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Taxation Options for Credit Union Members
To date most Credit Union members have held their savings in Regular Share Accounts. The terms of such an account provide that:
- Dividend is posted gross to the account every year.
- It is the account holder's responsibility to inform the Revenue Commissioners of any dividend posted to the account in the annual income tax returns. Tax is payable at the account holder's marginal rate.
Members may now allocate their savings to a Special Share Account. The terms of this account provide that:
- Dividend is posted NET to the account annually after deduction of Retention Tax (DIRT). The interest rebate for the financial year ended 30th Sept. 2005 is 30%.
- All Retention Tax is forwarded by Credit Union to the Revenue Commissioners on behalf of the members.
- There is no Disclosure of names and members have no further liability to Tax in respect of dividend earned on Special Share Accounts.
Medium and Long term Accounts
There is also provision for Medium and Long term Share Accounts (3 year and 5 year) with dividend tax thresholds of €480 and €635 respectively, below which no Tax is payable. B.H.K. Credit Union does not offer these accounts at the moment pending a technology update.
B.H.K. for Loans
Because of the loyalty of its members and the effective management strategy brought to bear on its finances, B.H.K. Credit Union has considerable resources available to those who wish to borrow. Loan applications are processed speedily and with the utmost confidentiality.
B.H.K. Credit Union currently operates a policy of offering an interest rebate to borrowers at the end of the year. This has the effect of greatly reducing the effective cost of a loan as the examples below show.
The interest rebate offered for the year eneded was 30%.
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Example A
Loan of €5000 repayable over 5 years. Repayments before consideration of rebate = €25.54 pw. Example B Loan of €10,000 repayable over 5 years. Repayments before consideration of rebate = €51.08 pw. (The above repayments represent an A.P.R. of 9.3%) Note: The rate of rebate may vary from year to year and it is generally related to the volume of activity generated by B.H.K.'s borrowers. The above calculations are based on an interest rebate of 25%. |
The School Poster Competition, 2005/2006
The theme for this year's poster competition was "Credit Unions can make it happen".
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Ciara's entry was highly commended at Chapter level.
Congratulations to all concerned and thanks to their teachers for the encouragement.
BHK Inter-Schools Quiz 2006
Winners Under 13: St Mary's NS Knockbridge
Winners Under 11: St Oliver Plunkett School, Blackrock
The Knockbridge team took 2nd place at Chapter level and represented BHK at the Nationl Finals in the RDS on April 2nd 2006.
Picture Gallery
Mary Keenan, Manager, B.H.K.C.U, presents the overall winner of the poster competition with her prize.
Colm Breathnach with the Knockbridge NS team, winners of the Under 13 quiz.
St. Oliver Plunkett Under 11 team with Frank McQuaid, Quiz Master.
Thanks
The Board of Directors appreciates the regular mention of its activities by Geraldine McCullough and Larry Magnier in the Knockbridge and Blackrock pages of the Louth Online website, and by Kilkerley ICA in its monthly News Sheet.