News
Tax Alert - PAYE on Directors Fees
Revenue recently issued a briefing note (Tax Briefing No. 06, December 2011) confirming the application of PAYE and USC to Directors fees.
The note states that PAYE and USC must be operated on all fees paid in respect of directorships of Irish registered companies including situations where directors are providing their services through a limited company; and situations where the director is non-resident of Ireland.
There are one or two exceptions to PAYE treatment, however these apply in only very limited circumstances.
In light of Revenue’s position, we suggest that all companies should review arrangements for paying their directors to determine their PAYE, PRSI and USC obligations.
If you have any questions on this issue, please do not hesitate to call any of the team at LHM Casey McGrath.
Click here to see the full Briefing
Important Changes to VAT Rate - January 2012
We would like to remind you that the standard rate of Vat has increased from 21% to 23% with effect from 1 January 2012
Outlined below is a summary of some procedural issues for VAT registered traders in relation to this change:
1. When to apply the new standard VAT rate?
Invoice Basis
General Rule
Suppliers accounting for VAT on the invoice basis should apply the rate of VAT in force on
the date they issue an invoice (or the date they are required to issue an invoice).
Invoices issued on or after 1 January 2012 should therefore include VAT at 23%.
Unregistered Persons / Private Individuals
In the case of sales to private individuals, suppliers should use the VAT rate in force at the time of the supply.
For example, if goods or services are supplied to unregistered persons before 1 January 2012 the VAT rate will be 21% even if the invoice is issued after that date.
Cash Basis
Where a supplier is on the cash basis they should apply the rate of VAT in force at the time
of the supply.
For example, if the goods or services are supplied before 1 January 2012 but payment is not received until after that date, the VAT rate is still 21%. Such traders must account for VAT at 23% on goods and services supplied on or after 1 January.
2. Credit notes
Any credit note issued to a VAT registered person, Public Body or an exempt person on or after 1 January 2012 should show the VAT rate in force at the time the original invoice was issued.
A credit note issued to an unregistered person on or after 1 January 2012 should show the VAT rate in force at the time of the original supply.
3. Advance Payments
An advance payment, including a deposit, received from a VAT-registered person before 1 January 2012 in respect of goods or services not supplied until after that date is subject to VAT at 21% if the invoice relating to that payment is issued or required to be issued before 1 January 2012.
In the case of traders accounting for VAT on the cash basis, an advance payment received before 1 January 2012 is taxable at 21%; and 23% if received on or after that date.
4. Contracts Entered into before 1 January 2012
Where a contract to supply goods or services is entered into before 1 January 2012 and the contract is not completed until after that date, then the agreed VAT inclusive price may be subject to an appropriate adjustment on account of the change in the VAT rate, unless there is agreement (or clause within the contract) to the contrary between the contracting parties.
If you have any questions in relation to the above, please contact Luke Prendergast or myself, or indeed any member of the tax team at LHM Casey McGrath.
Finally I would like to take this opportunity to wish all our clients and colleagues a very happy and prosperous New Year.
Best Regards
Frank Hussey – Tax Partner
Budget 2012
On the 6th of December next the Minister for Finance, Michael Noonan will present his first budget to the Dáil in which he will outline the taxation changes he proposes for 2012.
In advance of the budget Brendan Howlin, Minister for Public Expenditure and Reform will outline on the 5th of December the Government's public expenditure proposals.
As part of our ongoing drive to deliver relevant tax information to our clients and colleagues our dedicated Tax Team will be analysing the effects of Budget 2012 and its implications for you as and when it happens. You can find all the detail of our analysis on the afternoon of the budget on our dedicated LHM Casey McGrath Budget 2012 website together with real time updates on the main highlights of the Ministers budget speech.
Join us - November 2011
We are currently recruiting Audit Seniors please follow the link below for details and to apply.
http://www.irishjobs.ie/Jobs/Audit-Seniors-6625883.aspx
IAASB Appointment - October 2011
Brendan Murtagh who leads the Assurance function of the firm has been appointed to the 18 person Board of the International Auditing and Assurance Standards Board, based in New York, USA, for a three year term starting on 1 January 2012.
The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest.
The objective of the IAASB is to serve the public interest by setting, independently and under its own authority, high-quality standards dealing with auditing, review, other assurance, quality control, and related services, and by facilitating the convergence of national and international standards. This objective contributes to enhanced quality and consistency of practice in these areas throughout the world, and strengthened public confidence in financial reporting.
For further information on the work of the International Auditing and Assurance Standards Board visit their website at http://ifac.org/IAASB/.
Join us - September 2011
LHM Casey McGrath are the largest ACCA Firm in Ireland. We are members of the MSI Global Alliance of Professional Firms and have achieved the quality seal from the ACCA as well as being one of the first accountancy Firms in Ireland to become a Platinum Accredited Training practice. LHM Casey McGrath provide a wide range of services for our clients in different sectors including Business Advisory, Compliance, Audit, Assurance and Taxation services. Our Portfolio of clients include owner managed business’s, SME’s, PLC’s and public bodies. We are currently recruiting for a number of positions in our Auditing Department including:
AUDIT ASSISTANT MANAGER
AUDIT SENIORS
AUDIT SEMI-SENIORS
The successful candidates will be qualified Accountants with experience in a similar role. If you are interested in any of these positions, please send us an updated copy of your resume with the position that you are interested in applying for in the subject line to careers@lhmcmg.ie
Awards
LHM Casey McGrath has been selected as the outright winners of the Public Sector Excellence in Business Awards 2011. This award was in the category of Accountancy Services and Solutions as voted by the readers of the Public Sector Magazine.
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Join us
We are currently seeking to recruit a number of outstanding graduates to embark on a professional career that will provide you with the personal and career opportunities to maximise your true potential.
To join us please complete our application form and return to:
Barbara Mangan, Human Resources