Taxworld blog

    Taxworld blog

    Alan Moore

    Founder and CEO of Taxworld LTD, Chartered Tax Adviser
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    Recent Posts

    How can you reduce your tax bill by 90%?

    Posted by Alan Moore on 07 January 2019

     

    If you could reduce your tax bill by 90% you would, wouldn't you? In the world of tax there is a taxable reduction known as agricultural relief and it can reduce your tax bill by a gigantic amount!

    To many people being told that they are entitled to this relief is life transformative. The worst case scenario is that they inherit or are gifted a farm and they aren't entitled to the relief. Such a situation can leave people with an unmanageable liability.

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    Topics: tax advice, tax-guide, tax saving, active farmer, 80% rule, CAT

    What qualifies for artists exemption?

    Posted by Alan Moore on 21 December 2018

     

     

     

      

    Dealing with your tax affairs can be a stressful business and it can be particularly stressful for struggling artists. But these struggles need not always be the case because over the years artistic exemption, which was brought in by the late Taoiseach Charles Haughey, has proved to be a lifeline for many artists.

     

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    Topics: Income tax, tax-guide, tax return advice, tax return help, tax back ireland

    Budget 2019

    Posted by Alan Moore on 10 October 2018

    Download budget 2019 summary by clicking here

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    Topics: Income tax, budget 2019, VAT, Corporation tax, CGT

    Non-resident landlords - tax rate

    Posted by Alan Moore on 31 August 2018

    The default rule is that the tenant must withhold 20% from the gross rent, pay it to Revenue, and give the landlord a receipt for the tax deducted: TCA 1997 s 1041; form R185

    The 20% withholding tax can be avoided if the foreign landlord appoints an Irish agent to collect the rent on behalf of the non-resident.

    The Irish agent will receive a tax assessment on behalf of the non-resident: TCA 1997 s 1034

    If the landlord is a foreign company, e.g., a Hong Kong company, with no place of business in Ireland, the landlord must pay Irish income tax (not corporation tax) on a self-assessment basis at 20%. This 20% rate applies to the net profit after expenses. The 20% withholding tax is available as a credit against the landlord’s tax liability.

    If the landlord is a foreign individual, e.g., a UK resident, not resident in Ireland, the landlord must pay Irish income tax at 20% up to the standard rate band limit (€34,550 if single; €38,550 if single parent; €43,550 for married couple) and at 40% on the excess. Income tax applies to the net profit after expenses. The 20% withholding tax is available as a credit against the landlord’s tax liability.

    If the net income exceeds €13,000, the landlord is subject to USC ( first €12,012: 0.5%; next €7,360: 2%; next €50,672: 4.75%; balance: 8%).

    The income is not subject to PRSI: Social Welfare Consolidation Act 2005 Schedule 1 Part 3:

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    Topics: Income tax

    Does US social security pension qualify for employee tax credit or earned income credit?

    Posted by Alan Moore on 18 August 2018

    Probably... see https://www.taxworld.ie/answers/paye-creditearned-income-credit/

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    Topics: Income tax

    VAT - transfer of business relief - property

    Posted by Alan Moore on 31 July 2018

    Revenue has updated its guidance in relation to transfer of business relief. Download the guide

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    Topics: VAT

    Father's name on house - beneficial owner?

    Posted by Alan Moore on 06 July 2018

    Daughter took out a mortgage 15 years ago and the lender required that the father's name be put on the deed and on the mortgage. The daughter paid all the mortgage repayments and now wishes to regularise the situation by transferring title into her sole name (with lender's agreement). Is father subject to CGT? is she subject to CAT? Stamp duty?

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    Topics: Stamp duty, Capital gains tax, CAT

    Company selling second hand property it has refurbished, redeveloped or improved - 25% or 12.5%?

    Posted by Alan Moore on 19 June 2018
    Interesting question today.
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    Topics: Corporation tax

    VAT simplification procedure (triangulation)

    Posted by Alan Moore on 16 June 2018
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    Taxable person and accountable person

    Posted by Alan Moore on 08 June 2018

    This handy diagram helps you remember the difference between the two. If you have not already done so, download your free tax guide 2018 by clicking here.

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    Topics: VAT