Q: I received an estimate on how much I have to pay for Local Property Tax and I don’t think it is right. How much Local Property Tax should I be paying?
A The LPT is a self-assessed tax and it is important to remember that the estimates are for guidance or for those who do not pay in time.
Contractors and in particular tech contractors are this week anxiously considering their tax situation following the recent annoucmenet by the Revenue Commissioners of a crackdown on this sector of taxpayers.
Q: We are a married couple with two children. We are both PAYE workers and we have dividend income of €5,000. We own a house we think is worth €520,000. How will this budget affect us?
Gill & Derek- Cork.
A: Unfortunately families like yours have been hard hit in this budget. First off, your child benefit is reduced by €240 per year (€20 a month). You also face an additional PRSI charge each of €264. On top of this you will also have a PRSI charge on your dividend income of €250. Lastly, your property tax bill will be €473 for 2013 rising to €945 in 2014.
So, all told, in 2013 the budget will see you down €1491 in total. The news is worse for 2014 when you will be down by €1963.
We provide accountancy advice Cork and across the country
Q: I am in my early 30’s and have not made any pension contributions to date. I currently have a salary of €80,000. What is the maximum amount in can contribute and what tax relief can I get on this?
Pat, Longford.
A: Although Budget 2013 did reduce the tax relief that can be claimed on pensions the good news is that this does not take affect until 1st January 2014.
Roddy is the Training Manager for TaxAssist Accountants and a practicing chartered accountant for over 30 years.
