4 Tax Incentive Schemes You Should Be Aware Of
There are a number of Tax Incentive Schemes to be aware of that can help you or your business. Some can save you money on expenditure while others can save on resources. Personal tax areas are also important to be aware of as they may have individual implications for the upcoming tax return season. Some of these tax incentives are discussed below.
Job Bridge & Jobs Plus Schemes
Job Bridge is the National Internship Scheme that provides work experience placements for interns for a 6 - 9 month period. The aim of the scheme is to assist in breaking the cycle where jobseekers are unable to get a job without experience, training or as unemployed workers wishing to learn new skills. The scheme is a great opportunity for employers and offers significant benefits in a number of areas:
- Job Bridge creates additional human resources for the company during the 6-9 month placement period.
- Provides access to potentially high quality personnel at no financial cost and at little risk to the organisation.
- Gives a participating company time to assess a suitable individuals potential value to a company if being kept on in a full time capacity.
- Under the related Jobs Plus Scheme financial incentives of between €7,500 and €10,000 can be claimed when employing a full time individual who has been out of work for 12 months or more.
Avid Partners have assisted many clients through the Jobs Bridge and Jobs Plus Schemes. We have helped in drafting the position, getting the intern position listed, advertised the intern role, selection of the right intern for the client organisation and in some instances interviewing the intern for a full time position within the organisation upon completion of the placement.
In order to qualify for the scheme employers must be fully tax compliant and be in possession of a tax clearance certificate. Time is ticking for the scheme as there are over 6,500 of the 8,500 available placements completed so get your tax affairs in order today and contact Avid Partner to ensure you don’t miss out on this highly beneficial scheme.
Home Renovation Incentive (HRI) Scheme
The Home Renovation Incentive (HRI) Scheme was introduced to stimulate home improvement works. The scheme offers financial incentives to homeowners for home renovations and has proved popular since its launch. It runs from 25 October 2013 to 31 December 2015. Qualifying expenditure is at the rate of 13.5% in the form of a tax credit. To participate in the scheme the homeowner must be:
- Fully up to date with their obligations regarding local property tax and household charges.
- Must be able to show payment of income tax, whether PAYE or Self Assessed.
- Must be able to show that the works in question are being carried out on the individuals primary residence.
- The works must cost a minimum of €4,405 (before VAT)
For contractors to participate in the scheme they must be:
- Fully RCT & VAT registered
- Fully Tax Compliant and have a tax clearance certificate.
- Registered with Revenues Online Service
The benefits for a business of being fully eligible for the scheme are that it opens up new revenue streams for eligible customers. Non eligible companies will be at a competitive disadvantage in the marketplace as they will likely miss out to a registered contractor if the client is faced with a like for like decision (client saves 13.5% on a same value quote). Don’t miss out on new business by not having your tax affairs in order.
Self Employed Individuals Below Income Threshold May Need to Make a Voluntary PRSI Contribution
If you earn less than €5,000 from self-employment in a year you are exempt from PRSI, but you may pay €500 as a voluntary contribution in order to protect your benefits in the future. You can choose to make voluntary contributions if you are no longer self-employed or if you continue to be self-employed but your income is below the limit for class c contributions (currently €5,000). To become a voluntary contributor you must have at least 468 contributions paid at Class S. (The contribution requirement will increase to 520 contributions in 2015).
Voluntary contributions can help maintain your social insurance record and help you to qualify for social insurance payments in the future. Failure to meet the required criteria can result in an individual being ineligible for the full state pension in the future. Don’t risk putting your pension entitlements in jeopardy.
Employment and Investment Incentive Scheme (EII)
This is a revamped version of the Business Expansion Scheme. It is a tax relief incentive which provides tax benefits to eligible investors for investments made into certain qualifying small and medium sized trading companies. The Employment and Investment Initiative Scheme enables qualifying companies to raise up to €10,000,000 (subject to a maximum of €2,500,000 in any one twelve month period) in equity funding. The programme also allows individual investors to obtain income tax reliefs on investments made into certified qualifying companies.
The EII Scheme has many benefits to eligible companies including:
- Cash flow advantages
- Low/fixed cost of finance for three years
- Investment is equity not debt
- Repayments don’t come into play until 2017
- Existing company shareholders retain control
- Participation may open the door for further funding opportunities such as bank financing or government support agencies.
Avid Partners can advise if your organisation is eligible for the EII Scheme and if so can assist in getting the organisation registered for the initiative. We can also manage the funding process itself and ensure that the participating company is marketed effectively for the scheme. We will also ensure that all investment opportunities are maximised.
Contact Avid Partners today for further details of the scheme and let us help you in gaining new investment into your business in order to reach its true potential. Email: firstname.lastname@example.org for further details or call us on 01 4286900.
Get Your Tax Affairs in Order Today!
All of the above tax incentive schemes requires individuals and companies to be tax compliant and up to date on their tax affairs. Failure to keep your accounts in order triggers in-eligibility for the schemes and missing out on potential opportunities, both financial and resources.