2. Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.

3. Agenda 1.Tax returns 2. Understanding how the PAYE System operates 3.Check your Rate Bands & Tax Credits 4.Maximise your Allowances and Reliefs 5.Sharing Credits 6.Other Taxable Income. 7.Tax Issues at Retirement

4. Tax Returns

5. Am I on the right Point of Scale? What is the Standard Rate Cut Off Point (SRCOP) and how does it affect my take home pay? What is a tax credit? What is my PRSI class – and what does it mean? What are the ultimate charges against my Gross pay? What impact will voluntary deductions have on my pay? FAQ’s

6. How many people here do tax returns? To date we have claimed back over €40 million in overpaid tax on behalf of Public Sector employees like you. In 2014, the average tax rebate was €1,300! 82% of PAYE workers overpaid in tax last year Source: Midas PAYE customer statistics 2015.

7. Why Public Sector Employees Overpay Tax x Not sharing credits and cut-off points in a tax efficient manner x Not claiming the appropriate tax credits, reliefs, rate bands, etc x Not availing of all allowances & entitlements x Tax Credit Certificate details incorrect x Incorrect allocations accumulate year on year. Repercussions Married Change Job Agency Work Income changes Birth of child Human error when calculating and deducting tax. Factors

8. You can claim back tax for a period of up to 4 years! Medical Expenses €€ Employment expenses €€ Salary Protection €€ Tax reliefs/allowances available Tuition Fees €€ Tax Bands incorrect €€ Pension €€ Rent Credit €€ Are you availing of all the reliefs available to you? Mortgage Interest Relief €€

9. Irish Historic Income Tax Rates Source: Revenue Current rates are 40% + 20%.

10. 1.Check your Point on the Salary Scale 2. Check your PRSI class (A1 / D) 5. Check your deductions 4. Should be at least 128 if PAYE 6. Not taxable 3. Standard Rate Cut-Off point: Should be at least €1,300

11. The PAYE System

12. 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! Text “CERT” and your PPSN to 51829 to get a copy of your Cert.

13. 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

14. Check your Tax Credits & Rate Bands

15. Methods of Assessment Single Assessment – Taxed as a single person throughout the year and at end of year review. Separate Assessment – Taxed as a single person throughout the year. Unused credits and rate bands may be transferred between spouses after year end. Joint Assessment – Taxed jointly throughout the year. Allows flexibility in allocating tax credits and rate bands. 3 methods

16. 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.

17. Tax credits The more credits you accumulate, the less tax you pay. ….they are worth money and shouldn’t be ignored!

18. Standard Rate Bands - 2016 Personal Circumstances2015 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.

19. Married? Sharing Rate Bands Married Couple – EarningsHim: €35,000Her: €55,000 2015 SRCOP (€67,600) Him: €42,800 Her: €24,800 2015 SRCOP (€67,600)Him: €33,800Her: €33,800

21. Personal Tax Credits - 2016 Personal Circumstances2015 Single Person Credit€1,650 Married Person Credit€3,300 PAYE Credit€1,650 Single Parent€1,650

22. Widowed Tax Credits 2016 Personal Circumstances2015 Widowed Person€2,190 Widowed Parent (Bereaved in 2013) Tax Credit in: 2014 2015 2016 2017 €3,600 €3,150 €2,700 €2,250 €1,800

23. 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.

24. Maximise your Allowances & Reliefs

26. Tax on your State Pension Since 1 st January 2012:  Taxable – Widows/Old Age/Jobseekers  Revenue will deduct your tax credits & rate band by the amount of income received  This will reduce your expected salary from your other pension/employment income  Revenue will review their figures annually.

27. Exemption Limits 2016 for over 65’s Personal Circumstances2015 Single/Widowed over 65 years of age€18,000 Married (over 65)€36,000 Increased by: 1 st child 2 nd and subsequent child €575 €830 Marginal Relief40%

28. Flat Rate Expenses Relief at your marginal tax rate Teachers/Lecturers on full hours: €518 Principals, Professors, Heads of Schools/Departments: €608 Teaching Council: €90 Part-time Lecturers/Teachers (mainly teaching + P.E./Guidance Counselling) get an additional: €126 Agreed between Revenue and your Union for expenses incurred directly related to the nature of your employment. Teachers/ Lecturers

29. *for a teacher/lecturer on full hours claiming the flat rate expenses tax credit €518. €207 per year if you are earning €40,000!* How much is this allowance worth to you?

30. Tuition Fees Tuition Fees Relief for Tuition Fees in approved 3 rd Level CollegesRelief for Tuition Fees in approved 3 rd Level Colleges Primary 2 year+ / Masters 1 Year +Primary 2 year+ / Masters 1 Year + Ireland and EU based coursesIreland and EU based courses Limits: €7,000 total fees per person p.a.Limits: €7,000 total fees per person p.a. Exemption (per household):Exemption (per household): –First €2,500 for full time course not claimable –First €1,250 for part time course not claimable.

31. Claim relief on your Medical Expenses 1.Make your medical insurance claim (www.hia.ie)www.hia.ie Tax relief at source, unless paid by employer. 2. Avail of the Drug Payments Scheme - max €144 pm (www.hse.ie)www.hse.ie 3. Apply for your tax relief through Form Med 1.

32. 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***

33. Rent Rent Credit Renting in a private residential property Must have been renting on 7 th 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.

34. 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.

35. Other Income

36. 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.

37. Rental Income Taxpayer’s View Revenue’s View Monthly Rental Income€1,000 Mortgage repayment / interest (€1,200)(€720)* Profit / (Loss)(€200)€280 * Assuming 80% of repayment is interest, restricted to 75% allowable.

38. Other Income Landlord Self Employment Deposit Interest where DIRT paid Foreign Income Irish Dividends where 20% tax deducted.

39. Pay Related Social Insurance (PRSI) From 1 st Jan ‘13, the first €127 is no longer exempt. Class D (entered public sector pre 1 st April 1995) @ 0.90% Class A (entered public sector post 1 st April 1995) @ 4% Class M (Occupational Pension) @ 0% Exemptions & Reliefs: All income is exempt from PRSI from age 66.

40. Universal Social Charge (USC) Tax payable on gross income at the following rates from Jan ’16: 1% - on the first €12,012 3% - on the next €6,656 5.5% - on the next €57,376 Self-employed or earning over €70,000: USC rate of 8% for incomes in excess of €70,044

41. Universal Social Charge (USC) Current exemptions & Reliefs: Department of Social Protection income Total income less than €12,012 Over 70 and salary is less than €60,000 per annum: USC is capped at 3.5% (reduced from 4%) Under 70, if salary is less than €60,000 and you hold a full medical card: USC is capped at 3.5% (was 4%).

42. Remind me why we should file regular tax returns?

43. Age Considerations 20 30 40 50 Multiple Jobs, e.g. Subbing Rent Relief Mortgage Relief AVC’s Tuition Fees Medical expenses Pension Contributions Sharing Credits Parent Nursing Home Fees Last Minute AVC’s CAT/CGT Medical expenses

44. 70 55 60 65 66 Tuition Fees Parent Nursing Home Fees 1 st Spouse Retirement 2 nd Spouse Retirement DIRT Refund State Pension PRSI Exemption Age Credit Cap on USC Last Minute AVC’s Inheritance Planning CAT/CGT ARF Distributions Medical expenses 50 Age Considerations Medical expenses

45. 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***

46. Cornmarket Group Financial Services Ltd. is regulated by the Central Bank of Ireland. Cornmarket is part of the Great-West Lifeco group of companies, one of the world’s leading life assurance organisations. Irish Life Assurance plc is regulated by the Central Bank of Ireland. Telephone calls may be recorded for quality control and training purposes. Warning: Past performance is not a reliable guide to future performance. Warning: The value of your investment may go down as well as up. Warning: If you invest in this product you may lose some or all of the money you invest. Warning: If you invest in this product you will not have any access to your money until you receive your superannuation benefits. Warning: This product may be affected by changes in currency exchange rates.

47. Provide you with a way to make A dditional V oluntary C ontributions towards your retirement benefits AVC and PRSAs

48. Reasons why an AVC/PRSA might make sense Early Retirement Shortfall in Service Service in excess of 40 years service Non pensionable earnings (overtime) Revenue maximum pension.

49. Still a very tax efficient way to increase your retirement benefits Contribution €100 For the typical employee, this means a ‘saving’ each month of 40%. Less tax relief € 40 (assuming tax @40%*) NO PRSI rate (removed in Budget 2011) Real cost to you for every €100 € 60 *As of 01/01/2015

50. How much can you contribute?

51. Age% Of Salary Under 3015% 30-3920% 40-4925% 50-5430% 55-5935% 60+40% Need to be careful of Overfunding and Personal Fund Threshold (currently €115,000) IMPORTANT: maximum % of salary contributable is dictated by the age you turn in that year. Pension Levy is not taken into account when accessing funding limits.

52.  Superannuation Scheme  Spouses’ & Children’s Scheme  NSPs  Purchase of temporary/training years  Repayment of refunded pensionable years/marriage gratuity, etc.  AVC Scheme. Overall contribution limit takes into account: Pension Tax Relief limits will not be affected by Pension Levy Contributions.

53. Issues to be aware of when Retirement Planning 1.Public Service Superannuation Act 2004 2.Public Service Pension Reform – “Cost Neutral Early Retirement” 3.Personal tax rates 4.ARF and AMRF options versus Annuity 5.Social Welfare entitlements 6.Tax Relief Scope 7.Standard Fund Threshold (SFT) 8.Personal Fund Threshold ( PFT) 9.Fee, Charges and Commissions 10.Partner Pension Details.

54. IMPORTANT INFORMATION FOR PUBLIC SECTOR EMPLOYEES NEARING RETIREMENT Where a ‘Last minute’ AVC/PRSA may be worthwhile for Superannuation Scheme members

55.  Are short service and/or  Have service over 40 years  Have non-pensionable earnings; e.g. exam supervision, correcting of exam papers  Had experienced a reduction in pay. 1. If you are nearing retirement and your Tax-free Lump Sum is likely to be less than the maximum allowed because you: There is a special tax break under Revenue rules that you might be able to take advantage of before you retire. This is known as a Last Minute AVC.

56. What is a Last Minute AVC? It is an excellent way of funding any shortfall in Pension provision between the Tax-free cash lump sum provided for within the Superannuation Scheme and the maximum Revenue approved tax-free cash entitlement.

57. The benefits of investing in a Last Minute AVC include: Receiving a refund of tax on Pension contributions Maximising your tax-free cash lump sum at retirement.

58. How does a ‘Last Minute’ AVC work? You can top up your tax-free lump sum through a ‘Last Minute’ AVC with a single investment You can then claim back full tax relief after retirement (subject to Revenue limits). Note: you cannot avail of a ‘Last Minute’ AVC after retirement.

59. Tax-free Lump Sum shortfall of €10,000* Gross Payment to ‘Last Minute’ AVC (including charges) €10, 526 Claim back tax relief @ 40%€ 4,210 Actual cost to member€ 6, 316 *assumes a 5% contribution charge. Actual charge may differ depending on circumstances. Figures correct as at 01/01/2015. Example

60. Dynamisation Relevant to all who experienced a reduction in pay The calculation of final salary under Revenue Rules differs from Superannuation Rules. For example, Revenue allows the following calculations:- Basic Salary (including allowances, etc.) in any 12 month period in the last 5 years. Plus Average of 3 or more consecutive years for fluctuating emoluments up to the end of date chosen. (CPI can then be applied to the above once retirement date is over 12 months).

61. Do I need to be a current member of an AVC Scheme? No, this is open to all members of Superannuated Schemes. The process varies slightly but the result is the same – maximising your tax-free cash.

62. When does the process begin? The review or consultation must happen in advance of your retirement to ensure that the process is completed before you retire.

63. How long does the process take? Usually 6 – 8 weeks. N.B. The process must be completed in advance of retiring. We cannot guarantee to complete the process if the application is left too late.

64. Is a ‘Last Minute’ AVC/PRSA right for you? No single right answer.

65. Each individual is different.

66. Pension planning is COMPLEX. Expert advice is recommended.

67. Thank You. If you need any help with your tax affairs we are available on (01) 408 4106. Any Questions? Midas is a tax based service and not a regulated financial product. Cornmarket Retail Trading Ltd. is a wholly-owned subsidiary of Cornmarket Group Financial Services Ltd. Telephone calls may be recorded for quality control and training purposes.