Welcome to our last Newsletter of 2023

It’s been an eventful year, and I’m pleased to say a successful one for the majority of our clients. During this last quarter there have been some signs of a slow down or tightening up in specific sectors, particularly those who depend on discretionary spending like hospitality. In the last quarter, Revenue have also become very active in trying to get people to address any warehoused debts. I attach some information that I hope you find useful in this Christmas period.

Wishing you all a Happy Christmas and a prosperous and healthy New Year.

Order your pre- paid credit cards NOW! – or choose an easier option…

Over the last few years, these cards have become the preferred option for many companies to reward employees with up to €1,000 TAX FREE. This year however, if you are ordering them, it has become quite time consuming and frustrating. Firstly, you must now upload a list of the employee names and confirm the value of the card you wish them to receive. This pretty much eliminates any flexibility an employer may have had “in choosing who got cards of what value”. 

A second pain is the length of time it took (around 45 minutes in my case) to fill in the new customer form – you need to have your company registration number and many other simple things but it takes time. Perhaps it’s time to revert to vouchers for shops or One4all vouchers, which I understand you can still just buy over the counter more simply. 

Last chance for pensions in 2023

Over 90% of our client’s year ends are the 31st December. If you are a limited company, the company must make a contribution before this date, in order to qualify for Corporation tax relief. Everyone is busy leading up to 22nd December, so if you wish to make a contribution contact your pension broker now.

Wondering if you can afford to make a pension contribution?

We are currently busy producing Management accounts to October or November for many of our clients. This allows us to then advise them how much they can afford to put into a pension, or indeed how much bonus’s they can afford to pay employees. If you would like us to produce a set of Management accounts contact us as soon as possible.

Big brother (the Revenue) will really be watching you (and me) in 2024 – Enhanced Reporting Requirements

From 1st January 2024 Revenue are introducing the above. What does it mean?

The Finance Act 2022 introduced Section 897C which will require employers to report details of certain expenses and benefits made to employees and directors. Examples of expenses that must be reported through ROS before paying them are mileage and subsistence allowances, reimbursed travel expenses (e.g. if you stay overnight in a hotel due to working away from base), small benefit exemption (i.e. the €1,000 vouchers or equivalent) and remote working expenses. This is going to place another administrative burden on employers and accountants, for no value to either.

Are you finding it hard to keep up to date with Taxes?

Since our last newsletter, we have completed a number of very good deals with Revenue both on warehoused (Covid) taxes owed and current taxes. I have to say in relation to allowing clients to enter agreements over 2, 3 and 4 years, they are being very co-operative. So again, if you are finding it tough to pay your taxes at the moment, why not contact us and we will do a phased payment arrangement with Revenue and get it in place before the year end, and allow you face 2024 with a fresh start?

Any good news?

Finally, to finish on a positive note, the budget did bring some simple positive measures for 2024:

• The amount a married couple can earn at 20% tax increases by €4,000 to €84,000 (where both people work) thus giving an increase in take home pay of €400 in a year.
• A €100 increase in each person’s personal tax credit – therefore a married couple are up €200.
• A €100 increase in the PAYE or earned income tax credit – again giving a further €200 net increase for a married couple.
• A reduction in USC.
• Increase in Rent tax credit by €250 per person.

And finally back to my favorite tax saver of the last 5 years they have extended VRT relief on fully electric cars to December 2025.