McHugh & Co.

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Latest News:

Second Reduced VAT Rate Effective from July 1st

As part of the Government Jobs Initiative, a temporary reduced VAT rate came into force on July 1st 2011. The full rate of VAT is 21% and currently the reduced rate is 13.5%. However, for certain tourism related goods and services the reduced rate will be temporarily set at 9%. It is hoped that this move will help boost tourism and jobs.

This rate will remain in place until 31 December 2013. The principal services to benefit will be hotels, restaurant and catering services and various entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, amusement parks and sporting facilities.

The second lower rate of VAT will also be extended to hairdressing services and the supply of printed matter such as newspapers, brochures, maps and programmes.

Other goods and services which are subject to the lower rate of VAT will continue to be subject to the existing 13.5% rate.

Further details including a full list of goods and services impacted may be found in the Revenue eBrief No. 37/11 and on the Revenue’s website.

Employer Contributions to PRSAs - Income Tax, PRSI and USC

The purpose of this eBrief is to clarify for employers and payroll practitioners how employer contributions to an employee’s Personal Retirement Savings Account (PRSA) are to be treated for Income Tax, PRSI and USC purposes.

Restriction on the allowance of Capital Losses - Section 546A TCA 1997

This eBrief describes the restriction on the allowance of capital losses introduced by section 59 Finance Act 2010. It sets out the scope of the provision and how Revenue envisages its application.

Changes to the Operation of Relevant Contracts Tax (RCT)

This eBrief gives details on a planned mail shot being issued to principal contractors to inform them of the main RCT changes with the introduction of the new system, the potential implications for their business and what they should do to prepare for these changes.

It also contains links to further information on the new system, expected to be introduced on 1st January 2012.

Limit on Tax–Relieved Pension Funds

A new Form 787S has been issued by Revenue for use where income tax is deducted under Case IV from a chargeable excess. Click here for more information and to access the form.

Source: Revenue




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