, new participants will keep the following portions of their social welfare payment, including increases for a qualified adult and qualified children, for a maximum of 2 years:
- 100% for the 1st year
- 75% for the 2nd year.

2. Short-term Enterprise Allowance
The Short-term Enterprise Allowance is a new Back to Work Scheme introduced. There is no qualifying period. You can get immediate access to the allowance but you must meet the qualifying conditions.
To qualify you must have an entitlement to Jobseeker's Benefit and have either 104 paid PRSI contributions or qualify for statutory redundancy. The Short-term Enterprise Allowance will be paid to you for a maximum of 1 year. It will end when your entitlement to Jobseeker's Benefit ends. If you qualify for the Short-term Enterprise Allowance, you will keep 100% of your weekly social welfare payment, including increases for a qualified adult and qualified children.

Assistance with start up business costs.
The Technical Assistance and Training (TAT) Fund is designed to help people getting the Back to Work Enterprise Allowance or the Short Term Enterprise Allowance with certain costs involved starting a business. You do not have an automatic entitlement to TAT - it must be sanctioned by the Jobs Facilitator in your Social Welfare Local Office. Payments from the fund must be made directly to the provider of the service.

Top Tax saving tips
And finally, there is still time to ensure that you can minimise the amount of tax that you have to pay.

1. Tax bands and tax credits – if you are a two income married couple, make sure you are availing of the full tax bands at 20%.
2. Tax credits and reliefs – make sure you are claiming the full tax credits and reliefs which you are entitled to. (eg. medical expenses, home carer’s relief, service charges)
3. Losses – self employed trade and professional losses maybe against other income, including PAYE income, in the same year and unused losses carried forward.
4. Don’t forget to claim the double wage deduction in your accounts for the wages paid to the qualifying employee’s under the Revenue Job Assist scheme.
5. Pension contributions – tax relief is available in respect of pension contributions made up to 31st October 2010 for the year 2009.
6. Capital Acquisitions Tax – A person can receive a gift of up to €3,000 per year from any number of people tax free.
7. Capital Gains Tax – an individual is entitled to an annual exemption of €1,270 in respect of disposals made in the year. No tax is payable on a disposable of €1,270 or less. Offset as far as possible any unused capital gains tax losses coming forward.
8. Make sure you file your return and pay your liabilities by the due dates in order to minimise potential interest charges and prevent surcharges of up to 10% of your tax liability.
We will be happy to assist you with any further queries you may have on this. You can contact us on 021 421 7474 or by e-mail on info@CACMaccountants.ie
 

CACM Accountants strive to offer the best possible service for its clients. With vast business experience, across many business sectors, we will always keep our clients at the heart of our firm.

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