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Ireland boxes clever as BEPS report is launched

Posted: October 30, 2015 Comment: 0

The Irish Government hails it as a world first for Ireland’s tax regime. Finance experts say it is a timely response to a long-coming turn on tax among the world’s most powerful governments. We think it’s a sensible measure which should help to restore confidence in Ireland’s taxation policies and bring specific benefits to home-grown entrepreneurs.

The Knowledge Development Box (KDB) is a special tax rate applied to income generated from research and development (R&D) activities in Ireland. The idea was introduced at Budget 2015, when the controversial ‘Double Irish’ loophole was closed. It was subjected to a public consultation earlier this year, and then formally announced in the recent Budget.

The KDB will provide “a 6.25% rate of corporation tax to apply to the profits arising to certain patents and copyrighted software which are the result of qualifying R&D carried out by the company qualifying for the relief”, the Government says. This is half of the normal corporation tax rate in Ireland.

What Budget 2016 means for Irish workers and SMEs

Posted: October 29, 2015 Comment: 0

He said it early; he said it loudly. The price of a packet of cigarettes would be raised by 50 cent, but that was “the only tax increase in this Budget”.

On October 13, Finance Minister Michael Noonan unveiled a mixed bag of cuts and reforms to Ireland’s tax regime, targeting low- to middle-income earners, entrepreneurs, farmers, tech investors and the self-employed, but above all, voters, ahead of a General Election.

Income tax rates and bands were untouched in Budget 2016, but, as anticipated, the hated USC was reduced. There were cuts in the 1.5%, 3.5% and 7% USC rates, but the 8% rate was maintained.

This means low to middle income earners can look forward to some extra cash in their pockets in the New Year, and marginal tax rate for workers earning €70,000 will drop below 50% for the first time since 2009. 

From 2016, the self-employed and business owners will be eligible for an “earned income tax credit” of €550, in a move designed to offer PAYE-style credits to those outside the system. It is the first step towards equalising tax treatment between the two groups.

Other measures targeting entrepreneurs and business owners included a reduction to 20% in Capital Gains Tax on the sale of a business worth up to €1m, and an extension of the three-year relief of corporation tax for start-ups commencing business in the next three years.

Join the conversation with @Brady_and_Assoc as B-Day looms

Posted: October 12, 2015 Comment: 0

After months of intense speculation, bitter arguments and pub chat, we now know the answer to one of the nation’s most pressing questions. Yes, Ireland can beat France at a Rugby World Cup.

Tomorrow, after similarly divisive debate, we’ll get some answers on what is to many a much more important question: After seven years of devastating austerity, and facing into General Election, what kind of tax and spending plans will the Government outline for 2016?

From 2pm on Tuesday, October 13, Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin take centre stage at Leinster House, to unveil those plans.

Kites, caution and a cracking report from the ITI

Posted: October 02, 2015 Comment: 0

As Budget 2016 takes over the talk in the media, watercoolers and pubs, the Government has been pushing out the press releases on what might be in store for October 13 and beyond. Official bodies and state agencies have also weighed in, while lobbyists from all sectors have been airing their varied cases.

This comes amid a torrent of good news stories about the economy – from the media and officialdom alike. Reports of overflowing State coffers, continually upward revisions to growth forecasts, and announcements of capital expenditure projects worth tens of billions would make you think Charlie McCreevy was about to appear on Six-One news.

Exciting times for entrepreneurs at Startup Gathering 2015

Posted: October 02, 2015 Comment: 0

The Web Summit might be leaving Irish shores, but another event that could prove critical to the startup sector – Startup Gathering 2015 – is about to land.

Borrowing its title from the hugely successful tourism initiative of 2015, the nationwide event kicks off on Monday October 5 and winds its way through five major Irish cities until Friday October 10. A series of regional events will also take place in smaller towns throughout the week.

The Startup Gathering is about “celebrating entrepreneurs, the change makers, the job creators, the ‘let’s make it happen’ people who launch businesses, bring ideas to life and drive economic growth”, organisers say.

Organised by Startup Ireland, and with support from the Department of Jobs, Enterprise and Innovation, Startup Gathering 2015 is part of the Action Plan for Jobs 2015 and is backed by a host of private and state organisations who work closely with startups, such as Enterprise Ireland, the IDA, Bord Bia and Chambers Ireland.

What do you think about Budget 2016?

Posted: October 02, 2015 Comment: 0

Brady & Associates are launching a very special online survey, to gauge our readers’ reaction to Budget 2016.

We'll be seeking your sentiment on the good, the bad and the ugly after Ministers Noonan and Howlin deliver their much-anticipated announcements.

All responses to the survey are completely confidential, but we’re also asking readers to spread it far and wide through Facebook, LinkedIn, Twitter and Google+, so that we can get a solid set of statistics.

Don't miss this month's newsletter on Budget 2016 and the filing deadline

Posted: September 30, 2015 Comment: 0

With Budget 2016 just a couple of weeks away, the airwaves are filled with talk of tax and spending, and there's never any shortage of opinions on who should emerge with heavier pockets.

Our next newsletter, out this Friday, hones in on some of these discussions, and what they mean for owner-managed businesses, self-assessed taxpayers and entrepreneurs as Messrs Noonan and Howlin prepare for their annual spot in the limelight. It should be more pleasant than those of recent years. 

Noonan's early move to build on HRI 'success'

Posted: September 24, 2015 Comment: 0

The Home Renovation Incentive (HRI) is to be extended until the end of 2016, Finance Minister Michael Noonan said yesterday.

The credit was introduced in Budget 2014 and allows homeowners to claim additional tax credits worth as much as €4,000 when they hire VAT-registered builders to work on their houses.

This news of its extension comes weeks ahead of Budget 2016, and is aimed at encouraging homeowners or landlords who were considering Christmas upgrades to go ahead and start their plans.

To qualify, homeowners must spend between €4,405 and €30,000 on their home improvement project, and they will then be eligible for additional tax credits calculated at 13.5% of the amount spent.

Where do you stand on tax in a changing work environment?

Posted: September 07, 2015 Comment: 0

For many workers today, the idea of a stable 9-5 job that lasts for life is an alien concept. Specialist recruitment contracts – or no contracts at all – are more familiar arrangements in an economy just emerging from a deep recession.

A growing trend among companies to move towards a lean workforce model, scaling up and down depending on business needs, as well as a surge in specialist but short-term opportunities, have disrupted the traditional employment model, and it may never be the same again.

This means many workers are confused as to where they stand with Revenue – are they PAYE, self-employed, or both? And what are the impacts on their filing requirements?

Destination B&A for Irish Airbnb hosts

Posted: September 07, 2015 Comment: 0

Irish Airbnb hosts have been told that the global accommodation company has passed on their details to the Revenue Commissioners. Irish property owners who rent through the online service have been advised to examine their situation ahead of this October’s filing deadline.

Thousands of Irish property owners had registered with Airbnb, with many believing that annual earnings up to €12,000 were tax-free, under the Rent-a-Room scheme introduced in 2002.

But in February this year, Revenue issued a clarification stating that short-term lets to guests, including via “online accommodation sites”, were not included in the plan.

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