2009 Tax Return Suggestions/ Areas to watch

I am aware people are doing their 2008 tax return now for 31/10/09.

With all changes in last few budgets and another one coming, Its hard to take in everything that is happening and the actual effect on this.

I think anyone self employed should get their 2009 tax return done as early as possible say late February 2010(once P35 done) The reason for this is changes effecting 2009 tax return will cost a lot more than 2008 tax return. If some one is thinking my 2008 bill will be same as 2009 would want to be carefull.

One or two items effecting a person could have significant effect on tax bill.

I would like people to add items that self employed should watch out for in 2009.

I will start:

1. Net relevant earnings for pensions going from €275,238 2008 to €150,000 2009(Large Change).

2. Restriction on Interest relief on Rental Residential properties 25% restriction from April09.

3. Extra Income levies/prsi etc.

Apart from this i have noticed the Revenue getting more aggressive in tax collection, in regard to sending items to sheriiff even without making a phone call to tax payer.

People are also having problems getting refunds and basic queries are coming out to hold

up refunds such as annual vat repayment.

If you are due a refund for 2009 Tax - the earlier you file the return, the faster you will get your refund. No point waiting till 31/10/10

Some of the stuff revenue are coming out with is incredible. We had a taxpayer who is due a refund in IT for 2008. Got a phone call from Revenue looking for a marriage cert to prove that he is married before they will approve the refund. The guy is married 25 years!

While if a VAT refund is due and the taxpayer is on DD, expect a letter from Revenue asking you to confirm that the DD's are NOT included in the figures on the VAT 3.

Unbelievable stalling tactics.

We had a lot of poeple reducing DD's for VAT with trade declining. We got several phone calls from Revenue wanting to know "why the dd was being reduced". I mean do they watch the news !.

We have the bulk of Prelim Income Tax 09's done and the reduction in payment amounts ( even allowing for the Income Levy) going out is frightening. The Dept of Finance will not be happy campers after the deadlines this year.

"We have the bulk of Prelim Income Tax 09's done and the reduction in payment amounts ( even allowing for the Income Levy) going out is frightening. The Dept of Finance will not be happy campers after the deadlines this year."

I will be due a refund having substantially overpaid my Preliminary Tax on previous years income figures. A number of my friends and colleagues are in the same position so I completely agree that the Dept. won't be happy campers.

It occurred to me though whether some thought should be given as to how to deal with the overpayments/ refunds . My OH says its just a timing issue as to whether they issue refunds or allow an offset against e.g. VAT but given the anecdotal evidence that refunds are not happening except with persistent calls, maybe the Dept. should 'fess up and suggest that people forego refunds and that they will allow offsets.

Or is that too simplistic ?

mf

papervalue said:

2. Restriction on Interest relief on Rental Residential properties 25% restriction from April09.

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I'm getting confused with this, surely it's for the whole tax year?

Bronte said:

I'm getting confused with this, surely it's for the whole tax year?

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http://www.revenue.ie/en/tax/it/leaflets/it70.html#section4


Please try link above, hope it helps

I have the previous versions of the IT70. Thanks for that clarification. If the next budget reduces this relief much further it will make it very uneconomical to be a landlord.

I assume then that one takes the annual interest divides by 365 and takes 97 days at full interest and the remainder of the interest at 75%.

mf1 said:

It occurred to me though whether some thought should be given as to how to deal with the overpayments/ refunds . My OH says its just a timing issue as to whether they issue refunds or allow an offset against e.g. VAT but given the anecdotal evidence that refunds are not happening except with persistent calls, maybe the Dept. should 'fess up and suggest that people forego refunds and that they will allow offsets.

Or is that too simplistic ?

mf

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If one is doing P&F 09 now and has a refund for 08 then you can automatically on ROS have the refund for 08 offset if you choose against the PT for 09. However if you do not do this and just file the return straight then they should issue the refund and you then pay the 09 PT in full.

I've had several cases where the 08 refund was such that it then exceeded the PT requirement for 09 and still left a refund. So client gets money back and no 09 payment. That leaves Revenue with the money they already had from the client ( and spent of course ) having to be transferred to 09 and still give a refund. I can imagine the faces up there.

FWIW I've seen no appreciable delays in refund processing on Income Tax refunds for 08. Once filed on ROS the Assessment issues following day and statement showing refund usually within another 4-5 days.

"FWIW I've seen no appreciable delays in refund processing on Income Tax refunds for 08. Once filed on ROS the Assessment issues following day and statement showing refund usually within another 4-5 days."


Well goodness me! Refund arrived in the post today!

Well that will keep the wolf from the door for a while!

mf

mf1 said:

Well goodness me! Refund arrived in the post today!

Well that will keep the wolf from the door for a while!

mf

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Thought Brian L had a sour look on him in the Dáil chamber yesterday, he must have just written that cheque