Enhanced Reporting Requirements for Payroll from 1st January 2024
The new Enhanced Reporting Requirements (ERR) for certain non-taxable benefits are due to come into effect from 1 January 2024. Currently, employers submit details of all reckonable earnings paid to each of their employees. The ERR sees the introduction of an entirely separate submission. ERR reporting is a new obligation concerning employer returns for certain non-taxable payments of expenses and benefits to employees. This will be the case regardless of whether these payments are processed through a company’s payroll system or via an expenses protocol operated by the employer. There are 3 categories of expenses and benefits included under the ERR system as follows: 1.Travel and Subsistence Tax free expense payments in this category that will require to be reported under ERR will include payments for:
- Travel - vouched and unvouched.
- Subsistence - vouched and unvouched.
- Emergency travel.
- Eating on Site.
- Site – based employees.
- Identify the system(s) used to pay expenses such as travel, subsistence, working from home and small expenses, are they paid via payroll or ad hoc payments.
- Establish whether your current payroll software can accommodate the additional reporting requirements.
- Discuss with employees any changes to the frequency of payments that may arise.
- Ensure that records are maintained of the days for which the remote working allowance is paid.
November 15, 2023
Non-Resident Landlord Withholding Tax (NLWT) System
Revenue has recently introduced a new system regarding non-resident landlords which will come into effect from 1st July 2023. Tenants or collection agents are now required to make Rental Notifications (RN) when making payments to a non-resident landlord. The new system will be accessed through ROS or My Account and the notification and accompanying 20% withholding tax payment are required to be submitted within 21 days of paying the rent to the non-resident landlord. Landlords will be able to claim the withheld credits on their annual Income Tax Return (Form 11) or CT1. Collection Agents will no longer be responsible for filing an Income Tax Return or CT1 for the rental income. Non-resident landlords will now be responsible for filing the Income Tax Return or CT1. It is important to note that if you do not use the new online system, you can continue using the old system in that the collection agent will still be the chargeable person and will continue to file the tax return as the collection agent and the rent will not be included in the landlord's Income Tax Return or CT1. If you are a non-Irish resident and are renting out an Irish property, please do not hesitate to contact a member of our team if you require any assistance with the above. To read more from Revenue, please click here.
June 28, 2023
Business Plus Survey – Accountancy & Business Advisory
Vivian Nathan, Managing Partner at Roberts Nathan, was featured in the latest Business Plus Magazine Accountancy and Business Advisory Survey issue. As part of the survey response, Vivian outlined the ongoing growth the firm is experiencing, an increased focus on clients who are expanding into the international markets, and recruitment opportunities within Roberts Nathan.
March 21, 2023
Roberts Nathan merger with James O’Brien & Co Accountants
We are delighted to announce that James O’Brien & Co Accountants has merged with Roberts Nathan. Post-merger, the firm will trade as Roberts Nathan and employ over 55 professionals in both Cork and Dublin. Now more than ever scale and access to specialists, valuable business advice, and international capabilities are increasingly important. This is the driver behind our strategic decisions, the wish to deliver to our clients the breadth and depth of service they require. This exciting merger gives us increased scale and resources, allowing us to continue providing a personal partner-led service to all of our clients. Pictured below (l-r) Gail Ellis, James O’Brien and Vivian Nathan.
January 26, 2023
Registration for the Temporary Business Energy Support Scheme is now open
One of the positive announcements for businesses in Budget 2023 was the introduction of the Temporary Business Energy Support Scheme (TBESS) to reimburse businesses for the increase in energy costs. Registration for the scheme opened on 26th November and claims can be made from 5th December 2022. The scheme will cover the period from 1st September 2022 to 28th February 2023 with the deadline for a claim being 4 months from the end of the month for which the claim relates (i.e. 31st January 2023 for a September 2022 claim). Where a business has seen an increase in energy costs of over 50% from the corresponding month in the prior year then it will be entitled to claim for 40% of the increase. A claim is limited to a cap of €10,000 per month per business line or €30,000 per month where more than two business lines with separate MPRNs exist. Given the significant energy cost increases for business we would anticipate a high participation in the scheme with the government setting aside €1.2bn for the energy bill subsidies. We would encourage you to speak to us about registration and submission of claims to ensure timely compliance with the scheme.
November 28, 2022
Have you Planned out your Payments for the Debt Warehousing Scheme?
During the pandemic, the Government introduced a number of measures to help companies and individuals who were facing cashflow difficulties. One of the helpful and widely used measures introduced was the debt warehousing regime whereby companies and individuals could warehouse their VAT, PAYE and Income Tax liabilities that occurred before 31 December 2021. The main points of the debt warehousing scheme were as follows;
- The scheme allowed for the deferral of unpaid VAT and PAYE debts for businesses restricted from trading due to the Covid-19 pandemic for a period of 12 months after a business resumes trading.
- The debt warehousing scheme also applied to Income Tax. This allowed for the warehousing of the Income Tax liability falling due on 31 October 2021 which comprised of the balancing payment due for the 2020 Income Tax year and Preliminary Tax due for 2021 Income Tax year.
- The debt warehousing scheme was also expanded to include the recovery of any overpayment of the TWSS and EWSS which was paid to employers during the pandemic.
May 24, 2022
Dealing with Inflation: Advice for Business Owners
Current inflation factorsThe Irish economy is going through an unprecedented period of inflation. This was initially driven by supply chain hangovers from COVID 19, which saw prices of building materials, materials for cars and increased costs of consumer goods. Since the start of 2022 there has been further inflationary pressure mainly as a result of the Russia/Ukraine conflict. This has resulted in a dramatic increase in energy costs and food product costs. Annual inflation in Ireland neared an almost 40-year high of 6.7% in March, a jump from 5.6% a month earlier. Diesel and petrol have increased by 46% and 35% respectively year-on-year while food prices rose by 3.1%. Electricity prices were up 22.4% while gas prices rose 28%.
OutlookThe Central Bank predicts that price growth will peak at 7.7% in the second quarter of 2022 before retreating to 5.1% towards the end of the year. SME’s have endured a turbulent few years as a result of COVID 19 and are still dealing with legacy issues as a result of the pandemic. There is now an additional headache as they navigate inflationary increases.
What companies need to consider
- How to deal with any Revenue warehoused debt
- A significant amount of SME’s took advantage of the Revenue debt warehousing scheme. The interest free period comes to an end on the 31 December 2022 and companies will need to engage with Revenue and agree as to how they intend to deal with these liabilities.
- As a result of inflationary pressures margins for businesses are likely to come under pressure due to:
- Higher raw material costs
- Higher energy costs
- Upward pressure on employee wage costs as staff deal with a higher cost of living
Steps companies need to take now
- Preparation of reliable management information will be crucial to help companies deal with the current headwinds. This information should include:
- Up to date Management Accounts
- Cashflow and Budgets which reflect accurately any cost increases and are reasonable in terms of increases in turnover.
- Engage with Revenue and agree how warehoused taxes are to be dealt with.
- In a high inflation economy, it is important to engage with suppliers and lock in prices as early as possible.
- Engage with customers / clients early and flag increased prices. Any lag in passing on price increases will affect margins and profitability.
How Roberts Nathan can helpWe have been assisting many of our clients recently with their plans to navigate through this challenging time with the preparation of the above-mentioned Management Accounts and Budgets. If you are concerned about these current challenges and would like to consider availing of these services we would be delighted to assist you. If you would like to discuss the above you can contact Brendan or email us at email@example.com Contact Us
May 11, 2022
Do you need to Switch your bank from KBC and Ulster Bank?
With the closure of KBC and Ulster Bank, over 120,000 customers will be searching for their new banking service. Ulster Bank will be issuing letters shortly to account owners to begin the process of transferring to a new bank. Ulster Bank will be providing account holders with 6 months to make the switch to their new bank. The moving process is expected to span over a year, which will be done on a staggered basis. KBC have sold their deposit accounts to Bank of Ireland. However Bank of Ireland have not agreed to take the current accounts, and they have to be moved elsewhere. You may be in the same position as some of our clients find themselves in as a current account holder with KBC or Ulster Bank, if so you may wish to consider the following when selecting your new bank:
Do I Require a Full Service Bank?A full service bank contains options for current, deposit, overdraft accounts etc. These banks include AIB, Bank of Ireland and Permanent TSB. You should consider and compare charges for transactions, monthly/quarterly fees, caps on savings and negative interests when choosing what bank suits your needs. There are also online banking options such as Revolut and N26 which have now acquired European banking licenses. These new licenses can provide you with an IBAN, allowing you to set up your salary, direct debits, etc. These services seem more cost efficient but there are higher withdrawal fees or a % fee applied to withdrawals that go over the free allowance limit. It will be up to the individual to inform employers, tenants or anyone who lodges money into their account of their new bank details. This also applies for direct debit transactions etc. Talk to your new bank about a new switching pack which will help move over any direct debits as seamlessly as possible. You should also ensure your account details on Revenue Online (ROS) are updated to allow you to make your tax payments from the updated account.
What Are my Next Steps?Once you have opened an account with your new bank, you must close your account with Ulster Bank and KBC. Ulster Bank have recently begun to issue closure forms to their account holders which can be filled out and posted back to the bank. Once the request is submitted it can take 5-7 working days for the account to close. In this time, you should not use your account as it may delay the closing procedure. Also check that there are no pending transactions and the account has been inactive for 24 hours.
After Closing your Account
- Securely destroy all cards, cheque books and pre-printed cheques associated with the account
- Update standing orders and direct debit payments with your new bank
- Inform originators of credits to Ulster Bank and KBC of your new account details
What do I Need to Set up a New Bank Account?
- Photo identification,
- A recent bank statement
- A recent utility bill
- Your PPS number (might not be mandatory).
April 26, 2022
Corporation Tax Ireland: 15% Tax Rate
In October 2021 it was announced that Ireland would increase their corporation tax rate to 15% for certain large multinational companies. It was originally envisaged this increased rate would be implemented in 2023 provided agreement was reached at an OECD level. However, delays on approval in the US by the Biden administration and recent objections by Member States at an EU level have potentially deferred this implementation which we have examined below.
Why an increase in Corporation Tax?In October 2021, members of the Organization for Economic Co-Operation and Development (OECD)/G20 Inclusive Framework worked on a global consensus-based solution to reform international corporation tax. It resulted in a global agreement of 137 jurisdictions including Ireland. The proposal was made up of two key global tax initiatives referred to as Pillar 1 and Pillar 2. Pillar 1 addresses the partial re-allocation of taxing rights. This will result in the taxing rights being shifted towards the country of consumption rather than the country where the company is located. Some jurisdictions have already sought to impose digital taxes in advance of this measure. Pillar 2 addresses the minimum level of taxation applied on profits of multinational enterprises. After some initial negotiations around the wording of the minimum tax, ensuring the words “at least” 15% were removed to avoid future rate creep, Ireland agreed to adopt the minimum corporation tax rate of 15% for certain large multinationals. However, the proposed tax increase will only apply to any domestic and international group with a combined financial revenue of over €750 million a year.
Timing of new Corporation Tax RateWith the EU presidency currently sitting with France they had pushed for EU States to implement the minimum tax rate quickly. However, the approval for this would need the unanimous support of all 27 States and recently Poland, Sweden, Estonia, and Malta have raised their reservations until a clear position has been taken by the US. With Ireland in agreement to the proposal, Paschal Donohoe (Minister for Finance) wishes to legislate the bill for the beginning of 2023. However, with pushback from these other EU nations, suggestions have been made to change implementation to 2024 to allow companies time to adapt. French Minister for Finance Bruno Le Maire intends to readdress the proposal in April.
Impact for IrelandGiven the new rate will only impact large multinational groups with turnover in excess of €750m, Ireland’s 12.5% corporation tax rate will primarily remain intact. How the increased rate will affect Ireland’s FDI will be watched with interest. The government have stated projected figures of €2billion being the decrease in tax revenue arising from the increase tax rate. Ireland has been at the forefront of all recent international tax reforms introducing items such as interest limitation rules, anti-hybrid measures and increased transfer pricing focus. These items, along with Trump tax reforms in the US, had all led to anticipation of Ireland’s FDI being impacted which did not materialise to any significant level. Roberts Nathan’s Tax Partner, Brendan Murphy firstname.lastname@example.org is available to discuss all aspects of Ireland’s position on international tax reform.
April 5, 2022
2021 Exchequer Results
As we kick off 2022, our tax team review the 2021 exchequer figures recently published by the Department of Finance. Overall, the exchequer results are exceptionally strong given the continued impact of the Covid-19 pandemic on many businesses during 2021, with an overall reduction in the exchequer deficit of €5bn compared to 2020. The exchequer results figures released by the Department of Finance show an increase in tax revenues across almost all tax heads, giving rise to a total increase in tax revenues of 19.7% compared to 2020. Corporation tax receipts have continued to increase at unexpected levels, which has led to corporation tax revenues coming within €100m of VAT revenues for the first time. However, recent comments from the Minister of Finance suggests corporation tax receipts are expected to decline from 2023 when the new 15% corporation tax rate for large multinationals takes effect. Understandably, given the major impact of Brexit from a VAT and customs perspective, customs duties increased by over 90% in 2021 compared to 2020. However, it is worth noting that customs receipts would generally have been at a very low level prior to Brexit and therefore this level of increase is unsurprising. Most notable from the exchequer results released is the significant increase in capital gains tax receipts. CGT receipts for 2021 increased by 72.6% in 2021 compared to 2020. Considering CGT is a well-established tax base, and no major legislative changes were made in 2021 compared to 2020, this increase in revenues is most likely attributed to rising property prices, along with the significant increase in activity and prices obtained in the merger and acquisition (“M&A”) sphere which has been evident over the past 12 months. Derek Dervan, Partner in Roberts Nathan, leads the firm’s corporate finance function and has observed this increase in M&A activity first-hand in 2021. Derek expects the transactions market to remain strong, with 2022 starting where 2021 left off. If you are considering a sale of your business, the acquisition of a new business or a restructuring of your current operations, Derek and Roberts Nathan’s Tax Partner, Brendan Murphy, would be delighted to speak to you to ensure that your business is structured and transaction-ready, to ensure that the best results can be achieved.
January 12, 2022