News Uncategorized

  Business Advice

Covid Restriction Support Scheme

As many businesses begin reopening their doors this week, the Revenue have confirmed those eligible for the Covid Restriction Support Scheme should be able to avail of two weeks double payment of the scheme in order to assist with restarting their businesses. See details of the Revenue press release here. As Revenue have reiterated in recent times, all reliefs such as the CRSS require up to date tax clearance certificates which mean the taxpayer must have all tax returns filed and payments made or debt arrangements agreed. At Roberts Nathan we continue to assist our clients both applying for and maintaining Covid reliefs. Feel free to contact us if you wish to discuss any Covid supports or any issues arising for your business as the economy reopens over the coming weeks.
May 12, 2021
  Business Advice

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

Aidan Scollard appointed as Chair of BITA

Congratulations to Aidan Scollard, Partner with Roberts Nathan on his appointment as Chair of the Dublin Chapter of the British and Irish Trading Alliance (BITA). The British and Irish Trading Alliance is an exciting non-profit networking organisation with a vibrant community of businesses that are invested in each other's success. BITA host networking, educational and social events online and in venues across all chapters in the UK and Ireland, and have a Global Forum which includes the USA and Australia. Their mission is to help more people and influence further; as a collective. Commenting on his appointment, Aidan Scollard said: “I am delighted to be involved in BITA at an especially important point in time in the UK / Ireland business relationship. As I have actively been involved in assisting Irish and UK companies expand in each other’s jurisdiction for a number of years I am pleased to be appointed and help to drive this continued interaction of business owners and to grow the alliance.
April 12, 2021
  Business Advice

UK Businesses – Do you have the correct Irish VAT number?

Check your VAT number VIES VAT number validation
No, invalid VAT number for cross border transactions within the EU
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:
March 31, 2021

Overcoming Brexit; Case Studies on Overcoming Difficulties

In recent months we have been delighted to continue to help a number of UK businesses across various industries who approached us to assist them in dealing with the harsh realities Brexit has brought them. Below are three separate case studies of how we have helped.   Brexit Case Study 1: UK Based Food Processing Business Supplying High-Quality Goods to High Street Retailers. We provided assistance, including commercial and tax planning advice to a UK food manufacturer, who recently established a subsidiary company in Ireland. This enabled that company to continue trading with its EU customers in a straight forward and frictionless way. The Irish subsidiary company now handles all of the EU export business which had previously been operated by the UK parent company prior to Brexit on the 31st December 2020. As of January 2021, the manufacturer of goods for export to the EU was transferred to an outsourced food production facility in Ireland. A significant increase in jobs is now anticipated at that food processing facility because of this. This restructuring of the trading activities of the British company has helped to ensure that their existing EU market was held intact. The company believes that the Irish-based subsidiary, as an EU business entity in its own right, will enable the continued growth of the group's EU market. They strongly contend that future sales growth in Europe will be easier to achieve in this way, rather than through its UK-based marketing activities alone. The advice and guidance we were able to provide our new client, played a significant role in helping this UK company to evolve in a manner that enabled it to avoid the difficulties presented by Brexit.   Brexit Case Study 2: UK Based Fashion Exporter Supplying High Street Fashion Retails In Ireland and in Europe Up to recently, a UK wholesaler of high-end fashion clothing sourced all of their clothing products from outside the EU. Following Brexit, a difficulty arose regarding import duties because the country of origin of the goods is China. On this basis, import duty is applied on the export of such fashion goods from the UK company to its existing EU customers. The company found itself in a very difficult situation as it would have been forced to absorb the additional duty as part of its costs, giving rise to a significant reduction in the profit margin of the EU sales. In order to overcome this issue, the UK company established a subsidiary company in Ireland which instead, from February 2021, imports the goods from China into Ireland and in turn exports them to the existing EU customer base. We were very pleased to provide assistance to this client in terms of the commercial and taxation issues relating to the restructuring of the UK company's activities following the negative impact of Brexit.   Brexit Case Study 3: UK-based Supplier of Machinery Parts and Equipment to Municipal Entities in Europe. A UK-based equipment and parts supply company derived a high proportion of its revenues from its European customer base.  The goods it supplied were all sourced from within the EU as well. Prior to Brexit, the company was in a position to avail of Triangulation for VAT purposes, this is a simplified VAT mechanism available to EU member states where all three EU businesses involved in a transaction are VAT registered. Following Brexit, the UK company failed to qualify for the benefits of triangulation, giving rise to significant VAT difficulties. We were very pleased to of been of assistance to the company by providing them advice that allowed them to circumvent the problems they were faced with.   If you would like to explore further options around your business, please contact Peter Roberts or Tomas O’Leary who would be very pleased to assist you. Peter Roberts: peter.roberts@robertsnathan.com or Tomas O’Leary: tomas.oleary@robertsnathan.com Tel: +353214217940
February 19, 2021

Temporary Covid-19 Wage Subsidy Scheme

Phase 1 - March – 20th April 2020     What is the Scheme?  
  • The scheme will operate to refund employers up to 70% of the net wage paid to employee subject to the thresholds detailed below.
  • Refunds under this Scheme will be issued to employers with 2 working days.
  • It replaces the previous €203 refund scheme and any employer who opted to operate this scheme will be contacted by Revenue to transfer to this new scheme.
  • Employers are encouraged, but not obliged, to top-up the subsidy to bring the net wages of employees as close to 100% as possible.
  • The Scheme can be applied even if an employees working hours have been reduced.
  • The Scheme will operate in 2 phases:
Phase 1 – March to 20th April 2020 (this document only deals with Phase 1) Phase 2 – 20th April 2020 onwards (awaiting further guidance from Revenue)   Who Qualifies for the Scheme?  
  • The Scheme is available to employers who are:
experiencing significant negative economic disruption due to Covid-19 able to demonstrate a minimum of a 25% decline in turnover unable to pay normal wages and normal outgoings fully, and retain their employees on the payroll. The Scheme is only available to employees who were on the employer’s payroll as at 29th February 2020 and for whom a payroll submission has already been made to Revenue in the period from 1st February to 15th March 2020. The employer is not to pay in excess of an employee’s usual net wages. Employers who avail of the Scheme will be published on Revenue’s website.   How will the Scheme Operate?   Phase 1 - For March and up to 20th April 2020 (Transitional Period)  
  • During this period the Scheme will refund employers a maximum of €410 regardless of the employee’s income.
  • However for administration purposes the employer is being asked to return the following information on the payroll:
Set PRSI Class J9 Enter a non-taxable amount equal to 70% of the employee’s Average Net Weekly Pay to: maximum of €410 per week where the average net weekly pay is less than or equal to €586or maximum of €350 per week where the average net weekly pay is greater than €586 and less than or equal to €960.
  • The Scheme does not currently allow for any refund where the employees average net weekly pay is greater than €960 per week.
  • No IT, USC or PRSI is to be levied on the subsidy payment through payroll. The subsidy will be liable to IT and USC on review at the end of the year. Revenue have yet to announce how this will operate.
  • Employer’s PRSI at a rate of 0.5% (down from 11.5%) applies to any top-up amounts.
  • IT and USC should be applied on any top-up amounts.
  • It is likely that the Scheme will trigger tax refunds for employees and employers can pay over the tax refunds to employees. Revenue will reimburse the tax refunds to employers.
  Phase 1 Examples                                                                                               (a)   Average Net Weekly Wages €210   Anna’s average net weekly wages is €210. In Phase 1 the refund will operates as follows:   On the payroll submission the Covid-19 refund amount will be declared as €147 (i.e. €210 @ 70%). Revenue will refund the employer €410 regardless.   The over-refunded amount €263 (i.e. €410 - €147) will be due back to Revenue. Though we are awaiting guidance on how that will operate in practice.   (b)   Average Net Weekly Wages €550   Tom’s average weekly wages is €550. In Phase 1 the refund for Tom’s employer will operate as follows:   On the payroll submission the Covid-19 refund amount will be declared as €385 (i.e. €550 @ 70%). Revenue will refund the employer €410 regardless.   The over-refunded amount €25 (i.e. €410 - €385) will be due back to Revenue.       (c)    Average Net Weekly Wages €586   Jack’s net weekly wages is €586. The refund scheme will operate as follows:   On the payroll submission the Covid-19 refund amount will be declared as €410 (i.e. €586 @ 70%) and Revenue will refund the employer €410 regardless.   There will be no ‘over-refunded’ element in this case.   (d)   Average Net Weekly Wages €675   Jane’s average net weekly wages is €675 (as this is above the €586 threshold above, Jane’s maximum subsidy under the Scheme will be capped at €350). The refund will operate as follows:   On the payroll submission the Covid-19 refund amount will be declared as €350 (i.e. the maximum threshold for this wage amount). Revenue will refund the employer €410 regardless.   The over-refunded amount €60 (i.e. €410 - €350) will be due back to Revenue.   (e)    Average Net Weekly Wages €1,110 Mark’s net weekly wages is €1,100. He breaches the €960 net weekly wage maximum and therefore is not entitled to avail of the scheme.   Phase 2 – 20th April 2020 Onwards   We are awaiting further guidance from Revenue in respect of this phase.   Kind Regards,   Vivian E. Nathan Managing Partner
March 27, 2020