Author: avid-partners

Broadly Positive Reaction to Budget 2015 with Cautious Optimism the Soundboards

 

A broadly positive, if cautious, budget 2015 has been announced with no major surprises from Michael Noonan today in his budget speech. PAYE earner will benefit from reduced tax rates and increased bands, support schemes to SME’s have been extended and increased, the “Double Irish” taxation loophole is to be closed, new schemes for the farming and agricultural sector have been announced, water charge relief has been introduced, the pension levy is to be scrapped, back to work schemes have been increased and smokers will be paying more for the privilege as widely anticipated. Below are the main points arising from today’s budget. A comprehensive breakdown of what it means for you and your business will follow along with an analysis of what it all means to the business sector.

 

Income Taxes

The Higher Rate of Tax reduced from 41% to 40%
The Tax Band has been increased from €32,800 to €33,800
Income above €70k still paying the 52% nominal tax rate

Universal Social Charges:

Entry level raised to €12,000
2% rate reduced to 1.5%
4% rate reduced to 3.5%

 

Corporation Taxes

No change to the 12.5% rate and no changes foreseen in the medium term
The “Double Irish” tax loophole is  being abolished. New rules introduced to state that all companies resident in Ireland for business purposes must be tax registered in Ireland.

 

Small & Medium Sized Businesses

The Home Renovation Incentive Scheme has been renewed and extended to include rental properties
Strategic Banking Corporation to provide funds to the small business sector launching by the end of the month
The Employment & Incentive Investment Scheme has been extended with the scheme further extended to include nursing homes and certified international traded financial service firms
The Jobs Plus Scheme has been extended and the number of positions available under the scheme doubled to 6,000
3 year corporate tax relief for start-ups extended

 

Farming & Agri Sector

No milk quotas from 2015
Income tax exempt thresholds to be increased by 50 per cent, with new threshold for leases of 15 years and over
Range of income averaging for farmers to be extended from three to five years
CAT relief for agricultural property to be targeted to ensure it is used by active farmers
CGT retirement relief to be broadened
Stamp duty relief to be extended for non-residential land transfers between certain close relatives, and stamp duty on agricultural leases in excess of five years to be removed

 

Personal Taxation Schemes

The pension levy of .6% until the end to the year with the 15% level being scrapped by the end of 2015
Tax relief on water charges worth up to €100 announced
DIRT refund for first time buyers on their savings to assist with a deposit on their  home
Cigarettes to increase by 40 cents from midnight
Child benefit up by €5 per child
No rises in alcohol, petrol, motor tax or VRT

 

Other Schemes

€1.6bn to be made available for the support of 300,000 work and training places next year
HRI horse and greyhound prize funded topped up by €6m
9% VAT for tourism and hospitality extended
25% bonus payment to social welfare recipients this Christmas
Back to work family dividend to be introduced
Recruitment into the civil service to resume in 2015
Capital Gain Tax relief on property to be scrapped

 

Conclusions and What It Means for Your Business!

Budget 2015 can be summed up by – A little bit of something for everyone but not a huge amount for anyone! The only real surprise was the lack of surprises. There have been a range of measures of measures introduced to ensure that everyone gets something back from tax reliefs for 2015. In relation to personal tax the reduced rates on the higher rate is welcomed along with an increase in the tax band. USC rates for some tax players have also been reduced which is a positive development. Water charges relief will help take the sting out of the unpopular tax but being a relief not a discount PAYE workers will need to make a tax return to claim, many for the first time. This asks the question “will the relief actually be claimed by the majority”.

For small business many schemes have been extended including the home renovation scheme, the EIIS scheme and the start up relief for entrepreneurs. Corporation tax relief for the first 3 years of a new business has also been extended to encourage new businesses. Plenty also for the Agri Business sector to mull over with a number of schemes being introduced to make it easier for farmers to develop and make an income from their businesses. The  “Double Irish” will be no more with foreign companies registered in Ireland also required to be tax resident in Ireland as well. This measure had been anticipated and adds stability for the future in the area of foreign direct investment.

Some of the other announcements of note are is the abolition of the pension levy which will be pashed out by the end of 2015, an increase in 40c on the price of cigarettes, the introduction of a “Knowledge Development Box” to compete with the UK on intellectual property initiatives, further advancements in the R&D tax credit relief scheme and an increase in the artist exemption threshold will be a help to musicians and artists in the country. Removing some of the tax burdens from the majority may be the best way to sum up Budget 2015 with some stimulus measures included to get business activity moving in a positive direction into next year.

 

Contact Avid Partners to see how Budget 2015 will effect your business.  Call Avid Partners on 01 4286900 or email us at advice@avidpartners.ie.

  • Services

    Get a feel for whether Avid can make a real difference to your business.
    View Services

  • Pricing

    Find out how Avid could make a real difference to your business
    View Pricing

  • Request a Quote

    Find out how Avid could make a real difference to your business
    Request Quote

  • “Your business approach to clients is very impressive. I have always found that when explaining the types of service on offer, it is always concise and straight forward. The level of trust that clients place in your company and its staff speaks volumes.”

  • “Service is second to none; there is always someone at the end of the phone for any business advice. The staff are very easy to get along with, very approachable and know exactly what they are talking about”.

     

  • “We have total faith in Avid Partners looking after all our financial needs from week to week business accounting to yearly revenue returns and all taxation issues. Avid Partners have helped us through these difficult times with quarterly business development meetings and strategies to keep us focused on the changing economic environment. ”

  • “I wish to thank you for your support, advice and hand holding throughout the management buy-out. It is critical to have professional advisers who demonstrate a strong commercial and technical understanding of corporate transactions. You certainly showed strong understanding and ability and we look forward to continuing our relationship into the future.”

  • “Avid Partners – Accountants & Business Advisors are an excellent firm of accountants, their quality ethos is outstanding.”

  • AvidPartners ensures that my accounts are always up to date and accurate, so I can take care of my business, without the hassle of accounting, which I am not a fan of.

  • “In our dealings with Jamie and the other staff members, we have found them to provide a proactive and speedy turnaround service which enables us to maintain a strong financial culture within our company. We couldn’t ask for more.”

  • “I would like to take this opportunity to say how much we are impressed with your company’s professionalism, it has been a pleasure working with you all and we look forward to working with you in the future.”

  • “The team at Avid Partners – Accountants & Business Advisors demonstrate an ability to “think outside the box” and they have a clear understanding of what is required to deliver on their clients’ financial needs. They are always a pleasure to work with.”

  • “I would like to say I’m very happy with your service, especially the audit team, your staff are always friendly, helpful and a pleasure to deal with.”