CAB Breakfast Briefing21 September 2007

Brian Keegan

Director of Taxation

Overview

•Looking After Employees•Return of Income – Me?•Recent changes on some key tax reliefs•Current developments

Employees – what’s left?

Travel Passes – not a salary sacrificeMobile Phone – private use “incidental”Broadband - private use “incidental”Home telephone – provided a business element, tax on 50% of the costCourse fees, exam fees, professional subs –

“directly related”Small Benefits - €250, no PAYE or PRSI

Returns of Income – Forms 11

•A company•Non-PAYE taxpayers•Most company directors•PAYE taxpayers with gross non-PAYE income of less than €50,000 and a net assessable income thereon of more than €3,174.•PAYE taxpayers also in receipt of gross non-PAYE Income of €50,000

Rented Residential Accommodation

•Interest Relief•Now contingent on registration with Private

Residential Tenancies Board•Effective 2006 – filing date 2007•Self assessment – might only be picked up in the context of an audit or repayment certification

Implications

•Filing Date 31 October or 15 November (ROS)•Preliminary Tax•Tax Surcharge if late, with no credit for PAYE paid•Be careful of Capital Gains Tax!

Tax Relief - changes

•Med 1 Claims– Think about the claimant– De minimis is gone this year

•Business Expansion Scheme– New Limits– Grant Aid and BES

Current Developments

•Revenue Audit Programme– REAP– Aspect Enquiries– Single Premium Insurance Policies

•VAT on Property– New regime from Finance Act 2008– Capital Goods Scheme

Current Developments (Continued)

•Mandatory Electronic Filing and Payment– Accounts menus for all– Consultation and Phasing in

•Preliminary Corporation Tax– “Small” Company Treatment– “Grouping” for larger companies

•PAYE– Exposures for Proprietary Directors– Cross Border issues

Northern Ireland

•The “Varney” Review•12.5% rate of CT?•Brussels•Tax Avoidance

Pre Budget Considerations

•Preliminary Corporation Tax•Levy on ARFs•Revenue Audits•R&D enhancements