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Tax Tips February 2017

Tax Planning Considerations 

  • If you have not been in a position to pay mileage expenses to your employees, where they have used their own cars for business purposes, then they may be able to make a claim to Revenue for the motor expenses that they have incurred in carrying out their work.  Employees can claim both the car running expenses and wear and tear as a tax deductible expense. This will usually result in a tax refund due to them.
  • Revenue has now issued the certificate of tax credits and standard rate cut-off point for 2017 to all employees.  You should review this certificate to ensure you have been granted the correct rate of credits and standard rate band, and also ensure that all credits to which you are entitled have been included, e.g. employee flat rate expenses, service charges, etc.  If your credits are incorrect it will result in an over or underpayment of PAYE at the end of the year.
  • Have you claimed all your tax credits and allowances for 2016 and in previous years? If not, you could be in line for a tax refund.
  • If you are married and jointly assessed, you should also review the allocation of credits between each spouse to ensure it suits your circumstances, e.g. if one spouse is self employed and the other is an employee you can dictate whether most of the tax due is paid under PAYE or in a lump sum on assessment by the manner in which the credits are allocated.
  • You should check that you are registered to file the Form P35 for 2016 via the Revenue Online Service (ROS).  Filing date 23rd February 2017.
  • Do you have a company car?  You should estimate the mileage on your company car as accurately as possible, to avoid fluctuations in the monthly amounts subject to PAYE and PRSI.
  • Now is a good time to review your financial and tax situation with your professional adviser to ensure that you have a viable plan for 2017.