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Business/Tax Updates
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McMahon Keyes & Co.
Accountants and Tax Consultants
Statutory Audit Firm
042-9663384

Business/Tax Updates

March 2016
Dear Reader,
Please take a couple of minutes of your time to read this. It may be of some help to you.
 
Insurance Average Clause:
There are many hidden items included in the small print in insurance policies, the average clause  is an obvious one but little understood until disaster strikes. Property should be insured for replacement cost and you should also allow for debris removal etc. You have insured your property for €200,000 and the property is destroyed fully. The builder gives you a quote for re build of €400,000. You might expect to get at least the €200,000 but in fact you will only receive €100,000 as you were only 50% insured you will get 50% of the insurance.
 
Ltd Company or Sole Trader:
Much has been written over the years about the pro's and con's of limited companies. At present there are strong reasons for soletraders or partners to seriously consider the advantages of limited companies.
Some advantages are:
  1. Low company tax rate.
  2. Greater pension payments are possible.
  3. Payment of motor and meal allowances.
  4. Some safeguard of personal assets.
Home Renovation Incentive:
If you are a home owner or landlord and are thinking of carrying out work on your rental accommodation or private home then you may be entitled to get 13.5% back of your bill.
The minimum spend to qualify for the scheme is €5,000 (incl VAT) which would entitle the home-owner to a tax credit of €595. The maximum tax credit available is €4,050, which equates to a spend of €30,000. You can spend more than this, but you won’t get the VAT refunded beyond that amount.
Home-owners who use a compliant contractor can claim the VAT on their renovations over the next two tax years. So 13.5% of what is spent on the property will be returned as a tax credit, 50% the year after you carry out the work and the remainder the following year.
Contractors should ensure that they are registered in order to be eligible for the scheme.
If you are a PAYE worker you will receive your credit evenly across pay dates for each year.
 
Health Expenses:
If you see a €100 euro note on the ground would you pick it up??
Most years clients say no!! You ignore the fact that you can claim relief on your medical expenses. You do not keep the receipts or you cannot be bothered making a list of them. Remember you can only claim for expenses that you have not been re-reimbursed with. So if your medical company pays for them, then you cannot claim them. Certain dental expenses are allowed (non-routine e.g. Crowns, Tip Replacing, Root Canal Treatment, Orthodontic Treatment, etc.
For a full list of what Health Expenses can be claimed please see http://www.revenue.ie/en/tax/it/leaflets/it6.html
If you have not claimed them you can go back 4 years. (so look for those €100 notes)
 
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.
 
Copyright © 2016 McMahon Keyes & Co., All rights reserved.


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