Cornmarket Presentation
Cornmarket Group Financial Services Ltd. is regulated by the Central Bank of Ireland. Friends First Life Assurance Company Ltd. is regulated by the Central Bank of Ireland. Telephone calls may be
recorded for quality control and training purposes.
Our History
 With over 40 years' experience, we
are the largest financial services
broker serving the Public Sector in
Ireland.
 We currently administer over 50
Union, Association and Employer
endorsed Schemes.
 We are now a member of the
Great-West LifeCo group of
companies.
95% of customers that
we surveyed said we
were extremely/quite
helpful
& knowledgeable*
*Source: feedback collated from 1,347 online surveys completed by Cornmarket customers in 2014.
Some our clients
Agenda
1.
2.
3.
4.
5.
Tax & Budget update
Group Life Plan Review
Money Saving Tips
Car and Home Insurance
Budgeting.
Tax
How many people here do tax returns?
82% of PAYE
workers overpaid
in tax last year
In 2014, the
average tax
rebate was
€1,200!
Source: Midas PAYE customer statistics, 2015. Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a whollyowned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.
Why Public Sector Employees Overpay Tax
Factors
Repercussions
x
Not sharing credits and cut-off
points in a tax efficient manner
 Change Job
x
Not claiming the appropriate tax
credits, reliefs, rate bands, etc
 Agency Work
x
Not availing of all allowances &
entitlements
x
Tax Credit Certificate details
incorrect
x
Incorrect allocations accumulate
year on year.
 Married
 Income changes
 Birth of child
 Human error when calculating and
deducting tax.
5. Check
your
deductions
1.Check
your
Point on
the
Salary
Scale
2. Check your PRSI
class
(A1 / D)
6. Not taxable
3. Standard Rate
Cut-Off point:
Should be at
least €1,300
4. Should be at
least 128 if
PAYE
The Payslip Analysis in action
Louise is a secondary school teacher
who was:
• on the wrong point of the salary
scale
• missing 3 increments
Thanks to Cornmarket and the
Department of Education and Skills,
Louise was reimbursed €13,214 gross
in arrears.
Seán was:
• on the wrong point of the salary
scale since 2004
• missing 5 increments.
Thanks to Cornmarket and the
Department of Education and
Skills, Seán received back
€14,236 gross in arrears.
*Missing increments are most likely to occur where a teacher has been job sharing, taken maternity leave or a career break.
Tax Credit Cert
It instructs your employer on the amount of
Tax to deduct.
If it’s wrong……
YOU PAY too much or too little!
How to calculate Income Tax
Gross Salary/Pension/Other Income - (PRSI & USC)
Less Superannuation/Pension Levy/AVC/NSP/PHI
= Taxable Income
Apply Rate Bands - 20% & 40%
Deduct Credits
= Income Tax Liability
Check your Tax Credits
& Rate Bands
Rate bands
• First €33,800 taxed at: 20%
• Earnings over €33,800 taxed at: 40%
2015 example - A Public Sector Employee earning
€40,000 pays €9,240 in tax before they apply their credits
and €5,940 after applying their tax credits.
Tax credits
The more credits you accumulate, the
less tax you pay.
….they are worth money
and shouldn’t be ignored!
Standard Rate Bands - 2015
Personal Circumstances
2015
Single
€33,800 @ 20%
Balance @ 40%
Lone Parent
€37,800 @ 20%
Balance @ 40%
Married with one income
€42,800 @ 20%
Balance @ 40%
Married with two
incomes*
€67,600 @ 20%
Balance @ 40%
*transferrable between spouses, maximum of €42,800 with one spouse.
Personal Tax Credits - 2015
Personal Circumstances
Single Person Credit
2015
€1,650
Married Person Credit
€3,300
PAYE Credit
€1,650
Single Parent
€1,650
Other Tax Credits
 Home Carer - €810*
 Incapacitated Child - €3,300
 Dependant Relative - €70**
 Age Credit - Single €245 / Married €490
*Cannot have an annual income in excess of €5,080
**Cannot be claimed in conjunction with Home Carer’s Credit
Maximise your Allowances
&
Reliefs
Flat Rate Expenses
Agreed between Revenue and your Union for expenses
incurred directly related to the nature of your
employment.
Relief at your marginal tax rate
 Professor, Heads of Schools/Departments:
€608
 Lecturer on full hours:
€518
 Part-time lecturer (not on full hours):
€279
How much is this allowance worth to you?
€207 per year
if you are earning €40,000!*
*for a lecturer on full hours claiming the flat rate expenses tax credit €518.
Tuition Fees
• Relief for Tuition Fees in approved 3rd
Level Colleges
• Primary 2 year+ / Masters 1 Year +
• Ireland and EU based courses
• Limits: €7,000 total fees per person p.a.
• Exemption (per household):
– First €3,000 for full time course not claimable
– First €1,500 for part time course not claimable.
Claim relief on your Medical Expenses
1.
Make your medical insurance claim (www.hia.ie)
Tax relief at source, unless paid by employer.
2. Avail of the Drug Payments Scheme - max €144 pm (www.hse.ie)
3. Apply for your tax relief through Form Med 1.
Qualifying Health Expenses
Doctor, GP, consultant or hospital fees
Items or treatments prescribed by a Doctor
Approved nursing home fees (40%)
Non-routine Dental Treatments
Prescribed medicines
Certain dietary products, e.g. Coeliac/Diabetic.
Keep the receipts for 6 years.
Rent
Rent Credit
• Renting in a private residential property
• Must have been renting on 7th December 2010
• 2015 Credit:
– €480 if aged 55 or over
– €240 if under age 55
• To be phased out by 2017.
Rent a Room Relief Scheme from Jan ‘15
• Tax-free income where owner occupier
• Maximum is €12,000 per annum including meals,
laundry etc.
• Must still be declared to Revenue.
Earning more than €3,174
outside of PAYE Income
If you earn more than €3,174 of income from any
source outside the PAYE system you are
obligated to file a return annually.
If you don’t file a return, penalties and late fees
apply.
Other Income
Rental Income
Income - Expenses = Taxable Profits
Example of allowable expenses
• Mortgage interest (75%)
• Insurance
• Mortgage protection
• Management Fees
• Letting Fees
• Repairs & Maintenance
• Advertising
• Accountancy fees
• Painting & Decorating
• PRTB
• Utility bills
• Wear & Tear on Fixtures & Fittings.
Rental Income
Taxpayer’s
View
Revenue’s
View
Monthly Rental Income
€1,000
€1,000
Mortgage repayment /
interest
(€1,200)
(€720)*
Profit / (Loss)
(€200)
€280
* Assuming 80% of repayment is interest, restricted to 75% allowable.
Other Income
• Landlord
• Self Employment
• Deposit Interest where DIRT paid
• Foreign Income
• Irish Dividends where 20% tax deducted.
Remind me why we should
file regular tax returns?
20
Age Considerations
Multiple Jobs,
e.g. Subbing
Rent Relief
30
Pension
Contributions
Sharing
Credits
Mortgage Relief
40
Tuition Fees
AVC’s
50
Last Minute
AVC’s
CAT/CGT
Parent
Nursing
Home Fees
2nd Spouse
Retirement
DIRT Refund
Inheritance
Planning
Last Minute
AVC’s
Tuition Fees
50
Parent Nursing
Home Fees
55
60
65
State Pension
70
66
Cap on USC
PRSI
Exemption
ARF
Distributions
Age
Credit
1st Spouse
Retirement
CAT/CGT
Age Considerations
Organising Your Affairs
 Request & review your Tax Credit Certificates.
 Ensure correct allocation of Standard Rate Band between spouses.
 Notify amendments to Inspector.
 File Tax Returns annually.
 Review previous Tax years.
 Make sure you claim for any S & C/training & temporary/marriage
gratuity interest and other superannuation deductions.
***Seek professional advice***
Budget 2016
Budget 2016
A quick guide on the increase in take home pay
from 1st January 2016.
If you have dependent children or a spouse who is self-employed, you will get a bit
more back in your pocket.
Table is based on a single, PAYE Public Sector worker and only takes into account the reduction in the Universal Social Charge (USC). Figures are for illustrative purposes only
and do not account for tax relievable compulsory deductions, e.g. Superannuation and Spouses’ and Children’s Scheme deductions. Effective from 1st January 2016.
For example
A married Public Sector employee married to a self-employed person.
•
•
•
•
Public Sector employee earning €38,000
Spouse is self-employed with a taxable profit of €7,000.
They have 2 dependent children and are jointly assessed.
Public Sector employee will see an increase in annual take home pay of €421 due to
the changes in USC.
• Spouse will now benefit from the ‘Earned Income Tax Credit’ of €550 on self-employed
income. The spouse can also claim the increased ‘Home Carer Tax Credit’ of €1,000, as
income does not exceed €7,200.
• They will get an increase of €120 per year (€10 per month) in Child Benefit.
As a family, they will get an extra €2,091 per annum.
For example
Retired Public Sector employee
• Will get an increase in the Social Welfare Pension of €3 per
week, resulting in an extra €156 per year.
• The Christmas bonus has also been reintroduced at 75% of
the weekly payment. This means a Pensioner on the
current rate of €230 per week will receive a bonus of €173.
• People aged 70 and over and/or medical card holders, with
income under €60,000 will have a maximum rate of 3%
USC. If you fall into this category and have an income over
€60,000, you be liable to the standard USC rates.
Budget Highlights
•
•
Changes to Universal Social Charge (USC): The entry threshold for USC
was increased from €12,012 to €13,000.
In addition, the USC rates were decreased as follows:
Earning €0 - €12,012:.......................Pay USC at 1% (reduced from 1.5%).
Earning €12,013 - €18,668:.............Pay USC at 3% (reduced from 3.5%).
Earning €18,669 - €70,044: ........Pay USC at 5.5% (reduced from 7%).
Retired people aged 70 and over/medical card holders, with income under
€60,000 will only be liable to USC at 3%.
 Retired people aged 70 and over/medical card holders, with income over €60,000
will be liable to the standard USC rates.




Budget Highlights
PRSI
 Employee’s PRSI: There was a tapered PRSI credit
introduced with a maximum level of €12 per week. Relief
commences at income of €352.01 per week and tapers
out at a rate of 1/6th of income in excess of this
threshold. Relief fully tapers out as income reaches €424
per week.
 Employer’s PRSI: An increase from €356.01 to €376.01
in the weekly threshold at which liability to Employer’s
PRSI will increase from 8.5% to 10.75% on all earnings.
Budget Highlights
• Child Benefit: Increased by €5 to €140.
• FREE Pre-School Programme: Announced for
children aged 3 to 5½ years old (or school-going
age).
• FREE GP Care: To be extended to children
under age 12 (subject to successful negotiation
with doctor representatives).
Budget Highlights
• Home Carer Tax Credit: This will increase
by €190 to bring it up to €1,000 per year plus
there will also be an increase in the home
carer’s income threshold from €5,080 to
€7,200.
• Paternity Leave: Statutory Paternity Leave
of two weeks will be introduced from
September 2016.
Budget Highlights
• State Pension: To increase by €3 per week in
2016.
• Pension Levy: Will end this year and will not
apply in 2016. Note: this applies to Private
Sector Pensions only.
• Capital Acquisitions Tax: The “Group A” taxfree threshold, which broadly applies to transfers
between parents and their children, is being
increased from €225,000 to €280,000.
Budget Highlights
Self-employed
• A new “Earned Income Tax Credit” to the value of €550 was
announced for self-employed people that do not have access to the
PAYE credit.
• Entrepreneurs will benefit from a new, reduced Capital Gains Tax
(CGT) rate of 20%. This reduced rate of CGT applies to disposals of
businesses up to a maximum ceiling of €1 million in chargeable
gains.
• Additional CAT Agricultural Relief for Farmers: Two family
members can now enter into a partnership with a profit sharing
arrangement which allows for the transfer of the farm to the younger
farmer at the end of a specified period. This partnership will qualify
for an income tax credit of €5,000 per year for 5 years. This will be
allocated according to the Profit Share Agreement.
• Commercial Motor Tax: The maximum rate of Commercial Motor
Tax will be €900 from January 2016.
Budget Highlights
• Fuel Allowance: Will increase by €2.50 per
week to €22.50 per week.
• Respite Care Grant: This will be restored to
€1,700 and will be paid to carers in receipt of
the carer’s allowance/benefit.
• Local Property Tax: It was announced that
there will be no increase in this tax for 2016,
2017 or 2018.
• Home Renovation Incentive: Extended to
31st December 2016.
Budget Highlights
• Social Welfare Recipients: An increase in
the Christmas bonus from 25% to 75% of a
total weekly payment. For example, a
Pensioner currently receiving a weekly
payment of €230 will get a Christmas bonus
of €173.
• Family Income Supplement: An increase in
the threshold by €5 per week for families with
one child and by €10 per week for families
with two or more children.
2016 Budget updates will be effective
for the 2016 and subsequent Tax years
only. 2015 tax returns (to be filed by
31/10/2016) will not be affected by
these changes.
http://www.cornmarket.ie/university-of-limerick
Group Life Plan
2015 Review
Cornmarket has been appointed to administer the Plan &
Friends First have been retained as the underwriters. As a
result of the review benefits now include:
• Death Benefit of 2.5 times your annual salary up to age 65 or the
date that you retire, if earlier (separate to any Life Cover under the
UL Pension Scheme).
• Reduction in cost: from 0.558% to 0.53% of gross salary (0.32%
of net salary based on a member paying tax at the 40% rate).
• 5 year rate guarantee: The new reduced rate is guaranteed for
the next 5 years (until 1st May 2020).
• Enhancements announced: the Plan is now more beneficial
than ever before with new enhancements.
Who can join the Plan?
All pensionable employees of the University
of Limerick, who are under age 65, are
entitled to join the Plan.
IMPORTANT: You must remain an employee of UL to remain an eligible
member of the UL Group Life Plan. If you leave employment with UL you
must inform Cornmarket in writing, as you can no longer stay in the Plan
and you will not be able to claim from it.
Half Price Offer
for new members under age 45!
JOIN NOW and pay
That’s just
HALF PRICE for the first
0.26%!
12 MONTHS of your membership!
Terms and conditions: Offer available to new entrants who apply to join the Plan for the very first time between
1st June 2015 and 31st December 2015. To avail of the half price offer for the first 12 months*, you must be under age 45
and a NEW ENTRANT to the Plan.
*The first 12 months means 12 consecutive months from the 1st of the month following the date that you are accepted as
a member of the Scheme by the Insurance Company.
Cost of Membership
with Half Price Offer
• Salary of €40,000 – cost €1.20 per week
• Salary of €50,000 – cost €1.50 per week
• Salary of €60,000 – cost €1.79 per week.
Net cost is 0.16% of salary after tax relief is applied, assuming income tax @ 40% (gross cost is
0.26% of salary).
How Can I Join?
To apply to join the Plan or for more
information on the benefits available,
Call : (01) 470 8054
Email: pensions@ul.ie
Phone UL on: (061) 202930.
Money Saving Tips
Life Insurance
How much cover do you and
your family need?
What type of cover is right
for you?
Are you over/under-insured?
What types of cover are available?
Life
Insurance
Mortgage
Protection
Serious
Illness
Cover
How to find the best price cover for your needs?
Cornmarket’s FREE Life
Insurance Comparison Service
Get the cheapest price on the
market, PLUS a 5% discount!*
*Lowest Pricematch we offer is €13.13 for Mortgage Protection plans and €15.15 on Term Level plans per month. The 5%
discount on the lowest price quoted is subject to a minimum premium of €20 per month.
Example of Savings
Saving figure is based on a male whose age attained is 40 years and 1 month (01/06/1975), is a non-smoker, looking for Life Cover of €175,000; switching from Irish Life
Convertible Term Policy to Aviva Convertible Term Policy. The quote is for a 30 year Level Convertible Term with benefits and premiums not increasing. Saving figure
correct as at 09/06/2015. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is
regulated by the Central Bank of Ireland for conduct of business rules. Irish Life Assurance plc is regulated by the Central Bank of Ireland.
Life Cover – DOs & DONTs
•
DO carefully consider what you can
pay in and need out
•
DO consider writing in trust
•
DO live a healthier life, it makes
things cheaper
•
DO answer questions accurately
•
DO quit smoking and requote.
(minimum 1yr after quitting)
•
DO only get cover for as long as it's
needed - and no longer.
•
DO consider writing in trust
•DON'T over- or under-cover yourself
•DON'T take out a critical illness policy
without good advice
•DON'T think you're stuck with old,
expensive insurance
•DON'T assume joint cover is the same
as two singles - get quotes for both
Spiralling cost of college education
Parents face enormous costs once children start in college education:
College fees (rising) +
Rent/accommodation +
Living expenses… Etc.
Can all add up to approximately €800+ per
month
OR up to €10,000+ per child per annum!
Tailor-made plans to help ensure you have enough money
to fund your children’s college education.
4 steps to a brighter financial future
1. Review your finances
2. Identify your savings need
3. Tailor a savings plan to your own particular circumstances
4. Start your savings plan
Why do you need to save?
Deposit for house purchase, holiday, education expenses, weddings etc.
20% Deposit required
Build a savings record
Will you get credit?
How much will it cost you?
Would you be better off if you saved?
Maximise your savings
Deposit rates very low so its
vital to get your money
working for you.
Tailored savings plans for
public sector employees
 Educational Saving
 House Deposit
 New Car
Sources: The Sunday Business Post 29/01/13 & 10/03/13
Car and Home Insurance
Cornmarket General Insurance Client Numbers
Over 75,000 Clients
Over 54,000 Clients
Over 19,000 Clients
Over 2,000 Clients
The Broker Process
Bulk Buying Power
Quarterly
Service
Reviews
Quarterly
Rate
Reviews
Quarterly
Benchmarking
Car Insurance Proposal
• Breakdown
• DAS Legal
• Reduced Excess with
approved repairer
• Full NCB
• Stepback NCB
• Malicious Damage
• Driving of other cars:
Comprehensive
• Breakdown
• DAS Legal
• Reduced Excess with
approved repairer
• Optional: Stepback NCB
• Windscreen Cover
• Driving of other cars: 3rd
Party only
Build your Own
The Service
80% of calls
answered
within 20
seconds.
Over 20,000
car & home
calls handled
monthly
70% of
quotes issued
on the spot
via email
What
Challenges
do unions
face?
98% of certs
issued within
2 days
33% of
customers
renew on-line
Special offer: UL
€75 Discount available to all UL members who
purchase a new motor insurance policy.
when you switch your car insurance to Cornmarket between 01/09/15 & 31/12/15
(subject to a minimum premium of €309.70, inclusive of Government levy)
3 months free offer on Allianz home insurance
policies.
when you switch your home insurance to Cornmarket between 01/02/15 & 31/12/15
(subject to a minimum premium of €328).
Budgeting
Where do I start?
• Keep a spending diary
• Calculate how much you are actually
spending
• What is an absolute necessity?
• What isn’t an absolute necessity?
e.g. cosmetics/weekend trips/eating out, etc
• Manage your debt.
Get your finances on track
• Identify and write down your financial
goals
• List your expenses in order of priority e.g.
debt payments first
• Use a budget planner
• Print it, keep it in a place that’s easily
visible, e.g. fridge/wallet.
• Regularly check you are still on track.
Specific
Measurable
Setting your financial
goals
How much you want to save?
Attainable
Realistic
Time-bound
How long it will take?
Setting your financial goals
Short-term
< 1 year
Mid-term
1 to 3 years
Long-term
3 years +
Keep your finances under review as your circumstances change.
Managing Debt
• List your debts in order of priority
• Know the APR and how much you have left to pay
on all debts e.g. mortgage, utility bills, medical costs,
credit cards, overdraft, personal loans.
• The highest APR loans should be paid after your
mortgage, utility bills and medical costs.
• Know your facts and figures - devise a realistic
monthly budget of what you can repay
• Contact your lender/bank to discuss your options if
you are finding it difficult to meet repayments, e.g. debt
consolidation, payment breaks, extending your loan
term, etc.
don’t bury your
head in the
sand!
http://www.cornmarket.ie/university-of-limerick
Thank you for your attention
Questions?
Please be advised that while Cornmarket has referenced websites in this presentations, we cannot be held responsible for the content of these websites. Cornmarket Group
Financial Services Ltd. is regulated by the Central Bank of Ireland. A member of the Irish Life Group Ltd. Friends First Life Assurance Company Ltd. is regulated by the Central
Bank of Ireland. Allianz plc is regulated by the Central Bank of Ireland. RSA Insurance Ireland Ltd is regulated by the Central Bank of Ireland.
Telephone calls may be recorded for quality control and training purposes.