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VAT Amendments

The top rate of VAT has fallen from 21.5% to 21% from 1 January 2010. While this decrease will not reverse the Northern shopping trend it will bring the VAT rate somewhat in line with that of the UK, which will increase from 15% to 17.5%. Revenue has published a guide to the rate change on www.revenue.ie.

Redundancy Rebates

Where a business is awaiting a redundancy rebate and has difficulty in meeting their tax liabilities, Revenue previously announced that the business can offset the redundancy rebate directly against the outstanding taxes, thereby mitigating against any interest and penalties that may be accruing on the unpaid liabilities.

Income Levy Certificate

Employers are obliged to furnish each employee with an Income Levy Certificate along with form P60. The Income Levy Certificate should be issued even when the employee has nil income levy deducted during the year. Where an employee leaves an employment, an Income Levy Certificate should be issued to them along with form P45. Income Levy Certificates can be downloaded from www.revenue.ie.

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