Revenue Exchange Rates for 2015 Tax Returns

February 11, 2016

The Revenue Commissioners have just published their official 2015 average foreign currency exchange rates for 2015 tax returns.

When preparing your 2015 Income Tax return, you should use the specified Revenue rate to convert any income denominated in Sterling, Dollars or another currency, to Euro.

A payslip with a calculator and pen

The rates for 2015 and earlier years are as follows.

                          Average Market Mid-Closing Exchange Rates v. Euro
2012 2013 2014 2015
Australian dollar AUD 1.2407 1.3777 1.4719 1.4777
Brazilian real BRL 2.5084 2.8687 3.1211 3.7004
British pound GBP 0.81087 0.84926 0.80612 0.72585
Canadian dollar CAD 1.2842 1.3684 1.4661 1.4186
Chinese yuan CNY 8.1052 8.1646 8.1857 6.9733
Danish krone DKK 7.4437 7.4579 7.4548 7.4587
Indian rupee INR 68.5973 77.9300 81.0406 71.1956
Japanese yen JPY 102.49 129.66 140.31 134.31
Norwegian krone NOK 7.4751 7.8067 8.3544 8.9496
Russian ruble RUB 39.9262 42.3370 50.9518 68.0720
Swedish krona SEK 8.7041 8.6515 9.0985 9.3535
Swiss franc CHF 1.2053 1.2311 1.2146 1.0679
US dollar USD 1.2848 1.3281 1.3285 1.1095

Lloyds Accounts

A special rate applies to convert Lloyds Account amounts from sterling to euro.

This is based on the sterling mid-closing rate on the last market day of the calendar year, as per the Central Bank.

The rate for 2015 is Stg £1 = €1.3625.

The new Revenue eBrief publishing these details is here.


31 December Deadline for Old Tax Claims

December 7, 2015

If you are still waiting to claim a tax credit or relief for the tax year 2011, you must apply for the credit or relief by 31 December 2015. Otherwise you will lose your entitlement forever.

This is because of longstanding Revenue policy (backed by legislation) to refuse all claims over four years old

The most commonly unclaimed tax reliefs are as follows:

You should also check the lists of tax credits and tax reliefs and exemptions to ensure you are claiming everything.

Tax Refund Deadline

You can claim your tax credits or reliefs:

  • online using the Revenue PAYE Anytime facility;
  • by completing a Form 12 PAYE tax return; or
  • by writing to Revenue. (If you’re claiming for 2011, use recorded post, or at least follow up with a phone call, to ensure Revenue receive your claim before 31 December 2015.

 


Don’t Lose Sleep over AirBnB Tax Returns

August 11, 2015

Unfortunately, confusion and panic have greeted this morning’s news that the AirBnB have notified Revenue of income earned by their Irish hosts who welcome paying guests into their homes.

Don't lose sleep over airbnb tax returns

Thousands of Irish homeowners are now registered with AirBnB and many of these people will now worry at the prospect of receiving large tax bills.

However, the situation for most is not nearly as serious as media reports suggest.

Revenue’s guidelines on the subject (updated in a March 2015 eBrief) confirm that providing accommodation to occasional visitors does not qualify for tax exemption, but is subject to Income Tax (along with PRSI & USC) as a trade.

The flipside of this is that it is only the trading profit, and not the gross income received, which is taxable.

This means that an AirBnB host must only pay tax on the profit they earn, after deduction of all expenses.

Such expenses will include the direct costs of each booking, eg

  • AirBnB booking fee,
  • breakfast and other meals provided,
  • cleaning, etc

and also a percentage of the many indirect household costs which relate to the accommodation, including

  • insurance,
  • electricity & phone
  • repairs & maintenance
  • mortgage interest
  • wear & tear on household furniture & fittings.

The extent to which a householder can claim these latter costs depends on how much of each cost relates to business (eg AirBnB accommodation) as opposed to personal use.

For example, in a typical property where the accommodation business is incidental to its use as a family home, I’d expect that the appropriate % of such indirect costs that can be claimed would be very small.

Still, every little counts, and when you deduct all appropriate costs from your gross AirBnB income, you will probably find that the net taxable element is a fraction of the gross sum.

This net amount will be subject to income tax of 20% or 41% (40% in 2015), in addition to 4% PRSI and USC (generally up to 7%).

In addition, the other minor comfort is that we are talking here about current, as opposed to historic, income.

The information given by AirBnB to Revenue relates to the period from May to December 2014.

This income is taxable in 2014 and the deadline for filing 2014 Form 11 & Form 12 tax returns is not until 31 October next, or 12 November if filed on ROS.

This means that AirBnB hosts have plenty of time to regularise their tax situation ahead of the October/November deadlines. Obviously this should also include any such income received before May 2014.

This is a stark contrast to the catch-22 dilemma faced in the past by others with historic undeclared income, where interest and penalties often combined to generate huge liabilities.

My advice to AirBnB hosts? –

  • Firstly, don’t lose any sleep amid the current hysteria.
  • Secondly, get your affairs in order, with professional assistance if you need it, and make sure you file your 2014 (and any earlier) returns by the forthcoming deadline.

Dont Lose Sleep over AirBnB Tax Returns


12 November 2015 is ROS Pay & File Tax Deadline

April 28, 2015

Revenue have today announced an extension to this year’s Pay & File deadline for online tax returns from 31 October to Thursday, 12th November 2015.

To qualify for the extended deadline, you must, by 12 November next

  1. file your 2014 Form 11 Income Tax return using the online ROS system.
  2. make your ‘Pay & File’ payment via ROS, to cover:
  • your Preliminary Tax for 2015;  and
  • any remaining balance of Income Tax owing for 2014.

Pay & File Deadline 12 November 2015 The extension only applies, if:

  • you file your Form 11 tax return on ROS; and
  • you use ROS to make the required Income Tax payment.

It is worth noting that the ROS filing deadline this year is one day earlier than last year’s 13 November deadline, and a full 5 days ahead of the 17 November deadline that applied ten years ago, in 2005.  This is unfortunate as the tax code becomes ever more complicated and cumbersome each year.

Capital Gains Tax

The Revenue eBrief doesn’t mention any extension to the Capital Gains Tax return filing deadline of 31 October 2015.  If you are are self-assessed for Income Tax, you must file your 2014 Capital Gains tax return as part of your 2014 Form 11 Income Tax Return.

As was the case in previous years, I expect that the deadline for such ROS-filed returns should now extend to 12 November. If this affects you, I advise you to double check this in advance of 31 October.

On the other hand, if you pay all your taxes under the PAYE system, and had a Capital Gain in 2014, you must file a Form CG1 Capital Gains Tax return by 31 October 2015. The later deadline does not apply to you.

Pension Payments

In earlier years, the later ROS filing deadline has also applied for backdated tax relief on RAC, AVC and PRSA pension payments.

Today’s Revenue eBrief does not mention this particular issue although I expect that the 12 November deadline will also extend to such payments, for anyone who pays & files via ROS by 12 November.

If you are considering making a pension payment next November and wish to claim the tax relief against your 2014 liability, you should first double-check that the extended deadline applies to pension payments.

Unless you are 100% certain, it is safer to work on the assumption that the previous 31 October deadline applies, and to make any your qualifying pension payment by 31 October.

Today’s Revenue eBrief containing this announcement is here.


Tomorrow is 2015 LPT Deadline Day

January 6, 2015

Tomorrow, 7 January, is the deadline for paying your 2015 Local Property Tax (LPT) bill for 2015.

Tomorrow is also the deadline if you wish to commit to pay your LPT by automatic debit from your bank account, or Single Debit Authority.

Under this method, your payment will be deducted from your bank account on 21 March 2015.

The simplest and easiest way to pay your LPT is online.

Revenue LPT Online screen 2015

To do this, you will need your PPS number, along with your Property ID and PIN.

You can locate your Property ID and PIN on the LPT reminder you should have received from Revenue in October, or on your LPT records from last year.

Once you’ve logged in, the process of paying your LPT is very straightforward, and should take you no longer than 5 minutes.

The deadline for paying LPT on a phased basis for 2015 has now passed, and this option is no longer available.

The Revenue website contains a wealth of information and advice on all aspects of Local Property Tax.