| Tax Tip! |
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Local Authority Service Charges Tax Credit Tax Payers who incur service charges can claim a tax credit in respect of such charges paid in full, and on time, in the previous income tax year. This relief relates to all service charges paid to:
The figure for 2009 is calculated as 20% of the actual charges paid in 2008 or 20% of €400 whichever is the lesser amount. This provides for a general upper limit of €400 per year (i.e. a maximum tax credit of €80) regardless of how the charge is determined (i.e. fixed charge, pay by use or the "tag" system.) The relief will be incorporated into the certificate of tax credits of PAYE taxpayers. It will be necessary for self-employed individuals to claim the relief at the end of the tax year by including the amount in their tax return. This will result in additional net take home pay for each employee. Revenue are aware that many employees are not claiming this tax credit which they are entitled to. In order to claim this tax credit all you have to do is phone your local tax district and advise them of the amount you paid in 2008. They will then issue you with an amended tax credit certificate. If you have not claimed in the past, you can claim back from the Revenue Commissioners for the last four years. Why not do it today – it’s as good to you as it is to them! Small Benefit Exemption Where an employer provides an employee with a small benefit (that is, where the value of the benefit does not exceed €250 in 2009) PAYE and PRSI need not be applied to that benefit. Only one such benefit given to an employee in an income tax year will qualify for such treatment. Where a benefit exceeds €250 in value, the full value of the benefit is to be subjected to PAYE and PRSI. Please note that monetary payments such as cash, cheques etc do not qualify under the small benefit exemption. The benefit may be given in any other form apart from cash such as voucher, hamper or goods. This is a method which employers should consider for rewarding their employees at Christmas for all their hard work throughout the year. Civil Service Motor Travel Rates These rates are effective from 5th March 2009 Employers are not obliged to pay these rates to employees, however if they wish to pay motor travel rates or subsistence allowances tax free to their employees, they may pay rates that are equal to or less than the Civil Service rates without having to obtain prior Revenue approval.
Civil Service Subsistence Rates: These are the rates effective from 5th March 2009
Form P60 for 2008 A P60 template for 2008 onwards is available on the ROS online and offline applications. This eliminates the need for employees to obtain Revenue stationery to print P60s. Most payroll software will include a facility to print P60s on blank paper for the years from 2008 onwards. You will need to contact your software supplier to ensure that the facility is available in your 2008 software. Employment Law Case An employee who was discovered playing golf when he was supposed to be on compassionate leave to take his sister to the doctor has been awarded €1000 compensation for being unfairly dismissed. The employee contacted his employer, on the day in question, to inform him that he had to take his sister to the doctor. The employer parked outside the employee’s home and observed the employee putting golf clubs into his car and driving off. The employer subsequently followed the employee to the golf club and saw his name on the green fee book. He then proceeded on to the golf club where he met the employee and his friend and said to them to enjoy the game. Understandably, the employee was astounded to meet his employer at the golf club. The employer left, but returned to the golf club again at 3pm and discovered that the employee’s car was still there. The employer told the Employment Appeals Tribunal that the employee had missed work on a number of occasions over a thirteen-month period claiming that he had to take his sister to the hospital or doctor. Other staff members were annoyed with the amount of time this employee had taken off work. The employer had employed a private investigator to observe this employee’s movements. Subsequently the employee was suspended for gross misconduct. At a subsequent disciplinary meeting the employer confirmed the dismissal after the employee agreeing that he had played golf on the day in question after his sister deciding that she would not see the doctor. The EAT decided that the employee’s actions did not constitute gross misconduct. However, the employer was in breach of its own disciplinary procedures by failing to provide the employee with an appeal against the dismissal and therefore rendered the dismissal unfair. |
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