Desmond Gibbons & Co
(newsletter below on this page)
Gerard Desmond FCPA Auditors, Accountants &Management Consultants
Tony Gibbons QFA Mortgage & Insurance Brokers Pension advisors.
A
Member of the Institute of Certified Public Accountants in Ireland,
The
Life Insurance Association, The Irish Insurance Institute, The Professional
Insurance Brokers Association
A COMPLETE FINANCIAL SERVICE
DESMOND GIBBONS & CO IS REGULATED BY THE IRISH FINANCIAL SERVICES REGULATORY
AUTHORITY AS AUTHORISED ADVISORS AND MORTGAGE INTERMEDIARIES
SERIOUS ILLNESS COMPARISONS (Click here)
MORTGAGE RE-PAYMENT PROTECTION INSURANCE (Click here)
SALARY PROTECTION (Click here)
FINANCIAL AFFAIRS NEWSLETTER
August 2009
FINES FOR SPAM -
Under
Bills enacted between 1st Dec 2008 and 31st Jan 2009, I see that businesses
found to be sending unsolicited e-mails and text messages could face fines of up
to €250,000. Unsolicited text and
e-mails for direct marketing will be treated as an indictable offence. The fine
will be €250,000 or 10% of a company’s turnover.
There were almost 900 complaints made last year and it is already part of
European legislation. This is probably why very few SPAM e-mails come from
Ireland.
The fine for non-attendance at jury duty has risen from
€50 to €500.
First
time buyers can borrow 92% of the cost of a property. On reading www.daft.ie
I noticed a studio apartment in Rathmines Dublin costing Euro175,000. One
could have a 25 year mortgage of Euro161,000
at 3.19% three years fixed at a cost of Euro 779 per month on that and it would
be same price as a renting. And you would be on the property ladder.
Property
in Dublin is down 30 % to 40 % and the rest of the country is about the same.
Several
people came to us after the article in the last newsletter mentioned moving your
mortgage because the current lender is trying to screw you with a high interest
rate. (Note PTSB increasing their rate by .5 %)
If
you have a variable rate one could change to 3.69% for say a 3 year fixed rate
with another lender. TSB are charging existing borrowers 5.75% for the privilege
of renewing for another five years. The banks and building societies will fleece
you if you try to get out of a fixed rate early. The cost of solicitors fees of
switching is down to about Euro 400 in the country areas anyway.
As a rule of thumb: call us for information and a quote
when your fixed rate is up.
If
you have a French or Turkish loan based on your Irish homeloan talk to us, as we
have some lenders in France and Turkey who will lend on the property down there.
Actually they are in Dublin, but they are French and Turkish banks !!
ANOTHER NEW GOVERNMENT LEVY (OR TAX!)
Under the 2009 Finance Act, life assurance
premiums paid on or after 1st
August 2009 are now subject to a Government levy of 1% for life, investment and
pensions. So you will notice a few
cent on all policies.
Current premium amount €40.00
Government Levy
€ 0.40
The client takes no action, the Government will take it
Revised premium amount
€40.40
through the insurance companies.
Anyone opening a NEW DEPOSIT ACCOUNT
will be required in future to produce proof of your PPSN (PRSI) number on
a document from the Revenue together with Photo ID (driving license) and address
ID.
As the cost of Ireland’s borrowing goes down, interest rates will go down. However Irish banks and building society's profits are under pressure. These banks and building societies will endeavour to keep interest rates high in order for them to increase their profits. Overdraft at AIB currently is 11.95 % (13.95%APR) and the ECB rate is 1 %. YES that is ONE percent. For first-time-borrowers the mortgage rate is 3 % or less.
Manage your debt; before it manages you!
There are many people today who are
struggling under a pile of loans that they took on during the good times. The
lenders are out for blood and intend to get every last cent. Once you start to
miss the odd payment—you are in trouble and life will never be the same.
Putting your head in the sand and pretending it won’t get worse is no good!
Sometimes couples don’t mention to each other that they have taken out a loan
when things are going wrong. All loans—big and small—go into the Credit
Bureau. A lender will look in the bureau and can see all previous loans. If you
are behind (even one month) your credit history is heading for ruination!!
While accountants Desmond Gibbons & Co have assisted in liquidations for companies, most people don't need that kind of drastic surgery to sort out their loans. We have a new company called “Debt Management Solutions” and we have become agents in West Cork for “Debt Plan Ireland Ltd” who have the expertise to “sort you out”!
Debt Plan will review your finances, covering income,
expenditure, debts and assets. These must include all debts secured on property
or goods. Your disposable income based on living, expenses is calculated.
In consultation with the client, we will produce
a Debt Management Solution by which one can pay off Creditors from disposable
income at affordable rates. The Debt
Management programme will let a person make one monthly payment to Debt Plan
Ireland Ltd and they will talk to all your Creditors for you and agree new
monthly payments with each of them separately. It is vital that we know the full
extant of all your debts. Debt Plan shall ensure that the periodic payments
agreed with your Creditors do not exceed your disposable income as calculated.
We shall attempt to agree with your Creditors, where
appropriate, that they freeze or reduce their interest charges and that they
suspend or withdraw litigation proceedings issued in connection with your
agreements with them. In rare circumstances, litigation proceedings may still be
actioned against you. In these cases we
will assist you and your legal advisers by documenting our dealings with you and your Creditors. We cannot however guarantee to stop legal action by your Creditors.
If
you know of someone with a problem, get them to ring Tony
Gibbons on 028 21811 or
1850 606 707 or 087 253 4226.
A few years ago Revenue went after
people who had investment policies over €50k to make sure all the relevant
taxes were paid. Now they are hunting down the €25k - €50k investments to
find out where that money came from! AND
NOW Ladies & Gentlemen Income
Tax: The Filing date of ‘2008
return of income’ is October 31st
2009. Payment date for 2009 preliminary income tax
is also 31st
October 2009.
The rumour in relation
to pensions is that the ‘tax-free-cash’
element
may be taxed in the next budget . People with personal pensions, who are over 60
can opt to retire NOW and take the 25% lump sum tax-free and continue to work.
The remainder of the fund can be used to purchase an AMRF (Approved Managed
Retirement Fund) or an ARF or a pension annuity.
NEW ANNUAL €200 TAX ON INVESTMENT
PROPERTY & HOLIDAY HOMES
The Local Government Act 2009 has introduced a €200 annual charge for owners on non-principal private residences. The charge applies mainly to owners of private rental property and holiday homes. It also applies to vacant residential property. Liability to pay the charge is assessed by the owners themselves. Ownership of a non-principal private residence on the 'liability date' (31st July 2009) determines liability to pay the €200 to your local authority. Euro20 per month penalty will apply when they catch you. !!
An email, doing the rounds, seeks personal
information from taxpayers in connection with a tax refund and asks the
recipient to submit personal details including date of birth and debit/credit
card details. The Revenue Commissioners never send e-mails which require
customers to send personal information via e-mail. Banks don’t
either and anyone sending information like this over e-mail should be
taken out and shot (well not quite!!)
Anyone who answers the e-mails about
splitting $5,000,000 with someone in Nigeria by having money sent to their bank
account, should think again about giving personal information to a stranger over
e-mail. Would you even tell a policeman your Bank account number?
DON’T DO IT !!!!
The articles in this newsletter are given in good faith and if you wish to act on any advice or wish to do any business, please consult with the relevant professional.
PLAY WITH THE MORTGAGE CALCULATOR!
PHONE 1
850 606 707
e-mail: tony@dgco.ie or gerard@dgco.ie
UPDATED 13/04/2010
