Here is the main points from the proposed Finance Bill:
- Property Based Tax Reliefs - The proposed new restrictions on property based Capital Allowances and Section 23 Relief have been deferred until an economic impact study has been completed.
- Benefit-in-kind - Legislation has been brought in to tax, as a benefit-in-kind, subscriptions to professional bodies paid by employers on behalf of employees.
- Income Tax returns - From 2011 onwards self assessment Income Tax returns must be filed one month earlier than heretofore, 30th September.
- Pensions – Under the new provisions the maximum lifetime retirement tax-free lump sum is €200,000 in respect of payment received on or after 1 January 2011. The annual earning limit for self employed pension contributions has been reduced to €150,000 from 2011.
- Third level fees - Tax relief currently available on third level fees will be restricted and the first €2,000 will not be allowable. For fees relating to part-time courses, the first €1,000 will not be allowable.
- Universal Social Charge – The new legislation imposes a charge of 2 % on income up to and including €10,036, a charge of 4 % for income in excess of €10,036 but not greater than €16,016 and a charge of 7 % thereafter.
Corporation tax exemption for start up companies
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This provides for an extension of the 3 year tax relief for start-up companies who commenced to trade in 2011, modifying the existing relief so that the value of the relief will be linked to the amount of Employers’ PRSI paid by a company in an accounting period, taking account of the Employer Job (PRSI) Incentive Scheme, subject to a maximum of €5,000 per employee and an overall limit of €40,000.
- If the amount of qualifying Employers’ PRSI paid by a company in an accounting period is lower than the reduction in corporation tax otherwise applicable, relief will be based on this lower amount.
RCT
A three-rate withholding system has been introduced as outlined in the Budget.
New Year is an ideal time to wipe the slate clean and start something new. While we all make resolutions that we may not necessarily keep, starting a new business is one venture which must be followed through on.
The success of your new business will depend on many different elements but strong foundations can certainly get you off to the right start. A well thought through business plan, will ensure that you know your competition, your target market, the growth required to sustain the business and the finance you require.
Book your place now at our annual Budget Breakfast 2011 which is being held in the Errigal Country Hotel in Cootehill at 7.30am on Wednesday. Email
grainne@amatino.ie for more information.