SME’s Welcome Changes to Subsistence Allowance Rates
- Employees and directors can now claim back an additional 10% of the costs incurred completely Tax Free while travelling on business.
- The cost to companies is considered to be an allowable expense for Corporation tax purposes, meaning it can be deducted from taxable profits.
- The daily subsistence ‘5 Hour but less than 10 Hour’ rate increases by 10%.
- The daily subsistence ‘10 hours or more’ rate increases by 10%.
- The increases are in line with the Consumer Price Index.
- The revised standard rates of subsistence allowance are effective from 1 July 2019.
- The standard overnight rate will not be increased.
- A separate Vouched Accommodation (VA) rate continues to apply whereby employees encounter difficulties in sourcing suitable accommodation in Dublin.
How to Calculate Annual Leave Entitlement
- Based on the employee’s working hours in one year. An employee who has worked at least 1,365 hours in the leave year is entitled to the maximum of 4 working weeks’ annual leave.
- By allowing 1/3 of a working week for each calendar month in which the employee has worked at least 117 hours.
- 8% of the hours worked in the leave year, subject to a maximum of 4 weeks.
Are you a UK Based Director of an Irish Registered Company?
- The affairs of the company are managed by one or more persons from a place of business established in the State and that person or those persons is or are authorised by the company to act on its behalf.
- The company carries on a trade in the State.
- The company is a subsidiary or a holding company of a company or other body corporate that satisfies either or both of the conditions specified in 1 and 2.
- The company is a subsidiary of a company, another subsidiary of which satisfies either or both of the conditions specified in 1 and 2.
What is KEEP and when is it most effective?
Top 5 Reasons to Establish Your Business in Ireland
- 1 in the world for investment incentives and inward investment jobs per capita.
- 1 for flexibility and adaptability of people.
- 1 for European investment from US.
- 7 of the top 10 global software companies based in Ireland.
- 10 of the top 10 pharma companies based in Ireland.
- 8 of the top 10 industrial automation companies based in Ireland.
- 14 of the top 15 global aviation lessors have operations in Ireland.
- 19 of the top 25 financial services companies are in Ireland.
- 14 of the top 15 medtech companies based in Ireland.
- International Company Structuring
- International Strategic Planning
- Company Formation & Maintaining
- Annual Statutory Financial Statements
- Preparation and Submission of Annual Returns
- Provision of Corporation Tax Returns
- Provision of Registered Office
- Provision of Company Secretary
- Maintaining EEA Directorships
- Assistance with opening a company (Euro) bank account
- Payroll Solutions
- VAT Compliance
- Other Business Advice
Have You Reviewed Your Corporate Group Structure Lately?
Thinking About Selling Your Business?
PreparationPreparation is key to achieving the best value. The preparatory phase is when you should engage with your advisor and carry out a thorough review of the business and it’s value drivers. Ask ‘why would someone want to buy my business’ and then focus on this. Prospective purchasers will demand transparency, so dealing with potential red flags and ‘deal breakers’ in advance of the buyer due diligence process will help protect value. Telling your business’s story is important and understanding how to present it’s financial information, both historic and forecast is a crucial element of the process. What is the succession plan? With many owner managed businesses the owner is the business. A potential buyer will attribute little value to a business where it’s driving force (the owner) will be exiting or retiring in a short period after sale. Tax planning in advance of sale will protect value. You should firstly consider the shareholder structure. Is there an opportunity to get family members (children and siblings) involved? Is there an option to claim retirement relief or entrepreneur relief or through a holding company group structure to claim participation relief on exit?
Identify prospective purchasersUnderstanding and researching the potential buyers for your business is a very important part of the process. Every business owner will be able to name a number of potential buyers, be that a management team or a key competitor. However there might be other potential buyers who may not appear on a list, who may have other strategic reasons for buying and may pay a premium for the business, i.e. new market entry, to acquire IP or to gain access to resources (e.g. people). Keeping the process confidential during these early stages is important as it may ‘spook’ potential customers or suppliers and may unsettle key employees. Having an advisor on board will help maintain confidentiality.
Negotiating the dealOnce potential purchasers are identified they may enter a period of limited due diligence. A lot of valuable insight can be gained during this period for the seller in terms of how the due diligence is conducted the type of queries and questions raised. Having this insight early will help in the price negotiation phase. You should never name your price, solicit offers for potential acquirers setting strict deadlines for offers. It is important that the seller maintains control of the process at this stage. A second round of offers maybe required until a preferred bidder is selected after which they may enter a period of exclusivity to carry out a more detailed assessment of the company. This selection criteria should not be based on price alone and factors such as the ability to execute the deal and sources of funding should also be considered.
Closing the dealNegotiating the transaction documents is the final part of the process and also very important for both buyer and seller protection. Considerations will need to be given to the deal structure. Will part of the consideration be based on an ‘earn out’ from future profits? Will the owner manager be required to remain with the business for a period post sale to help with handover of relationships and integration? The sale process is a time consuming and involved process for the business owner and often management teams are distracted by the process taking their ‘eye off the ball’ to the detriment of the business. Getting your advisers involved early in the process will help avoid many of the common pitfalls and ultimately protect the value that in many cases has been built up in business over many decades. At Roberts Nathan we have a wealth of experience advising owner mangers through the transaction process both on the sales side and buy side. Please contact us if you would like to understand more.
CRO set key dates for the Register of Beneficial Owners
- 29th April 2019 – The RBO will launch an official website to provide further guidance.
- 22nd June 2019 - The RBO will start accepting online submissions via live portal.
- 22nd November 2019 – This will be the last date for companies formed prior to June 2019 to submit their details.
New “One Step” process for annual return deadlines introduced by CRO
- Electronically file the annual return,
- Upload Financial Statements, and
- Deliver any signature pages to the CRO.
Save Time and Money with Our Complete Payroll Service
Our Payroll service includes:
- The benefit of a dedicated payroll team.
- A computerised payroll system that streamlines the entire payroll process.
- Options for weekly, fortnightly or monthly payroll runs.
- Submission of all statutory returns required by the Revenue Commissioners in line with the new requirements introduced under PAYE Modernisation in January 2019.
- Paperless delivery – with all authorisations carried out via email to make life easier for you.
- Payslips emailed directly to employees, saving you time.
- A smooth transition from your old system to one that is simple and stress-free.