Top Ten Tax Tips 2017 For Business Owners

Business Buddy’s Top Ten Tax Tips 2017 for Business Owners

At the start of every year business owners are developing their business plans and goals for the year ahead. And so while planning is top of the agenda it makes perfect sense to actively look for tax planning opportunities at the same time. If your net profit percentage is 5% then every €1,000 of tax saved is worth the equivalent of an extra €20,000 in sales to your bottom line.  I set out below my top ten tax tips for 2017.

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Revenue Form 11 Filing Guide

businessbuddy January 31, 2017 No Comments

REVENUE FORM 11 2016 GUIDE – FILE EARLY TO SAVE TAX!

The 2017 tax season has now commenced and all ‘Chargeable Persons’ are required to prepare and submit a 2016 return of income on a Revenue Form 11 or  Form 12 to the Revenue Commissioners on or before the 31st October 2017.

It is practice for Revenue to extend the Form 11 deadline until mid-November where a taxpayer both files his tax return online and pays any liability using the Revenue Online Service (ROS). The extended Form 11 deadline for filing the 2016 returns has not been announced yet.

A Chargeable Person is an individual that is self-employed or has Non-PAYE income where the tax liability cannot be collected by reducing their tax credits under the PAYE system.  

Company Directors, owning more than 15% of the shareholding in the company, are also obliged to complete a Revenue Form 11 each year even if all their income is PAYE.

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Happy Tax Free Christmas Bonus!

businessbuddy December 12, 2016 No Comments

Have a Happy Tax Free Christmas Bonus!

It’s that time of the year again when employers are considering rewarding staff for all their hard work throughout the year. For SME’s this can be a costly exercise, and so if it can be done in a tax efficient manner all the better!

Tax Free Gift Vouchers

Under a current Irish Tax concession known as the Small Benefits Scheme, employers can now reward employees with a non-cash bonus of up to €500 in value completely tax free each year. Provided certain guidelines are followed neither the employer nor the employee will pay PAYE, PRSI or USI, potentially saving €653.65 in tax.

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Tax Refunds for Startups

Startup Tax Refunds for Entrepreneurs (SURE) 

Tax refunds

SURE is a tax refunds for startups incentive scheme for entrepreneurs investing and working full-time in a new business.

How does it work?

The scheme offers a potential income tax refunds of up to 41% of the capital that is invested in a new business. Depending on how much you invest you may be entitled to tax refunds for the six years prior to the investment in the new business.

General conditions

To avail of the SURE scheme you (the “Investor”) must:

  1. Establish a new company carrying on a qualifying trade (the “Company”);
  2. Invest in the Company for the purchase of new shares
  3. Have mainly PAYE income in the previous 4 years. This would include a person currently in PAYE type employment, an unemployed person, a person recently made redundant or a retired person; and
  4. Take up full time employment in the Company either as a director or an employee for a period of at least 12 months.

For Example

Claire makes a qualifying SURE investment of €100,000 in 2016 after being made redundant at the end of 2015.

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New Tax Appeals System

businessbuddy March 21, 2016 No Comments

From today taxpayers that disagree with a decision from a tax inspector will no longer have to lodge an initial appeal with the Revenue Commissioners, instead they can go directly to the new tax appeals system. The change is part of a major reform of the tax appeals system, which comes into law today.

Under the new tax appeals system, the right of the taxpayer to have a full rehearing of a decision in the Circuit Court will also disappear. Both the taxpayer and the Inspector can still appeal to the High Court  but only on a point of law in a decision.

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Sole Trader versus Limited Company?

admin March 21, 2016 No Comments

Selecting a legal entity for your new venture

Sole trader versus limited company ? This is probably the first critical decision you will be faced with at the beginning of your new venture. To a large extent this decision will be determined by the way you want to organise your start-up and whether you intend to work on your own or in conjunction with others.

The legal entity you choose will have a significant impact on the way you are protected under the law, the way your business profits are taxed and the compliance obligations you will face. So lets take a dive into the details of trading as sole trader versus limited company. Read more