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
PAYE System Change
/in DCA News & Views /by ecovis_adm1n_17A Change is as Good as a Rest
We recently spoke briefly about the changes to our PAYE (Pay as you Earn) system here in Ireland, aptly called ‘PAYE Modernisation’ which will come into effect on January 1st 2019. Today we would like to go into a bit more depth on the topic and ensure that all of our colleagues, clients and friends are aware of what these changes will mean for them as well as to ensure that all are prepared for this fast-approaching change.
The PAYE system in Ireland is long overdue a significant update, and these changes are set to be of benefit to both employers and employees.
Employers:
For employers, these changes will be of benefit as they will seek to streamline the way in which employers report payroll information to Revenue. Files will be submitted electronically for each employee for every payment period. It is hoped that the employers workload will not be increased with this change, and it is anticipated that these reports will be fully integrated into payroll software, allowing for a smoother transition for employers.
Employers will also be able to input the details of a new employee before their employment has begun, which it is hoped will reduce the frequency of issues arising with over or under payment of tax.
Employees:
Perhaps the most prevalent change that will be in place for employees is that the P60, P30, P35 and P45 will be entirely abolished. Instead, employees will have full access to their pay and tax record online. It is anticipated that this will be updated consistently as the employee is paid, and will allow Revenue to conduct reviews to figure out if employees are utilising their tax credits to the maximum effect. This will also allow employees to adjust their tax credit and Standard Rate Cut off Point digitally, and they may be prompted to do so if Revenue identify that they are not being used to the full effect. This will create an easier system for the employee as they will no longer be required to wait until the end of the tax year to assess over or under payment.
As with all important changes, we would advise to do your research, fully read the Revenue Brief “PAYE Modernisation, Are you Ready” and ensure that your company and employees are fully registered and that all the required forms are issued at year end. This will ensure that you start the year off on the most secure footing possible ahead of these changes.
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
Corporation Tax Statement of Particulars – Section 882 TCA 1997
/in DCA News & Views /by ecovis_adm1n_17Allow us to be Brief
Here at EcovisDCA it is always our top priority to ensure that our clients and friends are kept fully up to date on any and all issues that could be pertinent to the continued success of their thriving businesses. Today we will be focusing on a new update issued from Revenue which may have an effect on the registration status of some companies. On October 11th 2018, Revenue released a brief entitled “Corporation Tax Statement of Particulars – Section 882 TCA 1997”. The title isn’t exactly snappy or self-explanatory so we thought we would break down the details for you so that you can be fully informed.
As you are all aware, it is essential for all companies to register with the CRO (Companies Registration Office) this should be done immediately upon commencing trade operations. However, there are two other times that registration must take place which may be overlooked:
Therefore, it can be just as important to keep an accurate record of your business status with Revenue as it is to take that initial registration step. As these two conditions can sometimes be missed, issues have arisen which have required Revenue to issue notices. These notices concern companies who registered in 2017 but have yet to register their trading status with Revenue. It is essential that a reply is issued to this notice should you receive one, in order to provide an accurate update of your company’s status.
Should your company have begun trading, a tax registration will be required, as well as a notification of commencement. Details can be found on the Revenue website of what else may be required should trading have commenced.
Revenue also require a reply within 30 days detailing the company’s status in the event of any of the following:
This can all be done using the Revenue online services, which have vastly improved the usability and user-friendly status of dealing with these matters. As always, should you have any concerns or queries on any business or 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
VAT Increases for the Hospitality Sector
/in DCA News & Views /by ecovis_adm1n_17Room with a View?
As discussed in last week’s Budget post, Budget 2019 snuck up almost unannounced and whilst it did not seem like much of a big news day for many, there were some who were hit by an utterly unexpected blow that could have far reaching consequences for many Irish business, particularly in the uncertain atmosphere surrounding Brexit.
One of the hardest hit sectors in this Budget, and the first to speak out against it is the tourism sector. It goes without saying that Ireland thrives massively on our culture of tourism and being the well-known “land of a thousand welcomes” so in the current uncertain Brexit climate it has come as quite a shock to this sector to receive the cutting blow of the removal of their special 9% VAT rate, to be replaced with the standard 13.5% rate going forward. It is estimated that this will cost the sector up to €500million a year, and that this is where the funds have been accessed to make the rest of the Budget’s announcements possible.
The idea for the removal of this rate was originally floated by Finance Minister Paschal Donohoe ahead of Budget 2018, but with Brexit looming this did not come to pass. The change comes following last July’s critical Department of Finance report which heavily suggested the special rate be scrapped, believing it to have served its purpose and to no longer be worth the cost to The State. In hindsight, glancing at the report now, the writing has been on the wall for this change for some time. Unfortunately for our tourism and hospitality sector, this does not make the pill any easier to swallow.
One of the most severe problems with this change is that Dublin has already been experiencing soaring hotel room rates in recent months. Chief Executive of the Irish Hotels Federation Tim Fenn has said that there has been widespread shock among the hotel industry.
“While we recognise that there was a need to raise revenue, in doing so it was incumbent on the Government to nurture growth in the economy. Tourism is growing. It is giving over €2billion a year to the Exchequer. 9% VAT was about the right rate, it brought us into line with our competitors in Europe, now 26 countries in Europe have a lower VAT rate. We are expected to compete with that”.
It remains to be seen what lasting effects this change will have on Ireland’s vital tourism sector and we hope that our clients and friends in this sector will find themselves weathering the storm to come out on the other side stronger.
As always, should you require any help or guidance on any financial or business matters, please don’t hesitate to contact us here at Ecovis DCA, where we are always happy to help.
– – – – –
~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
Significant PAYE Changes Coming
/in DCA News & Views /by ecovis_adm1n_17Rolling 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.
– – – – –
~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
The Housing Market – What’s Next?
/in DCA News & Views /by ecovis_adm1n_17The housing crisis in Ireland is something about which we have spoken at length in the past. Between the mortgage rules and rising cost of rent excluding many from the market and the increasing cost of buying in general, this area has become quite the minefield in recent terms for anyone who wasn’t lucky enough to secure their house before prices began to climb. This week, it was announced that house prices in certain areas had dropped slightly for the first time in an age. The fact that this led to a giant exhale of relief is quite telling of the current market, as such a small event sparks a small level of hope for those currently saving to meet the lending rules. It seems from recent reports that prospective buyers have grown tired of being excluded from the narrative.
It was reported this week following a Sunday Independent opinion poll that almost three quarters of people currently saving for a mortgage believe the Central Banks mortgage lending rules to be incredibly unfair. This is a marked rise of 19% from last year’s findings and shows an atmosphere of dissatisfaction with the status quo in the housing market. It was also found that as few as 5% of those saving feel that the lending rules are fair. The study also found that more people are now saving for a mortgage than last year. Almost half of those surveyed stated that they didn’t feel the banks are doing enough to assist people in gaining a mortgage.
There was also a fairly strong belief revealed through this study that the housing market may be headed for another crash in the coming years with over half of those currently saving believing that this will be the future for the Irish housing market. This believe naturally creates discord among savers about whether or not now is a good time to buy, with 43% believing that now is the right time to buy, and 39% believing that now is not the right time to purchase a house. As you can see there is not much between the two camps given their utterly opposing views. Perhaps this discord is the reason why there has been a slight drop off in house sales this year, with the CRO (Central Statistics Office) reporting that there has been a drop of almost 5% in the first half of this year outside of the Dublin area.
While nothing is certain, particularly during these uncertain times as Brexit continues to loom large above us, there are certainly signs of a downturn in the housing market in the next couple of years as many people struggle to get a foothold on the property ladder.
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
Budget 2019
/in DCA News & Views /by ecovis_adm1n_17We constantly hear about how fast Christmas comes around each year and already selection boxes are appearing in our grocery stores and social media posts are being put up about how many weeks remain until Christmas. However, does anything really come around quicker than the Government’s yearly budget? It seems like only yesterday that we were giving you the main points on last year’s budget and now here we are again to break down the key points of this year’s budget. Indeed this year’s budget seems to have entirely crept up on us all, and slid into the world without much of a fanfare. So, what does Budget 2019 have in store for us all in the coming year?
SMEs
As you are aware, we are huge supporters of Irish Small and Medium Businesses so there was some welcome news announced in the budget.
A future Growth Loan Scheme for SMEs and those in the agriculture sector will be launched.
€110million in Brexit measures will be put in place.
Taxes and Wages:
Housing:
This has been a hot topic this year and something that has hit the headlines on numerous occasions. What action are the government implementing?
Social:
The government have come under fire for this budget as it has been suggested that it doesn’t go far enough on crucial matters from climate change to tourism and national debt. This is however the first time that we have seen the national books balanced since 2007 so it is hopefully a step in the right direction.
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
The Cloud – How it can benefit your Business
/in DCA News & Views /by ecovis_adm1n_17Head in the Cloud
Today sadly brings us to the close of our mini-series of posts on digitising your business activities. We hope this series has been of benefit to you and we hope to be able to bring you more of these small segments in the future. This week our heads are well and truly still in the clouds… or THE CLOUD to be more specific, sure isn’t that where we are all looking to store our data at this point?
To assist you with an easy transition to this new way of life, we have gathered the below list of considerations to take into account when creating your new Cloud Strategy:
We hope this has been of use to you and will assist you in creating the best digital strategy for your business. Thank you to our friends at INNOVATE for being a fountain of knowledge on this topic and for sharing this with us. Should you wish to engage their services for your own Cloud Strategy don’t hesitate to get in touch with them and as always for all other business and financial queries, our door is always open here at Ecovis DCA.
The Cloud – How it can benefit your Business
/in DCA News & Views /by ecovis_adm1n_17Up on Cloud Number 9
Following on from last week, we will this week be continuing our series on bringing your business into the digital age, taking you through the basics of Cloud Computing so that we can keep our clients informed. Last week we focused on the definition of Cloud Computing, as well as the ways to take those first hesitant steps into the digital world. This week, we have decided to focus on the ways in which Cloud Computing can ultimately benefit your business. According to digital professionals, the Cloud is not a place, but a business strategy.
As business in general moves into a more digital space, it is of course advisable to endeavour to be
moving with the times, as difficult as this may be for businesses who have not used the digital model in the past. As intimidating as it can be, there are a great many benefits inherent to cloud technology as a business model going forward, and though your board of director’s may not fully understand the concept at first, taking the first steps will lead to incredible rewards.
So how can you begin to convince an uncertain and perhaps slightly outdated board of directors that a move to the digital space is a step in the right direction? To begin with, it is advised to begin building a ‘Cloud Strategy’ as your first port of call, followed by a ‘Migration Plan’ which will enable you to ensure that you will be maximising the potential of the Cloud for your business, as well as identifying any inherent risks and implementing the appropriate security measures to protect your data. To begin the process, the following 4 steps are advised as your first stepping stones to full Cloud Computing.
It is also advised to hire a tried and trusted IT company to oversee these proceedings to ensure the safe transfer of any data and that your Company is utilising the capabilities of the Cloud to full effect.
We hope that this series on Cloud Computing is of benefit to you and your company and, as always, should you require any assistance or guideance on any business or financial matters, we here at EcovisDCA are always happy to help.
What is this Cloud they speak of?
/in DCA News & Views /by ecovis_adm1n_17There has been quite a lot of negativity making the headlines in recent months. At times the business world can seem filled with lists of what not to do with very little useable advice for anyone without immediate access to a time machine. Alongside this, constant changes to the day to day functioning of a business, with an emphasis on moving towards a more digital focus can create confusion when trying to merge with a standard business model. With this in mind, we have decided to bring you some vital information and advice on how to navigate the digital aspects of the business world.
One of the terms we hear over and over these days is “The Cloud”, everyone wanting to know what we have uploaded or backed up to “The Cloud” can often raise the wrong images for those not familiar with the terminology so over the next couple of weeks we will be going into detail about how “The Cloud” can benefit you and your business.
In simple terms, utilising the Cloud or ‘Cloud Computing’ essentially means the storing and accessing of date over the Internet instead of on your computer’s hard drive. The Cloud itself is a network of servers, each one serving a different function. When looking to solve any problem, be it personal or business, we tend to reach out to our support network and in this way the Cloud is no different, acting as another support structure for you and your business.
According to professionals in the area, the below are some of the first stepping stones for getting your business onto the road of Cloud Computing. It could not be simpler to get your business moving into the digital age with ease:
Should you feel that this would be a step in the right direction for your business, we would advise holding a training event for your staff to ensure everyone is aware of this new approach being taken.
Should you have any queries or require further information on this or any other business or financial matter please don’t hesitate to contact us here at EcovisDCA’s new head office, where as always we will be delighted to help.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
PCP – The Good, the Bad and the Ugly
/in DCA News & Views /by ecovis_adm1n_17Personal Contract Plan (PCP) – The Good, the Bad and the Ugly
Recently, we spoke about PCP (Personal Contract Plan) finance options which have recently become so widely available. With today’s increasing cost of living this may be an incredibly attractive option for the majority who cannot afford an upfront payment on such luxury options as cars. This week, we have decided to follow up on this, with a view from the other side of the coin.
Whilst PCP Finance may seem like the ideal option, with its low deposit, low but long term repayments and the possibility of starting all over again with a new model at the end of your payment term. As we have recently discussed, these financing plans have become increasingly popular and more widely available in recent months, but while they are an attractive option, they are also unregulated and as recent reports suggest, may be heading into dangerous territory.
New research conducted recently by the Central bank seems to suggest that the model of PCP Financing may begin to create a finance bubble due to the wildly increasing popularity of this model over other financing options and cash purchase. It is estimated that at present, one in three cars is purchased via a PCP and we have certainly seen a larger amount of new cars drive off the forecourt since this option came about.
The issue arises once we consider the level of loans outstanding via these financing plans. In Ireland, it has been estimated that there is currently €1.5billion outstanding debt in car finance alone, an eye watering figure that makes a car purchasing bubble loom ever closer. It has recently been suggested that this industry needs to be regulated in order to prevent issues going forward, as we are already seeing issues arise in the housing market which we do not want to see repeated across the board. At present, PCP is the biggest growth market in the country (not including mortgage credit) and this creates an atmosphere of nervousness for an unregulated industry, particularly as the industry is not covered under the Central Bank’s Consumer Protection Code.
These are of course just the concerns which arise from our little island having been in the position of economic crisis in the past. We will always have a level of wary concern for anything that seems too good to be true. As always our advice remains to do your research before agreeing to any financing options, and ensure that the deal you get is the best deal for you and one which you can afford long term to avoid any issues.
Should you have any queries or require further information on this or any other business or financial matter please don’t hesitate to contact us here at EcovisDCA’s new head office, where as always we will be delighted to help.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY