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In the tax years 2008, 2009 and 2010, the exemption threshold for the Health Levy was €26,000. This works out at €500 per week.
If you were paid more than €500 in any one week of the year, you would have been liable for the Health Levy. If you earned less than €26,000 in that year, you can obtain a refund of the Health Levy you were charged.
If you are eligible, contact the Department of Social Welfare to claim your refund. There is a time limit of four years, from the year in question.
Any contributions made before 1st January 2008 are outside the time limit.

RCT Rate Freeze Over

Subcontractors rates had been frozen for the first three months in 2012. If you are a principal, it is important to note that subcontractors’ rates are liable to change from 1st April 2012.
At present, the three RCT rates are: 0%, 20% and 35%.
Revenue will advise the subcontractor and all principals if the rate changes. If you are a subcontractor at the 0% or 20% rate, it is vital to maintain your compliance record to remain at that rate.
It is a good idea to register for Revenue’s Online Service (ROS). This system will allow you file tax returns, pay liabilities and monitor your information at any time in any location.

NPPR

The non-prinicipal private residence (NPPR) charge for 2012 was due as of 31st March.
Property-owners will have three months to pay with late payment fees of €20 per month or part month coming into effect from 1st July 2012.
The NPPR charge is levelled at the owner of a property rather than a tenant.
The NPPR charge and the Household Charge are not allowable deductions when calculating taxable rental income.
When computing net rental amount received, only those deductions that are specified here are allowable.

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The Household Charge has been the subject of much public debate and media scrutiny over the past few weeks with huge opposition to the measure.

The Government are now faced with a situation where only 328,000 Irish households out of 1.6 million have registered to pay the charge.

Many commentators are predicting a surge in registrations by the month’s end, as cash-strapped householders try to avoid fines.

Independent TD Mick Wallace described the charge as being “grossly unfair”.

Paying the charge

If you don’t wish to pay online, you can fill in a paper registration form available for download here or from your local council office. Fill out the form and send payment to your local council office or Household Charge, PO Box 12168, Dublin 1.

The household charge must be paid before March 31st to avoid penalty charges.

Penalty System

• 10% penalty – if you pay within three and six months of January 2012
• 20% penalty – if payment is six to twelve months late
• 30% penalty – if payment is more than twelve months late. An additional 1% per month penalty will also apply. If you own property and are twelve months late with payment, the total charge will be €100 + €30 + €12 = €142.

This charge is levelled at owners of residential property and not tenants so tenants will not be required to register for the charge. The charge is directed at owners of all residential property which includes houses, apartments, flats, bedsits and maisonettes. If you own a building and have split it into five bedsits, the total household charge will be €500.

If you pay the €200 NPPR charge on a property, it will still be liable for the €100 Household Charge.

Exemptions

• Owners of residential property entitled to mortgage interest supplement
• Owners of residential property located in certain unfinished housing estates
• Owned by an approved charity
• Where property was vacated on account of long-term mental or physical issues suffered by owner

If you are exempt or can claim a waiver on your household charge, you must still register on householdcharge.ie to claim your waiver.
The charge is expected to raise €160 million in 2012.
Non Principal Private Residence Charge

The €200 NPPR Charge can be paid from the 31st March 2012.

The charge must be paid by 30th June 2012 to avoid penalties.

Visit www.nppr.ie for more information.

Owners of non-prinicpal private residences are liable for both the €100 Household Charge and the €200 NPPR Charge.

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DBASS Chartered Accountants Dublin partner Michael Byrne is guest-blogging on Sage Ireland’s blog about Finance Act 2012.

Sage are a very progressive, well-marketed company providing accounts software for companies of all sizes in all industries.

Some of their more popular products include Sage One, Sage 50 and payroll software such as Quickpay.

We have produced an infographic to distill the bulk of the Finance Act to its bare essentials.

Visit the Sage blog to take a look or click here to download a handy .pdf version that you can print and keep for future reference.

If you have any questions regarding Finance Act 2012 and how it affects you, please don’t hesitate to get in touch.