Businesses are failing to prepare despite no-deal Brexit fear

 

 

The vast majority of Irish businesses still do not have a Brexit plan in place, despite 70pc of firms expecting the UK’s departure from the EU to have a negative impact on Ireland’s economy.

 

AIB’s Brexit Sentiment index for the second quarter found that the manufacturing, retail and tourism sectors here were the most negative about Brexit.

 

Just 6pc of 500 businesses surveyed in the Republic of Ireland had a plan in place. In Northern Ireland, the figure was just 5pc.

 

The index found that larger businesses were more likely to have a plan, while the impact on the economy and potential tariffs were the main concerns for businesses in the Republic.

 

AIB’s head of business banking Catherine Moroney said it was “critical” for businesses to plan for the worst now.

 

“When businesses do seek financing, one of the key questions we in AIB ask them about is their Brexit-readiness and the potential impact Brexit may have on their business in a harder-line Brexit scenario,” she said.

 

Ms Moroney said the bank was launching a new credit-check service to help customers who were looking to increase their export reach.

 

Provided in association with Euler Hermes, the bank will allow customers a free risk assessment on five potential or existing overseas clients.

 

The idea is to provide greater peace of mind by gauging the likelihood that the overseas clients will pay their bills.

 

“Our local Brexit advisers are in place to support and assist businesses to navigate through Brexit and I encourage businesses to contact their local AIB to discuss how we can support their Brexit-readiness,” Ms Moroney said.

 

The bank also has a €122m allocation of funds as part of the Government’s Brexit loan scheme.

 

AIB found that in the Republic, food and drink businesses were most likely to have a plan in place (11pc), followed by tourism (9pc) and then transport (7pc).

 

AIB chief economist Oliver Mangan said the index’s readings in terms of sentiment had been fairly stable over recent surveys.

 

“This is reflective of the lack of any major new developments over the survey period in the Brexit process. While a somewhat limited proportion of SMEs are reporting a negative impact on business now, the lack of progress and clarity in relation to Brexit and the uncertainty is also evident in the survey results,” he said.

 

“Indeed, in the Republic of Ireland, the negative headline reading is being driven by concerns regarding the impact on business in the future and on the wider economic impact.”

 

Talks will resume between Dominic Raab, Britain’s Brexit secretary, and Michel Barnier, the EU’s chief negotiator, in Brussels tomorrow.

 

Mr Raab will give a speech on Thursday setting out the UK government’s plans for a no-deal.

 

“Securing a deal is still by far the most likely outcome, but we want to make sure that we clearly set out the steps that people, businesses and public services need to take in the unlikely event that we don’t reach an agreement,” he said.

 

Britain will recognise some EU regulations in the event of a no-deal Brexit to ensure that the country does not grind to a halt, the ‘Telegraph’ reported over the weekend.

 

Government papers setting out what will happen if the UK leaves without a deal make clear that Britain will adopt a “flexible” approach to ensure that EU medicines, car parts and chemicals are still available in the UK.

 

The approach will, however, leave the UK open to claims that it is giving up some negotiating strength by agreeing to accept EU goods without ensuring that British goods will be accepted on the Continent. 

 

Contact our office and we will be more than happy to assist you with any queries you may have.

Article Source: https://tinyurl.com/y73m5hh4

 

REVENUE UPDATE - FUEL ALLOWANCE

 

 

A Fuel Allowance is a payment under the National Fuel Scheme to help with the cost of heating your home during the winter months. It is paid to people who are dependent on long-term social welfare payments and who are unable to provide for their own heating needs. Only one Fuel Allowance is paid to a household. Fuel Allowance is generally paid with your social welfare payment on the day that you are usually paid.

 

The 2018-2019 Fuel Allowance season will begin in October 2018.

 

Rates

 

The Fuel Allowance is €22.50 per week.

 

For Example:

 

The assessable income limit for a single person under 80 is €343.30 (€100 plus €243.30)

The assessable income limit for a couple (where the qualified adult is aged under 66) is €505.40 (€100 plus €243.30 plus €162.10)

The assessable income limit for a couple (where the qualified adult is aged 66 or over) is €561.30 (€100 plus €243.30 plus €218)

If you are over 80, add an extra €10 to the appropriate DEASP payment rate.

 

How to Apply

 

New applicants for Fuel Allowance need to complete the application form NFS 1 (pdf).

 

This application form is also available from your local post office.  You can also request it by texting FORM FUEL followed by your name and address to 51909.

 

For more information: https://tinyurl.com/ybrwjtba 

BREXIT - Why UK Businesses should set up in Ireland?

 

Since the Brexit Vote, many UK businesses face an uncertain future with challenges such as altered taxes, as well as changes in legislation and regulations.  Many UK businesses are considering moving part of their operations to EU locations, Dublin and Luxembourg being the most popular major fund management centres.  According to the Irish Times, there has been an influx of applications submitted for licences to authorities in Ireland and Luxembourg.

 

Here are some of the reasons why UK businesses should establish an Irish based company:

 

·       Ireland is part of the EU

·       We have a familiar landscape such as culture and language

·       Ireland is a member of the Economic and Monetary Union so there is no currency exchange risks

·       We are just a short flight away

·       15 out of the world’s leading financial services firms already operate in Ireland

·       Ireland is the 11th most attractive business locations in the world

·       It is easier for Irish companies to access the European Market.

·       Start-ups are exempt from corporation tax for the first three years of trading

·       There are opportunities to avail of tax benefits through pension funds

·       Low Irish Corporate tax rate of 12.5% for trading companies.

·       Dividends can be paid to a UK parent company with no Irish withholding tax.

·       The population in Ireland is the youngest in Europe and they are highly qualified workforce.

 

Whatever business you have, Ireland offers a lot of advantages as a location; from healthy economic and legal systems, to a strong and well-educated workforce, to the buildings and cities themselves.

 

How can Malone & Co Help to set up a Business in Ireland?

  

Malone Accountants provide advice to Individuals and Corporations looking to set up a business in Ireland on the following issues:

  

·       Appropriate trading structures including private limited company, branch registration etc.

·       Likely Irish tax liabilities of such structures

·       Employee Taxes

·       VAT

·       Banking set up and administration services

·       Provision of registered office and virtual office services

·       Systems & accounting requirements

·       Relevant withholding tax requirements

·       Provisions of relevant double taxation agreements

·       Business planning including cashflows, forecasts, management accounts etc

·       Purchasing property and related issues

 

We also provide Free Company Incorporation Services and Free Tax Registration Services for new Clients.

 

Feel free to contact Damien Malone on damien@maloneaccountants.ie if you require further information or assistance on setting up a Business in Ireland.

 

IR Global Network

We are delighted to announce that we are members of the IR Global Network which is a multi-disciplinary professional services network with members across 155+ jurisdictions.

 

The networks prime purpose is to assist individuals and businesses with their cross-border accounting, financial, taxation and legal issues. The independent firms that make up the network are all committed to working with other like minded member firms, clients and strategic partners to make a positive difference in business and society.


Click HERE to view our IR Global profile.

 

We have moved to a New Office!

 

Malone & Co. are pleased to announce that we have moved our practice to a new larger office location on the Main Street in Rathcoole Village, Co. Dublin. 

 

We had spent the previous four years in our Library Square offices in Rathcoole, a few metres down from our new location, but due to our continued growth the time was right to make the move. Working from our new office suites, we hope to ensure that we continue to meet the highest quality of service to our clients and that we can expand our service range offering, to ensure that we can meet the increasing client needs in these thriving economic times. We will also continue to recruit staff with the expertise, experience and drive to make a difference.

 

It was very important for us to stay in the Rathcoole area because of the many close relationships we have formed with the local and business communities. We are still in the process of settling in and getting organised and we would like thank our clients for their support and patience.

 

Our New Address is:

Inniscarra,

Main Street,

Rathcoole, 

Co Dublin, D24 E029. 

 

We are now situated between the Iniscarra Art Gallery and Marsella's takeaway on the main street and we look forward to welcoming all our clients and prospects to our new office!

   

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Irelands low corporation tax rate; is your company eligable?

As the 12.5% corporation tax rate is one of the most popular reasons for setting up a company in Ireland, it is very important to be aware that a company is not automatically entitled to pay the 12.5% corporation tax just because it has been incorporated in Ireland.

 

For over a decade, corporate income in Ireland has been characterised into two distinct streams as follows:

 

-          trading or active income which is taxed at the 12.5% corporation tax rate and

-          non-trading, foreign or passive income which is taxed at the 25% corporation tax rate.

 

The 12.5% corporation tax rate is only available to trading companies which are deemed to be "managed and controlled" within Ireland. The distinction between a company’s activities (i.e. whether the activities constitute trading activities or whether they constitute passive activities) is an important one, as the Irish Revenue Commissioners are becoming ever increasingly cognisant of and will challenge low substance businesses (otherwise known as “brass plate operations”) availing of the lower rate.

 

These are extremely important points to be aware of, If your main objective for setting up in Ireland is to avail of the 12.5% corporation rate, there is no point in simply setting up a company without also being both aware of, and addressing, the "management and control" and “substance” issues highlighted above. This is a common pitfall made by people who do not do sufficient research, or who do not consult a suitably qualified and experienced advisors prior to setting up their company. If you set up an Irish company but you do not meet the "management and control" and “substance” requirements, it is very likely the Irish Revenue Commissioners will expect you to pay 25% corporation tax and not the much lower 12.5% rate.

 

The factors to be taken into account in establishing where the company's central management and control lie include:

 

Where meetings of the Board of Directors are held;

Where the majority of the directors reside;

Where the companies books and records are maintained;

Where the companies employees are based;

Where the company's head office is located.

 

Due to the above, it is highly recommended that an Irish resident director and an Irish registered office be provided to any company wishing to avail of the 12.5% corporation tax rate. It’s also important to ensure that the Directors hold periodic board meetings in the state and declare an Irish salary on the Irish companies payroll in respect of the carrying out of their duties as Directors in the state.

 

Our firm have handled numerous cases in recent times where companies have filed their annual corporation tax returns on the basis that they were eligible to pay the low 12.5% rate only to be challenged by the Irish authorities. In all cases, the companies concerned did not plan properly to ensure they sufficiently satisfied the management/control and substance criteria to avail of this low rate.

 

We can provide specialist advice on whether your company will be eligible for the 12.5% corporation tax rate. We can also advise you as to what changes to your company structures and processes would be necessary to ensure eligibility for the low 12.5% corporation tax rate in Ireland. See our website for more details: Click here

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