February 2019 Tax Deadline

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Brexit – Initial Impact

As the UK embarks on leaving the EU today 24th June 2016, the risk and uncertainty for business will be long-lasting.

However, the negotiation of a potential exit in itself will take many years and it will be difficult to quantify the impact on Ireland until the UK decides on its possible exit scenarios.

For example, the UK may adapt the Norwegian Model which comprises of the following:

  • The UK joins the European Economic Area .
  • Maintains access to the single market.
  • Still makes a substantial contribution to the EU budget .
  • Must comply with EU standards and regulations over which it will have little influence.

Economic Impacts

At the date of this article, we consider the most important economic risks of Brexit to be in the following areas:

Exchange Rate

  • The immediate effect of the exit vote is evident in the Sterling exchange rate and we expect it to become more volatile. This would make our exports to the UK more expensive, although our imports would be cheaper.

People and mobility

  • The exit from the EU is likely to lead to restrictions on immigration to the UK (and vice versa). EU citizens may need to obtain permission to work in the UK under rules similar to the current immigration requirements for non-EU citizens. This could have a significant impact on Irish citizens.

Time Management at the Ftizwilliam Lawn Tennis Club

BMH hosted a presentation with Flor McCarthy in Fitzwilliam Lawn Tennis Club on 09th June last.

Flor is the author of “The Solicitors Guide to Marketing and Growing a Business”.

The evening was a great success and we would like to thank all those who attended.

Changes to Rental Income

100% mortgage interest deduction will be allowable for landlords who let their property for social housing for a period of 3 years with effect from 1 Jan 2016. The first year that the claim can be made will be 2019 for the accrued 25% interest for 2016, 2017 & 2018. If you require any further information, contact Rachel Chambers on 01-6619142.

Guillotine Provision – Unused Capital Allowances

With effect from 1 January 2015, any unused capital allowances which are carried forward beyond the tax life of the building or structure to which they relate are immediately lost.

Essentially, this means that if the tax life has ended at any time up to the end of 2014, then the unused allowances are lost in 2015. On the other hand, if the tax life is due to end later than 2014 then the allowances are lost in the year following that in which the tax life of the building expires.

If you require further information on the impact of these provisions for you, please do not hesitate to contact us.

Revenue focus on Construction Sector tax compliance

With the upturn in the construction sector, Revenue have increased their focus on the sector to ensure compliance in a number of areas as follows:

  • The correct operation of the Reverse Charge basis of VAT between Principal & Subcontractors.
  • The correct operation of RCT.
  • The correct operation of PAYE/PRSI.
  • Ensuring employees are not misclassified as subcontractors.

This increased focus by Revenue will be carried out by means of additional aspect queries, profile interviews, audits and site visits.

If you have any concerns in this area and wish to discuss it further please contact Jon Byrne or Rachel Chambers.

Increase in Parent to Child CAT Threshold

The parent to child Gift/Inheritance Tax threshold has increased from €225,000 to €280,000. If you wish to discuss some estate planning measures please contact Jim Murphy on jim.murphy@bromu.ie or Rachel Chambers on rachel.chambers@bromu.ie

Personal Insolvency – Increase in the ceiling for a Debt Relief Notice

The Personal Insolvency (Amendment) Act 2015 provides for an increase in the ceiling for a Debt Relief Notice from €20,000.00 to €35,000.00. This provision takes effect from 29th of September 2015.

Bookkeeping & Payroll

We know how important it is for business owners to focus on the real issues facing their business. We now provide business owners with effective solutions to free up their time to do just that by providing full Bookkeeping and Payroll services. Please fell free to contact Frank Walsh on 01-6619142 to find out more.

CAT treatment of receipts by children from their parents for their Support, Maintenance or Education

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