It’s that time of year again and everyone was waiting, quietly hoping that Santa would bring their Christmas presents early.
It was the first non-austerity budget since 2008. There were some positives and some negatives but overall nothing innovative was introduced especially when you take the effects of water charges and home costs into account.
The controversial pension levy is being scrapped at the start of 2016, with the bulk of the tax being eliminated in 2015.
A 40c increase in the price of a packet of 20 cigarettes, which will now cost almost €10 but drink was untouched.
Have a look at our Summary which is focused specifically on the Financial Planning aspects and implications of the 2015 Budget.
Individuals who both pay and file their tax returns through the Revenue On-line Service (ROS) have until the 13thNovember 2014 to pay a pension contribution and elect to backdate the income tax relief into the 2013 tax year. Those who do not qualify for the ROS extension must do this by 31st October 2014.
There is no option to defer. If you do not take this opportunity, you will not get another chance to reduce your 2013 income tax liability.
HowMuch Can an Individual Contribute to a Personal Pension, PRSA, PRSA AVC or AVC?
For contributions paid in 2014 and set against 2013 earnings, an earnings cap of €115,000 applies for tax relief purposes to aggregate contributions to PRSAs, RACs and employee / AVC contributions to occupational pension schemes.
Please see the tables attached to confirm what contribution level you can make.
People are concerned that the Irish banking sector is still very exposed to Loan defaults and Mortgage arrears write-offs. With recent events in a local West Cork Credit Union, people are looking carefully at where their money is being kept.
A political agreement was reached on Wednesday 11th of December by parliament and Council Presidency negotiators for a draft bank recovery and resolution directive, this is the first step towards setting up an EU system to deal with struggling banks.
It is now formally accepted that Bank Creditors will now be first in line to take the hit as opposed to Taxpayers. Unfortunately for people with money on Depositit isn’t good news as they are included in this list of unsecured creditors and they will need to come up with ways to avoid having their hard earned savings from being used by Banks to mop up after their mess.
Speak with your financial adviser about the ways that you can protect against this happening to your funds . Continue reading →
In recent news we have seen Danske Bank, Ulster Bank & ACC Bank hitting headlines giving clear signs of desperation.
With Danske Bank announcing to terminate its operations, Ulster Bank radically downsizing their operations in Ireland (another terrible blow to Irish banking considering that Ulster Bank is the 3rd largest bank in Ireland following Bank of Ireland and AIB) and ACC Bank (owned by Dutch Rabobank) to retire its banking licence. One must wonder how much is Ireland in denial of its banking crisis? Continue reading →
The good news is that the tax incentives supporting pension planning remain
Good news #1: Marginal rate income tax relief retained on pension contributions Good news #2: No changes to the €200,000 tax free retirement lump sum limit Good news #3: Earnings cap of €115,000 for tax relief purposes retained on contributions to PRSAs, Personal Pensions, and employee/AVC contributions to occupational pension schemes Good news #4: No change to ARF and vested-PRSA minimum drawdown requirement, or the requirement to set aside €63,500 in an AMRF or used to purchase an annuity, or a guaranteed pension income for life of €12,700.
Some bad & then good news: The Pensions Levy will be increased from 0.6% to 0.75% in 2014 and then reduced to 0.15% in 2015.