End of Year Tax Checklist & Tax Tips 2016

With the year-end approaching we have compiled a checklist to ensure that you are availing of certain tax opportunities before the end of the year:

Financial Statements

Review your accounts figures before your year end to plan any closing transactions to avail of tax opportunities, e.g.

• Consider bringing forward capital expenditure that qualifies for capital allowances – to get the allowances earlier.
• 100% allowances on energy efficient equipment (only available to companies and it must be owned, not leased/hired. List of approved items is available on www.sei.ie)

Pension Contributions

• If your accounting period end is 31 December any pension contribution you intend to pay must be paid before 31 December to get a deduction in your accounts.
• If you employ your spouse in your business you can make an employer contribution for him/her
• Consider maximising your personal pension contribution/AVC contributions before 31st December.

Tax Free benefits in kind

Certain benefits can be provided to employees free of tax, for example:

• Travel Pass/tax saver commuter ticket
• Bike to work scheme: No Employers PRSI on cost; director eligible for scheme
• Small benefit: Non-cash bonus €500 per employee per annum. If value exceeds €500 full value is taxable
• Meals in staff canteens – if provided for all staff
• One medical check-up per annum

Other ideas to consider

• E working and working from home allowances
• Revenue Job Assist/Employers Job (PRSI) Incentive scheme
• Deeds of covenant
• Employ family members
• Home renovation incentive scheme
• Availing of annual gifts tax small gift exemption of €3000

Deadlines to remember

• Capital Gains Tax Payments

For gains arising between 1/1/15 to 30/11/15 the capital gains tax is due to be paid by 15/12/15

For gains arising between 1/12/15 to 31/12/15 the capital gains tax is due to be paid by 31/1/16

• The 31 December is the four year deadline for tax relief claims relating to the tax year 2011; for example, tax relief on:
  • Qualifying medical and dental expenses
  • Tuition fees
  • PAYE refunds
  • Year of marriage credit
  • Rent relief

Other matters to consider

If you are in receipt of rental income make sure to pay the PRTB registration fee every time there is a change of tenant AND every four years if no change of tenant – if you do not Revenue can withdraw tax relief on interest payments.

Contact your OSK tax adviser Imelda Prendergast Director OSK for more details or visit OSK Contracting or OSK Small Business Support for more details.