News Uncategorized
News
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
News
Budget 2024 – Expert Analysis
Minister Michael McGrath announced his first budget as Minister for Finance yesterday Tuesday 10th October with Pascal Donohoe making the step over to Public Expenditure on this occasion. It was a budget speech full of references to “cost of living”, “planning for the future” and the “housing crisis”. A total budget package of €14bn was announced but the immediate question arising from the speech was have the measures gone far enough to meet those areas of concern with the rising cost of living for individuals and the rising cost of running a business for business owners? We will look at the highlights from those key areas of reference below.
Cost of living
€12bn has been provided to deal with the cost of living measures.
Some of the key areas of tax saving for individuals to increase their take-home pay include:
- Raising the standard rate of income tax threshold by €2,000 to €42,000. This will save earners on €42,000 or more €400 per year in income tax.
- Increasing most tax credits by €100 which in a lot of cases will see earners benefit by €200 per year.
- Increasing rent tax credit to €750 from €500.
- Amendments to the USC which will see the 4.5% rate reducing to 4% and increasing the 2% rate band by €2,840. This could save a person earning €70k per annum €406.
- The 9% VAT rate on gas and electricity to be extended by 12 months to end of October 2024.
- €450 of energy bill credits to be provided over 3 instalments between end of 2023 and April 2024.
- A €300 lump sum payment for fuel allowance recipients and a €200 lump sum for Living Alone Allowance recipients in November.
- A Christmas bonus paid in early December and a cost of living double week in January will be paid to social welcome recipients.
- A €12 weekly increase in social welfare payments.
- The work on a participation exemption for foreign dividends will be examined and will not be introduced until next year's finance bill.
- A review of interest deductibility was a welcome announcement but we would hope this will be acted on in future for an area that has many complexities for corporates and advisors.
- A TALC subgroup will be formed to review business supports with the view to simplifying.
- A public consultation on VAT modernisation will take place.
- A public consultation will be launched in relation to share-based remuneration.
- A promise from the Minister to review Entrepreneur Relief to improve the incentive for founders.
- Confirmation that amendments would be made to the Employment Investment Incentive Scheme to increase the limits an investor can invest to €500,000 for a 4-year holding. It was noted that the EIIS would be reviewed going forward to simplify what is a very onerous piece of legislation at present.
- The prior amendments to the Key Employee Engagement Programme which sees it extended to end of 2025, doubling the limit of shares within the KEEP scheme to €6m and allowing CGT treatment on buy back of shares from an employee have now received EU State aid approval and can be implemented.
- A new capital gains tax relief for angel investors in innovative start-ups. Investment must be for 3 years and at least €10,000 for 5%-49% share in the entity by acquiring newly issued shares. The relief will allow a CGT rate of 16% (18% if through a partnership) on gains up to twice the value of the initial investment with a lifetime limit on qualifying gains of €3m.
- From 1 January 2025 the age category for retirement relief of 55-65 will be extended to 55-70. Therefore, a tax free consideration of €750k will be available until 70 and reducing to €500k after 70. For a transfer to a child there was previously no limit to 65 and a €3m limit after 65 but now there is a €10m limit introduced until 70 and the €3m applies after that.
- Extension of accelerated capital allowances for energy efficient equipment to 31 December 2025.
- The tapering of the tax-free element for BIK purposes on electric cars was postponed with the €35,000 threshold remaining until the end of 2025 and the €10,000 additional deduction has been extended by one year to the end of 2024. This is a welcome move to encourage the use of electric vehicles as company cars with the first €45,000 being disregarded from the OMV for BIK purposes for 2024.
- Consanguinity relief was extended a further 5 years to 31 December 2028 which allows a 1% stamp duty rate to apply to transfers within a family.
- Accelerated capital allowances for farm safety equipment extended by 3 years to 31 December 2026.
- Lifetime relief limits from stock relief, stamp duty relief and succession farm partnerships to €100,000 from €70,000.
- Stock relief increased from €15,000 to €20,000.
October 11, 2023
News
Budget 2024 – What to Expect
Tomorrow, Tuesday 10th October, the Minister for Finance and the Minister for Public Expenditure will announce Budget 2024. With local Council and European elections next summer and a general election most likely during 2025, it is likely the Budget will follow recent trends of aiming to please a large percentage of the electorate while perhaps not doing a significant amount for any one particular area. There is expected to be a big focus on the cost of living crisis while also being cautious of an over-dependence on corporation tax receipts which may be volatile in the future. In this regard and from information coming from government comments it seems that the following will be likely part of the announcement:
- A small increase in the standard rate band by €1,000 - €1,500.
- A small change in USC perhaps by 0.5% or increasing the threshold at which low-income earners enter the USC scale.
- An increase in social welfare payments and double payments on Christmas week.
- Another energy credit regime similar to 2023 which could see two or three credits of c.€100 provided against energy bills.
- For young families there will be assistance through cuts to childcare costs and free schoolbooks for secondary school children.
- For renters it is likely the rent credit will be increased from €500.
October 9, 2023
Income Tax
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
Taxation
Finance Act 2022: Residential Property Measures
Brendan Murphy, Tax Partner at Roberts Nathan, recently contributed an article to the latest edition of the Irish Tax Institute's Irish Tax Review.
Brendan outlines the residential property measures which were introduced in the latest Finance Act 2022, and how they affect landlords.
Click here to read full article.
April 3, 2023
Uncategorized
The Register of Beneficial owners (RBO)
New procedure for the registered entities to access their own data
On 22 November 2022, the Court of Justice of the European Union (CJEU) published a decision affecting European member states national beneficial ownership registers.
This judgment by the Court, sitting as the Grand Chamber in Luxembourg, has held that, in the light of the Charter, the provision of the anti-money-laundering directive whereby Member States must ensure that the information on the beneficial ownership of corporate and other legal entities incorporated within their territory is accessible in all cases to any member of the general public is invalid.
Anti Money Laundering Directives
In accordance with anti-money laundering directives across Europe, member states were obliged to create an online register to detail the beneficial owners of companies registered in each member state. In Ireland, this was created by the CRO establishing the Central Register of Beneficial owners of companies and Industrial and provident societies (CBRO). www.rbo.gov.ie.
This online register enabled anyone to have public access to specific details on the beneficial owner of an entity by paying a small access fee online.
However, this accessibility was recently challenged by a Luxembourg-registered company and its beneficial owner, with a judgement, decided at the end of November 2022.
In summary, therefore, the ECJ believes that while maintaining registers of Ultimate Beneficial Owners is vital in the fight against money laundering and terrorism financing, it is not proportionate that the general public should have completely unfettered access to entity ownership information.
Irish Register
Accordingly, the Irish register has now been closed to the general public, and only ‘designated persons‘ can access who must apply by filing an online request form BEN3A1.
The term ‘designated person’ is outlined in Section 25 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, and includes financial institutions, accountants, auditors, tax advisers, legal professionals, property service providers, virtual currency service providers and dealers in expensive goods such as houses, cars, jewellery, artworks, etc.
Also, under Section 33 of the 2010 Act, ‘designated persons’ are obliged to conduct customer due diligence tests on customers “prior to the establishment of a business relationship with a customer”, “prior to carrying out an occasional transaction with, for or on behalf of a customer” or “carrying out any service for the customer….…”
While public access is suspended, this does not take the obligation to register away from beneficial owners. Companies are still obliged to create and maintain their internal registers of beneficial owners and to communicate any changes to the CRBO. For new companies, this must be completed within five months of incorporation.
If a relevant entity does not file with the RBO, it may be guilty of an offence and be liable on summary conviction to a Class A fine of up to €5,000 and on conviction on indictment to a fine of up to €500,000.
Final Word
Just because public access has been restricted, this has not changed the requirements for companies to maintain their registers and communicate any changes to the CRBO.
Designated persons will need to register to still access this information as part of their onboarding / know-your-client requirement as required by law.
Contact Us
We have previously assisted many companies in completing their registration requirements to establish their new Irish company. Contact us to discuss the impacts of any of these changes to your company structures or your filing requirements here in Ireland.
Please contact a team member to discuss further.
February 22, 2023
News
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
Jobs
New Year, New Career Opportunities
New year, new career opportunities.....
Roberts Nathan's team is continuing to grow and we are hiring in both our Cork and Dublin offices. This is a great opportunity for motivated and hard-working individuals to join a dynamic team.
For a full list of job roles, please click here.
[video width="1920" height="1920" mp4="https://www.robertsnathan.com/wp-content/uploads/2023/01/New-Year-New-Career-5.mp4"][/video]
January 18, 2023
Uncategorized
Company car drivers face benefit-in-kind increases.
As people get back in their cars after the pandemic to carry out face to face business development, many employers are back considering whether to lease or buy cars for staff.
When an employer provides a vehicle to their employee and this vehicle is available for private use, they may be chargeable to tax on the benefit in kind (BIK) arising. The employee will be subject to tax on the cash equivalent value of the vehicle.
There are a number of changes being imposed from 2023 in relation to vehicles provided to employees. The changes are largely driven by the government’s Climate Action Plan 2021 to lower emissions by 2030.
From 2023 onwards, the BIK cash equivalent on the use of an employer provided car will be determined based on both the business mileage undertaken and the vehicle’s CO2 emissions, as outlined below.
i. The amount of business mileage and CO2 emission category
ii. The CO2 emissions category of the car is as per the following table
Example:
A Car in category B is made available to an employee and they use the car for both personal and business use. The Original Market Value (OMV) of the car is €40,000. The business mileage was 40,000km.
The cash equivalent would be €40,000 x 15.75% = €6,300.
Electric Vehicles
Prior to 2023, an electric vehicle made available to an employee did not incur a BIK charge if the OMV was less than €50,000. For vehicles with an OMV greater than €50,000, the balance of the OMV was multiplied by 30% to get the cash equivalent value.
However, for an electric vehicle made available for an employee’s private use during the years 2023 – 2025, the cash equivalent will be calculated based on the actual OMV of the vehicle reduced by:
Lower Limit | Upper Limit | A | B | C | D | E |
Kilometres | Kilometres | % | % | % | % | % |
-- | 26,000 | 22.5 | 26.25 | 30 | 33.75 | 37.5 |
26,001 | 39,000 | 18 | 21 | 24 | 27 | 30 |
39,001 | 52,000 | 13.5 | 15.75 | 18 | 20.25 | 22.5 |
52,001 | -- | 9 | 10.5 | 12 | 13.5 | 15 |
Vehicle Category | CO2 Emissions (CO2 g/km) |
A | 0g/km up to and including 59g/km |
B | More than 59g/km up to and including 99g/km |
C | More than 99g/km up to and including 139g/km |
D | More than 139g/km up to and including 179g/km |
E | More than 179g/km |
- €35,000 in respect of vehicles made available in the 2023 year of assessment;
- €20,000 in respect of vehicles made available in the 2024 year of assessment; and
- €10,000 in respect of vehicles made available in the 2025 year of assessment.
December 12, 2022
News
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