Happy New Year everyone and welcome to our first Newsletter of 2021.
Well Brexit has finally happened and brought with it some problems for our clients who import or export goods from the UK. Those who could had stockpiled 3 – 6 months stock, but others whose product has a shorter shelf life are experiencing problems. Hopefully these will be resolved over the coming few weeks.
The UK leaving the EU has also affected the accounting world. From 1st January we have not been able to automatically import bank transaction’s into accounting software packages – and this is a backward step. Again, we expect legislation to be passed to allow this resume in the coming weeks.
Employees Tax Liabilities
As was highlighted in the media, last Friday Revenue issued assessments to any person who had received payment under the TWSS or PUP during 2020. Depending on a person’s salary this can range from zero to several thousand euro. As we mentioned in our Winter newsletter, it is permitted, should an employer wish, for the employer to pay the Revenue this tax liability directly on behalf of the employee or make the payment to the employee and the employee in turn discharges their liability. This payment may be made without imposing Benefit In Kind.
If you, the employer decides to make this payment, we estimate that the cost saving to you of availing of the TWSS/ EWSS is still in the region of 30%.
NOTE: You do not have any obligation to pay this tax liability on behalf of your employee.
Will there be an amnesty? As more people receive their demands this week, I strongly suspect there will be a public outcry, and protests against this tax. It may be politically astute for the Government to announce an amnesty, say for any liability under €1,000. With this in mind, you may wish to wait a few weeks before you make a decision to pay this tax on behalf of your employees.
If you wish to consider the cost implications of this for your business please contact your designated team member here in Guardian.
Further changes in the Emergency Wages Subsidy Scheme (EWSS)
Revenue have announced further changes to the EWSS for 2021. The change relates to the periods to be used for assessing the minimum 30% reduction in turnover. Employers will now need to review expected turnover for January – June 2021 and compare this to January – June 2019 (not 2020). Here is a table of the rates that will apply until 31st March:
You will notice an anomaly, if your employee earns for example €210 per week, the subsidy the employer receives is €250.
If you need assistance with this scheme please contact your designated team member here in Guardian.
Increase in the Minimum Wage
The national minimum hourly rate will become €10.20 on 1 January 2021
The minimum rate was previously €10.10.
NOTE: For apprenticeships the rate may be lower as they are training.
Changes to filing your annual account in the Companies Registration Office (CRO)
As part of their continuing programme of moving online, the CRO introduced a new element on 16th December last – this has led to 7 – 10 days delays as the new system is introduced, as many CRO staff are working remotely and accountants and other users struggle to become familiar with the new process.
The area where it will affect you the most is in filing your annual accounts and return. In the past we sent you your accounts and you physically signed them and returned them to us, and we in turn filed them in the CRO. Now the CRO will accept scanned signatures, and you can upload this page directly to the CRO yourself if you wish. Scanned signatures are now also acceptable on many other forms.
Tax free €1,500,000 – will you reach 55 in 2021 and thinking of selling your business or retiring?
If the answer is yes, there may be an opportunity of each shareholder receiving €750,000 tax free under the Retirement Relief Scheme. This opportunity is available to a person who has been involved on a full-time basis for a minimum of 10 years, and who has not yet reached their 66th birthday – you must be 65 or less in order to avail of this relief. If this may be of interest or suitable to your circumstance please contact myself, Colum Whelan at firstname.lastname@example.org or 01 4240519.