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Income Tax and Investment Property – Why Place it on the Long Finger?

The phone call
One lunch time while sitting down to have a well deserved cup of freshly ground coffee, my phone rang. I answered it and I started a conversation with a young man who was obliviously uncomfortable with the whole idea of dealing with a tax advisor. Let’s call him ‘M’!

M had come to me as a referral from existing income tax client. He owned an investment property and didn’t know how to deal with the tax situation. He searched on the internet and visited all the chat rooms and got a list of different answers as long as his arm. The pinnacle came when a colleague from work, some years older than himself heard about his situation and informed him that, “he’d have to pay a bucket load of tax…” Of course, this response led him to a number of sleepless nights until a friend (my client) gave him my number and told him to go and have a chat with me.

The above is a classic situation of numerous phone calls that I receive. Where people have worried themselves and missed numerous hours of sleep worrying about a situation that can be rectified (almost!) by a phone call to a friendly tax advisor or accountant. The hardest thing is making that call!

Business Formation Part 3 – Limited Company

We are now at the final part of the 3 Part series covering the main options open to anyone wishing to start a business. This option is to form a Limited Company.

There are number of types of limited …

Business Formation 2 – Partnerships

In Part I we looked at the option of starting up a business as a Sole Trader. In this second of three articles we now look at Partnerships and whether this may be the most attractive form of Self-Employment …

Business Formation Part 1 – Sole Traders

Contrary to what many people might think, there are still significant numbers of people setting up new business ventures. For example, in the week ending March 30th, CRO statistics show that 335 Limited Companies were formed and 254 Business Names were registered. Whilst this is much less than was the case in, say 2007, it nonetheless indicates that there are many people out there who are either making the leap to self-employment or that there are self-employed people setting up new ventures.

2010 Self Assessment Income Tax

If you are Self Employed, you may have noticed recently that there has been some debate as to whether the October 31st deadline for the submission of 2010 Self Assessment Income Tax Returns (Form 11, Form 11E and Form 12) should be brought forward to September 30th 2011.

Payroll for Employers

If you are one of the many people who had problems with your payroll in 2010 and wrestled with the calculation and submission of your 2010 P35, the good news is that the start of the Tax Year is the time to ensure that these problems do not reoccur in 2011. By putting a proper system in place at the start of the Tax Year, you will ensure that you avoid any of the problems associated with payroll as the year progresses. If on the other hand, you wish to enrage even the most timid of Employees you should make some mistakes in the calculation of their payslip. This is a sure-fire way to cause friction with your Employees. An Employee who thinks that he/she is being ‘done’ on their salary will not be a happy and productive part of your team.

P60 and Income Levy Certificates

When an Employer finalises their 2010 P35 for submission to the Revenue Commissioners, they should also issue the 2010 P60 and Income Levy Cert to each employee who was on the payroll at year end.

Employers Year End Return (P35)

By now (January 25th 2011), Employers should have submitted their final P30 for 2010 to the Revenue Commissioners. This P30 was due to be received by the Revenue Commissioners no later than January 15th. Whilst some employers file Monthly P30s and some avail of certain exemptions that entitle them to the Quarterly P30 filing option, both groups were due to file their final P30 for 2010 in January 2011.

Employers P35 Return

If you’re an accountant, February 14th isn’t all about flowers and chocolates. It’s an important day for Employers because it’s the last day before the deadline (15th February) for the submission and payment of the 2010 P35 Returns to the Revenue Commissioners.