A SARP return must be made by an employer of
employees who availed of relief under the Special
Assignee Relief Programme (SARP) during the year
ended 31 December 2012 on or before 15 February
Under the SARP program 30% of basic salary (to a
maximum of €127,500) is excluded from the charge to
Income Tax for employees who take up full time
employment in Ireland. Qualifying employees must have
been a full time employee with a Company incorporated
and resident in a Treaty State for the 12 months prior to
arriving within the State. The individual must also be
resident in Ireland to qualify for the relief. The relief
does not apply to Universal Social Charge or PRSI. An
Employer will also be able to bear the cost of certain
items for a relevant employee on a tax free basis to
include the cost of a return trip for the employee and
family to an overseas country to which they are
connected plus primary and or post primary school fees
up to €5,000 per annum per child where the school is
approved by the Minister of Education.
The SARP return is available on the Revenue website
• details of the Employer and Employee registration
• employee name
• amount of income, profits or gains in respect of
which no tax was deducted
• costs associated with an annual return trip to the
country of residence or nationality for self and/or
• costs of school fees for children paid to an approved
school in the state
• increase in number of employees as a result of the
operation of the relief or number of employees
retained by the company as a result of the operation
of the relief
Noone Casey sponsored last night’s Irish Web Awards Best New Web App category. We are pleased to announce the winner is FixMyStreet.ie
Congratulations to all the Award winners and well done to Michelle and Damian for organising another great night.
We are delighted to be sponsoring the Best New Web Application/Serviceat tonights Irish Web Awards in the Mansion House.
The finalists in our category are
Best of luck to all finalists.
Come up & say hello if you are there tonight.
From 1 June 2012 the following categories of tax payers are obliged to file their returns electronically:
• All VAT registered tax payers • Self assessed individuals claiming certain income tax exemptions (Artists Exemption, Woodlands Exemption etc) • Self assessed individuals claiming certain income retirement reliefs (RAC payments, Relief for PRSA contributions etc) • Self assessed individuals claiming certain income tax reliefs (BES relief, EII relief, Seed Capital relief , Film relief etc)
Where a taxpayer is obliged to file and pay on ROS, the penalty for failing to do so is €1,520 each time a taxpayer fails either to pay or file on-line. Where there is a genuine difficulty with filing and paying on-line, taxpayers may on application to Revenue be excluded from electronic filing.
TAX TIP: If you think you may be in a tax refund in respect of 2011, why not send in your return early and obtain your refund now!!!
Many IT, Engineering and other Professional Contractors who use composite company structures may be facing large PRSI liabilities as Revenue and DSFA challenge the PRSI status of such contractors.
Contractors who hold only15% of the shares in a composite company may not be entitled to Class S PRSI status; employers PRSI of 10.75% will fall due in those circumstances. Class S status is only applicable to those shareholder/employees who control their companies. A 15% shareholding with up to 6 other contractors who may not know each other does not suggest control.
Noone Casey has developed I-Finance an online realtime accounting solution for professional contractors to address this concern & to legitimately maximise the tax advantages of contracting.
Have a look at our short video here to get a better understanding of the issues involved. If you feel this affects you, contact Noone Casey for an independent assessment of your position.
I-Finance uses the Limited Company type structure thus avoiding the employers PRSI issue. The table below gives you an idea of how each of the common contracting structures compare.
|Company Structure Type
||You own 100% of your own company
||You have no ownership
||You own 15% of an externally controlled company
||You and your appointee are directors of your own company
||You have no directorship
||You and up to 6 others are directors of the company. You may not know the other directors.
||You are the employee of your own company
||You are an employee of the umbrella company
||You are an employee of the composite company
||You are entitled to tax deductible expenses through your own company
||You are not entitled to any expenses
||You may be entitled to a lesser amount of expenses
||You can use your own company to assist in appropriate tax planning opportunities
||You cannot use the umbrella company to assist in your tax planning
||You cannot use the composite company to assist in your tax planning
||We ensure you manage your affairs in full compliance of all taxation and PRSI legislation
||You are treated as an employee and have taxes deducted appropriately
||The Revenue Commissioners are examining the appropriateness of the PRSI structures of composite companies