VAT Adjustment – Unpaid Consideration

Errors in the preparation and submission of VAT returns can be very expensive for businesses.   It is important that businesses review their VAT returns regularly and have sound internal procedures in place to ensure that VAT returns are completed correctly.

One common item that businesses overlook is the requirement to repay VAT reclaimed in respect of creditors outstanding for more than six months.

If within six months of the end of the VAT return in which the VAT was repaid, the invoice has not been repaid there is a requirement for the VAT to be repaid to Revenue.

As part of a Revenue aspect query / audit, Revenue will routinely review the creditors ledger to ensure that the appropriate adjustment has been made.  If the adjustment has not been made the VAT will be need to be repaid.  Interest on the late payment of VAT and a penalty may also be levied by Revenue.

What questions do you have?

We are happy to help. Please post your comment below or call Eamonn Madden, Tax Manager at Cooney Carey, on 01 677 9000. Alternatively, send him an email: emadden@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

If this article helped you, please share it with other businesses.

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    Posted on May 22, 2018 by Eamonn Madden

    Blockchain part 3 of 6 – What are the Benefits of Blockchain?

    Blockchain is a virtual public ledger that records transactions and tracks assets in a secure and transparent manner. Blockchain can provide many benefits for a business including:

    1. Cost savings – implementing Blockchain can achieve a variety of cost savings:
    • Intermediaries are reduced as participants exchange items directly.
    • As the network is self-policed by the network participants there is significantly less need for oversight.
    1. Tighter Security – a permissioned network reduces the risk of fraud, tampering and cybercrime. It should be noted that not all Blockchains are built for business, so some Blockchains are permissioned while some are not. A permissioned Blockchain is vital for a business as it offers greater auditability and improves efficiency.
    2. Time savings – Without the need for verification from a central authority, transaction settlement is faster and transaction times are significantly reduced.

    Blockchain can also enhance the trust across a business network, as every transaction in the network builds on the previous one, any corruption or fraudulent behaviour is readily apparent. This trust eliminates the need for third party supervision, and enables greater access for auditors and regulators to review relevant transactions and verify compliance.

    What questions do you have?

    We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

    To keep in touch, connect with our friendly team on LinkedIn.

    If you found this article interesting, please share it with other businesses. 

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      Posted on May 3, 2018 by Jack Gahan

      Mortgage Interest Relief For Landlords

      From the 7th of April 2009 the tax relief for landlords on mortgage interest paid on debt used to purchase, improve or repair a residential property has been restricted to 75% of the interest incurred in the year. With effect from 1 January 2017 the amount restricted increases to 80%.

      The restriction will increase by 5% every subsequent year until the full 100% of interest incurred is allowable. Landlords will therefore be entitled to a full interest deduction with effect from 1 January 2021.

      For landlords renting properties to tenants availing of Housing Assistance Payment (HAP) scheme, 100% of the mortgage interest can be claimed on condition that an undertaking is given that the property be rented to HAP tenants for at least 3 years. Mortgage interest is claimed, subject to the above restrictions, in the first 3 years of the tenancy. The balance up to 100% of the relief can be claimed by the landlord in the year following the expiration of the three-year tenancy.

      Landlords should note that the availability of the interest deduction is still dependent on the tenancies being registered with the Residential Tenancies Board.

      What questions do you have?

      We are happy to help. Please post your comment below or call Eamonn Madden, Tax Manager at Cooney Carey, on 01 677 9000. Alternatively, send him an email: emadden@cooneycarey.ie

      To keep in touch, connect with us on LinkedIn.

      If this article helped you, please share it with other businesses.

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        Posted on April 25, 2018 by Eamonn Madden

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