Income Tax

Finance Bill 2025, Increased Revenue Powers, Income Tax and Corporation Tax

The Minister for Finance, Paschal Donohoe, published Finance Bill 2025 today, 16th October 2025, giving effect to the tax measures announced in Budget 2026 of last week.

Section 31 of the Bill introduces a new Section 959AX TCA 1997 to Part 41A TCA 1997.

This legislation gives the Revenue Commissioners the authority to estimate corporate and income tax liabilities and serve notice in writing specifying the estimated tax due in circumstances where the taxpayer fails to file the required Tax Return within the specified return date. The estimated figure will be based on the higher of (i) the average amount of tax due on the two most recent tax returns, or (ii) €1,000.

Section 90 of the Bill amends the wording in Section 811C (4)(a) TCA 1997 

This strengthens Revenue’s powers to counteract tax avoidance by expanding the scope of the legislation.  The amendment extends and enhances the Revenue Commissioners’ authority to withdraw or deny, at any time, tax advantages arising from tax avoidance transactions.  It specifically pertains to situations where an individual either takes or fails to take any other action, which directly or indirectly, seeks to obtain a tax advantage as a result of a tax avoidance transaction.

Section 93 of the Bill amends Section 638A TCA 1997.  

This extends the transfer of rights and obligations under company mergers or divisions to include those arising under Part 4A TCA 1997. It provides that the Pillar Two compliance obligations, including tax payments and filings, will transfer to the successor company or companies, under a merger or division.

Section 94 of the Bill amends Section 869 TCA 1997

As you’re aware, Section 879 TCA 1997 provides that the Revenue Commissioners may issue a notification to a taxpayer requesting that individual to deliver a tax return, in any tax year. Section 94 of the Bill amends Section 869 TCA 1997 allowing Revenue to issue such Income Tax Return Notices electronically i.e. via MyAccount or ROS.

Section 95 of the bill amends Section 959AA of the TCA 1997

This amendment expands the Revenue Commissioners’ power to make or revise a tax assessment outside the standard four year time limit, so as to give effect to a Mutual Agreement Procedure outcome under a Tax Information Exchange Agreement, by virtue of section 826(1B) TCA 1997. Currently, under existing rules, a Revenue officer is allowed to make such an extended assessment in circumstances where a MAP is reached under a double taxation agreement.

Section 98 amends Section 959I TCA 1997

Section 98 amends Section 959I TCA 1997 by inserting a new subsection 6 to clarify that a “chargeable person” may still make a claim for an allowance, deduction or relief even where that tax return is filed after the specified deadline date, unless, another provision in the Taxes Acts explicitly prevents the making of such a late claim.

For further information, please click: https://www.gov.ie/en/department-of-finance/press-releases/minister-donohoe-publishes-finance-bill-2025/

If you have received a notification of a level 1 or 2 Revenue Compliance Intervention or a level 3 Investigation into your or your company’s tax affairs, and wish to deal with a Revenue Compliance Tax Specialist, please contact us.  We also carry out tax health checks for companies and individuals to assist in identifying potential areas of exposure. For a full professional taxation advice and compliance service from qualified and experienced Chartered Tax Advisors, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Payroll Taxes. Employee and Employer Taxes. Pension Auto-enrolment. Benefit-in-Kind (BIK)

Budget 2026 was announced on Tuesday, 7^th October 2025.  From 1^st January 2026, the National Minimum Wage for people aged twenty and over will increase, by 65 cents, to €14.15 per hour.  Other changes for employees and employers include the following:

Small Benefit Exemption

• The Small Benefits Exemption enables employers to provide tax-free benefits of up to €1,500, per employee, per year.  The benefit must be in the form of a voucher which can only be redeemed in exchange for goods and services.  In other words, this exemption from PAYE, USC and PRSI only applies to benefits that cannot be exchanged for cash, such as gift vouchers or store cards.

• Please be aware that the Small Benefit Exemption cannot be combined with salary sacrifice arrangements.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01e.pdf

PRSI Changes

• Employee and Employer PRSI rates will increase by a further 0.15% on 1st October 2026.

• From 1^st October 2026, the employee PRSI rate will increase to 4.35%.

• The employer PRSI rate will increase to 9.15% where weekly income is €552 or less.

• For weekly salaries/wages in excess of €552, employer’s PRSI will increase to 11.40%.

For further information, please click: https://assets.gov.ie/static/documents/cb168977/PRSI_C20260116_Contribution_Rates_and_User_Guide_-_SW_14_-_English_Version_-_January_2026_.pdf-web.pdf

USC changes

From 1st January 2026, the 2% Universal Social Charge threshold will increase to €28,700.  This is in line with the increase in the national minimum wage. Therefore, If you earn €28,700 or under, your USC rate remains at 2%.

The amount of income liable to the 3%USC rate reduces from €42,662 to €41,344.

The 2% USC rate will continue to apply until 31st December 2027 for individuals holding a full medical card and whose total income for the year is €60,000 or less.

For further information, please click: https://www.revenue.ie/en/jobs-and-pensions/usc/standard-rates-thresholds.aspx

Benefit-in-Kind

• The universal reduction of €10,000 to the Original Market Value of company cars in categories A-D as well as to all vans, will remain for 2026, then reduce to €5,000 in 2027, €2,500 in 2028 and won’t apply in 2029.

• From 1^st January 2026 a new vehicle category (A1) is being created for zero-emission cars. BIK on category A1 cars will be calculated at between 6% and 15% of the cars OMV, subject to business mileage.

• From 1^st January 2026, the highest mileage band for the Benefit-in-Kind calculation will be reduced to 48,001 km.

For further information, please click: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Auto-enrolment

From 1^st January 2026, the Pension Auto-enrolment scheme will start.

The National Automatic Enrolment Retirement Savings Authority automatically will determine eligibility based on Revenue payroll data.  Briefly:

• Employees aged between 23 and 60 years, who earn in excess of €20,000 per year and who are not already part of a workplace pension scheme (with payroll contributions) will be automatically enrolled into this system.

• Employees earning under €20,000 per year can opt in voluntarily.

• Currently self-employed individuals are not eligible for this scheme.

• From 1^st January 2026, employees and employers will each pay 1.5% of the gross salary into the scheme. This will be the case for three years.  After that the contributions will go up to 3% (in years 4 to 6), then 4.5% (in years 7 to 9) and then 6% from year 10.

• In addition to the employee and employer contributions, the government will top up the employee’s contribution. From 1^st January 2026, for every €3 an employee contributes, the employer will also pay in €3 with the State then topping it up by €1.  In other words, the government will top up the employee’s contribution by 1/3^rd.

• Employees can only opt out after six months of enrolment. If they decide to opt out their employee contributions are refunded. Employer and state contributions, however, will remain in their pension fund.

• Automatic re-enrolment into the scheme will occur after two years provided the eligibility criteria still apply.

For further information, please click: https://myfuturefund.ie/

Accounts Advice Centre Employment tax services work with our valued clients to ensure that all payroll compliance obligations are met in the most timely and cost effective manner possible.  We specialise in payroll, employee tax services and director tax services.  For further information and to deal with Payroll/Employment Tax Specialists, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Tax Credits. Budget 2026 Ireland. Income Tax. Personal Taxes. Tax Reliefs

Budget 2026 introduced a wide range of updates across Ireland’s tax system. The following Tax Credits and Reliefs are being extended:

1. The Rent Tax Credit is being extended for a further three years.  It is due to expire at the end of 2028.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx

2. The income tax deduction for landlords retrofitting properties is extended for another three years.  It is available for works carried out up to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/property/rental-income/deduction-for-retrofitting-expenditure/index.aspx

3. The Income Tax Exemption for households which sell electricity from micro-generation back to the grid is extended for a further three years to 31st December 2028.

For further information, please click link: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-44.pdf

4. The Mortgage Interest Tax Relief is being extended for a further two years. Relief will be available at the standard Income Tax rate, with the maximum 2025 relief capped at €1,250 per property and €625 per property for 2026.

For further information, please click link: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/mortgage/index.aspx

5. The USC Concession for medical card holders will be extended until 31st December 2027.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

6. The €5,000 Vehicle Registration Tax (VRT) Relief for new electric vehicles is extended until 31st December 2026.

For further information, please click link: https://www.gov.ie/en/department-of-finance/speeches/statement-by-minister-donohoe-on-budget-2026/

7. Employee Benefit-in-Kind Relief for employer provided vehicles (for cars in categories A-D and to all vans) is to be extended, on a tapered basis, until the end of 2028.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

8. Special Assignee Relief Programme (SARP) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

9. Key Employee Engagement Programme (KEEP) has been extended to 31st December 2028 subject to approval from the European Commission.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

10.Foreign Earnings Deduction (FED) has been extended by 5 years to 2030.

For further information, please click link: https://www.revenue.ie/en/corporate/press-office/budget-information/current-year/budget-summary.pdf

Accounts Advice Centre provides a top tier level service for all personal income tax matters, from filing tax returns to offering specialist advice on complex taxation issues. We have over thirty years experience providing expert tax advice, tailored for individuals and their families. For a full professional taxation advice and compliance service, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Budget 2026. Income Tax. Personal Taxation. Analysis of Income Tax Reliefs and Excemptions.

Today, Tuesday, 7^th October 2025, the Minister for Finance, Paschal Donohoe and the Minister for Public Expenditure, Infrastructure, Public Service Reform & Digitalisation, Jack Chambers presented Budget 2026.  In this series of articles, we have outlined some of the tax changes that we consider most relevant under the following headings (a) Personal Tax, (b) Business Taxes, (c) VAT, (d) Housing/Property, (e) Agri-taxation, (f) Investments and (g) Global Mobility and Employment.

PERSONAL TAX

No increases to the income tax rate bands and tax credits

• Unlike in previous recent Budgets, there were no increases to the income tax rate bands and tax credits announced in Budget 2026.  However, there will be a reduction in the tax rate, from 41% to 38%, in relation to certain investments including Exchange Traded Funds (ETFs), certain Irish domiciled funds, certain life assurance policies, equivalent offshore funds and certain foreign life assurance policies

Universal Social Charge

• The reduced Universal Social Charge for qualifying medical card holders will be extended until 31^st December 2027.  This applies to medical card holders earning less than €60,000 per year.  This ensures that such individuals continue to pay a reduced USC rate of 0.5% on the first €12,012 of their income with 2% on the balance.

National Minimum Wage

• From 1^st January 2026, the National Minimum Wage will increase to €14.15.  The 2% USC rate band will increase from €27,382 to €28,700.  This means that the salary of a full-time employee on the minimum wage will remain outside the 3% rate of USC.  Incomes of less than €13,000 continue to remain exempt from USC.

Rent Tax Credit (RTC)

• The Rent Tax Credit (RTC), which was due to expire on 31^st December 2025, has been extended for three more years to 31^st December 2028.  The maximum value of the RTC will remain at €1,000 for single individuals and €2,000 for jointly assessed couples or civil partners.

Mortgage Interest Relief

• Mortgage Interest Relief has been extended to 31^st December 2026. It will remain at current levels for 2025, however, it will reduce by 50% for 2026.  As you’re aware, this tax credit can be claimed for taxpayers who have made increased mortgage interest payments in relation to a qualifying loan for a principal private residence in 2025 when compared to 2022. For 2025 the relief is capped €6,250 per property.  This equates to a maximum tax credit of €1,250.  For 2026, the maximum tax credit of €625 will be available, based on the increase in interest paid in 2026 as compared to the mortgage interest paid in 2022.  There is no change to the qualifying criteria and the relief remains available to homeowners with an outstanding mortgage balance of between €80,000 and €500,000, as of 31^st December 2022.

Auto Enrolment (AE) Retirement Savings Scheme

• The Finance Bill 2025 will include additional amendments to the tax treatment for the Auto Enrolment (AE) Retirement Savings Scheme which will address the tax treatment of AE retirement savings on the participant’s death as well as exempt AE provider schemes from Investment Undertaking Tax and exempt employer AE contributions from USC.

Micro-generation

• For, households that sell electricity back to the grid from micro-generation, the Income Tax relief that exempts income of up to €400 per annum, is extended, for three years, up to 31^st December 2028.

Benefit-in-Kind Relief

• As you may remember, in Finance Act 2023, a temporary universal reduction to the Original Market Value of some vehicles for the purposes of calculating BIK was introduced.  This temporary universal relief of €10,000 applied to the Original Market Value of vehicles in Category A to D.  Budget 2026 extended this Benefit-in-Kind Relief by one year i.e. this relief will remain at €10,000 for 2026.  It will then reduce to €5,000 in 2027 and €2,500 in 2028.  It will be abolished from 2029.

• From 1^st January 2026, there will be a new vehicle category (A1) for employer provided vehicles with zero-emissions, for Benefit in Kind purposes.   It will apply with BIK rates of between 6% to 15% from 2026, depending on business mileage.  Where an employee undertakes high business mileage, the lower threshold of the upper mileage band will be permanently reduced from 52,001km to 48,001km.

Uilleann Pipes and Irish Harps

• Finally, for those involved in the manufacture of Uilleann Pipes and Irish Harps, the exemption from Income Tax of a maximum profit of €20,000 generated from the manufacture, maintenance and repair of uilleann pipes and early Irish harps is being extended for three years to 31^st December 2028.

For further information, please click: https://www.gov.ie/en/department-of-public-expenditure-infrastructure-public-service-reform-and-digitalisation/publications/your-guide-to-budget-2026/

Accounts Advice Centre provides a tax advisory and compliance service tailored to the needs of our diverse client base, their families as well as collaborating with their advisors.  With over thirty years’ experience in domestic and international tax, we provide an efficient service to ensure that you meet all deadlines and are not exposed to an unnecessary tax interest and penalties.  To discuss what we can do for you, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Return Deadline. ROS Pay and file. Form 11 Personal Tax Returns

Revenue eBrief No. 156/25 was published on 7th August 2025.

Tax and Duty Manual Part 38-06-01a has been updated to contain the following:

• A link to access further information on Revenue’s new agent eLinking facility is provided in paragraph 6.5.1.
• Paragraph 7.1.2 states that payments via Commercial Debit Cards will no longer be accepted from 1st September 2025.
• Paragraph 8.8 provides some information as well as a link to access further details ion the Residential Premises Rental Income Relief (RPRIR).
• Paragraph 8.9 provides information as well as a link to further details is provided on the Retrofitting Rental Properties Relief (RRPR).

If an individual was tax compliant as at 31st December 2024, they can claim the RPRIR for 2024 provided:

• the individual holds a Tax Clearance Certificate at the time their 2024 income tax return is filed and
• the other conditions required to claim the relief are satisfied.

For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-38/38-06-01a.pdf

If you require assistance filing your Form 11 Income Tax Return, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Return. Filing Form 11. Self Assessment Personal Tax Returns. 31st October 2025 Filing Deadline

You will need to file an Income or Personal Tax Return on or before 31^st October 2025 if you are one of the following:

1. A self employed individual, someone working on a freelance/consultancy basis or a contractor.

2. A proprietary director i.e. a Director of a limited company who can control in excess of 15% of the ordinary share capital of the company, either directly or indirectly.

3. A Holder of an investment fund i.e. where an individual acquires a material interest in certain investment funds, that person may be deemed to be a chargeable person for that period. This means that they must file the relevant tax return and include details of the fund in that return.

4. If you receive income and gains in relation to certain investment funds.

5. If you have an eight year anniversary in relation to your investment fund.

6. A landlord with long term commercial or residential rentals.

7. An individual with short-term lettings including the provision of self-catering accommodation, Airbnb income, etc.

8. If you have deposit interest, dividend income, shares in lieu of dividends, foreign rental income, etc.

9. If you carry out professional services on which PSWT is charged.

10. If you have disposed of assets.

11. If you are a non-domiciled person who has remitted taxable foreign income or gains to Ireland.

12. If you have received, earned or generated income from any source, other than your Irish employment.

The tax return deadline is Wednesday 19th November 2025 for those that file their Tax Return and pay their associated Tax liability through ROS.

If you do not use ROS, then the tax deadline is 31^st October 2025.

In summary, you are required to:

• File your 2024 self-assessment Income Tax Return
• Pay the balance of your 2024 Income Tax liability and
• Pay your 2025 preliminary tax

On or before either (a) 31^st October 2025 or (b) 19^th November 2025 if you file through ROS

For further information, please click the link:  Revenue eBrief No. 088/25

For assistance in preparing your Income Tax Return by the 31st October 2025 deadline, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Returns, Corporation Tax Returns, Level 1 Compliance Intervention, Revenue Non-Filer

As part of the Irish Revenue Commissioners’ Annual Non-Filer Programme, Notices will be sent to taxpayers who are currently registered for Income Tax or Corporation Tax but who have not filed Income Tax or Corporation Tax Returns for tax years up to and including 2023.  Tax Agents will receive a ROS Inbox Notification on 31^st January 2025 providing them with a list of clients who have been issued with a Reminder to File Notice.  Please be aware that this notice is what is deemed to be a Level 1 Compliance Intervention.

If you have received a Notice but you are no longer considered to be a “Chargeable Person”, the advice is to cancel your Income Tax or Corporation Tax registration as soon as possible.

For full information on who is deemed to be a “Chargeable Person” please click:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-41a/41a-01-01.pdf

According to Revenue’s “Reminder to file – Income Tax Return” Notice:

“This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return by chargeable persons can result in a penalty charge and a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.

In addition, if the tax return(s) is not filed it may lead to the loss or refusal of tax clearance.”

According to Revenue’s “Reminder to file – Corporation Tax Return” Notice:

This notice is a Level 1 Compliance Intervention in accordance with Revenue’s Compliance Intervention Framework. The non-filing of a required tax return can result in a more detailed review by Revenue. It is also an offence for which a person can be prosecuted. It can also result in the restriction of certain reliefs, and the loss or refusal of tax clearance. Further information on your rights and obligations under Revenue’s Compliance Intervention Framework can be found on www.revenue.ie.

For further information, please click:

https://www.revenue.ie/en/tax-professionals/tdm-wm/compliance/returnscompliance/it-and-ct-returnscompliance/income-tax-and-corporation-tax-non-filer-programme.pdf

If you receive a Level 1 Notification and you are required to file Tax Returns for outstanding years, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax. Corporation Tax. Capital Acquisitions Tax. Capital Gains Tax. Local Property Tax. VAT. Pay and File Deadlines.

January is a very important month in terms of pay and file obligations.  To avoid exposure to interest and penalties, please find below a list of pay and file deadline dates for January 2025 under the following tax heads: Income Tax, Corporation Tax, VAT, Local Property Tax, Capital Gains Tax, Capital Acquisitions Tax, Dividend Withholding Tax and Professional Services Withholding Tax.

1^st January 2025

• 2024 Employment Detail Summary is available.

• The minimum Wage Increased to €13.50 per hour.

• Changes to USC – The 4% rate is reduced to 3% and the entry threshold increases to €27,382.01

• Changes to Rate Bands from €42,000 to €44,000 for individuals. Married couples and civil partners with one income will increase to €53,000 and married couples and civil partners with two incomes will increase to €88,000.

• Increases from €1,875 to €2,000 for Single Persons, Employee PAYE Tax Credit, Earned Income Tax Credits and Widowed Person or Surviving Civil Partner with dependent child(ren).

• Commencement of phased payments for Local Property Tax.

• Increases in VAT thresholds for goods and services. From €40,000 to €42,500 for services. From €80,000 to €85,000 for goods.

• The increased thresholds for Capital Acquisitions Tax: From €335,000 to €400,000 (Group Class A), from €32,500 to €40,000 (Group Class B) and €16,250 to €20,000 (Group Class C)

10^th January 2025

Latest date for paying Local Property Tax in full through an approved PSP, or by debit or credit card.

14^th January 2025

• Monthly Return and payment for PAYE, PRSI and USC for December 2024 – The payment date is extended to 23rd for users who pay and file via ROS.

• Quarterly Return and payment for PAYE, PRSI and USC for the period October to December 2024 – The payment date is extended to 23rd for users who pay and file via ROS.

• Return and payment of Dividend Withholding Tax for December 2024

•  F30 Monthly Return and payment of Professional Services Withholding Tax for December 2024

15^th January 2025

Monthly direct debit payments for Local Property Tax (LPT) start and continue on the 15th day of every month, thereafter.  Date extended to 21st March 2025 if paying by Annual Debit Instruction.

19^th January 2025

• Monthly VAT3 Return & Payment for December 2024.

• Bi-Monthly VAT3 Return & Payment for period 1^st November to 31^st December 2024.

• Four Monthly VAT3 Return & Payment for period 1^st September to 31^st December 2024.

• Bi-Annual VAT3 Return and payment for period 1^st July to 31^st December 2024.

• Annual VAT3 Return and payment for period 1^st January to 31^st December.

Return of Trading Detail:

• where the VAT accounting period ends between 1st and 31^st December and monthly VAT3 Returns are filed.

• where the VAT accounting period ends between 1st November and 31^st December and bi-monthly VAT3 Returns are filed.

• where the VAT accounting period ends between 1st September and 31^st December and four-monthly VAT3 Returns are filed.

• where the VAT accounting period ends between 1st and 31^st December and annual VAT3 Returns are filed.

For ROS filers, the time limit for filing a VAT return is extended to the 23rd day of the month.

1^st to 21^st January 2025

• Corporation Tax Preliminary Tax for Accounting Periods ending between 1^st and 28^th February 2025

• Corporation Tax Returns for Accounting Periods ending between 1^st and 30^th April 2024.

•  Corporation Tax Balancing payments due for Accounting Periods ending between 1^st and 30^th April 2024

For ROS filers, the time limit for filing a CT Return and/or payment is extended to the 23rd day of the month.

31^st January 2025

• Payment of capital gains tax for assets sold between 1^st December 2024 and 31^st December 2024

• OSS VAT return and payment for the period 1^st October to 31^st December 2024

• IOSS Monthly Return and payment due for period December 2024.

For VAT details, please click:

https://www.revenue.ie/en/vat/vat-registration/who-should-register-for-vat/vat-thresholds.aspx

https://www.revenue.ie/en/vat/vat-ecommerce/import-oss/index.aspx

For information on Standard Rate Bands and Tax Credits, please click:

https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/tax-relief-charts/index.aspx

For further information on Local Property Tax, please click:

https://www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Auto-enrolment Pension Scheme. Payroll. Retirement Pension. No Income Tax Relief. Employers, Employees and Directors

Today, 7^th October 2024, the Minister for Social Protection announced that the pensions auto-enrolment scheme will commence on 30^th September 2025. From that date, employers must automatically enroll eligible workers into a workplace pension scheme, as part of a Government initiative, aimed at boosting retirement savings.

Who is it for?

This government retirement savings system is for employees who are not already contributing into a pension scheme through their payroll. The Automatic Enrolment Retirement Savings Systems Act 2024 was signed into law on 9^th July of 2024 and a commencement order was signed on 30^th September 2024.  This scheme involves mandatory employer and employee making contributions into a pension fund, in addition to a Government top up.  As a result, with this new auto-enrolment scheme, most workers will now be entitled to:

(i) their own pension plus

(ii) the State Pension on retirement.

What is the Pensions Auto-Enrolment Scheme?

Under this new Act, the following apply:

• Employees will be automatically enrolled in this scheme if they are aged between 23 and 60 years. It’s important to keep in mind, however, that the employee can voluntarily opt out after six months.

• This auto-enrolment scheme will apply to every private sector worker in Ireland.  This is provided that the employee is not in what is termed “exempt employment.”

• The employee must earn more than €20,000 gross per year. For this purposes, gross pay includes allowances as well as non cash benefits.

• For employees earning less than €20,000 per year or who are outside the prescribed age range, they can opt in voluntarily.

• Contributions will be made by (i) the employee, (ii) the employer and (iii) the Government.

• The scheme will be managed by the National Automatic Enrolment Retirement Savings Authority.  This is under the supervision of the Pensions Authority.

• In situations where an employee previously contributed to a pension but has since stopped, that individual can be enrolled in the scheme.  This is provided they meet the relevant criteria.

• Employer AE contributions will not be taxed as a benefit-in-kind on the employee.

What is an “exempt employment”?

The scheme is aimed at employees who are not paying into a qualifying pension plan.  Therefore, an ‘exempt employment’ is deemed to be one where an employee or employer is already making contributions, through the payroll system, to any of the following:

(a) an occupational pension scheme,

(b) Personal Retirement Savings Account,

(c) a Retirement Annuity Contract or

(d) a Pan-European Personal Pension Product.

What are the Auto-enrolment contribution rates?

1. Contributions to the auto-enrolment pension scheme will be based on a set percentage of your wage/salary and deducted through payroll.

2. Employers must match their employee contributions.

3. The Government must match one third of the employee contribution.

 4. The Contributions will gradually increase over a ten year period.

5. The employee contributions will not qualify for income tax relief.

6. Contributions are capped at €80,000 of an employee’s gross annual salary/wage.  In other words, an upper annual limit of €80,000 applies to earnings.  No contributions are required on earnings exceeding this cap.  Employees earning more than €80,000 per annum can still contribute.  However, employer and Government contributions will not apply to earnings above €80,000.

Final Points

• As the Auto-Enrolment Pension Scheme operates throughout your career, you don’t have to do anything if you move jobs.

• In the event of the death of an auto-enrolled employee, their personal representative can apply to access the balance in the employee’s account, as part of their estate.

• An employee can suspend their contributions at any time.

• Directors who are deemed to be “self-employed” for PRSI purposes are not considered eligible to contribute to this Auto-Enrolment Pension Scheme.

• The Automatic Enrolment Retirement Savings Systems Act 2024 provides for a number of offences.  These sanctions range from fines of €5,000 to €50,000 and/or imprisonment, depending on the particular offence committed.

For further information, please click:

https://www.gov.ie/en/publication/c6d6a-auto-enrolment-your-questions-answered/?referrer=https://www.gov.ie/en/publication/01568-auto-enrolment-your-questions-answered-rol-draft/

https://www.irishstatutebook.ie/eli/2024/act/20/enacted/en/html

https://www.youtube.com/playlist?list=PLfOMyQE5RqGzeqOMKqB1M3KyOCtKU8bjk

With over thirty years of experience, Accounts Advice Centre specializes in delivering reliable and tailored payroll services to a wide range of clients.  This ranges from sole employers to large organisations. Our focus is on tax compliance while ensuring we meet the needs of each and every business, individual, employer and employee.  If you would like to discuss our payroll services, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Personal Tax Advice – Budget Ireland 2025

Understand the Income Tax measures of Budget 2025 at a glance.

Today, the Minister for Finance, Jack Chambers T.D., and the Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe T.D., announced the details Budget 2025.  As anticipated, Budget 2025 introduced several tax measures affecting individuals, families and households.  This article will focus on the tax measure introduced by Budget 2025, specifically under the Income Tax or Personal Tax heading.

Standard rate band increased by €2,000

• The income tax standard rate band has been increased by €2,000 for all earners, resulting in the band for single individuals increasing from €42,000 to €44,000

• The band for Single, Widowed or Surviving civil partners, qualifying for the Single Person Child Carer Credit was raised from €46,000 to €48,000,

• The band for married couples/civil partners with one earner will be increased from €51,000 to €53,000 for the 2025 tax year onwards.

Increase in Tax Credits

• The Personal Tax Credit, Employee Tax Credit and Earned Income Credit will all be increased from €1,875 to €2,000.

• The Home Carer Tax Credit has increased from €1,800 to €1,950.

• The incapacitated child tax credit has been increased by €300 from €3,500 to €3,800.

• The Single Person Child Carer Tax Credit will be increased from €1,750 to €1,900.

• The Blind Tax Credit will be increased from €1,650 to €1,950.

• The Dependant Relative Tax Credit will rise from €245 to €305.

• The Rent Tax Credit has been increased for the tax years 2024 and 2025. It will be €1,000 per year for individuals and €2,000 per annum for a jointly assessed couple (married or civil partners).

• The Sea-going Naval Personnel Tax Credit has been extended for five years to 31^st December 2029.

Other Personal Tax Reliefs

• Mortgage Interest Relief has been extended. There has been no change to the qualifying criteria.  Homeowners must have an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 as of 31st December 2022. Qualifying homeowners will be eligible for this tax relief in respect of the increased interest paid on their mortgage in 2024 as compared with 2022. Tax Relief is at the standard Income Tax rate of 20%.  The Tax Credit is capped at €1,250 per property.  To claim Mortgage Interest Relief, the taxpayer must file a Tax Return and the taxpayer must be compliant with Local Property Tax (LPT) requirements.

• The Help to Buy Scheme has been extended for a further four years at the current rates until the end of 2029.

• Pre-Letting Expenses Relief. The current tax relief, capped at €10,000 per premises, for certain pre-letting expenditure will be extended for a further three years to 31^st December 2027.  Section 97A TCA ‘97, which deals with rental expenses, provides that certain expenses incurred on a vacant residential property before its first letting following a period of non-occupancy are allowable as a deduction against rental income from that specific premises.

• Various farming related Tax Reliefs have been extended until 31^st December 2027 including (a) Enhanced Stock Relief for Registered Farm Partnerships, (b) Stock Relief for Young Trained Farmers as well as (c) General Stock Relief.

• Budget 2025 introduced a BIK exemption for home car chargers provided by employers. It provides for an exemption from Benefit-in-Kind where it is the employer who incurs the cost of providing a facility for electric charging of vehicles at the home of an employee or director.

• The proposed tapering of Benefit-in-Kind Relief for electric vehicles has been deferred. The universal relief of €10,000 which applied to the Original Market Value of a vehicle in Category A – D is being extended to 31^st December 2025.  The amendment to the lower limit of the highest mileage band has also been extended until 31^st December 2025.   Therefore, the highest mileage band is entered into at 48,001km.

Small benefit exemption

• There will be an increase in the annual limit of the small benefit exemption from €1,000 to €1,500.

• It has also been amended to allow five non-cash benefits, up from two, to be granted by an employer in a single year. The cumulative total of the first five benefits in a calendar year cannot exceed €1,500.

• From 1^st January 2024 an employer is required to return details of all qualifying incentives provided to employees where the small benefit exemption applies.

• This benefit can be given to any employee of the company, including directors and shareholders, providing they are on the payroll.

Universal Social Charge

Various amendments to the USC system were introduced in Budget 2025.

• The 4% rate of USC will be reduced to 3%.

• The 2% USC rate band will increase by €1,622, from €25,760 to €27,382.

From 1^st January 2025, the USC Rates and Bands will be:

• €0 – €12,012 – 0.5%

• €12,013 – €27,382 – 2%

• €27,383 – €70,044 – 3%

• Balance – 8%

Self-employed income over €100,000 will be liable to a 3% surcharge i.e. 11%

PRSI

• All classes of PRSI will increase by 0.1% percentage point from 1^st October 2024.

• From 1^st October 2024 the minimum annual PRSI contribution is €650.

• There will be a further 0.1 percentage point in October 2025. From 1^st October 2025, (i) the employee PRSI rate will increase from 4.1% to 4.2%, (ii) the employer PRSI rate will increase from 11.15% to 11.25% and (iii) the rate will rise from 8.9% to 9% in situations where the weekly income is €496 or less.

• From 1st October 2025, the self employed PRSI rate will increase from 4.1% to 4.2%.

For full information on Budget 2025, please click https://www.gov.ie/en/publication/e8315-budget-2025/

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.