Dear Reader,
Please take a couple of minutes of your time to read this. It may be of some help to you.
And the residue of my estate I leave to the cats and dogs home
In your will you have left all your assets by listing them to your children and the residue (the balance you leave to the cats and dogs home). The person making the will testator (male) or testatrix (female) believes that the residue will only be a small amount. In fact in this case there was an asset not listed worth over €100,000. As the asset was not listed it became part of the residue and went to the cats & dogs home. You must be exceptionally careful when making your will and you should go to your solicitor and get professional advice.
Vat Issues:
Budget 2014 brought in new rules with regards to the VAT treatment of unpaid purchase invoices. From 1st January 2014 a person who does not pay their suppliers within 6 months will be required to repay the VAT previously reclaimed.
If you pay your supplier at a later date you can then adjust your vat return and re-claim the vat. Under a revenue audit the revenue are looking closely at this. They can disallow the claim to vat and also charge you Interest and penalties.
Unfair selection for redundancy
If you are reducing your staff level and you want to make a particular person redundant. BE CAREFUL & THINK FIRST:
In selecting a particular employee for redundancy, an employer should apply selection criteria that are reasonable and are applied in a fair manner. Examples of these situations might include where the custom and practice in your workplace has been last in, first out and your selection did not follow this procedure. Another example may be where your contract of employment sets out criteria for selection which were not subsequently followed. Incorrect selection for redundancy can lead to a claim for unfair dismissal which can be costly.
The employment equality legislation also prohibits selection for redundancy that is based on any of the following nine grounds: gender, civil status, family status, age, disability, religious belief, race, sexual orientation or membership of the Traveller community.
Compliance in the Construction Sector:
Revenue will be increasing its ongoing programme of compliance interventions in relation to Relevant Contracts Tax (RCT) and the construction sector in general. Areas they will look at are:
- Payments to sub contractors (Failure to deduct the correct RCT from a sub contractor can lead to you incurring the tax. eg. If you paid €4,000 to a sub contractor when you should have deducted 20% the payment will be grossed up to €5,000 by the revenue and you will be liable for tax of €1,000)
- Recording of sub contractors VAT by the principal on the VAT return (Failure to do this will cause revenue audits)
- Invoices issued by sub contractors to the principal
- Sub contractors that should be classified as employees (Any payments to sub contractors that should be classified as employees will be grossed up and you will be liable for the tax on it, eg. On €1,000 you could be liable for €1,000 tax.)
- Deduction of tax from country money
For more information on the above areas click on the following link
http://www.revenue.ie/en/tax/rct/construction.html
If you would like any further information on the above then please give us a call.
Please feel free to forward this to any of your colleagues.
Sincerely,
McMahon Keyes & Co.
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