Articles

Changes to licensing requirements for Mineral Oil Traders

Under the old rules; Mineral Oil Traders who produce, sell, deliver or deal in, or on, any premises, mineral oil (i.e. hydrocarbon oil, liquefied petroleum gas and substitute fuel) for use for combustion in the engine of a motor vehicle had to take out a Mineral Oil Trader’s Licence. This will now be replaced by two new licences namely:

 

• An Auto-Fuel Trader’s Licence is required by traders who produce, sell, deliver or deal in, or on, any premises, mineral oil (i.e. hydrocarbon oil, liquefied petroleum gas and substitute fuel) for use for combustion in the engine of a motor vehicle. This new requirement will come into effect from 1st July 2012

 

• A new Marked Fuel Trader’s Licence will be required by traders who produce, hold, deal in, or deliver marked gas oil or marked kerosene. This new requirement will come into effect from 1st October 2012.

 

Additionally a New Monthly Return of Oil Movements (ROM1) will be introduced from 1 January 2013. The return will require mandatory e-filing by all Licence holders. The return will include opening and closing stock balances and details of purchases and sales for all oil products. The return must be submitted through Revenue’s On-line Service (ROS).

 

You can refer to the following link http://www.revenue.ie/en/tax/excise/mineral-oil-traders/index.html which provides you with the relevant information.

2012 changes to Pensions

Pension Tax Relief	To 31/12/11   Up to 41%	From 1/1/12   No change but under review
Employer PRSI Relief	50% PRSI on employee contributions	No PRSI relief on employee contributions
Maximum Pension Fund	€2,300,000	No change but under review
Maximum Lump Sum	€575,000	No change but under review
Vested PRSA Distribution	0%	5% (6% for PRSAs > €2 million)
ARF Distribution	5%	5% (6% for ARFs > €2 million)
Tax on residual ARF assets passing on death of ARF holder to child >21	20%	30%

Carbon Tax Increase Takes Effect on 1st May 2012

The 1st of  May is somewhat unusual day for tax increases, however, as announced in Budget 2012, with effect from tomorrow, the carbon tax on home heating fuels and natural gas, will be increased by €5 to €20 per tonne of CO2 emitted on fossil fuels. Members will recall that the carbon tax increase on petrol and auto diesel  saw a 1.4 cent and 1.6 cent price increase at the pumps at midnight on Budget night 7 December 2011. Section 68 Finance Act 2012 legislates for these increases.  

VAT on Education, VAT on Training, VAT Treatment of Education

Revenue has published guidance on the VAT on Education and Training, specifically the VAT treatment of vocational training or retraining.

 

The leaflet outlines Revenue's position on:

• The criteria that must be met for a course/training to qualify for exemption.
• Incidental supplies.
• The place of supply.
• Examples of training services which are not exempt and therefore liable to VAT at the standard rate.

For more details contact info@caggroup.com or call the office.

VAT Update April - Finance Act 2012

Points to note from the Finance Act 2012;

• Increase in the Standard VAT Rate included in the Finance Act 2012 - from 21% to 23%

• Reverse charge on Supplies of Construction Services - new rules from 1st May 2012

• Travel Agent's Margin Scheme - removal of rarely used provision

• District Heating - rate applying is 13.5% from 1/3/12 in line with electricity, gas and home heating oil

• Definition of Bread - centres around egg, sugar and fat content as to whether 0% applies

• Admissions to Open Farms & Built and Natural Heritage Facilities - due to ECJ ruling now vatable at 9% from 1/1/12.

For more details on any of these topics contact info@caggroup.com

 

 

 

 

PRSI Refunds & Overpayment of PRSI

• It has emerged that tens of thousands of workers are due a refund for overpaying their PRSI. 

• This refund relates to the payment of a health contribution by individuals who are exempt from paying it.

• This is not an error and it occurred as the system was set up to deduct PRSI on a weekly basis and workers could later apply to get money refunded if they have overpaid.

• However, the refund is not automatic and people should check their payslips and P60s.

• You may be entitled to a refund of the Health Contribution if;

                         i.         you have earned gross pay of less than €26,000 in 2008, 2009 or 2010 and,

                        ii.          you earned more than €500 in any particular week in those years (most can check this by reviewing your P60s and if you have PRSI contributions at class A1 you have earned more than €500 in any particular week) 

• Any contributions paid prior to 1 January 2008 are outside the time limit for making a claim.

• The Health Contribution was included in the Universal Social Charge (USC) with effect from 1 January 2011 and no Health Contribution refunds arise after that date.

• If you satisfy the earnings conditions outlined above you should write to the address below and include your name, address, Personal Public Service Number and your date of birth.

• Department of Social Protection,
  PRSI Refunds Section,
  Oisin House,
  Pearse Street,
  Dublin 2.

 Other Links

Department of Social Protection - www.welfare.ie/

Citizens Information - www.citizensinformation.ie/

NPPR Charge overdue

Updated Universal Social Charge Guidance Published

Revenue’s recently published updated FAQs on the Universal Social Charge clarifies the charge to USC on wages in the case where the individual has a medical card.  It also confirms that the USC does not apply to Public Service Pension Reduction and updates the list of social welfare payments that are exempt from the USC.

The updated document clarifies that individuals in possession of a full medical card, (including a Health Amendment Act card for Hepatitis C sufferers), will only pay Universal Social Charge at a maximum rate of 4% irrespective of the level of their income from employment/pension.

However, this treatment does not apply to individuals who hold other types of ‘medical card’, such as a GP Visit Card, a Drugs Payment Scheme Card or a Long-Term Illness Scheme Card.  The FAQs also note at new section 1.20 that the USC does not apply to the Public Service Pension Reduction.

New RCT System

Principals and subcontractors are reminded that the transitional arrangement freezing subcontractor's rates finishes on 31 March 2012.

Principals need to be aware that subcontractors' rates may change at any time from 1 April 2012 onwards. In-house accounting systems used for RCT purposes will need to have three RCT rates incorporated: 0%, 20% and 35%.

Where a subcontractor's rate has changed, Revenue will advise the subcontractor and all principals engaging the subcontractor. Subcontractors who are at the zero and 20% rate are advised to maintain their compliance record in order to continue at that rate.

Subcontractors are encouraged to register for Revenue's Online Service (ROS). This service is an internet facility which provides customers with a quick and secure facility to file tax returns, pay tax liabilities and access their tax details, 24 hours a day, 7 days a week, 365 days a year.

Shortly after 1 April 2012, subcontractors who are registered for ROS may request a review of their RCT rate on ROS. Subcontractors who are not ROS registered may contact this office for advice on this matter.

Contact caggroup.com for further help and assistance.

Retention of Tax Records in Electronic Format

On the 27th January 2012 the Revenue Commissioners published The Information Technology and Procedural requirements to which any electronic, photographic or other process used for the storage, maintenance, transmission, reproduction and communication of any record must conform.

The updated requirements differ from the previous requirements issued in December 2001 in two respects:

• It is now no longer a requirement to retain the paper originals of any third party record where an electronic copy of the original record is generated, recorded and stored in accordance with the information technology and procedural requirements as published.
• Addition of a requirement that all electronic copies of records must be accessible to a Revenue official in paper or electronic form, the method and format of delivery to be specified by the Revenue official at the time the records are being requested.

full Revenue document