Library of Knowledge
Library of Knowledge No. 16
Since the announcement of the `COVID-19 Temporary Wages Subsidy Scheme` on 23rd March 2020, Revenue have issued 9 updates with V9.0 being released yesterday afternoon, a 49-page document.
An update has issued on average every 3 working days.
It is understandable as the scheme was announced in a rushed manner with little guidance on its application and tax implications.
For our payroll clients, our plan and aims remains as follows:
- To identify specific changes to the scheme.
- Liaise with software providers and expected updates.
- Raise any queries to Revenue for clarification.
- Identify clients and their individual employees for whom reworking or advice would be required.
- Contact clients and to provide solutions as necessary.
Please be aware that all amendments are carefully considered and addressed to ensure we comply with guidelines on your behalf.
We assure you of our best efforts, your patience is appreciated.
For any non payroll clients who require support/advice we suggest that you contact our office.
Stay safe and well.
Library of Knowledge No. 15
To benefit our clients we are delighted to advise that our website has been updated and now includes all links to the COVID-19 schemes, supports and advisories from:
- Government
- Enterprise Ireland
- Local Enterprise Offices
- Microfinance Ireland
- Plus more…
We hope you find this useful in your efforts to address the challenges facing your business.
If we can be of any assistance, please do not hesitate to contact our office.
Stay safe and well
Library of Knowledge No. 14
The future could look uncertain to many. However, what is certain is that this virus will dissipate, and life will return to a new norm.
As business owners and managers we need get ready for our future……………………………
- How will our businesses cope in these new times?
- Do we need to look at changing our business model?
- Should new services or products be considered/launched?
- Are costs to be reviewed?
- Will our labour requirements change such as upskilling our teams?
A new or updated financial plan cast around your future business will demonstrate the financial survival and deliver confidence for growth into the future.
Grants available to assist are:
Enterprise Ireland:
COVID-19 Business Financial Planning Grant, valued at €5,000
https://globalambition.ie/supports/innovation-support/covid-19-business-planning-grant/
Lean Business Continuity Voucher, valued at € 2,500
Sustaining Enterprise Fund, fund valued at €180m
https://globalambition.ie/supports/innovation-support/sustaining-enterprise-fund/
Local Enterprise Offices (L.E.O.):
COVID-19 Business Continuity Voucher, valued at € 2,500
Stay safe and well
Library of Knowledge No. 13
Last Sunday 5th April ’20 revenue confirmed the tax treatment of the COVID-19 Wages Subsidy Scheme to employees. See below.
Is the wage subsidy taxable on the employee?
Extract from Revenue website 10/04/2020 (issued 05/04/2020)
‘The payments are liable to income tax; however, the subsidy is not taxable in real-time through the PAYE system during the period of the Subsidy scheme. Instead the employee will be liable for tax on the subsidy amount paid to them by their employer by way of review at the end of the year. When an end of the year review takes place, it may be the case that an employee’s unused tax credits will cover any further liability that may arise’
‘Where this is not the case, and should an Income Tax liability arise, it is normal Revenue practice to collect any tax owing in manageable amounts by reducing an individual’s tax credits for a future year(s) in order to minimize any hardship. Additionally, if an individual has any additional tax credits to claim, for example health expenses, this will also reduce any tax that may be owing’
Our advice to clients employees.
At this point it is not possible to calculate tax liabilities due to this scheme as it will be based on :
- Total earnings in 2020
- Total Tax Credits and cut available and if they have been utilised
- Social Welfare income
- Other taxable income
- Medical expenses claimable in 2020
- Other claimable tax credits
Note: If part of a married couple – it may be beneficial that the review is combined to ensure all tax credits and cut offs are fully utilised.
For our clients we would suggest that you circulate this issue to employees to ensure that they are informed.
Stay safe and have a lovely Easter.
Library of Knowledge No. 12
The COVID-19 Business Loan from Microfinance Ireland is a government initiative to support small businesses through the current period of uncertainty and protect job creation or sustainment in Ireland.
If your business is impacted or may be impacted by COVID-19 resulting in a reduction of 15% or more in actual or projected turnover or profit, AND you are having difficulty in accessing finance from commercial lending providers, the MFI COVID-19 Business Loan may be able to help your business.
See Link: https://microfinanceireland.ie/loan-packages/covid19/
If required, please contact our office for assistance in completing your application.
Stay safe.
Library of Knowledge No. 11
The Companies Registration Office (CRO) has extended the submission date for Annual Returns/B1 Returns due to be filed by any Company now and up to 30th June 2020 ‘It will be deemed to have been filed on time if all elements of the annual return are completed and filed by that date.’ Being 30th June 2020.
See link: https://www.cro.ie/About-CRO/Contact-Us/Whats-New
Our clients should note that all annual return filing dates are scheduled and we do not anticipate any late filing.
Stay safe.
Library of Knowledge No. 10
We must remember that our business owners and entrepreneurs are the cornerstone of this economy – be proud.
Many of us have successfully bounced back from the recession and as many have recreated or built new businesses – be proud.
We must remind ourselves that we are strong and versatile men and women who create thousands of employment opportunities – be proud.
In relation to COVID-19. Many decisions are out of our control, many decisions have been made for us and the remainder to ensure we survive lay on our shoulders.
Success and continued success does not come easily and so we ask all of our clients and business owners to protect their mental health whilst tackling this uncontrollable pandemic.
Within 4 months we will all be rallying. In the interim can we highlight the services available to protect our mental health.
We are here to help – just ask.
Stay Safe.
Trisha and all the team in Horizon.
Library of Knowledge No. 8 and No. 9
After the announcement on Thursday morning by Taoiseach Leo Varadkar and the government it brings to reality the challenges that Ireland and the whole world faces in these unprecedented times.
Many businesses are going to face numerous challenges to ensure cashflow and at times survival.
Enterprise Ireland this morning, COVID-19 Business Response Guide.
Hot off the press this guide is attached to assist you in dealing with the various threats & challenges.
See Link: https://www.enterprise-ireland.com/en/about-us/services/covid-19/
To our many clients – if we can be of any assistance please do not hesitate to contact us.
Library of Knowledge No. 7
Businesses are under threat from the Covid-19 virus.
For your business, it may become a threat to production/output, procurement of materials, profitability and ultimately cashflow. This immediately triggers alarm bells – please take proactive measures to protect our businesses by taking best advice and acting now.
Employers:
The Safety Health and Welfare at Work Act 2005 places a general duty of care on employers to ensure, so far as is reasonably practicable, the safety, health and welfare at work of his or her employees. Duties include the provision of facilities, arrangements, information and instruction for the welfare of employees at work.
See: Workplace Relations – Guidance Notice for Employers. https://www.workplacerelations.ie/en/news-media/workplace_relations_notices/covid-19-guidance-notice-for-employers-and-employees-.html
See: Department of Business, Enterprise & Innovation – Business Continuity Planning Check List. https://dbei.gov.ie/en/Publications/Business-Continuity-Planning-A-checklist-of-Preparatory-Actions-in-Responding-to-the-COVID-19-Outbreak.html
Employees:
Employees are advised to follow the advice from the Health Service Executive (HSE) and the Health Protection Surveillance Centre (HPSC) to protect their health. This advice is being updated regularly and can be accessed at Covid-19 Advice
See: HSE – Covid-19 Advice.
https://www.hpsc.ie/a-z/respiratory/coronavirus/novelcoronavirus/
Protect your interests in your business & your employees.
Library of Knowledge No. 6
All business but especially those that are service based can benefit hugely by creating a “Great Place to Work.”.
“Organisations who take this model seriously, and think about how they can authentically apply it to every interaction they have with their employees, have discovered just how transformative the process can be. They report increased productivity, collaboration, engagement, and an improved sense of enthusiasm around their workplace”.
John Ryan. Chief Executive, A Great Place to Work Ireland.
Read for yourself the experiences & benefits directly from a newly accredited business Crown Roofing who featured in The Irish Times recently.
https://www.greatplacetowork.ie/our-services/irelands-best-workplaces-programme/