QI plan on doing some of my Christmas shopping online from a retailer based in Northern Ireland. The retailer in question has a camera and a few toys that I can’t get here in the Republic. Do I have to pay value added tax (VAT) and additional customs duties when delivering the goods? Emma, County Kerry
Goods shipped to consumers in Ireland from Northern Ireland should not be subject to customs duties in Ireland. Following changes to EU VAT rules in July this year, sellers in the EU and Northern Ireland are now required to charge Irish VAT at the appropriate rate on their sales to consumers in Ireland, so in principle the amount of VAT you pay must be the same regardless of where the goods come from. In addition, this VAT should already be included in the price you pay, so you should not have to pay any additional VAT at the time of delivery.
Pension fund children’s inheritance tax invoice
Q When children over 21 inherit the balance of an approved retirement fund (ARF – a post-retirement investment fund), what is their tax liability? Is the ARF balance inherited from a child taxed at the normal rate of income tax and is it exempt from inheritance tax? Also, can the annual gift tax exemption of € 3,000 for any person be backdated by, say, four years? John, County Monaghan
A In general, during a transmission by death, the beneficiary of the asset is subject to the Tax on Capital Acquisitions (CAT – the tax on gifts and inheritance) in the form of inheritance tax. This is not always the case with inheritance from an ARF.
A child over the age of 21 is exempt from CAT on the inheritance of an ARF from a parent. Instead, the child is subject to income tax of 30pc (not the standard 20pc rate) on the value inherited from the ARF, regardless of the value of the ARF. The ARF manager is required to deduct income tax of 30pc from the value of the assets in the ARF before passing them to the child.
The annual gift tax exemption allows a person to receive a gift of up to € 3,000 from any person during a calendar year without having to pay CAT. This means that one person can receive a gift from more than one person in the same calendar year and that the first € 3,000 from each distributor is exempt from CAT. Unfortunately, the annual donation exemption cannot be backdated or deferred if it is not used in a given tax year.
Can Teleworker Tax Relief be Claimed on Business Phone Calls?
Q Budget 2022 announced better tax relief for remote workers, i.e. an income tax deduction of 30% of the cost of justified heating and electricity expenses for remote workers. days spent working from home. Are telephone charges included in this tax break? I work from home and make a significant number of phone calls from my landline for business purposes. Also, from what date can teleworkers claim this 30pc tax break? Can it be claimed for expenses incurred since the budget was announced on October 12, 2021? Sally, County Waterford
The 2022 budget measures will increase tax breaks by 10 to 30% on guaranteed electricity and heating costs resulting from remote working. The 30pc tax break can be claimed by employees from January 1, 2022 and not from the budget announcement date of October 12, 2021. The relief for guaranteed broadband costs remains the same as that available since 2020, that is to say 30pc. Teleworkers can claim these reductions distributed according to the number of days worked at home in the year if their employer does not reimburse them for their costs or does not pay them a teleworking allowance of € 3.20 per day.
Telephone expenses are not included in this relief, but tax relief should be available for justified telephone expenses incurred wholly, exclusively and necessarily in the performance of the duties of the employment. Since a large number of business calls are made from the home phone, it may be beneficial to either ask the employer for reimbursement of the costs incurred to make the business calls, or to ask the employer to provide a residential telephone line for professional use. The provision of a residential telephone line by an employer will not give rise to a tax charge under the benefit in kind regime when the private use of the telephone line is incidental.
Cheaper hotel stays and hairdresser bills with reduced VAT
Q In the 2022 budget, the 9% VAT rate for hospitality was extended until August 2022. Am I correct in saying that hotel stays, hairdressing bills and restaurant meals benefit? of this reduced VAT rate – and therefore these invoices will not cost me as much as the VAT rate of 13.5 pc was supposed to apply? Is there anything else that should cost me less due to the lower VAT rate? Chris, Meath Company
The temporary VAT rate of 9pc applies not only to hotels and other holiday accommodation, hairdressing and restaurant meals (excluding drinks) but also to other hospitality and entertainment services such as admission at cinemas, museum and art gallery exhibitions, amusement parks and fairs, open farms as well as some theatrical and musical performances.
The VAT rate for these services is expected to rise to 13.5pc in September 2022. Although the temporary VAT rate of 9pc remains in place, this means that the supplier has to pay less income VAT on the proceeds from the sales of these services. compared to the moment when the rate of 13.5 pc applies. Consumers may not always be directly affected by the upcoming September 2022 change in the VAT rate, as some businesses may be able to absorb the VAT increase while others may not.
Higher New Year’s tax on the purchase of a hybrid car
Q I can’t wait to buy a new Nissan Qashqai because my current Qashqai is running out of steam. The carbon dioxide emissions for the model I am considering are 144 g / km. It is a hybrid model. I note that the 2022 budget increased vehicle registration tax (VRT – the tax paid when a vehicle is registered in the state) rates for a number of cars. Will I pay a higher VRT to buy this car next year than if I buy it before the end of the year? John, County Longford
A 2022 budget announced that there would be revisions to the 20-band VRT table to increase applicable tariffs effective January 1, 2022. A vehicle such as the Nissan Qashqai hybrid model with carbon dioxide emissions of 144g / km falls under band 15. The VRT rate for vehicles in band 15 will increase by 2 pc, from 19.5 pc to 21.5 pc. The cost of the car to the consumer could be higher in 2022 depending on whether or not car suppliers absorb the impact of the VRT hike in their pricing.