Archive for August, 2008
August 13th, 2008
August 7th, 2008
E Working Tip for the Self Employed
Make the most of all tax breaks out there especially ones which are easy to apply !
E working is where you Revenue allow you to pay someone €3.20 a day for working at home for your business.
This could be your son or daughter doing valuable research for your business on the net in the comfort of their own room!
That adds up to €1,168 per annum and that €478 of a tax saving if your in the higher bracket.
Make sure your accountant knows about it for your next tax return.
Regards
Jason McDowell, McDowell & Co. Accountants.
see this link if you need more information
http://www.revenue.ie/leaflets/it69.pdf
August 5th, 2008
Tax tips for Farmers
1. Employing family members.
You can employ a son or daughter to work part time on your farm. They can earn €9,150 in 2008 without paying tax. This saves you, the farmer €3,751 in tax if you’re in the 41% bracket or €1,830 if you’re in the 20 % tax bracket. You need to register as an employer, have evidence of payments and pay reasonable rate for the work involved. A young person between 14 and 15 years of age can be employed for light work whereas those 15 – 16 can work up to 37.5 hours per week.
2. Stock Relief
2008 is the last year farmers can avail of such relief. It can be used where the value of your closing stock is higher than the opening stock.
Take a farmer whose cattle stock went from €15,000 in January 07 to €22,000 in Dec ’07.
The difference in €7,000 causes the profit to rise by €7,000.
Stock relief can be applied at 25% on this difference (€7,000 x 25% = €1,750). This €1,750 can be used to reduce the farm profit and therefore the resulting tax liability.
3. Averaging Farming Profits.
The IFA negotiated the introduction of this system to help farmers cash flow in times where profits where high.
To qualify, the farmer must be trading for at least 3 years. He must also stay in the averaging system for 3 years.
The way it works is best explained with an example:
Profit year ended 31/12/07 €55,000
Profit year ended 31/12/06 €36,000
Profit year ended 31/12/05 €29,000
Total profit for the 3 years = €120,000
The average for the 3 years is €40,000.
The taxable profit for 2007 can be set at €40,000 which helps the farmer’s cash flow considerably.
Tax benefits will arise where profits are increasing but these benefits will be clawed back when profits are falling.
4. Young Trained Farmer Stock Relief
This is available to young qualifying farmers for the tax year in which the individual begins farming, and then for the next 3 tax years.
The relief is similar to that outlined in 2 above on stock relief except the young farmer can get 100% relief or €7,000 if you were to use the figures above.
Certain conditions as set by the dept of agriculture must be met to qualify.
5. Land Leasing Incentives.
Intense lobbying from the IFA has resulted in vastly improved incentives for farmers who no longer have the time/resources to farm their land can rent it out and receive big tax breaks. Here is a quick overview:
Landowners who lease out their land for a period of 10 years or more qualify for an income tax exemption of €20,000 per annum.
Leases of 5-7 years get €12,000 exempt and 7-10 years get €15,000.There is also Capital Gains Tax retirement relief provided certain conditions are met.
6. Limited company versus Sole Trader – income tax.
This is quite a complex area but a brief view of both options is as follows.
The rate of tax on trading profits is 12.5% for limited companies and you could pay tax up to 46% as a sole trader (higher rate including levies).
However, monies left in the company and not distributed (investment income), are taxed at 25% and after 18 months get a surcharge giving rise to a total tax rate within the company of 40%.
An article comparing both in greater detail will follow in this series.
7. Forestry.
Income made from forestry by individuals or companies are exempt from income tax.
Also, grant assistance for the establishment, management and re construction of woodlands is exempt from income taxes as is the premium.
However, income from commercial woodlands is reckoned for the purposes of PRSI.
NB The finance act 2003 provides from 1 Jan 2004 all profits or gains from items which are exempt from income tax must be included a tax return.
8. Capital Allowances on Motor Cars.
The new measures brought in this July to improve the carbon footprint of all of us, don’t just effect how much we pay for our cars and the road tax on them.
Depending on the category they fall into, a farmer buying a new car for his business may or may not be able to write off its full value.
Example 1.
Joe buys a new car for his farming business on 1st September 2008 at a cost of €22,500. It is a category B car. He is allowed write off €24,000 as this is the rate set for any category A B and C car regardless of its new cost.
Example 2
Mary buys a new car for her farming business on 1st September 2008 at a cost of €28,500. It is a category D car. She is only allowed write off €12,000 as this is the rate set for any category D car regardless of its new cost.
Cars falling into category F and G have zero allowances available.
9. Available investment grants
Don’t forget about the various grants available to farmers, aimed at improving farming techniques and ultimately making their business more profitable and self sufficient.
These include the 2006 Farm waste management scheme (finishing Dec 08) and the 2007 Farm improvement Scheme which re opened this year.
Contact the IFA for further investment grants which may become available.
10. Please see the previous articles in this series to find out about other measures which could reduce your tax liability now and in the future.
Jason McDowell C.M.A from McDowell & Co. can be contacted at 071 98 56778 and welcomes other questions to by email at jason@mcdowellandcom.com
Or by post to McDowell & Co, Market Square, Main St. Manorhamilton. Co Leitrim
August 2nd, 2008
Arts Funding Deadlines
CLOSING DATES FOR 2008 ARTS COUNCIL AWARDS AND SCHEMES
Small Festivals Scheme: 19 September
Commissions Award: 11 September
Travel & Training Award: Ongoing
Deis: Ongoing
For more information on guidelines and application forms see: www.artscouncil.ie
Small Festivals Scheme 2009
Round One of the scheme is available to festivals taking place on or before the 30 June 2009. Closing date for receipt of applications for Round One is Friday 19 September 2008. If applicants are organising a series of events (e.g. concert series) taking place over the course of the year, i.e. continuing beyond 30 June, they should apply under Round One. Festivals and Events taking place in the second half of 2009, i.e. after 1 July 2009, should apply under Round Two of the scheme. The closing date for Round Two is to be confirmed (early to mid February – tentative date). The application form and guidance notes for this scheme is available online at http://applications.artscouncil.ie/smallfestivals or you can request a hard copy form by calling Regina O’Shea with full postal details on telephone +353 1 618 0260 or by email to smallfestivals@artscouncil.ie. First time applicants to the scheme are advised to contact Úna McCarthy, Head of Festivals and Events, prior to submitting an application; telephone +353 1 6180272 or by email to firsttime@artscouncil.ie.
Commissions Award 2008
The primary purpose of this award is to facilitate creative partnerships between a diverse range of commissioners and artists that result in new work or repertoire renewal. These partnerships should lead to a public performance, a publication, an exhibition or another form of dissemination of the commissioned work in Ireland or abroad. In theatre the commission might lead to the completion of a script but not necessarily a full production.
arts council of northern ireland - funding deadlines
A number of funding awards offered by the Arts Council of Northern Ireland for the remainder of 2008 and 2009 have been announced, including Individual Arts Awards, Project Funding and the Public Art Programme. Please note however that all applications should fit within the objectives stated in the Arts Council of Northern Ireland’s five year plan and within its artform policies. For information on eligibility, full details of awards schemes and deadlines visit: www.artscouncil-ni.org/subpages/funding.
COMMUNITY FOUNDATION FOR IRELAND SMALL GRANTS SCHEME
Deadlines - 29 August, 31 October 2008
Many community or voluntary groups qualify for grant support, including those providing support for carers, social networks, local respite initiatives, networks and structures for sexual and ethnic minorities, initiatives involving parents and children at risk of exclusion. Information is at www.communityfoundation.ie contact hbeatty@foundation.ie, or (01) 874 7354.
CALOUSTE GULBENKIAN FOUNDATION ‘ARTS IN PUBLIC SPACES’
Deadline 10 October (November meeting)
The Foundation has a number of programmes, including this one, now in its final year, which tends to support professional artists and arts organisations at an early stage of development and will prioritise those in rural areas to involve and inspire people living locally. For details, check online at http://www.gulbenkian.org.uk.
European Cultural Foundation Grants
The European Cultural Foundation provides grants for artists and performers to collaborate and network with other young Europeans. There are no application deadlines but applications to the STEP beyond travel fund should be submitted at least eight weeks before the date of travel. Applications can be made at any time. For more information, visit www.eurocult.org/we-support-cultural-cooperation/programmes/mobility/apply-step-beyond.
COMMUNITY PARTICIPATION IN PRIMARY HEALTH CARE FUNDING INITIATIVE
The purpose of this funding initiative is to support and enable disadvantaged communities and groups to participate in local primary care teams and networks.
This funding is open to community development/anti poverty groups who have a focus on health. Closing date for applications is 15 September 2008. Please see the following link for more details: http://www.activelink.ie/ce/active.php?id=3463.
FINANCIAL SUPPORTS FOR COMMUNITY AND VOLUNTARY GROUPS 2008
Pobal on behalf of The Department of Community, Rural and Gaeltacht Affairs is now inviting applications from Community and Voluntary organisations for funding under two Programmes of Grants for Community and Voluntary Organisations. Programme One offers two schemes of once-off grants: (a) Scheme of Refurbishment Grants and
(b) Scheme of Equipment Grants. Programme Two is a scheme of Training Grants. For more information see: http://www.activelink.ie/ce/active.php?id=1964
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