Revenue is phasing out the VAT Fixed Direct Debit scheme in June 2025, replacing it with a more efficient Variable Direct Debit system. Learn about key changes and what businesses need to do ahead of the transition.
Investment will finance acquisitions as Ecovis DCA seeks to challenge UK backed consolidators.
At Ecovis DCA, we understand that volatile markets and scaremongering articles can cause a great deal of tension and concern. With constant shifts in political landscapes, economic policies, and global uncertainties, the temptation to make sudden portfolio changes can be incredibly strong for business owners. However, here at EcovisDCA we firmly believe that time in the market consistently outperforms attempts to time the market, and that long-term investments stand the test of time, and reduce the stress of trying to utilise the financial crystal ball.
Historical Consistency:
History has proven this time and time again. For example, during Black Monday in 1987, global markets plummeted in a single day. Investors who maintained their positions saw their losses recover over the following years. Similarly, the dot-com crash and the 2008 financial crisis caused significant disruptions, but those who adhered to a long-term strategy were rewarded during the recovery.
Economic and Market Impact:
Research consistently shows that missing just a few of the best-performing days in the market can drastically reduce returns. For example, an investor fully committed to the S&P 500 between 1999 and 2018 experienced strong annual growth. However, missing even 10 of the best trading days during this period cut their return by more than half. This highlights the importance of staying invested rather than attempting to predict market movements.
The Trump Trade Doctrine:
The Trump Trade Doctrine, as outlined by Stephen Miran, Chair of the Council of Economic Advisers emphasises the need for tariffs to protect American industries, generate revenue, and address the overvaluation of the US dollar. This strategic approach aims to reshape global trade in favour of the US, rather than being a reactionary measure. Miran’s paper, “Restructuring the Global Trading System,” argues that these policies are designed to create a more favourable economic environment for the US.
Outlook:
While Donald Trump has shown the ability to swiftly change policy direction, it is unlikely that we will see a sudden shift following recent announcements. At Ecovis DCA, we will continue to monitor developments closely and keep our clients informed of any significant changes.
Conclusion:
The Trump Tariff policies represent a fundamental shift in the global trading system, driven by a core belief in protecting American interests. At Ecovis DCA, we remain committed to providing our clients with the latest insights and strategies to navigate these changes effectively. Remember, it’s time in the market, not timing, that builds wealth. Should you have any queries or concerns, please don’t hesitate to reach out to our team any time.
A new online reporting tool designed to catch tax evaders has led to a drastic rise in whistleblower reports from workers across Ireland.
According to Revenue’s latest Protected Disclosures Annual Report, there were 171 protected disclosures in 2024, a jump from just 31 the previous year. These reports, made by employees, have surged since the introduction of new system. This new system is fast becoming the most utilised method of reporting with over 40% of last year’s reports submitted via the online form.
Revenue has emphasized that it values reports from the public regarding suspected tax non-compliance. Leeann Kennedy, Revenue’s Internal Audit Director noted the ease of use of the tool stating that:
“It makes the process of making a report as easy as possible while also maximising the information it captures to assist Revenue in assessing the matters reported.”
Protected disclosures enable workers to report suspicions of tax evasion, duty fraud, or customs violations within their organisation, all while receiving legal protections under whistleblower legislation. Interestingly, five reports came from Revenue’s own staff.
All disclosures are handled with strict confidentiality, and while whistleblowers can remain anonymous, Revenue cannot provide direct updates on individual cases due to privacy protections.
In 2024, whistleblower reports led to over €1.2 million in additional tax revenue for the State. Other consequences included new tax registrations, the cancellation of non-compliant registrations, debt collection measures, and public listing of tax defaulters.
With increased awareness and user-friendly reporting tools, the State’s ability to tackle tax evasion appears stronger than ever.
There are several tax-efficient options for a director to extract cash from a company. The best option depends on the director’s personal circumstances, the company’s financial position, and the purpose of the cash extraction. Below are the most common and tax-efficient methods:
| Method | Tax Rate | Best For |
| Salary/Bonus | Up to 52% | Regular income needs |
| Dividends | Up to 52% | Shareholders extracting profits |
| Pension Contributions | 0% (initial) | Long-term retirement planning |
| Director’s Loan | 20% (temporary) | Short-term cash needs |
| Termination Payment | Tax-free (limits apply) | Retirement or redundancy |
| Share Buyback | 33% (CGT) | Exiting or reducing shareholding |
| Liquidation | 33% (CGT) | Closing the company |
| Expenses/BIK | 0% (if qualifying) | Reducing taxable income |
| Selling Assets | 33% (CGT) | Monetizing personal assets |
The most tax-efficient option depends on the director’s goals (e.g., regular income, retirement planning, or exiting the company). For significant cash extractions, pension contributions, share buybacks, or liquidation are often the most tax-efficient. For smaller or regular amounts, salary, dividends, or expenses may be more practical.
If you want to discuss your options and are seeking to extract funds from your company in a tax efficient manner please don’t hesitate to contact a tax advisor at Ecovis DCA so we can assist you with your goals.
As we step further into 2025, the Irish tax and Revenue landscape continues to evolve, reflecting the dynamic nature of our economy. Here at EcovisDCA, we believe it’s crucial for businesses and individuals to stay informed about these changes to navigate the financial terrain. To effectively prepare for the changes in the Irish tax and revenue landscape in 2025, businesses can take several proactive steps:
1. Stay Informed and Plan Ahead
Regularly update your knowledge on tax regulations and upcoming changes. This includes understanding new policies. Early planning helps avoid last-minute stress and ensures compliance.
2. Engage with Tax Professionals
Consulting with tax advisors or accountants can provide tailored advice specific to your business. They can help you navigate complex tax laws, identify potential savings, and ensure you are taking advantage of all available reliefs and credits.
3. Optimize Business Structure
Review your business structure to ensure it is tax efficient. This might involve restructuring to benefit from lower tax rates or more favourable tax treatments.
4. Maximize Available Tax Reliefs and Credits
Take full advantage of tax reliefs and credits such as the R&D Tax Credit, which offers a 25% rebate on qualifying expenditures. Other incentives include the Employment Investment Incentive (EII) Scheme and capital allowances for business assets.
5. Accurate Expense Tracking and Deductions
Maintain meticulous records of all business expenses. Ensure you are claiming every allowable deduction, including office rent, utilities, professional services, and more. Accurate tracking can significantly reduce your taxable income.
6. VAT Planning
Stay on top of VAT obligations and consider the impact of any changes in VAT registration thresholds. Proper VAT planning can help manage cash flow and avoid penalties.
7. Payroll Efficiency
With the increase in the National Minimum Wage and changes to statutory sick pay, it’s essential to update your payroll systems accordingly. Efficient payroll management ensures compliance and helps manage costs.
8. Prepare for Pension Auto-Enrolment
The rollout of the pension auto-enrolment scheme in September 2025 will require businesses to enrol eligible employees into a pension scheme. Start preparing now to ensure a smooth transition.
9. Invest in Technology and Training
Investing in technology can streamline tax compliance and financial management. Additionally, training staff on new tax regulations and compliance requirements can ensure everyone is on the same page.
By taking these steps, businesses can better navigate the evolving tax landscape in Ireland and position themselves for success in 2025 and beyond. If you need personalized advice, the team at EcovisDCA is here to help you every step of the way.
Feel free to reach out if you have any more questions or need further assistance.
Here at ECOVIS DCA, we would like to thank all our clients for partnering with us in 2024, and we look forward to continuing our success together in the year ahead.
Wishing you all a very Happy Christmas and a prosperous 2025 for you and your business!
Please note, we will be closing for the holidays on Friday, the 20th of December, and reopening on Thursday, the 2nd of January 2025.
Amendments in Finance Act 2024 further extend the tax relief available for start-up companies. This relief is for qualifying new businesses, specifically in the companies first five years of trading, provided the corporation tax liability is under €40,000 in those first few trading years.
Key points include:
This update signals ongoing support for Ireland’s start-up businesses and entrepreneurs, recognising their important role in business innovation and economic growth.
At EcovisDCA, we’re here to help your start-up succeed. For expert guidance on how these tax relief updates can benefit your business or to discuss your specific needs, please don’t hesitate to contact us.
The long-awaited pension auto-enrolment scheme for workers is finally set to launch on 30 September 2025. This date was confirmed by Social Protection Minister Heather Humphreys as part of Budget 2025.
In the recent Budget, it was announced that Finance Bill 2024 will provide for the taxation of the Automatic Enrolment Retirement Savings Scheme (referred to as AE). According to the Budget publications, the tax treatment
“Aligns as much as possible with that of Personal Retirement Savings Accounts (PRSAs), other than for employee contributions.”
Under the scheme, employer contributions will qualify for tax relief. The growth in the AE funds will also be exempt from tax, and taxed upon drawdown, apart from a 25% tax-free lump sum.
The lump sum having a tax free threshold up to €200,000, will be taxed at 20% between €200,000 and €500,000 and taxed at 40% above €500,000.
It is important to note that while the State will make direct contributions for employees under the AE scheme, no tax relief will be available for employee contributions to AE.
If you have any questions or concerns about how the scheme will impact you or your business, please don’t hesitate to reach out to us here at EcovisDCA. We are here to help and provide you with the latest updates.
The income tax return filing deadline is fast approaching! While the normal filing date is October 31, 2024, you have until November 14, 2024, if you file and make the appropriate payment through ROS. This extension applies to:
It is crucial to file your return, calculate your liabilities, and pay on time to avoid interest and penalties. Gathering documents can take time, so we advise that companies start now to ensure you meet the deadline.
Penalties for Missing the Deadline:
Missing the October 31st deadline can result in daily interest charges and a surcharge. If you submit your 2023 return after October 31, 2024, but before December 31, 2024, the surcharge will be the lesser of:
If submitted after December 31, 2024, the surcharge will be the lesser of:
These surcharges are calculated on the full tax payable for the year and do not account for any payments on account. For proprietary directors, the surcharge is calculated before deducting PAYE paid during the year.
Get Expert Help
At EcovisDCA, we ensure your tax affairs are handled efficiently and on time. For guidance on preparing your return and calculating the correct liabilities, reach out to us. We’re here to help you meet deadlines and stay stress-free!
