New Partner joins Roberts Nathan
Congratulations to Leann Landers..
Congratulations to Aidan Scollard…
Budget 2023 – What does it mean for your Business?
- Each PAYE worker/sole trader in the higher tax band will see tax savings in 2023 of over €800 over the course of the year with the following measures:
- increase of the standard rate band to €40,000,
- increase of personal, employee and earned income tax credits by €75 each, and
- increase in the 2% USC rate threshold by €1,625.
- A tax credit for those who are renting of €500 per annum including for the year 2022.
- Electricity credits of €600 of which €200 will be paid in December 2022 with the remainder early in the new year.
- There were a number of increases for social welfare recipients including:
- Social welfare payments to be increased by €12 per week;
- One off double week payment to social welfare recipients in October in addition to the Christmas bonus in December;
- One off payment of €200 for those in receipt of the Living Alone Allowance;
- One off payment of €500 to those on Disabililty Allowance, Invalidity Pension and Blind Pension;
- One off payment of €500 to those on Carer’s Support Grant.
- Parents will benefit greatly in this budget with the following items being introduced
- A 25% weekly reduction for those availing of the National Childcare Scheme
- A once off double payment of child benefit to all qualifying households
- Free school books to be provided for primary school children.
2022 is a special year for Roberts Nathan….
Share Option Schemes
Grant of Share Option SchemeThe granting of share options would not be subject to tax in Ireland provided the share option is not capable of being exercised more than seven years after the date on which it is granted. If it is capable of being exercised more than seven years after the date of it being granted, you will only pay tax if the option price is less than the market value of the shares at the grant date. The tax is due on the difference between the:
- market value of the shares on the grant date
- amount you pay when you exercise the option.
Exercise of Share Option SchemeOnce share options are exercised, an individual will be subject to Income Tax, USC and PRSI at a rate of 52% on the gain arising on the exercise of the shares. The gain arising on the shares will be calculated as the difference between: (a) the market value of the shares at the date of exercise; and (b) the amount you paid for the shares at the time of exercise. Once a share option scheme is exercised, an individual is required to file an RTSO1 and remit the tax to Revenue within 30 days of exercising. You will also be required to register for income tax and a Form 11 will be required to be filed. If you exercise shares in 2021, you will be required to file a Form 11 by 31 October 2022.
Sale of SharesIf you exercise your share options and then subsequently dispose of the share you acquired you may be liable to Capital Gains Tax (CGT). You must report this disposal to Revenue, even if no tax is due. The CGT would be calculated as the difference between the sales proceeds and the base cost of the shares. The base cost would compromise the cost paid for the share options (if any), the price paid for the shares on the exercise of the share options and the gain arising on the exercise of the share option. The gain arising would then be subject to CGT at a rate of 33%. If the shares are disposed of between 1st of January and 30th of November, the CGT would be due on the 15th of December. If the shares are disposed of between 1st of December and 31st of December, the CGT would be due on the 31st of January. The disposal will be required to be reported in your income tax return for the year the shares were disposed. We have set out above a high-level overview of the compliance obligations for employers and employees on unapproved share schemes. As discussed, we will look in our next article at the benefits or alternative share option scheme such as KEEP and growth shares. If you are offering a share option scheme to your employees or have a share award you wish to exercise or sell you should talk to our tax team at Roberts Nathan.
Revenue Update – Debt warehousing and Covid-19 supports
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Aidan Scollard Appointed as Non Executive Board Member
Congratulations to Aidan Scollard, Partner with Roberts Nathan on his appointment as Non Executive Board Member of The Saoirse Foundation – BUMBLEance, the children’s national ambulance service.
Commenting on his appointment, Aidan Scollard said:"I am delighted to be supporting this not for profit service. BUMBLEance is the first fully interactive ambulance on the planet specially designed for children and offering them safe and stress-free trips providing a wide range of entertainment on board to entertain them on their journey.
During my career, I have worked with a range of companies and foundations in the not for profit sector and I am looking forward to sharing this experience with The Saoirse Foundation - Bumbleance."