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Revenue to withhold EWSS from firms who fail to file on time

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Revenue to withhold EWSS from firms who fail to file on time.

As we are all aware, the emergency funds set up by the Government at the beginning of the Covid-19 emergency have seen many changes and adaptations over the last 18 months, both the Pandemic Unemployment Payment (PUP) and the Employee Wage Subsidy Scheme (EWSS) have continued to change and adapt to suit the current needs of the pandemic. Following on from the recent announcement of a move for Ireland from a period of continued restrictions to an easing into personal accountability and no further requirement to work remotely after late October, there are certain to be more changes and the likely phasing out of these schemes ahead.

We have often discussed in recent years, the many ways in which Revenue have automated their processes and functions to facilitate increasingly efficient compliance reviews, and in line with this, they have begun to increase checks on these schemes to ensure continued eligibility. As Covid restrictions begin to be lifted, new measures are required to ensure the smooth and fair operation of the scheme.

Revenue’s latest figures have shown that almost 41,000 employers were registered for the EWSS at the end of August 2021 and eligibility review forms have been issued to all. With only 70% of businesses having returned these forms, it is important to ensure that all business and financial information is up to date and presented to Revenue on time as Revenue will withhold all support payments from employers who fail to file their forms on time.

These previous deadlines had been amended on two occasions. Access to the EWSS will be effectively paused until forms are submitted. This system of pausing is in place from Sept 1st, once eligibility is confirmed, payments will resume. Revenue have clarified this by saying;

“Where such businesses subsequently complete and submit the outstanding EWSS eligibility review forms, and thereby confirm they continue to meet the eligibility criteria of the scheme, they can resume claiming EWSS support […] Any subsidies claimed but not paid while EWSS eligibility review forms were outstanding will then also be processed for payment.”

We would advise getting eligibility forms submitted before the deadline each month for the previous month to avoid any delays or disruptions to your payments, which could financially damage your business. Should you have any concerns or queries on any business or financial matters please do not hesitate to contact us here at EcovisDCA where we will be happy to help.

Brexit - The Urgent Need To Be Prepared

Brexit – The Urgent Need To Be Prepared

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In another lifetime we spoke regularly about the looming threat to Irish business that was Brexit. With the Brexit date of January 1st now fast approaching, Brexit preparations join the long list of issues facing Irish businesses going forward. Irish businesses are currently under more pressure than ever before with the current Covid-19 crisis and with a recent survey by Enterprise Ireland finding that just 42% of businesses feel prepared for Brexit, the time to act and prepare is now.

Taoiseach Micheál Martin has recently stated amidst negotiations that a failure for the EU and Britain to reach an agreement on post-Brexit trade would be “very, very damaging all-round”, and he re-positioned Brexit as an issue economically on par with Covid-19:

“We’ve all had a very significant shock to our economic system because of Covid-19, the last thing we need now across all of our respective economies is a second major shock”.

With this in mind, and despite all other issues currently facing us, we advise early preparation for Brexit, as it is essential to prepare as much as possible. As the relationship between Britain and Ireland is soon to change, there will now be additional hoops for Irish businesses to jump through in order to trade with Britain. This week we will step away from the usual topics associated with Covid-19 and focus on the issue of Brexit and ways in which Irish businesses can be Brexit ready.

EORI Number

As we have recently discussed, one of the most urgent steps that Irish businesses need to take ahead of Brexit is to register for an EORI (Economic Operators Registration and Identification) number. This number is essential for all businesses importing and exporting goods into the European Union. Applications are made through the Revenue Online System (ROS).

Brexit Readiness Checklist

A helpful way of ensuring you have all Brexit bases covered is to check in with your Local Enterprise Office and avail of their ‘Brexit Readiness Checklist’. This may assist you in identifying any areas of weakness that need to be addressed before January 1st and show you the steps that need to be taken to prepare your business for Brexit.

Customs Issues

One of the main changes which will arise on January 1st for Ireland is the new scenario of facing customs issues in trade between Ireland and Britain. As we have long relied on trade routes with Britain, this will be a major stumbling block to be prepared for and will require your product to be priced with this in mind.

The Clear Customs Virtual Training:

One major issue facing Irish trade with Britain going forward will be the issue of customs. As this will be an entirely new stumbling block between Britain and Ireland, it is advised to research and review any areas in which this may be an issue for your business. Many businesses may not deal with customs in house and will need training in this area.

With this area of confusion in mind, Skillnet Ireland has created a new free of charge online training programme (The Clear Customs Virtual Training Programme) to assist businesses in dealing with the increased customs requirements that will arise as a result of Brexit. Advance training will reduce the likelihood of delays and disruptions for customers and business owners.

The programme will be available to all eligible businesses and will be run as part of the “Getting Ireland Brexit Ready” initiative. Visit the Skillnet Ireland website for full information and criteria.

The Ready for Customs Grant:

Enterprise Irelands “Ready for Customs” grant has been set up to provide companies with the financial assistance they may require as a result of Brexit. Once Brexit occurs, companies may incur additional costs in hiring in house customs officials, mobilizing existing staff to other locations for customs related roles. The grant allows for €9,000 to be made available for each full-time employee as well as €4,500 available for each part-time employee. Repayment may be required if it is established that a customs role was not sustained. Applications will be accepted until December 15th via Enterprise Ireland’s online portal. Visit Enterprise Ireland’s website for full details and eligibility criteria.

Deferred Payments:

Deferred payment can be applied for via Revenue and can allow the deferral of the payment of import charges until the month following import. There may be other reliefs available to you, we advise researching via the Revenue site to see what is available.

Communication:

With the issue of customs, open communication will be key. Communicate with your courier’s & logistics carriers so that you have the full picture of your product’s journey going forward. In uncertain times, knowledge is key.

Funding

We have recently discussed the funding opportunities available to Irish SMEs due to the Covid-19 pandemic, and with Covid rightfully taking up so much airtime, it may slip the notice of many that there are still some funding options available to assist in the Brexit transition for Irish businesses.

Brexit Loan Scheme:

The Brexit Loan Scheme is operated by the SCBI (Strategic Bank Corporation of Ireland) and is intended to assist with liquidity issues that may arise as a result of Brexit and makes funds of up to €300 million available to Irish businesses. Applications can be made through the SCBI website.

Ready for Customs Grant:

The Ready for Customs Grant was announced in the July Jobs Stimulus Package. It was announced that Enterprise Ireland would manage a new fund to assist Irish businesses to increase their capacity to manage the new customs processes ahead. Eligible businesses should visit the Enterprise Ireland website for full information.

Brexit Information Hub

In terms of overarching preparedness, it is advised to visit the Government’s new Brexit Information Hub which is intended to help business prepare for Brexit and beyond. This new service is free of charge and provides information, resources and webinars for all businesses.

We hope that this information assists you in some way to get ready for these further business changes. As always, should you have any concerns or queries about these or any other business and financial issues, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. 

The SME Credit Guarantee Scheme

The SME Credit Guarantee Scheme

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We have discussed Covid-19 business supports at length since the onset of this global emergency, while also discussing the vital nature of the SME area in Ireland. SMEs make up a huge portion of Irish businesses, and whilst last years looming Brexit panic may have seemed like an enormous threat to their business activities, this year has proven the ultimate challenge. With this in mind today we will be discussing another area of assistance for these types of businesses both in the wake of Covid and in the realm of what the new normal will look like.

The SME Credit Guarantee Scheme is intended to encourage additional lending to SMEs, something we can all agree is absolutely essential. This scheme offers a partial Government guarantee of 80% to banks against losses, essentially placing the Government as a guarantor against the SME’s loan. The scheme is aimed at SMEs facing difficulty in accessing traditional lending and is operated on behalf of the Strategic Banking Corporation of Ireland (SCBI) and is accessible from lenders such as AIB, Bank of Ireland and Ulster Bank. These loans are available to fund working capital, refinancing current Covid19 funding and also in order to invest in your business so it can adapt to the current emergency.

Loans range from €10,000 to €1million and can have a term of up to 7 years. A guaranteed premium will apply to be paid directly to the Government. The scheme is available until December 2020. We recommend checking in with your local banking branch for further information and eligibility requirements.

As always, we here at Ecovis DCA are available should you have any concerns or queries on any business or financial matters.

For more information visit Enterprise.gov.ie

All the Best Things in Small Packages

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As we mentioned when we discussed the Government’s announcement of the July Stimulus plan there would be some options available to the owner of small and medium enterprises (SMEs), to protect their businesses during and following on from the Covid-19 emergency. As previously discussed the Temporary Wage Subsidy Scheme has come to an end being replaced with the Employment Wage Subsidy Scheme (EWSS), which has changes that may come as quite a blow to some SMEs as it may see them no longer capable of keeping their full complement of staff, or of topping up wages to the full amount. This has been a cause for concern for many small Irish businesses who wish to keep their business afloat during these times. With this in mind, we have decided to focus on one of most recently available funding options for some of our most vulnerable businesses, micro businesses which could be of great assistance to them during this period.

Microfinance Ireland are now open for loan applications of up to €25,000 for small companies of 10 employees or less. The loan term will be 3 years and follows on from an earlier loan scheme we discussed earlier in the year, which saw loans approved for 687 companies. CEO of Microfinance Ireland, Garrett Stokes has said of the current loan landscape;

“We can see where the demand is coming from most and out Covid-19 loan scheme has been tailored to meet the ongoing needs of those micro-businesses as they navigate their way through the current challenges and beyond.”

The key point to note in this loan which may be of interest to small struggling companies is the fact that these loans will have no repayments and zero interest for the first six months. In addition to this, interest paid in months 6 to 12 will be refunded by the Government in month 13 of the loan, providing that all repayments are up to date. Following on from this period, interest will apply at a rate of 4.5% on applications made through Local Enterprise Offices or at a rate of 5.5% for applications made via Microfinance Ireland themselves.

There is to be a state backed Credit Guarantee Scheme available to larger SMEs once they can prove that they have been negatively impacted by the Covid-19 pandemic.

Applications can be made through Local Enterprise Offices or through MFI directly.

We hope that this information is of benefit to you and your business. Should you have any queries or concerns, please do not hesitate to contact us here at EcovisDCA where we are always happy to help.

The Restart Grant Plus Scheme

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Here at EcovisDCA, we are as always aiming to help Irish SMEs flourish. The current emergency has been a troubling time for all business owners, with SMEs being some of the most vulnerable by nature. We are committed to providing you with all the information available which could assist your business in flourishing in the face of this new adversity.

The Restart Grant Plus scheme offers a grant to businesses in order to help them to reopen their premises and return to work following the Covid-19 crisis. The grants available range is from €4,000 to a maximum of €25,000. The scheme has been increased from a previous minimum of €2,000 and a maximum of €10,000.

The Restart Grant scheme will be based on the rates assessment for the business for the 2019 year and is primarily available to small and medium enterprises (SMEs) as well as independent hotels. The scheme is now also available to sectors such as sports businesses, charity shops, restaurants, pubs, activity centres, and tourist attractions.

If your company has utilised this scheme previously, you may still be eligible to apply for a second payment, this second payment will only reach a total combined value of the new maximum value. In the event that your company was unable to access funding from the scheme but now qualifies, you will be entitled to make a new application.

The requirements for accessing this grant are that the company must have:

  • Between 0 – 250 employees.
  • Eligible firms now include medium-sized firms and independent hotels with up to 250 employees, as well as small firms (increased from 50 employees).
  • A turnover of less than €100,000 per employee up to a maximum of €25million.
  • Operating from a premises that is commercially rateable by a local authority.
  • A reduced level of turnover of 25% as a result of the Covid-19.
  • Committed to a reopening plan and remain committed to sustaining employment levels.
  • Intention to retain employees that are on the temporary wage subsidy scheme.
  • B&Bs in non-rated premises will be eligible to apply for the minimum €4,000 grant from Fáilte Ireland.
  • A franchisee which is a financially independent company and is completely separate to the franchisor is eligible to apply.
  • Multinationals are not eligible. Small Irish based subsidiaries with overseas parent companies are not eligible.

The aim is that applications will be processed, and an answer received within two weeks of application. Applications can be made through your local authority website.

As always, we here at EcovisDCA are here for you. Should you require any assistance or guidance on any business or financial matters, please do not hesitate to contact us.

A Guide to Working At Home…

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As of this week, we have seen a massive spike in those working remotely due to the Taoiseach’s announcement of the closure of all physical workplaces which are non-essential in the battle against this virus. We know that your inboxes are being constantly bombarded with information about this virus and its effects and we cannot turn on the television or radio without hearing further information. With this in mind, we thought we would offer some tips today on adjusting to this new and challenging working atmosphere at home.

Working from home can often make an employee more productive as it eliminates the double commute which can often add at least an hour either side of your working day. This allows for greater productivity in the working day whilst also reducing the stressor of a commute. Being in your own space causes you to re-evaluate your working habits and work schedule, while also allowing for greater ease of maximising your work to life balance, but it is not without its challenges especially when sharing that space with children, friends or family members. There are a number of steps you can take to maximise the productivity and enjoyment of your work from home day however.

Schedule:
This is the most important tip we can offer for working from home. When working in your own space it can be tempting to adjust your hours, particularly with children in the home. This can be damaging to your productivity and also encroach on your time with family outside of working hours, so it is vital to maintain your regular working hours where possible. Set an alarm for the morning, take your normal tea and lunch breaks and keep that schedule going. Sticking to your routine may be helpful to your mental health during this challenging time.

Social:
This tip is likely very specific to our current situation of social distancing where there is no time in the office or time with loved ones outside of your immediate home. A good tip for maintaining productivity and working relationships during this time is to arrange a regular catch up group video chat with your co-workers to check in in the same way you would in the office.

Set Ground Rules:
Setting ground rules for those in your home will be vital during this time as we do not yet know how long this scenario may last and with everyone in the same boat cabin fever begins to creep in. Ensure those in your home are aware of your working hours and boundaries ahead of time to avoid repeats of that infamous BBC News interview.

Step Away:
When working from home, the time spent away from your desk can often be as vital as the time spent at the desk. Particularly during our current “lockdown” situation, where daily exercise is vital. Stepping away from your desk and taking your full break will help clear your mind and set you up for productivity in the day ahead.

Space:
Setting a designated office space will help continue to separate your business and home life and make it easier to step away from your working persona at the end of the working day. Similarly, having a separate work phone available when possible will be helpful in this endeavour.

Show Up Dress Up:
Video conferencing has become the main method of meetings being held since the Taoiseach’s announcement in early March, and it is important to show up to these meetings and make your voice heard. Getting dressed into working clothes for the day may also assist in separating work and home life, as tempting as the loungewear naturally is.

School is in Session:
Online training may be a method of staying busy if you are finding your working day slow from home, and will add a new arrow to your quiver when working life returns to normal.

Slow Down and Breath:
It is important to ensure that you are working in a well ventilated room, just opening the window and taking a moment to breathe can be a vital part of refreshing your mind for the rest of the working day in the middle of so much chaos.

Social Media:
Social media is a constant for us in this day and age, and particularly during such a bizarre scenario as our current emergency is, it is often infecting every moment of our lives. When working from home it may be tempting to get sucked into the world of social media. Whilst taking breaks for brain space is advised, social media may be a rabbit hole we do not want to fall into.

We hope that this information will be of benefit to you during these difficult times. Whilst the landscape of our working lives may have changed for the time being, we here at Ecovis DCA are a constant and always available for you.A Guide to Working At Home…

Revenue Irish Tax Firm

Revenue Announce Measures during Covid 19 Outbreak

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In recent days, the news around the spread of Covid-19 has become inescapable and naturally worrying for individuals, families and business owners. Here at EcovisDCA we have and will always be committed to providing SME and larger business owners with practical and useful advice to help their businesses survive and thrive, and we intend to continue that trend during this period of adversity and whatever aftermath lies ahead.

In the brief few minutes of the recent announcement by Taoiseach Leo Varadkar regarding the Covid 19 pandemic, it seems that Irish life and business life would be instantly changed. As all schools, childcare facilities and tourism sites would be closed for a period of at least 2 weeks, workers worried about their capacity to continue working. Following on from that, new social distancing recommendations suggesting that workers should work from home where possible and limit direct social contact in the form of group lunches and face-to-face meetings instantly changed how businesses would function in Ireland. Obviously, this is uncharted territory and something that wasn’t planned for in anyone’s business plan for 2020 so it is natural that the business landscape and our economy will suffer to some extent as a result. We here at EcovisDCA will be updating on any and all information pertaining to business life and any news that may light up the uncertain darkness we find ourselves in.

  • Due to the new recommendations and the concerns that workers had for their working capacity going forward, the Government and Revenue have announced updated advice to support workers and SMEs who may experience cashflow issues.
  • All debt enforcement activity is suspending until further notice.
  • The Relevant Contract Tax review due to take place this month is suspended until further notice.
  • A customs ‘green routing’ status will be given to critical pharmaceutical products and medicines.
  • Tax returns should continue to be sent on time.
  • Extended availability of Government subsidised or Government guaranteed loan finance will be offered to businesses affected by Covid 19.
  • Extended grant availability through Enterprise Ireland, Udaras na Gaeltachta and local Enterprise Offices specifically allocated for businesses affected by Covid 19.

Meanwhile, Bank of Ireland and Ulster Bank have also become the first banks to assure their customers that practices like deferrals will be put in place for mortgage holders who may find themselves unable to keep on top of their payments during this time.

For social welfare support for self-employed please click on the links to get the latest information from Revenue:

https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-130320-revenue-announce-measures-to-assist-smes-experiencing-cashflow-difficulties-arising-from-covid-19.aspx

https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-100320-engage-early-with-revenue-key-advice-to-businesses-experiencing-tax-payment-problems.aspx

Should you find that your business is beginning to struggle during this time, it is advisable that you contact Revenue directly to discuss your own specific case.

Funding Reluctance from SMEs

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As you will no doubt know by now, we are massive supporters of Irish Small and Medium Enterprises (SMEs). These small and often unsung heroes of the Irish business world form the backbone of Irish business and make up more than half of all Irish businesses. As such, we have long been supporters of these businesses and championed their successes. In recent months we have spoken about funding opportunities available to these forms of business as well as the ways in which they can be protected and encouraged to grow.

The term Brexit is one which has been utilised so much in recent months that it has almost lost all meaning entirely. Terms like “hard Brexit” strike fear into the hearts of many Irish businesses who have dealings with the UK, and the constant shifting of deadlines and back and forth makes it difficult for businesses to implement sufficient safeguards for their businesses.

Reports this week suggest that Irish SMEs are becoming somewhat reluctant to borrow at present which may show a level of wariness in the looming shadow of uncertainty that is Brexit at present. The Strategic Banking Corporation (SCBI) was started in 2014 in others to allow access to credit for SMEs and functioned by channelling credit through other avenues. This has often been a popular choice for SMEs seeking to fund their business activities, but in the last year we have seen a major slump in uptake on this funding which even an additional Brexit loan to the scheme couldn’t fix. Figures show that 2018 saw only approximately a third of the funding taken up as was accessed in 2017. This shows that in the current climate, Irish SMEs are becoming increasingly reluctant to take their chances on accessing funding.

The SCBI themselves have said of the issues:

“The modest deployment in the nine months to end-December 2018 is a clear reflection of SMEs remaining reluctant to invest in an environment of increased uncertainty and risk as Brexit approaches.”

As things stand we remain almost none the wiser on how the Brexit issue will play out and as always, we advise having a plan in place and safeguarding your business as much as possible in advance. The current advice remains that old Irish refrain that fell from the lips of all parents at one point or another: “Hope for the best, prepare for the worst.” In this way, your business will be protected against all eventualities and in the best position possible to flourish in the face of challenge and adversity in the current uncertain climate.

Should you have any concerns or queries on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we will be happy to help in any way possible.

 

 

The Rescue & Restructuring Scheme

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Financial Aid To Restructure & Survive

As you are all aware, we here at EcovisDCA are massive supporters of Irish SMEs (Small and Medium Enterprises). We understand the importance of these types of companies, underpinning and creating a foundation for all Irish business. In general, we like to keep our clients and friends up to date on any issues that may negatively or positively affect these vital businesses. You may or may not have heard of the Rescue and Restructuring Scheme in Ireland. The scheme provides financial aid and State support to companies experiencing acute liquidity. The intention was that the scheme would offer assistance to those struggling companies who have the possibility of restructuring and continued survival in the business world.

The scheme was first introduced in November 2017, offering a fund of €10million to struggling Irish SMEs. In 2018, an extension to the scheme was approved and announced, with an additional €10million being made available to these businesses. The scheme was scheduled to run until 2020 and would offer support in form of loans repayable over a period of 18 months. The only exemptions to the scheme were those companies in the financial, coal and steel sectors.

The introduction of this scheme in 2017 and 2018’s subsequent extension and funds increase was already a massive boon to the Irish SME sector, offering some form of safety net in times of trouble. As we are all aware, financially speaking anything can happen in the economy and smaller businesses are usually the first to feel the negative effects, so this offer of €20million to survive Brexit woes for struggling SMEs was welcome news.

Further good news arrived on the horizon this month, with the announcement that the scheme would once again be extended with further funds being made available. Perhaps the whispers of terms like “hard Brexit” and “borders” may have had something to do with it, but on this occasion we see a massive increase as it was recently announced that The European Commission has agreed to increase the budget of the scheme by a whopping €180million to €200million.

We are delighted that the Government are taking the appropriate steps to assist in the safeguarding of these vital companies and their future in the eye of the Brexit hurricane, as it has long been known that Irish SMEs could be the most vulnerable in the event of Brexit causing trade and financial issues in Ireland. These additional funds show a willingness to create and support vulnerable businesses and create an ongoing contingency plan for these uncertain weeks and months ahead.

Should you have any queries on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to help.

Significant PAYE Changes Coming

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Rolling with the Changes.

Following on from our recent series on modernisation, today we will be discussing some more imminent changes which are set to change the face of payroll as we know it. As you will all be aware, we here at EcovisDCA have long been great supporters of Irish SMEs (Small and Medium Enterprises). As we have discussed in the past, SMEs now make up over half of all Irish businesses, so to say they now form the backbone of Irish business is no exaggeration. In the past we have spoken at length about new methods of funding available to these vital businesses as we continue to support their survival. This week we have decided to take a look at one major upcoming change which could have a large impact on SMEs and which they may need to begin planning for as soon as possible.

This year it was announced that the PAYE (Pay as You Earn) system would undergo what is likely the largest overhaul the system has experienced since it was introduced in 1960. These changes will have wide ranging effects on all businesses. Having remained largely unchanged for decades, the system is naturally due a major changes and such a large change could of course have detrimental effects on any smaller businesses who may not be as prepared as they could be. These changes are due to come into effect in January, so time is running out to get fully prepared. It is intended that these changes make the payroll process an easier task going forward as well as allowing any issues to be resolved more efficiently.

A survey commissioned recently by payroll software providers Big Red Cloud has discovered the worrying fact that a large number of SMEs do not feel prepared for these imminent changes. While many firms reported that they feel there isn’t enough clear information to hand, as many as 40% feel that they are unprepared and short on detail of how the changes will work in practise.

Rather than payroll information being logged yearly via a form, many of our current ‘P’ forms will become outdates, with data being instead inputted on a regular basis. This new system will require an update of company payroll software, with companies employing less than 9 people qualifying for free software. This is a major shift towards real-time electronic logging of data which will remove the need for the classic forms.

Big Red Cloud CEO Marc O’Dwyer has said of the company’s findings:

“As the year progresses, it is becoming increasingly apparent to us that, not only are many businesses not ready, many are simply unaware and/or uninformed of the changes and what they will mean for their business.”

Whilst Revenue Chairman Niall Cody has stated that the changes:

“Represent an important step in the continuous improvement in service […] businesses, particularly those at the smaller end of the scale will need some help to get there.”

Should you have any concerns, queries or require further information on these or any other business and financial matters please don’t hesitate to contact us we are always available to help.

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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY