Newsletter – October 2023

Here’s a list of the most
common items to help reduce your personal income tax liability this year

  1. Send us all of your medical and dental expenses (don’t forget the MED 2), for you, your spouse, children, and in many cases your parents if you are paying for their treatments etc. (20% relief available). Remember, the balance of any expenses not covered by your health insurance may be claimed.
  2. If you are paying for a parents nursing home expenses (or a carer) relief may be claimed @ 40% on these.
  3. By making additional pension contributions anytime up to 15th November, you may receive up to 40% tax relief.
  4. If you are personally paying a “Permanent Health Insurance Policy”, relief is available on this also @ 40%.
  5. Invest in an EIIS scheme – relief available at 40%.


Please pay your Local Property Tax (LPT) now – or else pay a surcharge of 10% on all of your income tax!

At this time of year, as things really heat up in filing personal Income tax returns, when we prepare the calculations, the Revenue system frequently applies a surcharge of 10% to many of our client’s liability. Upon investigation, it comes to light, that our client has not paid their LPT.

In these circumstances, ROS adds an additional 10% to the tax liability. We cannot pay your LPT, you alone can do this, so please, please, make sure you have paid it for 2023. Don’t leave it until the last minute and find out you have forgotten the passwords or log on, etc.


Is your Warehoused Tax Debt just too big for you to face?

Over the last few months’ we have been praising the Revenue for their very co-operative stance in dealing with some clients tax debts, by giving lengthy repayment periods. This has been widely publicised over the last few weeks in particular. Indeed, Revenue have now written to all taxpayers who have warehoused debt, encouraging them to make contact now, and put a plan in place in advance of the deadline next April.

What are your options, if the figures just don’t add up?

The Companies Act 2021 introduced a new process called The Small Company Administrative Rescue Process (SCARP), which was designed to help companies who were viable, yet insolvent.

The scheme applies to small and micro companies and:

  • Allows companies to restructure their debts;
  • Helps companies avoid liquidation;
  • Ensures creditors get a better outcome than they would under a liquidation.

Requests for Revenue to participate
in a Rescue Plan

A Process Advisor must make a request for Revenue to participate in a rescue plan. Requests must be sent to the Collector-General’s Insolvency Unit.

Essentially, under the scheme all creditors (including Revenue) suffer a reduction in what they are owed (including director’s loans, if in place).

Recently there have been a number of high profile well publicised cases, where a significant portion of Revenue unsecured debt (i.e. taxes more than 2 years old) were totally written off.
If you feel you would benefit from a discussion on this matter please give your contact here in Guardian a call, and we can set up a meeting in total confidence to explore the options available to you.


Do you know if you are making or losing money this year?

Traditionally many businesses only receive accounts at the end of a year, and often this is up to 9 months after the year end date. By then the information is so out of date its of no value, other than to keep the business compliant by filing accounts in the Companies Registration Office.We specialise in producing Management accounts during the year for many of our clients – some like them every 2 months, others 3, 4 or even 6 monthly.

This allows the directors to make better decisions in almost real-time. In addition, the information can be used to help decide on taking bonus payments, or making additional pension contributions. If you would like to consider this, please call Colum, Keith or Michael and they can discuss your exact needs, and what may suit you best.

Date Posted: 31 October 2023