- Social Welfare measures for Employees & the Self Employed
- Process for Employers for keeping staff on the Payroll
- The process for Refunds to Employers who engage with the scheme
COVID 19 – Pandemic Unemployment Payment
If you have lost work due to a downturn in economic activity caused by COVID-19 you can apply for the new COVID 19 – Pandemic Unemployment Payment at this link – https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/
This new payment quickly delivers income support to the unemployed (be they self-employed or employees) for a 6-week period.
It is designed to provide income security for a period during which you can apply for a full Jobseekers payment (and receive any additional entitlements backdated).
You can apply for the Pandemic Unemployment Payment by filling in a one page application at the link above and returning to PO BOX 12896, Dublin 1. by FREEPOST. You do not need to visit an Intreo Centre to apply.
How to Qualify
Both employees and self-employed people can apply for the new COVID-19 Pandemic Unemployment Payment.
You can apply for the payment if you:
- Are aged between 18 and 66 years AND
- You have lost employment due to the COVID-19 (Coronavirus) pandemic
- And it also includes people who have been put on part-time or casual work.
- Students who have lost employment can also apply.
The COVID-19 Pandemic Unemployment Payment is paid at a flat rate of €203 per week for 6 weeks. It is equivalent to the jobseeker payment rate.
If you are getting another social welfare payment and you have lost your employment, it can be paid in addition to this.
Employers – Keeping Staff & Refunds
Revenue has worked closely with Department of Employment Affairs and Social Protection (DEASP) to provide an option for employers to make this payment to their employees through the normal payroll process. The amounts paid to employees under the scheme are not subject to tax, USC or PRSI.
Employers are encouraged to facilitate employees by operating the scheme. The amounts paid to employees and notified to Revenue will then be transferred into the employer’s bank account by Revenue.
This reimbursement will, in general, be made on a ‘next day’ basis. It will ensure a speedy payment process for employees and minimise the hardship for employees who are temporarily laid off. Refunds of income tax or USC that an employee may be entitled to because of being laid off will also be administered by the employer and will be repaid (to the employer) through the scheme.
The scheme can be operated for all employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020. Where employees have already been laid off and their employer has ceased their employment, they can apply directly to DEASP for the payment.
Who does the scheme apply to?
- Employers who have temporarily laid off staff as a result of the impact on their business of the COVID-19 (Coronavirus) pandemic
- Employers that keep their staff on payroll and have not ceased the employee(s) with Revenue
- Employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020
- Employers that are unable to make top-up payments over and above the emergency payment of €203 per week.
Making an application for the Refund Scheme
Employers, or their agents, apply to Revenue to operate the scheme by carrying out the following steps:
Log on to ROS myEnquiries and select the category ‘Employer COVID -19 Refund Scheme’.
Read the declaration and press the ‘Submit’ button.
Log on to ROS and in ‘Manage bank accounts’, ‘Manage EFT’, ensure that the bank account details provided are correct.
Key features of the scheme
The employer will make the payroll submission to Revenue on or before each pay date.
Employers should contact their payroll software providers for assistance in respect of payroll to be processed under this scheme.
The employer runs the payroll as normal, entering the following details for each relevant employee:
PRSI Class set to J9
A pay amount of €0.01 (there must be some pay entered for the payroll to run).
A non-taxable amount of €203. No other payment amounts are made by the employer to the employee and all temporarily laid off employees are granted the €203.
The payroll submission must include pay frequency and period number.
No other payments are made by the employer to the employee for the applicable week(s) and all temporarily laid off employees receive the €203 per week.
Income tax, USC and PRSI are not deducted from the €203 payment.
Any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands can be repaid by the employer and this amount will also be refunded to the employer.
The employee must confirm to the employer that they have not, and will not, claim a payment from DEASP whilst the employer makes this payment through the payroll.
Employers will be asked to advise employees to make a Jobseeker’s Benefit claim via the MyWelfare.ie online portal (so that the employee(s) can access qualified dependant payments if appropriate).
Based on the information provided in payroll submissions, Revenue will credit €203 per employee per week to the employer’s bank account recorded in ROS. The credit will include the reference COVID Employer Refund. (The main identifiers include Employer Number Gross Pay of €0.01, J9 PRSI class, Pay Frequency and Employee PPSN, Employment ID).
Revenue will credit the employer bank account for payroll submissions received before 2:00 PM each day. Depending on the individual bank, the refund should be with the employer on the next banking day.
If the employee(s) resume employment with the employer, or obtains other supports from DEASP, or secures employment elsewhere, the employer will not include the employee(s) concerned in future submissions.
Guidance/Information
For general issues relating to the Scheme, employers should contact Revenue’s National Employer Helpdesk via the myEnquiries system, providing details of the query and a direct dial contact number.
Employers should make sure to select ‘Employer’s PAYE’ and then ‘Employer’s PAYE General Enquiry’ when submitting the query through myEnquiries.
Covid 19 – Update on Social Welfare supports for Employees and Employers
/in DCA News & Views /by ecovis_adm1n_17COVID 19 – Pandemic Unemployment Payment
If you have lost work due to a downturn in economic activity caused by COVID-19 you can apply for the new COVID 19 – Pandemic Unemployment Payment at this link – https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/
This new payment quickly delivers income support to the unemployed (be they self-employed or employees) for a 6-week period.
It is designed to provide income security for a period during which you can apply for a full Jobseekers payment (and receive any additional entitlements backdated).
You can apply for the Pandemic Unemployment Payment by filling in a one page application at the link above and returning to PO BOX 12896, Dublin 1. by FREEPOST. You do not need to visit an Intreo Centre to apply.
How to Qualify
Both employees and self-employed people can apply for the new COVID-19 Pandemic Unemployment Payment.
You can apply for the payment if you:
The COVID-19 Pandemic Unemployment Payment is paid at a flat rate of €203 per week for 6 weeks. It is equivalent to the jobseeker payment rate.
If you are getting another social welfare payment and you have lost your employment, it can be paid in addition to this.
Employers – Keeping Staff & Refunds
Revenue has worked closely with Department of Employment Affairs and Social Protection (DEASP) to provide an option for employers to make this payment to their employees through the normal payroll process. The amounts paid to employees under the scheme are not subject to tax, USC or PRSI.
Employers are encouraged to facilitate employees by operating the scheme. The amounts paid to employees and notified to Revenue will then be transferred into the employer’s bank account by Revenue.
This reimbursement will, in general, be made on a ‘next day’ basis. It will ensure a speedy payment process for employees and minimise the hardship for employees who are temporarily laid off. Refunds of income tax or USC that an employee may be entitled to because of being laid off will also be administered by the employer and will be repaid (to the employer) through the scheme.
The scheme can be operated for all employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020. Where employees have already been laid off and their employer has ceased their employment, they can apply directly to DEASP for the payment.
Who does the scheme apply to?
Making an application for the Refund Scheme
Employers, or their agents, apply to Revenue to operate the scheme by carrying out the following steps:
Log on to ROS myEnquiries and select the category ‘Employer COVID -19 Refund Scheme’.
Read the declaration and press the ‘Submit’ button.
Log on to ROS and in ‘Manage bank accounts’, ‘Manage EFT’, ensure that the bank account details provided are correct.
Key features of the scheme
The employer will make the payroll submission to Revenue on or before each pay date.
Employers should contact their payroll software providers for assistance in respect of payroll to be processed under this scheme.
The employer runs the payroll as normal, entering the following details for each relevant employee:
PRSI Class set to J9
A pay amount of €0.01 (there must be some pay entered for the payroll to run).
A non-taxable amount of €203. No other payment amounts are made by the employer to the employee and all temporarily laid off employees are granted the €203.
The payroll submission must include pay frequency and period number.
No other payments are made by the employer to the employee for the applicable week(s) and all temporarily laid off employees receive the €203 per week.
Income tax, USC and PRSI are not deducted from the €203 payment.
Any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands can be repaid by the employer and this amount will also be refunded to the employer.
The employee must confirm to the employer that they have not, and will not, claim a payment from DEASP whilst the employer makes this payment through the payroll.
Employers will be asked to advise employees to make a Jobseeker’s Benefit claim via the MyWelfare.ie online portal (so that the employee(s) can access qualified dependant payments if appropriate).
Based on the information provided in payroll submissions, Revenue will credit €203 per employee per week to the employer’s bank account recorded in ROS. The credit will include the reference COVID Employer Refund. (The main identifiers include Employer Number Gross Pay of €0.01, J9 PRSI class, Pay Frequency and Employee PPSN, Employment ID).
Revenue will credit the employer bank account for payroll submissions received before 2:00 PM each day. Depending on the individual bank, the refund should be with the employer on the next banking day.
If the employee(s) resume employment with the employer, or obtains other supports from DEASP, or secures employment elsewhere, the employer will not include the employee(s) concerned in future submissions.
Guidance/Information
For general issues relating to the Scheme, employers should contact Revenue’s National Employer Helpdesk via the myEnquiries system, providing details of the query and a direct dial contact number.
Employers should make sure to select ‘Employer’s PAYE’ and then ‘Employer’s PAYE General Enquiry’ when submitting the query through myEnquiries.
Lay off procedures
/in DCA News & Views /by ecovis_adm1n_17Do I need to pay employees sick pay?
If an employee presents a medical certificate for any reason, including contraction of the virus or self-isolation, you should follow your sick pay policy as normal.
If an employee contracts Coronavirus (COVD-19) or is medically instructed to self-isolate, they will be entitled to received €305 per week from the Department of Social Protection. This payment is up to 2 weeks for self-isolation and for the duration of the illness if contracted.
Can I place employees on a period of lay-off?
A ‘lay-off’ situation can occur when there is an unexpected downturn in the business that is out of the Company’s control. If you have no work for the employee, and/or the Business is under extreme financial pressure, you can place an employee on lay-off.
Lay-off is viewed as being a temporary situation, so employers should be aware that if lay-off lasts for a certain length of time, the employee may be entitled to seek a redundancy payment.
If you are considering placing an employee on lay-off, you need to ensure you have a business justification for doing so. If your decision was ever challenged in the WRC, you will need to show your reasoning.
Can I put some staff on lay off while others work?
In relation to choosing employees for the reduction/short time, the criteria should be reasonable and applied in a fair manner. The last in, first out is deemed as appropriate, or by department based on the tasks that they are completing.
What is the process for placing employees on lay-off?
You must have a lay off clause in the employees’ contract of employment.
Lay Off
You as the employer would need to inform your employees that you are placing them on lay off and issue them with the relevant notification (Form RP9) confirming this.
Employees are not paid during a period of lay off, they can claim Social Welfare during this period. If an employee is on lay off from a business for a period of four weeks, they can request to be made redundant, if they have in excess of 2 years’ service. If this happens, there will be a cost involved for the company.
Short Time
When employees are placed on short time this requires that they be reduced to 50% or less of their normal working hours. When on short time employees may apply for Social Welfare to make up the rest of the week. It is important that the hours do not go above 50% while the period of short time continues.
With regards to redundancy claims under both of these systems;
Lay-off and short-time are viewed as being temporary situations, so you as the employer should be aware that if either the lay-off or short-time working lasts for a certain length of time, the employee may be entitled to seek a redundancy payment.
This occurs when the employee has been laid off or kept on short-time (or a combination of both) for either
Within 4 weeks of either of the above situations ceasing, the employee can decide to claim redundancy. The claim must be made on the form RP9. Once the employer receives this form s/he has two options:
Counter Notice
By issuing a counter notice the employer promises that within four weeks the employee will be employed for a period of 13 consecutive weeks.
If this does not happen, the counter notice is invalid and the employee is entitled to a redundancy payment. The employee is entitled to statutory redundancy only. S/he is not entitled to a notice payment, as s/he is the party terminating the employment.
Form RP9 – Lay-off and short time procedures
Banking supports
/in DCA News & Views /by ecovis_adm1n_17Micro Finance 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.
In addition, Local Enterprise Offices in every county provide a range of business supports for micro- enterprises including business continuity and preparedness advisory supports connected to the COVID-19 outbreak. Contact your Local Enterprise Office for more information.
Eligibility
Product Features
Application process
Application documentation can be found at this web address – https://microfinanceireland.ie/loan-packages/covid19/
Strategic Banking Corporation of Ireland
The Department of Business, Enterprise and Innovation announced a number of supports for businesses facing challenges being presented by the current Covid-19 situation. The Credit Guarantee Scheme is in place and available now to SMEs subject to the relevant terms and conditions. Separately the SBCI is currently working to finalise the terms and conditions of the SBCI COVID19 Working Capital Scheme and the eligibility application process for this. The SBCI website will be updated as soon as these are finalised. In the interim if you wish to be kept informed on developments please email the SBCI at info@sbci.gov.ie
SME Credit Guarantee Scheme (CGS)
The Scheme aims to assist viable SMEs, which under normal lending criteria are unable to borrow from their bank, in accessing credit. The scheme operates by providing an 80% guarantee to participating finance providers (currently AIB, Bank of Ireland and Ulster Bank) on qualifying loans to SMEs.
The Scheme is operated on behalf of the Department of Business, Enterprise and Innovation (D/BEI) by the Strategic Banking Corporation of Ireland (SBCI) and is available from the participating banks (AIB, Bank of Ireland and Ulster Bank). If you are an SME, you can approach any one of the participating banks and apply for a loan facility under CGS.
Key Features of the Scheme:
Who is eligible for the Scheme?
SMEs may be eligible if they:
How to apply do for the scheme
The scheme is available through participating lenders AIB, Bank of Ireland and Ulster Bank at the web addresses below:
AIB : https://business.aib.ie/products/finance-and-loans/credit-guarantee-scheme
BOI : https://businessbanking.bankofireland.com/credit/credit-guarantee-scheme/
Ulster Bank : https://digital.ulsterbank.ie/business/loans-and-finance/alternative-financing.html
Allied Irish Bank (AIB)
AIB’s Covid 19 supports are available at this web address – https://aib.ie/covid19
The financial supports include the following
Cashflow products available to customers and web address for applications
Business Credit Line – https://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997
Farmer Credit Line – https://business.aib.ie/products/finance-and-loans/business-credit-line?_ga=2.155766331.160936585.1584353997-1581556376.1584353997
Promptpay – https://business.aib.ie/products/finance-and-loans/promptpay-and-insurance-premium-finance?_ga=2.146517556.160936585.1584353997-1581556376.1584353997
Business loans of between €2,000 and €60,000 can be applied for on line at this web address : https://business.aib.ie/products/finance-and-loans/business-loans?_ga=2.185208617.160936585.1584353997-1581556376.1584353997
Customer in Difficulty (Forbearance Requests)
AIB have a number of possible solutions available depending on your circumstances
AIB Advisors are available in branch or on the phone 1890 478 833
Bank of Ireland
The supports offered by Bank of Ireland are as follows:
A full listing of supports from BOI are at this web address: https://businessbanking.bankofireland.com/covid-19/supports-for-businesses/
Ulster Bank
Ulster Bank have introduced a financial assessment that is designed to evaluate your financial situation and to offer support where you need it most.
Specially trained staff will carry out a financial review. They will review your current financial situation and take you through the repayment options available. These options include:
A full listing of supports from Ulster Bank are at this web address: https://digital.ulsterbank.ie/personal/help-and-support/struggling-financially.html
Revenue Announce Measures during Covid 19 Outbreak
/in DCA News & Views /by ecovis_adm1n_17In 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.
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/corp
https://www.revenue.ie/en/corp
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.
Covid-19
/in DCA News & Views /by ecovis_adm1n_17It is currently impossible to avoid the news of the Covid-19 epidemic at the moment as the situation unfolds rapidly and becomes an increased risk of becoming a global pandemic. A pandemic is an issue that we in this country would be unlikely to have prepared for in a business sense and as a result we may see this virus affect our business landscapes in ways we may not have expected. As cases begin to grow in number and community transmission begins to become more apparent, it is important for businesses to have a plan in place for keeping their employees safe.
The Government have recently published an income support and economic stimulus package which outlines the following main points for companies who may find themselves on lock down or needing to self-isolate their staff or work from home or to reduce economic impact:
On a more global scale, it has been reported that businesses worldwide are changing and adapting practises to better cope with Covid-19. Many companies in Ireland, the United Kingdom and the United States have immediately implemented travel restrictions or a work from home policy for the foreseeable future in order to avoid community transmission within the office space. Unfortunately, these issues will naturally cause service issues for some.
From looking at the China model which involves the businesses who were first hit and continue to deal with the fallout of the virus, a few key pointers for other businesses worldwide have been outlined:
This will undoubtedly be a period of unease and difficulty for many on both a business and personal level, but through following the appropriate guidelines we can endeavour to keep all feeling safe.
How to Release Cash Flow from your Business
/in DCA News & Views /by ecovis_adm1n_17Here at EcovisDCA we are constantly striving to ensure that our clients and friends have the most successful business and financial lives possible. We are not just a faceless company who talk the talk, we walk the walk. We know that your business is a labour of love and we endeavour to ensure the one-to-one advice and care you and your business deserve. With that in mind, we have decided to focus this week on ways in which you can release cash flow from your business. As you know, we are great supporters of Irish SMEs (Small and Medium Enterprises) and these businesses are often the first to suffer any ill-effects of a downturn and as such it is vital that they are protected. Cash doesn’t often flow readily in February after the excesses of the festive season and the January sales, so we are here to discuss the ways you can manage and release business cash flow.
Projections:
When projecting cash flow, the impulse is to assume regular income, however, the peaks and valleys of business life are often first seen through cashflow, so it is important to take this into account when projecting the year ahead regardless of the size or avenue of your business. Being armed with the knowledge of potential financial issues ahead and projecting a realistic cashflow cycle for the year ahead may allow you to avoid a cash shortage during tighter times.
Enforce Payment Terms:
The payment terms for your business should never be a casual affair, it is essential to create and enforce your payment terms. Create incentives for suppliers to meet your payment terms, and penalties for non-payment. It is worryingly becoming normal for payment terms and dates to be exceeded, if this becomes a problem, we advise strengthening these terms and consistently following up. Having suppliers be consistently late on payments can push you into debt. Enforcing terms will free up cash flow.
Marketing:
Marketing isn’t just a sales pitch; it is the creation of your brand and creates an image of your business in the minds of potential customers. It may seem counter intuitive to spew the adage “You have to spend money to make money” but in this case it is entirely true. Good or bad marketing can make or break your business, so it is worth investing time, money and resources in.
Keep it Simple:
Simplicity is often the key and we regularly find our cashflow tied up in long term projects which are offering no short-term return. Evaluate what are the essential projects your company is budgeted to work on and go from there. The same can be said for many business processes, are there ways your business can be more efficient, are you expending employee time in valuable or invaluable tasks?
Pay Debts:
Again, it seems counter-intuitive to insist on debt payment to release cash flow but once all company debt is paid, that cash becomes available and can be saved or re-invested into the business.
External Income:
Occasionally there will be times when it is not possible to finance your business internally. In these cases, applying to schemes, applying for grants or loans etc. can be the reason for the extended lifespan and rejuvenation of your company.
These are just a few of the ways in which you can better manage the cashflow of your business, should you have any concerns or questions about these or any business or financial matters, please do not hesitate to contact us here at EcovisDCA, where we will be happy to help.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
The National Minimum Wage Increase
/in DCA News & Views /by ecovis_adm1n_17On the Up
As of February 1st, 2020, there will be an increase in the National Minimum Wage for employees over 20 years of age. The minimum wage for these workers has increased from €9.80 to €10.10 with immediate effect. It is advisable that you notify all employees currently receiving minimum wage of this change before their next payslip to ensure that they know this change will be in effect immediately.
For all workers under the age of 20, there will also be an increase in line with the minimum wage guidelines. These new rates will be as follows:
Regina Doherty of the Department of Social Protection has said of the increase:
“Since 2016, a minimum wage employee working a 39-hour week has received a gross pay increase of €2,331. Since 2015, we have increased the minimum wage by 13.2% ahead of the rate of inflation.”
There is still a way to go before we are on par with the current living wage estimate of €12.30 per hour, but any increases are of course a step in the right direction for low income workers and their families with our ever increasing cost of living as we continue to see working people living under the poverty line. Chief Executive of Social Justice Ireland has stated that Ireland has one of the highest rates of low-paid employment in the OECD (The Organisation for Economic Co-Operation and Development.
It is also advised that in light of these increases, employers should take a look at their current rates for Sunday work as legislation states that employees should receive reasonable compensation for this work, whilst the amount is not specified it is suggested that a 25% premium may find its way into legislation and it may be wise to follow this template going forward.
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 are always happy to help.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
The Irish Economy Continues To Show Resilience
/in DCA News & Views /by ecovis_adm1n_17Slow and Steady Wins the Race
As the risks of an imminent ‘Hard Brexit’ began to fade in the final quarter of last year, recent surveys by the ACCA (Association of Chartered Certified Accountants) and the Institute of Management Accountants suggest that the Irish economy began to show signs of slow defiance and resilience against the Brexit who continued to cry wolf.
Where previous months had seen patterns of slowing down and an evident atmosphere of unease and uncertainty about Ireland’s financial future post-Brexit, the last quarter of the year took a slight upward turn which is expected to continue into the first quarter of 2020 at least. It was also found that global economic sentiment has begun to grow at a slower pace than our own Irish sentiment. Chief economist with the ACCA Michael Taylor has said that:
“The Irish economy is buoyant against a global economy facing a sharp slowdown in global trade.”
Many businesses are reported to have found renewed confidence after the low points early in the year towards the end of 2019. Naturally with Brexit talks due to pick up again this month it is hoped that Irish consumer confidence will not take such a heavy hit as previous as Taylor states:
“The year ahead will be crucial, notably as the UK and the EU negotiate a post-Brexit trade agreement – Ireland being the most exposed EU economy to the UK. […] It would be very positive if a free trade agreement was reached in what is a tight time scale.”
Naturally our proximity and trade reliance on our closest neighbours remains cause for concern in the weeks ahead with such an atmosphere of uncertainty and a lack of clarity as to our position in this exit, but as Irish businesses have been given time to prepare it is hoped that we can weather this storm as well as is possible. A recent estimate by Copenhagen Economics suggests that in the event of a no deal Brexit our economy could take as much as an €18billion hit.
In the event of another Brexit extension, the Irish economy is expected to continue its slow growth of around 3% into 2020. As we learned from the tortoise and the hare, sometimes slow and steady does win the race.
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 are always happy to help.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
The Importance of a Personal Pension
/in DCA News & Views /by ecovis_adm1n_17Back to the Future
We have been constantly told since childhood that it is important to cast an eye to the future and never to “spend it all in the one shop” and to “save for a rainy day”. These are refrains Irish ears are so used to hearing that we could likely finish these sentences from one word. There are ideologies that we have been raised on and yet it seems that very few Irish people take this on board.
A recent survey by Standard Life found that the majority of Irish workers (88%) believe that it is a good idea to hold a private pension as well as the state pension, however it has been revealed that just over half (51%) of Irish adults don’t own a pension at all, with male pension ownership being significantly higher than female ownership across both the public and private sectors. In the private sector, this discrepancy is a lot higher with 50% of men and only 30% of women owning a pension.
It is worth noting that pension ownership has increased in recent years from 46% to 49% from quarter to quarter, with private sector pension ownership increasing from 37% to 40%. As we have spoken about many times in the past, the cost of living in Ireland has been increasing each year and as a result this survey found that the most common reason for not owning a pension was being unable to afford to do so. Sinead McEvoy, Head of Technical Solutions with Standard Life has suggested that she does not think it is that simple as standard weekly number crunching and believes that it is a case of not looking to the future, stating that:
“We don’t believe it is the real reason for some. We think a combination of people wanting to start paying into a pension but not getting around to it, not understanding pensions, not knowing how to start one and being uncomfortable making retirement related decisions are all blockers. […] Once people understand how important it is to have their own pension, how beneficial the tax breaks are and how relatively easy it is to start a pension – they will take action. We think 2020 is a year to take pensions action and we encourage everyone to start talking and learning about how pensions work.”
With this in mind, we here at EcovisDCA would also encourage all Irish workers to look deeper into the pensions process and to ensure that they are paving the way for their futures.
Should you have any concerns or queries about any business or financial matters, please don’t hesitate to contact us.
– – –
~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY
What does the property market look like for 2020?
/in DCA News & Views /by ecovis_adm1n_17Good Cop Bad Cop
We have spoken many times in the past couple of years about the difficulties facing prospective home buyers in the current market. Between the rising cost of living and the increasing rental costs limiting the ease of saving the required deposit and the ever-growing cost of properties themselves it has become incredibly difficult to gain a foothold on the property ladder. There is mixed news on this front to herald us into a new decade which leaves a level of uncertainty about what we can expect going forward.
On a positive note it has been reported this week that the construction sector has seen a much-needed boost and has begun growing again for the first time since August 2019. The Ulster Bank Purchasing Managers Index suggests that this growth forecasts a strengthening of the housing construction sector which may hopefully see more supply rise to meet demand. This also extends towards the commercial construction sector which has also reported growth and will be good news for companies looking to Ireland as a new base ahead of Brexit.
The reason for this newfound growth is cited as being a reduced level of Brexit uncertainty. The uncertainty around Brexit has plagued Irish business life for a while now and the easing of this panic is a welcome change across all sectors and reflects a new expectation of continued success in 2020.
This lessening of Brexit panic also has some negative consequences as it has been reported that there is an expectation that despite a new revival of the construction sector, we may see housing prices rise once again in the year ahead. Property price increases had begun to slow significantly towards the end of last year due in large part to Brexit concerns so this will be unwelcome news for any hopefuls currently saving hard. Davy Stockbrokers reports that subsiding Brexit fears may see a higher level of spending on high-end properties. They have stated that average house prices rise by 2% this year with the possibility of further rises “if the top end of the market benefits from reduced Brexit uncertainty.” Davy Stockbrokers also support the suggestion that the construction sector will continue to grow in the year ahead. It is suggested that the increase in time before Brexit becomes reality may be the reason for this lessening of anxiety.
A little bit of good news vs bad news to balance out the beginning of the new decade!
Should you require any guidance or advice on any business or financial matters, please don’t hesitate to contact us here at EcovisDCA, where we are looking forward to helping your business flourish in the roaring 20s.
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~ DCA PARTNERS, DECLAN DOLAN & EAMONN GARVEY