News Taxation
Taxation
Updates to EWSS scheme
The Revenue Commissioners recently issued new guidelines in relation to the eligibility of EWSS from 1 July 2021.
The main change announced by Revenue was extending the turnover reference checks to 12 months rather than a 6 month period. This means that businesses whose trade was severely impacted due to government restrictions in the first half of 2021 can trade at higher levels for the second half of 2021 and still avail of the scheme, subject to meeting the scheme conditions which were already in place.
This adjustment means that a business would be looking at their turnover for the calendar year 2021 in full rather than on a 6 monthly basis. Businesses will need to review their actual monthly turnover for January to June 2021 and projected turnover for the months July to December 2021. The business is expected to experience a 30% reduction in turnover or customer orders due to the pandemic in the period from 1 January to 31 December 2021 compared to 2019 for pay dates on or between 1 July and 31 December 2021.
Therefore, in order to avail of the EWSS, you will need to provide the following;
- Actual monthly turnover details for January to December 2019,
- Actual monthly turnover details for Jan to June 2021 and
- Monthly projections for July to December 2021.
July 21, 2021
Business
How To Minimise Your Tax Liability As A Business Owner
We know that tax is a significant variable facing business owners, which is why we invest heavily in experienced, highly qualified tax advisors. Our team works with a wide variety of clients in businesses across various industry sectors to meet tax compliance obligations and provide beneficial tax strategies to all types of business owners.
In today's blog, we wanted to look at some simple methods for lowering your tax liability as a business owner.
Taxes, like any other expense, can be controlled and lowered with our proper planning and guidance. Cashflow and money will always play a significant part in the potential success for any business so ensuring proper compliance and setup will be crucial for you.
The Revenue Commissioners will always get their percentage from your personal and company wealth, but, here are some methods to help you minimise your business's tax obligations and reduce your tax liability as a business owner.
Methods to reduce tax liabilities as a business owner
- Maintain systematic record
- Tax credit
- Finance capital expenses for tax exemptions
- Engage your spouse or any other family member
- Change your company's accounting reference date
- Preliminary tax
- Travel and subsistence
- Consider turning into a Limited Company
- Generate management accounts before the end of the year
July 14, 2021
Uncategorized
RN Podcast: 2021 – What is in store for the Irish tax landscape in the year ahead
Vivian Nathan, Managing Partner, welcomes Brendan Murphy, Tax Partner, to Roberts Nathan. Brendan joined the firm at the beginning of 2021 to continue the firms expansion and our commitment to providing our clients with dedicated specialist within specific sectors.
On this podcast, Viv and Brendan discuss the opportunities Brendan sees for businesses from a tax perspective in the year ahead and what will be the key areas of focus for tax advisors. They also look at the impact to date of Brexit and how this will continue to effect trading between Ireland and the UK. Finally they will look at the cost Covid-19 is having on the Irish economy and what the future Irish tax landscape may look like.
We hope you enjoy listening to our podcast and if you have any questions regarding any of the points raised please let us know.
April 19, 2021
Legislation
Cash flow benefit for companies importing stock from outside the EU (including UK/EU trade).
As a result of Brexit and the UK becoming a third country, postponed accounting for VAT can now be applied to all non-EU imports of goods for resale since 1 January 2021. This treatment is now available to all VAT registered traders and applies to imports from all non-EU countries and not just the UK.
Trading businesses who historically have had to pay VAT at point of entry for stock arriving from outside the EU can now save the cash flow of the VAT that would have applied on the landing of this stock (23%).
This scheme benefits all traders in that:
- provides for postponed accounting for VAT on imports from non-EU countries
- enables you to account for import VAT on your VAT return
- allows you to reclaim VAT at the same time as it is declared in a return. This is subject to normal rules on deductibility.
April 13, 2021
Uncategorized
UK Businesses – Do you have the correct Irish VAT number?
Check your VAT number
VIES VAT number validation
Since June 2019, companies registering for VAT have had to specify whether they wish for a “domestic only” or “intra-EU” VAT registration.
The domestic only registration has helped speed up registration process for business seeking to register for VAT however, we have seen a number of instances where businesses are unaware of the need to include an intra-EU registration within their application. In particular we have noted many UK businesses applying for Irish VAT numbers on the basis of being a non-resident company with operations in Ireland and obtaining an IE VAT reg. If the company is importing goods into Ireland for domestic only supply, then the domestic VAT registration is sufficient and they are charged Irish VAT at the point of importation of the goods into the EU. Thus the domestic VAT registration applies only if the company is importing goods into Ireland, storing and distributing them here and not further distributing outside of Ireland.
However if your company is looking to use Ireland as a new trading base in dealing with EU customers this will not be an effective VAT number for EU wide trading.
So check your VAT number. If you get the above message on the VIES system then it is only a domestic VAT registration.
This will cause issues if you are bringing goods into Ireland and then intending to export them to another EU country as you will need to apply for an intra-EU VAT number. It will be the exact same number but will need to be validated as otherwise your customers will get the above notice when the VAT number is checked for EU trading. This causes an issue for your EU customers as you will not have issued a valid VAT invoice.
We have helped a number of clients with this by amending their VAT registration and getting the option for intra-EU VAT registration. This requires additional information for Revenue which we can assist with.
If you would like to explore further options around your business, please contact Brendan Murphy who would be very pleased to assist you.
Brendan Murphy: brendan.murphy@robertsnathan.com
No, invalid VAT number for cross border transactions within the EU |
March 31, 2021
Taxation
Revenue Update – Debt warehousing and Covid-19 supports
Last week Revenue began to write to taxpayers who are availing of debt warehousing and other Covid-19 supports. In relation to debt warehousing, Revenue are reiterating the need for all returns to be filed on time, even where warehousing is being availed of on payment. Any taxpayer availing of debt warehousing but does not have all tax filings up to date will be reminded to do so immediately or lose their entitlement to avail of the Debt Warehousing Scheme. Any returns outstanding will be brought to the taxpayers attention in the Revenue latest correspondence.
For taxpayers availing of both Debt Warehousing and either the Employment Wage Subsidy Scheme or the Covid-19 Restrictions Support Scheme, they will be advised to bring any outstanding returns up to date within 21 days or their tax clearance will be rescinded and they will no longer be eligible for any of the support schemes.
Revenue have also began a second stage of TWSS reconciliation, seeing employers who have availed of the scheme receiving a detailed reconciliation through ROS. Employers have until the end of June 2021 to review the information contained in the reconciliation by Revenue and accept, appeal or make any required adjustments to their claim by this date.
It is also worth noting for taxpayers who are not availing of debt warehousing but do have tax liabilities outstanding that Revenue will seek to enforce debt collection of outstanding liabilities over the coming weeks as highlighted in a press release earlier this month.
Finally, late filing surcharges for corporation tax returns had been suspended from March 2020, however Revenue have now confirmed that for corporation tax returns due between 23 March 2020 and 23 June 2021 (i.e. accounting periods ended between 30 June 2019 and 30 September 2020), will need to be filed by 30 June 2021. Corporation tax returns (including iXBRL financial statements if required) will be required to be filed on time from this period on to avoid late surcharges.
If you would like to explore further options around your business, please contact Brendan Murphy who would be very pleased to assist you.
Brendan Murphy: brendan.murphy@robertsnathan.com
March 30, 2021
Brexit
UK Budget
On Wednesday Rishi Sunak announced the UK budget and Irish interest was immediately drawn to the confirmation that the Corporation Tax rate would increase from 19% to 25% from April 2023 for companies with profits of at least £250k. This can only be seen as a positive for Ireland where our continued commitment to the 12.5% Corporation Tax rate would make it an ideal location from UK businesses looking to relocate operations to the EU. Ireland’s Corporation Tax code is built on transparency and substance and we have advised many businesses on the requirements to establishing in Ireland from a direct tax, indirect tax and commercial perspective.
March 5, 2021
Business
CRSS and the Construction Industry
The two most important schemes available to employers and businesses across the country at this time are the CRSS (Covid Restrictions Support Scheme) and EWSS (Employment Wage Subsidy Scheme). Under the current CRSS guidelines, the construction industry is not permitted to make a claim under CRSS as they do not satisfy the guidelines whereby they operate from a fixed premises that is required to prohibit or considerably restrict customers from accessing their premises. They may still be eligible to claim the EWSS wage subsidy.
To learn more about this contact Brendan Murphy, Tax Partner at Roberts Nathan brendan.murphy@robertsnathan.com or call (01) 876 4550.
January 28, 2021
Business in Ireland
RN Podcast: 2020 – The Year that was, and 2021 potential for business growth
As we close out on 2020, we have produced a podcast where we take a look at the year that was, and provide our view on what businesses might expect in 2021. Aidan Scollard, Brendan Kean and Derek Dervan, partners with Roberts Nathan discuss three main areas likely to impact Irish businesses as well as some tips when planning for 2021:
1. The implications of the Covid vaccine on Irish businesses. Cashflow and succession planning have become very important for business owners, however some good has come from Covid in terms of the opportunities it has created for doing business in a new way. It may also bring about potential M&A and real estate activity, and possible increased consumer spending in the year ahead.
2. Brexit and planning around UK businesses setting up operations in Ireland.
3. Budget 2021 Capital Acquisition and Gains taxes, Entrepreneurial Relief, Pensions and Retirement Relief.
We hope you enjoy listening to our podcast and if you have any questions regarding any of the points raised please let us know.
December 17, 2020
Taxation
Budget 2021 Highlights
On Tuesday 13th October, Finance Minister Pascal Donohoe announced an unprecedented 2021 Budget package investing €17.75 billion in the economy. The Budget was focused on investment and helping businesses impacted by Covid-19.
We have prepared a brief summary of the 2021 Budget highlighting some of the key changes outlined by the Minister. Click on the link below to read.
Budget 2021 Highlights
October 16, 2020