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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.

Revenue Compliance Intervention. Revenue Audits and Investigations. Revenue code of Practice. Income Tax, VAT, Employer’s Taxes, Corporation Tax.

Today, 9th April 2025, the Revenue Commissioners updated their guidance material in relation to the Code of Practice and Compliance.  Please click link: https://www.revenue.ie/en/self-assessment-and-self-employment/code-of-practice-and-compliance/index.aspx

As you’re aware, the Code of Practice for Revenue Compliance Interventions is a set of guidelines on how the Revenue Commissioners conduct compliance interventions.  It covers all aspects of compliance including your right to make a qualifying disclosure.

A qualifying disclosure must contain complete information and full particulars in relation to the tax liability arising under each relevant tax head.  It should be in writing and signed by the taxpayer and should also be accompanied by the correct tax payment plus corresponding interest.

Taxpayers are advised to make a qualifying disclosure to:

1. lower the level of tax penalty,

2. prevent the settlement from being published by Revenue and thereby avoid your name appearing as a Tax Defaulter, and

3. prevent prosecution as the Revenue Commissioners, generally, won’t initiate an investigation with a view to prosecution.

At Accounts Advice Centre, we have extensive, specialist experience in effectively handling Revenue enquiries. We manage all communications with the Revenue Commissioners in respect of the compliance intervention. We carry out health checks to identify areas for concern, prepare Qualifying Disclosures and seek to mitigate interest and penalties.  If you have received a Notification and require our help, 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.

US Federal Estate Tax. Irish Capital Acquisitions Tax, Inheritance Tax

Non-US individuals with assets located in the USA may be subject to US estate tax in addition to tax arising in their country of residence. Such assets include (i) U.S. Real Estate, (ii) Stocks and Shares in US corporations, (iii) Cash Deposits with US brokers, (iv) U.S. registered ETFs, (v) U.S. tangible personal property, (vi) certain business interests or debts owed by U.S. individuals, etc.  Provided the deceased person is not domiciled in the US and not a US citizen at the time of death, their estate will only be subject to Federal Estate Tax (FET) on US situs property.

When can U.S. Federal Estate Tax arise?

U.S. Federal Estate Tax can arise on the estate of a deceased Irish tax resident person if the amount of US-situs assets, held by that person, is greater than $60,000 on their death, even if that person has never lived or worked in the United States.  As a result, receiving an inheritance from a US source can have unexpected tax implications for Irish resident beneficiaries.  It’s important to take into consideration that a spousal exemption only applies if the recipient is a US citizen.

What is the U.S. Federal Estate Tax range?

U.S. Estate Tax rates range from 18% to 40% on US situs assets. The estate tax exemption is $60,000. Therefore, a US estate tax liability can be easily triggered for a non-resident, non-US individual.  If a US Federal Estate Tax liability arises, it is the Executor who will be primarily responsible for settling it.  Any tax due should be paid by filing form 706NA within nine months of the date of death.

What does Irish CAT apply to?

Irish Capital Acquisitions Tax applies to inheritances received by Irish residents, regardless of (i) where the assets are located or (ii) the tax residence of the person providing the inheritance. As a result, if an Irish resident individual inherits U.S. situs property, Irish tax obligations could arise.

When does CAT become payable?

Capital Acquisitions Tax becomes payable if (i) the beneficiary is resident or ordinarily resident in Ireland at the time of receiving the inheritance and (ii) if the total value of all gifts and inheritances received from the same disponer exceeds the relevant group class thresholds.  Unlike US FET, if an Irish resident individual receives a gift or an inheritance from their spouse or civil partner, it is exempt from CAT.

What other issues should be considered?

Other issues to consider are (i) the timing of asset transfers and (ii) currency fluctuations.

The Ireland/US Double Taxation Agreement protects against paying Inheritance Tax, in both countries, on the same assets. The specific taxes covered by this treaty are Federal Estate Tax and Capital Acquisitions Tax.

For further information, please click the following links:

https://www.revenue.ie/en/gains-gifts-and-inheritance/credits-you-can-claim-against-cat/double-taxation-relief-usa.aspx

https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax-for-nonresidents-not-citizens-of-the-united-states

If you are an Irish resident individual with U.S. assets, it is recommended that you seek inheritance and estate planning tax advice to carefully manage U.S. FET exposure.  For further information, 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.

Inheritance Tax (IHT), UK Taxes, Capital Acquisitions Tax.

The 2024 Autumn Budget announced a series of changes to UK Inheritance Tax.  As you’re aware, in the UK, Inheritance Tax is a tax payable on the value of a deceased person’s estate.  This differs to Irish Capital Acquisitions Tax where the beneficiary pays CAT on gifts and/or inheritances.

Current Rules

Currently, UK IHT is charged at 40% on the value of an estate above the tax-free allowance i.e. the Nil Rate Band of £325,000. This tax-free allowance can be further increased by a Residential Nil Rate Band of £175,000 providing you leave your home to direct descendants i.e. children, step children, grandchildren, etc.  As a result, this brings up the total tax-free allowance to £500,000 per person.  In certain circumstances, this could potentially equate to £1 million for a couple.  These thresholds were fixed until April 2030 in the Autumn Budget.  If, however, your estate is worth less than £325,000 when you die, then any unused amount up to the threshold limit can be added to the surviving spouse’s/partner’s threshold amount.

New Rules

From 6^th April 2025, the rules for taxing non-UK domiciled individuals will be replaced by a tax residence-based system.  This will apply to long-term residents owning non-UK property who were previously outside the scope of UK Inheritance Tax.  UK assets will always remain within the scope of inheritance tax.  Therefore, from 6th April 2025 onwards, individuals who have held non-domicile status will no longer be exempt from Inheritance Tax on their foreign assets. Instead tax will be based on the individual’s residency status.

Non-UK assets will be within the scope of UK Inheritance tax if an individual qualifies as a long-term resident.  This means that anyone who has been resident in the UK for ten out of the last twenty years will be subject to Inheritance Tax on their worldwide assets.  This is assessed using the same statutory residence test currently applied for Income Tax and Capital Gains Tax purposes.  It’s important to keep in mind that where an individual ceases to be UK resident after 6th April 2025, there will be an “IHT tail.”  This effectively means that an individual can remain within the scope of UK Inheritance Tax, on their worldwide assets, for a period of up to ten years after ceasing their UK residence.

In summary, from 6th April 2025, the concept of domicile will no longer determine exposure to inheritance tax.  Instead, it will be replaced with the concept of a long-term resident.

For further information, please click:

https://www.gov.uk/inheritance-tax

https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals

For all your Irish or cross-border gift or inheritance concerns, please contact us on 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.

Inheritance Tax, UK IHT, UK Taxes, Agricultural Property Relief, Business Property Relief, Gift and Inheritance Tax

The UK Autumn Budget 2024 announced changes to the current Agricultural and Business Property Inheritance Tax regimes.  From 6^th April 2026, the combined Agricultural Property Relief and Business Property Relief will be restricted to the first £1 million on “qualifying assets.”  The Chancellor of the Exchequer delivered her Budget on 30th October 2024, announcing 100% relief for the first £1 million pounds of combined assets and 50% Relief thereafter.  Currently, Agricultural Relief offers two potential rates of Inheritance Tax Relief.  These depend on the circumstances of ownership. These rates will remain in place until 5^th April 2026.

Old Regime – Agricultural Property Relief

What is Agricultural Property Relief?

Agricultural Property Relief is an Inheritance tax relief for farmers and landowners.  It provides for either 50% or 100% relief on the agricultural value of land and certain buildings.

What conditions must apply?

For the 100% Relief to apply:

1. the property must be in the owner’s vacant possession i.e. the owner or transferor has the immediate right to vacant possession of the property or the right to obtain it within the next twelve months.

2. the land must be let with the tenancy having commenced on/after 1st September 1995.

3. the land must be let and conditions regarding vacant possession must be complied with – This applies by concession.

4. the owner had been entitled to his interest in the property since before 10th March 1981 and has met the conditions for ‘Working Farmer Relief”.

What happens if all the above conditions aren’t met?

The 50% Relief is available in circumstances where the above conditions aren’t met.

What happens if the property is owner-occupied?

If the property is owner-occupied, it must have been owned and used for agricultural purposes for at least two years ending with the date of the transfer.  If, however, the property is let to a tenant, it must have been owned by the transferor for at least seven years, ending with the date of the transfer, and the land must have been actively farmed during that time.  The property must not be subject to a binding contract of sale on disposal.

What about successive transfers?

Additional rules apply in relation to successive transfers.

What does Agricultural Property include?

Agricultural property includes agricultural land or pasture, grazing land, cottages, farmhouses, farm buildings, woodlands and buildings used in intensive animal rearing, etc.

Old Regime – Business Property Relief

What is Business Property Relief?

Business Property Relief is a relief from IHT which applies to the transfer of relevant business property.  100% relief is available on the following assets (i) a business or interest in a business operating as a sole trade or partnership and (ii) shares in an unlisted trading company which the donor has owned for a minimum of two years

Are there specific rules on the transfer of shares in a quoted trading company?

50% Relief is available on the transfer of shares in a quoted trading company where the donor has a controlling interest (i.e. 51%) in the company.  The 50% rate also applies to land and buildings, including plant and machinery, where those assets are used by the donor’s partnership or by a company they control.

What about lifetime gifts?

With regard to lifetime gifts, Business Property Relief is only available on death provided the donee still owns the relevant business property at the time of death.

What if the business owns investments?

If the business owns investments, Business Property Relief is restricted to the business assets. In other words, BPR does not apply to any ‘excepted assets’ in the balance sheet. An ‘excepted asset’ is one which is not used wholly or mainly for the purposes of a trade.

New Regime

From 6^th April 2026, the combined Agricultural Property Relief and Business Property Relief will only be available on the first £1 million on qualifying assets. If the individual owns qualifying assets above this threshold amount of £1 million, the rate of the Relief will be reduced to 50% of the excess.

What does that mean?

This means, from 6^th April 2026, an effective IHT tax rate of 20% will apply to the value of qualifying assets above £1 million.

What happens Assets that automatically qualify for the 50% Relief Rate?

Assets automatically qualifying for the 50% relief rate will not use up the £1 million allowance.

What happens to any unused part of the £1 million allowance?

It’s important to keep in mind that any unused part of the £1 million allowance cannot be transferred between spouses in the way that the NIL Rate Band can.

What does this allowance not apply to?

This allowance will not apply to AIM-listed shares and other similar shares not listed on a recognised stock exchange.  Instead, they will be entitled to the 50% rate of Relief.

How long do the new rules apply?

The new rules will apply for lifetime transfers on/after 30th October 2024 in situations where the donor dies on/after 6^th April 2026.

How can this Inheritance Tax liability be paid?

The Inheritance Tax liability arising on assets which qualify for Agricultural Property Relief and Business Property Relief can be paid by way of equal annual instalments, over a ten-year period, in certain circumstances.

Are there any exemptions?

Full exemptions for transfers between spouses and civil partners will continue to apply i.e.  any agricultural and business assets left to a surviving spouse or civil partner will be tax free.

For further information, please click:

https://www.gov.uk/government/publications/agricultural-property-relief-and-environmental-land-management

https://www.gov.uk/government/news/what-are-the-changes-to-agricultural-property-relief

Following the Inheritance Tax changes in the Autumn Budget 2024, it’s time to consider the practical consequences and what you can do to protect your family wealth.  For expert UK Tax advice and assistance, please contact us on 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.

Residential Zoned Land Tax (RZLT), Finance Act 2024, Landowners tax, Self assessment tax

As you already know, Residential Zoned Land Tax (RZLT) was introduced by Finance Act 2021.  In case you didn’t, it’s an annual self-assessment tax calculated at 3% of the market value of applicable land, with pay and file obligations levied on the landowners.  While it was first introduced in 2022, the first year that a tax liability is actually payable is 2025. The Revenue Commissioners confirmed that the RZLT registration portal is scheduled to go live on 27^th January 2025.

What is the filing date?

The due date for the landowners to file a Return and pay the relevant tax is on or before 23^rd May 2025. Going forward, an annual tax return must be submitted to Revenue, and any tax liability paid by 23^rd May every year. The landowner is required to determine and declare the market value of the land to Revenue.  The revised final maps are due to be published by local authorities by 31^st January 2025.

What does RZLT apply to?

RZLT applies to land which was zoned as being suitable for residential development and adequately serviced since 1st January 2022, and on which development has not commenced up to 1st February 2025.  Finance Act 2024 introduced an exemption from RZLT in situations where legal proceedings are ongoing.

How do you access the RZLT portal?       

The RZLT portal will be available on ROS or MyAccount by clicking the My Services and then clicking Manage Residential Zoned Land Tax in Other Services.  Once registered, Revenue will assign a unique site identification number which will take up to one working day.  Receipt of Filing confirmation in the ROS Inbox will require an overnight update.

For further information, please click:

Revenue eBrief No. 018/25

Revenue eBrief No. 019/25

Accounts Advice Centre is a Tax Consultancy firm with expertise in all property related taxes. If you would like to make an appointment, 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.

Business Tax. Corporation Tax. UK Taxes. Reliefs and Changes. UK Autumn Budget

Today, 30^th October 2024, the Chancellor of the Exchequer, Rachel Reeves, delivered the UK Autumn Budget.  She announced the publication of the Corporation Tax Roadmap.  In it, she confirmed that there would be no change to the current corporation tax rate, which is capped at 25%, until 31^st March 2027.  The Small Profits Rate and marginal relief will remain at their current rates and thresholds.  No changes will be made to other business tax areas including:

1. The current Patent Box and Intangible Assets Regime which will be maintained.

2. The Audio-Visual Expenditure Credit will be maintained.  The Video Game Expenditure Credit will also be retained.

3. With regard to Capital Allowances, full expensing for plant and machinery expenditure will be retained.  The £1 million Annual Investment Allowance will also be maintained.

4. 100% first year allowances for qualifying expenditure on zero-emission cars and electric vehicle charge points will be extended to 31^st March 2026.

5. In relation to R&D Reliefs, the current rates for the merged R&D Expenditure Credit Scheme as well as the Enhanced Support for R&D Intensive SMEs will be kept.

6. Support to the global taxation agreements under Pillar 1 and Pillar 2 will continue.

Business Tax Changes

• The Pillar Two Undertaxed Profits Rule will be introduced into law and will take effect from 31st December 2024.

• The Government have introduced changes to the taxation of Employee Ownership Trusts and Employee Benefit Trusts which will take effect from 30^th October 2024.

• For 2025/26, Retail, Hospitality and Leisure businesses will be given 40% relief on their business rates. The maximum amount available in relief each billing year is £110,000 per business.

• From 6^th April 2025, the special tax rules for Furnished Holiday Lets will be abolished. Individuals, corporates, and trusts who operate or sell furnished holiday lettings accommodation will be affected.

• Employer National Insurance contributions will increase to 15.0% from 6^th April 2025. The secondary threshold will be reduced to £5,000 per year, the Employment Allowance will be increased to £10,500 per annum while the £100,000 threshold will be removed.

• There will be further consultation on Transfer Pricing.

• Changes to the treatment of carried interest. From April 2025, the CGT rate applicable to carried interest will increase to 32%.

Anti-Avoidance Legislation

The Government have introduced new Anti-Avoidance legislation in respect to loans to participators.  From 30^th October 2024, these reforms will prevent shareholders from extracting untaxed funds from Close Companies. This new legislation is being introduced to prevent loans which are repaid and then reborrowed from associated companies from avoiding the s455 charge.

Also, from 30^th October 2024, the way in which capital gains are taxed when a Limited Liability Partnership is liquidated has been amended. It relates to situations where assets are disposed of to (i) a contributing member, (ii) a connected company or (iii) any other connected person.  The chargeable gain accruing to the contributing member will be computed as if the gain had arisen at the time they initially contributed the asset to the Limited Liability Partnership.

For further information, please click:

https://www.gov.uk/government/collections/autumn-budget-2024-tax-related-documents

For all your Irish, UK or cross-border business tax concerns, please contact us on 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.

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

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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.