Library of Knowledge
Library of Knowledge No. 66
Second Reduced VAT Rate of 9% extended, until 31ST August 2023
The ‘Second Reduced VAT Rate’ of 9% which was introduced initially for the period 1st November 2020 to 28th February 2023, is now extended to 31st August 2023.
The announcement was part of the package published by the government earlier this week to address the ongoing ‘cost of living’ issues.
All businesses who qualify should continue to charge 9% instead of 13½%, until 31st August 2023.
For the period from 1 November 2020 to 28 February 2023, the following items are subject to the second reduced rate of VAT.
- catering and restaurant supplies (excluding alcohol, soft drinks and bottled water)
- hot take-away food, and hot tea and coffee
- hotel lettings, for example, guesthouses, caravan parks or camping sites
- admissions to cinemas, theatres, certain musical performances, museums, art galleries or exhibitions
- amusement services of the kind normally supplied in fairgrounds or amusement parks
- admission to an open farm
- hairdressing services
- certain printed matter such as brochures, leaflets, catalogues or printed music (excluding books).
For further information see: https://www.revenue.ie/en/vat/vat-rates/what-are-vat-rates/second-reduced-rate-vat.aspx
Please do not hesitate to contact one of our team, should you have any queries.
Library of Knowledge Week 65
With the current economic climate still uncertain, The Revenue Commissioners announced that the current Covid Debt Warehousing Scheme has now been extended to the 30th April 2024.
This will come as a relief to many who by the 31st December ’22 would have been faced with either a substantial sum to repay or to enter into a Phased Payment Agreement.
The Debt Warehousing Scheme was introduced to provide support to businesses experiencing a downturn during the pandemic.
With this extension for businesses, it is important to remember:
- The importance in keeping all current returns and payments up to date. Note: Failure to file all returns will result in being removed from the scheme.
- Proactive engagement with Revenue for any business experiencing cashflow and or difficulties with a current liability.
- It is possible to enter into a Phased Payment arrangement with the reduced interest rate of 3%, a considerable difference from the general interest rate of 10%.
Failure to comply with the items above, the warehousing option will be removed resulting in:
- Liabilities become immediately payable.
- Subject to debt collection enforcement action
- Subject to interest rates of 8% or 10% per annum
- Tax Clearance Cert will be rescinded.
For further information see link: https://www.revenue.ie/en/starting-a-business/paying-your-tax/debt-warehousing/disclosure-of-additional-liabilities.aspx
Take care
Library of Knowledge No. 64
Cycle To Work Scheme – save up to 52%
This scheme aims to encourage you to cycle to and from work. Under the scheme the employer can buy a bicycle and safety equipment for the employee. This will not be a taxable benefit-in-kind.
There are now two limits, depending on the type of bicycle purchased.
Two Limits:
- For pedelecs or ebikes and related safety equipment the limit is €1,500.
- For other bicycles and related safety equipment the limit is now €1,250.
The following new safety equipment, if purchased with the bicycle, are also covered:
- cycle helmets
- bells and bulb horns
- lights, including dynamo packs
- mirrors and mudguards
- cycle clips and dress guards
- panniers, luggage carriers and straps
- locks and chains
- pumps, puncture repair kits, cycle tool kits and tyre sealant
- reflective clothing, white front reflectors and spoke reflectors.
The employer makes payment in full to the cycle provider and the amount is deducted periodically from the employee net pay over a period of not more than 12 months.
It is possible to reapply for the scheme every four years.
For further information see https://www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx
Stay safe.
Library of Knowledge No. 63
Small Benefit Exemption
From 2022 employers can give employees and company directors (once on the payroll) up to two small benefits, tax free, each year.
These benefits must not be in cash and the combined value of the two benefits cannot exceed €1,000.
If more than two benefits are given in a year, only the first two may qualify for tax free status. Unused allowance amounts cannot be carried over.
Tax-free vouchers or benefits can be used only to purchase goods or services. They cannot be redeemed for cash.
Note: A single benefit of up to € 1,000 may be provided to an employee tax free. If a single benefit exceeds € 1,000 in value, the full value of the benefit is subject to tax. Where two benefits are provided, the combined value of those cannot exceed € 1,000
For further information see: https://www.revenue.ie/en/employing-people/benefit-in-kind-for-employers/valuation-of-benefits/small-benefit-exemption.aspx
Stay safe.
Library of Knowledge No. 62
The 2023 Budget announced five supports for business.
- Temporary Business Energy Support Scheme (TBESS) – the operational details are currently being worked through and will be available soon.
- Ukraine Enterprise Crisis Scheme – the scheme will be administered through Enterprise Ireland, IDA and Údarás na Gaeltachta.
- Small Firms Investment in Energy – the scheme will be open in 2023 and will be administered by Local Enterprise Offices.
- Ukraine Credit Guarantee Scheme – the scheme is currently being developed and additional information will be announced shortly..
- Growth and Sustainability Loan Scheme – It is anticipated that this scheme will launch on the market in the first half of 2023.
All the above schemes, as they become available will be covered in future issues of our Library of Knowledge.
Self Help
For your business, you could save 10% on energy bills by implementing no-cost and low-cost energy efficiency measures.
Key areas include – : Heating, Lighting, Office Equipment, Transport and Workforce Engagement.
Where to start – set a baseline.
Before making any changes, it is recommended that you take three or four meter readings at the same time each week, for example on a Friday afternoon. This will give you an idea of your weekly energy consumption. Continue to take readings at the same time after you have made the changes. This will help you understand where you have reduced energy consumption.
For further information see:
This link leads you to other great information and resources such as Guides to Energy Efficiency, Switching to Electric Vehicles and Energy Efficient LED.
Stay safe.
Library of Knowledge No. 61
Good afternoon,
As business owners we have a responsibility to regularly complete reviews of environmental performance and efficiencies.
If this is an area in your business that requires some focus and attention, then the ‘Green for Micro’ programme could well be worth considering.
Green for Micro is a FREE programme that helps small businesses take the first steps towards becoming more sustainable, giving you access to a green consultant who’ll show you the small changes that can have a big impact on your company – and the world around you.
Developing a ‘greener’ policy can offer many benefits to your business, including:
- Increased cost savings
- Improved resource efficiency (for example: using less energy, water, and materials)
- Reduced environmental footprint and greenhouse gas emissions
- Opportunities for higher and additional value on products and services
- Increased access to customers, improved corporate image and reputation.
- Increased resilience to climate change impacts
How does Green For Micro work?
There are two main steps to the Green for Micro programme:
Step 1: Watch the Green for Micro Webinar
Learn everything you need to know about Green for Micro supports, including a first-hand account of a business which has already implemented green initiatives and is enjoying the benefits.
Step 2: Apply for Green for Micro
Apply for two days of mentoring with a specialist Green Consultant – this will include recommendations on specific changes which your business can implement. Your specific needs will be matched to the Green Consultant’s area of expertise.
Your Consultant will prepare a detailed Green for Micro Report on your business.
For further information see: https://www.localenterprise.ie/Portal/Green/New-Green-Images/What-is-Green.html
Library of Knowledge No. 60
The new Agile Innovation Fund.
For companies to continue to thrive and stay ahead of the competition they need to continually innovate.
Enterprise Ireland’s Agile Innovation Fund is open to Local Enterprise Office clients.
It could allow your business to access up to 50% in support for product, process or service development projects with a total cost of up to €300,000 – with fast track approval.
So, you can engage in the innovation activity necessary to make your international growth ambitions reality.
Who is it for?
Companies who are:
- new to R&D
- operating in short, product life cycles
- undertaking small/short projects
For further information and to apply contact your Local Enterprise Office see: https://www.localenterprise.ie/Find-Your-Local-Enterprise-Office/
Stay Safe.
Library of Knowledge No. 59
Re: Introduction of Revenue Demands.
Since March 2020 revenue suspended the issuing of demands and enforcement of tax returns and liabilities.
It is important to note that revenue offices are now recommencing the issuing for demands. To avoid any further action by revenue all tax returns outstanding should be given your immediate attention.
All tax returns were expected to be submitted from March 2020 to date, even if funds were not available to make the payment of the liability.
For all our clients, we will be in touch next week with confirmation that all tax returns are processed and submitted.
We would be happy to assist if your business requires assistance in reviewing your tax status, addressing any outstanding returns and/or arranging warehousing.
Contact our office on 046-9567868 or by emailing info@horizonaccounting.ie
Library of Knowledge No. 58
Protect your STRIPE Account now.
Due to the ongoing conflict in Ukraine, there has been a surge of cyber security threats across the industry. There is an increase in automated card testing attacks against payment forms on websites.
If you use Stripe as a payment solution, it is recommended that you enable Stripe Radar in your account to help mitigate these attacks, and to automatically prevent any fraudulent charges from being processed through your account.
You can enable Stripe Radar by logging into your Stripe account, and in your dashboard click “More” in the menu, and then click on ‘Radar’. Then click on “Activate 30 day free trial”.
You can read more about Stripe Radar here:https://stripe.com/en-ie/radar
Stay safe.
Library of Knowledge No. 57
The Red Cross Ukraine Appeal
Our weekly ‘Library of Knowledge’ is being replaced this week by the urgent appeal to the ongoing, heart-breaking crisis in Ukraine.
Your donation, no matter how small can be paid via: https://www.redcross.ie/latest-appeals/ukraine-crisis-appeal/
Stay safe.
