End of Year Tax Tips 2022

With year end fast approaching now is a good time to review your current tax situation and make plans for the future.

Here are some of our top tax tips to consider before the year end and into the New Year.

  • Businesses should ensure that all current tax filings are up to date and paid in order to protect their approved status for the Debt Warehousing Scheme.

  • Charity donations result in additional tax relief payable to the relevant charity which can increase the value of your donation. Minimum donation required is €250 per year.

  • Individuals may receive a gift up to the value of €3,000 per year free from gift tax (CAT). For example, a child can receive a gift of €3,000 from each parent.

  • Final chance to make a claim for tax relief on unused tax credits for 2018 (e.g. home carer tax credit, tuition fees, permanent health insurance). Four year rule applies.

  • Make a claim for any unreimbursed medical expenses for the last four years.

  • Avail of the annual CGT exemption of €1,270 and realise a gain of up to €1,270 without a CGT liability.

  • Realise CGT losses prior to 31 December in order to claim the losses against gains made this year. CGT losses cannot be carried back to prior tax years but may be carried forward.

  • Consider if there are opportunities to dispose of properties which qualify for the 7 year CGT exemption.

  • Employees (including directors) can receive a gift voucher from their employers up to the value of €1,000 free from tax or BIK.

  • A Benefit in Kind exemption is available for electric cars provided to employees. The exemption limit will reduce from €50,000 to €35,000 from January 2023. An electric car could represent a significant saving in BIK to employees/directors in comparison to a petrol/diesel car.

  • Company pension scheme payments should be paid prior to the accounting year end to ensure the company can claim a tax deduction.

  • Claims for offset of company losses against trading and other income must be made within two years of the relevant accounting period end.

  • Bonuses paid prior to year end qualify for tax deduction in the current accounting year.

  • Claims can be made in respect of tax relief for working from home expenses during 2022.

  • An employer can pay €3.20 per day tax free to employees in relation to remote working costs.

  • If you are a landlord with rented residential property, ensure you are registered with the RTB (Residential Tenancies Board) in order to claim a deduction for loan interest on the properties.

  • Homeowners and landlords should ensure that their Local Property Tax returns and payments are up to date to avoid the imposition of a late filing surcharge on their personal tax return.

  • Review tax returns in the past year. Revenue allows a 12 month window in which to self-correct a tax return without incurring a tax penalty.

Contact Bryan or Fergus from our tax team or your engagement partner to discuss the tax planning opportunities which you can avail of.

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