Revenue’s Exchange Rates for 2016 Tax Returns

February 2, 2017

Revenue have just published the official 2016 average foreign currency exchange rates which should be used to convert foreign currency amounts in 2016 tax returns.

You should use these rates when converting to Euro, any income (whether from trading, rental, employment, investment or other sources) which is denominated in Sterling, Dollars or other currencies.

The rates are based on average Central Bank exchange rates throughout 2016. These, and the corresponding rates for earlier years, are as follows:

Average Market Mid-Closing Exchange Rates v. Euro
2013 2014 2015 2016
Australian dollar AUD 1.3777 1.4719 1.4777 1.4883
Brazilian real BRL 2.8687 3.1211 3.7004 3.8561
British pound Sterling GBP 0.84926 0.80612 0.72585 0.81948
Canadian dollar CAD 1.3684 1.4661 1.4186 1.4659
Chinese yuan CNY 8.1646 8.1857 6.9733 7.3522
Danish krone DKK 7.4579 7.4548 7.4587 7.4452
Indian rupee INR 77.9300 81.0406 71.1956 74.3717
Japanese yen JPY 129.66 140.31 134.31 120.20
Norwegian krone NOK 7.8067 8.3544 8.9496 9.2906
Russian ruble RUB 42.3370 50.9518 68.0720 74.1446
Swedish krona SEK 8.6515 9.0985 9.3535 9.4689
Swiss franc CHF 1.2311 1.2146 1.0679 1.0902
US dollar USD 1.3281 1.3285 1.1095 1.1069

Unsurprisingly, the 2016 rate for the British Pound reflects its fall after the Brexit referendum vote last June, but note that it’s still only marginally higher than the corresponding figure for 2014, and it’s actually lower than the 2013 figure.

Lloyds Accounts

A special rate applies for conversion of Lloyds Account amounts from sterling to euro.

This is based on the sterling mid-closing rate on the last market day of each  calendar year, as per the Central Bank. The rate for 2012 is Stg £1 = €1.16798.

The new Revenue eBrief publishing these details is here.


Don’t Forget the 2016 Minimum Wage Increase

January 4, 2016

If your business employs staff, don’t forget that the National Minimum Wage increased on 1 January 2016.

The standard minimum wage for an experienced adult employee is now €9.15 per hour.

A payslip with a calculator and pen

Youth rates

Lower minimum wage rates apply to employees under 18 years old and to those who have recently turned 18.

The minimum wage for a worker:

  • under 18 is €6.41 per hour (70% of the adult minimum wage).
  • in their first year of employment since their 18th birthday is €7.32 per hour (80% of the adult minimum wage).
  • in their second year of employment since their 18th birthday is €8.24 per hour (90% of the adult minimum wage).

Apprentices & Trainees

The new minimum wage rates for an apprentice or other trainee are as follows:

  • First one-third of training course €6.86 per hour (75% of national minimum wage rate)
  • Second one-third of training course €7.32 per hour (80% of national minimum wage rate)
  • Final one third of the training course €8.24 per hour (90% of national minimum wage rate).

If you employ staff, it is your responsibility to ensure you are complying with the updated minimum wage law, by paying all staff members at least the applicable minimum wage.

The WorkplaceRelations.ie website answers many of the key Frequently Asked Questions on how the minimum wage works.

If you have any doubts on any aspect of how the minimum wage works in practice, I recommend you obtain professional advice.


The New €550 Earned Income Tax Credit

December 16, 2015

 

Revenue have today issued a short guide to the new Earned Income Tax Credit which comes into effect from 1 January 2016.

The Credit is worth a maximum of €550 per year.

It applies to self-employed individuals and entrepreneurs as well as to owner-directors whose salaries don’t qualify for the normal PAYE employee tax credit of €1,650.

Earned Income Tax Credit

If you are entitled to claim both the Earned Income and Employee Tax Credits, your  combined claim for both is capped at €1,650.

The Earned Income Tax Credit can be claimed, where appropriate, by both spouses.

It does not apply to rental, investment or other “passive” income.