Archive for May, 2014

Top information you need for Debt Consolidation

Have you explored debt consolidation before? Maybe you just don’t know enough about it to feel comfortable moving forward. It’s a big step, as it must be seen as your solution to your mounting debt. Therefore, it’s important to keep reading to learn more about your debt consolidation options so that you can make the decision.

Prior to searching for a debt consolidation company, make sure you look through the FTC regulations regarding this topic. Read about things like debt relief and negotiation companies. It will give you some of the background you need to go forward with the process, and it will make you feel more prepared in general.

When consolidating debt, consider doing the footwork yourself. Consolidation companies may have fees associated with their services. However, you can easily make the same phone calls to your creditors and negotiate with them. There is no special consideration from the creditor about who calls, whether a service or you, the customer.

Make sure you hire a reputable debt consolidation agency to help you manage your debt restructuring. Although you will find many companies offering to help you, few are really in it to benefit the consumer. Check first with government sponsored agencies that offer free credit counseling and will then refer you to a trusted debt consolidation service.

Before going with a debt consolidation agency, make sure they are qualified. Do these counselors have certification from a certain organization. Do they have the backing of reputable institutions to help prove their strength and legitimacy? Checking into this is an excellent method of learning whether this company is worth using.

Find out whether a debt consolidation company will take your unique situation into account. A one size fits all approach generally does not work when it comes to these kinds of financial matters. You want to work with someone that will take the time to determine what is going on with you and figure out how best to address the situation.

Consider borrowing from your retirement account to pay your debt off. Contact the financial institution you opened with to see if you can borrow part of the money you saved up. This is a good way to pay your debt off quickly but you will have to replace the money you took from your retirement plan.

Do you hold a life insurance policy? Cashing in your policy will allow you to get out of debt. Talk to a life insurance agent in order to discover how much money you could get from your policy. You can borrow back a portion of your investment to pay off your debt.

To consolidate your debt, try taking out a personal or signature loan. This has become a limited option due to the credit crunch, however. Many lenders that used to offer unsecured, signature loans for consolidation do not anymore. If you find one that offers this option, be sure it’s not a high-interest loan, even if it helps you lower monthly payments by extending the terms.

You now know more about debt consolidation, and you can work towards finding the right solution for your needs. You need a solid plan, and you need a company that is going to fight on your side. While the decision isn’t easy, it should now be something you are equipped to do.

 

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We’ll teach you all about Debt Consolidation

One of the best things you can do in terms of restoring your peace of mind is to improve your financial situation. Debt consolidation is one excellent way to reach this goal, but how exactly does it work? What is debt consolidation? The purpose of this article is to tell you just that.

Understand the difference between debt consolidation and a home equity loan. Many companies will guise a home equity loan (where you put your home on the line for the debt) as true debt consolidation. That’s not always the wisest move to make, especially if you have a family involved. Know the differences and the risks before making that decision.

Before going with a debt consolidation agency, make sure they are qualified. Are you going to be working with people who have an organization that certifies them? Are they backed by reputable institutions? This will give you a better idea of whether or not the company will be right for your needs.

When considering debt consolidation, you need to research the consolidation companies through consumer reviews. Use reviews written by clients to find a professional who is reliable enough to help you manage your finances.

Know what your position is on collateral before applying for a debt consolidation loan. If you don’t have collateral of sufficient worth, the terms for your loan will not be as favourable. Without sacrificing your home, tally up your assets until you reach a number that satisfies the criteria for collateral and take it from there.

Understand the company’s rates and fees and know what type of rates are reasonable. Call around to several different companies before settling on any one in particular.

Find out whether your creditors will accept lower rates through debt consolidation. It’s not a great idea to think you’re all set with debt consolidation and discover that the main creditors which caused you to do this will not accept the terms. Ask the debt consolidation company and the creditor to make sure.

If you make the decision to consolidate high interest debts such as credit card balances into a different obligation, do your absolute best not to begin racking up new debt until the consolidated amount is repaid. If you are doing nothing more than moving debts to different places while continuing to spend, you will not reap the benefits that debt consolidation really can provide.

If you think a debt consolidation loan will be difficult for you to pay off, even though it lowers your monthly burden, consider bankruptcy instead. Debt consolidation is meant to restructure your payment and reduce interest, but defaulting will put you in even more hot water. Weigh your options, and if the situation is bleak with debt consolidation, talk to a credit counselor before signing anything.

Many of us struggle with our finances. It is easy to let debt spiral out of control, and gaining control can be difficult. Debt consolidation can make the process easier and can provide you with much needed peace of mind. It’s worked for thousands of people – try it and see if it works for you!

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Tips For Getting Your Personal Finances In Order

If thinking about personal finance brings memories of long, boring discussion about stocks and bonds, you have the wrong impression. Personal finance is about what you do with your money. This article will give you some easy tips to follow about how to make your personal finances stress free.

Going out to eat is one of the costliest budget busting blunders many people make. At a cost of roughly eight to ten dollars per meal it is nearly four times more expensive than preparing a meal for yourself at home. As such one of the easiest ways to save money is to stop eating out.

When your boiler or furnace breaks, look at the average life expectancy of these items prior deciding to get it fixed. If it is close to the end of its life, you will save more money just replacing it instead of repairing it since it more then likely will just break down again sometime soon after. Plus a new one will work more efficiently.

If you have more than one credit card – cut it up. Don’t use credit cards to spend money you don’t have. This is the easiest way to find yourself waist deep in debt. If you do all of your shopping with cash, you won’t be able to spend more than you have.

Making items from stained glass can be a productive outlet for your creative abilities. The products you make such as window hangers, lamp shades, or larger pieces, could be sold to contribute to your own finances. Pieces could also be done by contract as you build customers.

As tempting as it may be to invest in a credit repair program, spend some time online to find one that is free. They are all over the web and many times cover the same steps for credit repair as the ones that you pay for do. Save yourself some money by looking for the ones that are not going to cost you.

Contact your credit card company and have them lower the limit on your credit card. This helps you two fold. First, it keeps you from overextending yourself and spending more than you should. Second, it sends a message to the credit card company that you’re being responsible by making sure you can’t overextend yourself.

At the end of every day, empty out all of the change in your pockets, purse, and briefcase into a jar for saving. Once per month, you can deposit the money into your savings account, where it will earn interest. Avoid losing out on surcharges and fees from coin-counting machines.

For large purchases, such as home renovations, one way to get a better loan is to borrow against the value of your home, also called a home equity loan or a second mortgage. Because of the security provided by your home’s equity, these loans often have better rates than a normal loan.

You have read many tips that will help with your personal finance. Try out these tips and you will be able to achieve your financial goals easily. Having the knowledge of what to do is half the battle, now it is up to you to follow the advice given.

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State to provide funds to boost credit for SMEs.

Bank will advance more than €800 million of low interest loans to Irish businesses.

 As reported by Ian Kehoe and Pat Leahy in the Sunday Post of 18th May.

The Government will shortly announce the establishment of the strategic Banking Corporation of Ireland (SBCI) in a bid to improve access to credit for small and medium-sized business.

The CBCI will provide funds to banks and financial institutions on the proviso that they will lend it to SMEs with more attractive terms and conditions than have typically been the case in recent times. It is intended that more than €800 million in low-interest loans will be advanced through the SBCI, which will come under the auspices of the National Treasury Management Agency.

The cabinet will approve the new bank in the coming days and it will be formally unveiled later this week. The new bank will require legislation. It will initially be set up on a non-statutory footing.

The loans will carry lower interest rates than are currently available to SMEs and will be offered by commercial banks that redirect SBCI funding. The credit will be offered over periods of longer than 10 years to better match the duration of the long-term growth plans and small businesses. Some funding is expected to come from state-owned German bank KfW, which last year offered to provide finance for the SME sector. It is also anticipated that the European Investment Bank and the new Ireland strategic Investment Fund will be tapped up for capital to finance the bank in the future.

Both owned and foreign owned banks will be entitled to apply for the funding from SBCI. The government hopes it will also increase competition among lenders who will be forced
to compete with the enhanced lending terms.

 

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Revenue Tax Briefings.

Rev.

Full Self-Assessment.

1. Introduction.

The Finance Act 2012 introduced full self-assessment for chargeable persons, via part 41A of the Taxes Consolidation Act 1997.

For the years 2012 and prior, the old rules as set out in Parts 39 and 41 of the Act apply in relation to raising assessments, amending assessments, appeals, expressions of doubt, etc.

The new Part 41A applies for:

  • Corporation Tax where the accounting period commences on or after 1st January 2013,
  • Income Tax for the year 2013, and
  • Capital Gains Tax for the year 2013.

This new part requires the customer, or their agent, to self-assess when making a tax return, and allows for a penalty where no self-assessment is made.

In general, Revenue will not raise assessments, but there is provision to do so:

  • Where the customer fails to make a return (S. 959AC),
  • Where the customer makes a return, but fails to self-assess;  Revenue can issue a self-assessment on the customers behalf (S 959U) – however  a penalty may be incurred for failing to self-assess.
  • Where Revenue is not satisfied with the adequacy of a return (S. 959AC).

1.2 Making a Self-Assessment.

When completing a tax return a customer must self-assess. The ROS tax returns (Form 11, Form 1, and CT1) will compute the Income Tax/Corporation Tax liability as before and provide an indicative calculation of the liability. The customer, when making the self-assessment, can choose to accept Revenue’s calculation or disregard it and enter his/her own figures. When the return and self-assessment is submitted, Revenue will not issue a notice of assessment. Instead, a notification acknowledging the self-assessment will issue. This acknowledgement will contain a copy of the self-assessment.

1.3 Failure to Self-Assess.

Where a chargeable person does not make a self-assessment when filing a return of income s/he is liable to a penalty of €250 (S 959X). However, where a paper return is filed on or before the 31st August in the year following the year of assessment, no penalty will be incurred (S 959S).

Where a customer does not self-assess, Revenue will issue a self-assessment on the customer’s behalf and a notice of assessment raised under Ch. 4 of Part 41A will issue (S959U).

1.4 Appeals.

There is no appeal against a self-assessment or an amended self-assessment made by the taxpayer.

1.5 ROS – Mandatory Completion of Self-Assessment Panel.

Customers who file their tax return through ROS for 2013 et seq. must self-assess. The Form CT1, Form 11 and Form 1 contain new self-assessment panels for Corporation Tax, Income Tax and Capital Gains Tax, as appropriate.

In the Form CT1, the Corporation Tax self-assessment panel is mandatory. In the Form 11 and Form 1, the Income Tax self-assessment panel is mandatory. These panels must be completed in all cases before these forms can be submitted to Revenue.

However, the ROS calculation facility will calculate the customer’s liability and provide an indicative self-assessment for the customer in this new panel – see paragraph 2 at link below:

tax-briefing-3-2014 [PDF]

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Home Renovation Incentive (HRI) Manual.

At Meagher Moynihan, Chartered Accountants in Dublin 4, we are conscious of financial information changes. To keep our customers in a loop we will update our news page accordingly. By doing so we hope we will help you with making the right decisions and provide you with the accurate Financial Advice whenever needed.

We would like to share some information now about Home Renovation Incentive Scheme.

Please be advised that individuals who carry out improvement works to their residential home during 2014 may be entitled to claim an additional income tax credit split over the 2015 and 2016 tax years. The credit will be 13.5% of the amount of the payment on which VAT is charged, subject to a maximum credit of €4,050. The credit can be used against income tax paid likely to generate a refund of tax for the individual. The credit is not available to reduce a liability to the UCS or PRSI. The scheme runs from 25 October 2013 to 31 December 2015.

A condition of the incentive is that the individual must be fully up to date with their local property tax and household charge obligations. It is necessary that the individual is registered with Revenue as the owner or joint owner of the property. The builder/contractor carrying out the works must be fully VAT and Tax compliant.

The type of work for which credit can be claimed includes: extensions and renovations to the home, window-fitting, plumbing, tiling and plastering. However, furniture, white goods and carpets are not covered as well as work which is subject to VAT at 23%.

To claim relief under this scheme, homeowners and contractors will have to use an electronic system which is to be provided by Revenue. Revenue has published a home-renovation-incentive-guide [PDF] which is included in part 15 of their Income Tax, Capital Gains Tax and Corporation Tax manual. This incentive provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a homeowner’s only or main residence. The electronic system to administer the HRI is now available.

Also, for works ongoing or completed prior to the live date for the electronic system, contractors will have to follow specific transitional arrangements put in place by Revenue. Revenue have published details on these transitional information relevant for both homeowners and contractors on www.revenue.ie under Income Tax – Reliefs and Exemptions.

 

 

 

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