Revenue – Compliance Exercise

Recently, the media reported that the Revenue is conducting a widespread ‘compliance’ exercise. The companies being targeted are those who have not made returns in recent years – up to 2021.

The exercise will have the duel purpose of ‘tidying up’ the register and encouraging otherwise compliant businesses to get their tax affairs up to date.

It should be noted that non compliant companies are not eligible to apply for and obtain state aids to business and additionally late filings may lead to restriction of other tax reliefs or benefits.

We, at O’Boyle + Associates, are highlighting to individuals and businesses who may have been tardy with their returns that keeping up to date with revenue returns is critical.

If you are in doubt about your situation with revenue and require expert advice contact us here at O’Boyle + Associates.

Be Aware of Potential Scams

Scams targeting small businesses are unfortunately prevalent, and it's important to stay vigilant to protect yourself and your business. Here are some common scams that small businesses should be aware of:

1. Phishing Scams: These scams involve fraudulent emails or messages that appear to be from reputable organizations, such as banks or government agencies. They typically aim to trick you into revealing sensitive information like passwords or financial details. Be cautious of any unsolicited emails or messages and avoid clicking on suspicious links.

2. Invoice and Payment Scams: Scammers may pose as clients or suppliers and send fraudulent invoices or payment requests. They may ask you to pay to a different account or provide false information. Always verify the authenticity of any payment requests before making a payment or updating payment details.

3. Tech Support Scams: Scammers may contact you pretending to be from a well-known tech company and claim that your computer has a virus or other technical issues. They may offer to fix the problem remotely for a fee or ask for your personal information. Legitimate tech companies will not contact you unsolicited, so be cautious and avoid sharing sensitive information.

4. Directory Listing Scams: Scammers may contact you claiming to offer enhanced business directory listings or advertising opportunities at a high cost. These offers often provide little to no real value. Always research the company and carefully review any agreements before committing to pay for directory listings or advertising.

5. Fake Government Agency Scams: Scammers may impersonate government agencies, such as the Revenue and contact you with threats of fines or legal action unless immediate payment is made. Government agencies typically communicate through official channels and will not demand immediate payments over the phone or via email.

To protect your small business from scams:

·       Educate Yourself and Your Employees: Encourage a healthy scepticism

·       Verify Requests: Independently verify any suspicious requests or information

·        Secure Your Systems: Use strong and unique passwords, install reputable antivirus software

·       Be Cautious with Personal and Financial Information: Only provide sensitive information on secure websites (look for "https" in the URL)

·       Report Scams: If you encounter a scam, report it to Gardaí and the organisation it appeasr to come from

Remember, prevention and awareness is crucial when it comes to protecting your small business from scams. Stay informed - trust your instincts, and be cautious when dealing with unfamiliar requests or offers but should you require expert advice, you can contact O’Boyle + Associates for help and support

Non-resident Landlord Withholding Tax

Revenue has announced that there will be procedural and other changes to the Non-resident Landlord Withholding Tax as of the 1st of July, 2023.

“A non-resident landlord is someone who is not resident in Ireland, but rents out a property in Ireland. Income from renting out a property, or from another source that qualifies as rental income, is taxable. This income must be declared to Revenue.”

A handbook has been published that covers all aspects of the legislative change; Click here to download.

Detailed changes are included for

·       Non Resident landlords

·       Collection Agents

·       Tenants

However, some aspects of the changes may require further clarification and explanation as each individual situation will be unique. This is where the professional team at O’Boyle + Associates can advise.

As ever, we would recommend that individuals should stay informed by regularly visiting the Revenue.ie website

Positions Available

We are Hiring! We have opportunities for both fulltime and part time positions. Email CV’s in the first instance to marguerite@cobtax.com

Organisation Update

Here at O'Boyle and Associates we are pleased to announce Marguerite Maher as partner. Moving forward, our team will continue to provide the efficient and effective service that you have become accustomed to.

Please don't hesitate to contact us at any time

Services

Accountancy Tax Advisory Bookkeeping/Payroll Insolvency

Temporary Business Energy Support Scheme (TBESS)

The TBESS was introduced to support businesses with increases in their electricity or natural gas (energy) costs. 

Overview of the TBESS (Per Revenue Guidelines):

TBESS is targeted at businesses carrying on a trade or profession, the profits from which are chargeable to tax under Case I or Case II of Schedule D, that have experienced a significant increase in their electricity and natural gas costs.

The key features of the scheme are:

The scheme will operate in respect of electricity and natural gas costs relating to the period 1 September 2022 to 28 February 2023. Claims may be made in respect of each calendar month (referred to as a ‘claim period’) within this period. The first claim period for which a claim can be made is September 2022 and businesses will be able to make claims through the Revenue Online Service (ROS) from early December 2022.

The scheme operates by reference to bills or statements for the metered supply of electricity and natural gas through electricity accounts or gas connections identified by its own Meter Point Reference Number (MPRN) or Gas Point Reference Number (GPRN).

To be eligible to make a claim under the TBESS in respect of an electricity bill or a natural gas bill, a business must be able to demonstrate that the average unit price for electricity or natural gas on the relevant bill has increased by 50% or more as compared to the average unit price of electricity or natural gas in a reference period. In broad terms, this is the average unit price in the month that is 12 months prior to the claim period to which the relevant bill relates. This 50% increase is known as the ‘energy costs threshold’.

• Once the eligible business has passed the energy costs threshold in relation to a particular electricity or natural gas bill, and satisfies a number of other conditions, it is a ‘qualifying business’. A qualifying business is entitled to claim a Temporary Business Energy Payment (TBEP) amounting to 40% of its eligible cost (subject to a cap for each monthly claim period). A claim for a TBEP must be made within 4 months of the end of the claim period to which a particular electricity or natural gas bill relates.

The eligible cost amount in relation to an electricity or natural gas bill is calculated as the increase between the bill amount on that electricity or natural gas bill as compared to a bill amount in the applicable reference period.

For these purposes, electricity costs relating to an electricity account (MPRN) and/or gas costs relating to a gas connection (GPRN) in respect of each monthly claim period falling within 1 September 2022 and 28 February 2023 must be compared with the electricity or natural gas bill costs, for period that is 12 months prior to the claim period concerned.

Where an electricity or natural gas bill covers only part of a claim period then it will be compared with a proportionate amount of the electricity or natural gas costs for the reference period in determining the eligible cost amount.

Provision is made for businesses to assess their eligibility and, where appropriate, to make a claim in respect of an electricity or natural gas bill for a particular electricity account or gas connection for which the business does not have a bill for the reference period. This will be relevant where -

• the business commenced after the end of the relevant reference period, or

• the business had commenced before or during the reference period, and the relevant electricity account or gas connection was not held by the business during the reference period. This might arise because the relevant business has expanded its operations by setting up in an additional location with a new electricity account or gas connection or where it has acquired a premises with an existing electricity account or gas connection. It might also arise because the business has moved premises since the relevant reference period.

The TBEP is subject to a monthly cap, which applies on a per trade basis or a per profession basis. In general, the support available in respect of electricity and natural gas costs is subject to a monthly cap of €10,000 per trade or profession. Where, however, a business carries on its trade or profession from more than one location, as identified by the business having multiple electricity accounts/ MPRNs in different locations, the cap may be increased by €10,000 per electricity account/ MPRN, subject to an overall monthly cap of €30,000 per trade

The energy costs threshold test:

An eligible business wishing to make a claim under the TBESS in respect of an electricity or gas bill, must satisfy the energy costs threshold in relation to that bill for a claim period in order to be eligible to make a claim under the scheme. The energy costs threshold operates as a gateway to support under the TBESS. If the relevant threshold is reached, and provided the business satisfies a number of other conditions, it is regarded as a qualifying business in respect of that claim and will therefore be eligible to apply for a payment under the TBESS in respect of the electricity or gas bill.

The energy costs threshold test is based on an increase of 50% or more in the average unit price of an electricity or gas bill as compared to the average unit price in a reference period. The ‘reference period’ is a calendar month that is 12 months prior to the claim period (calendar month) to which the relevant bill (in respect of which the eligible business wishes to make a claim) relates. For example, a claim in respect of an electricity or gas bill with a billing period covering September 2022 will be compared to the September 2021 reference period.

An eligible business will use a ‘deemed reference unit price’ in respect of any reference period where a comparative unit price, pertaining to the same electricity account / MPRN or gas connection/ GPRN, is not available. This will be the case where for example:

the business commenced to trade after the relevant reference period and so there are no energy bills for the reference period;

the business has increased its geographic footprint by expanding into another location or relocated so that it has a new electricity account/ MPRN or gas connection/ GPRN and therefore no bills pertaining to that new MPRN or new GPRN in respect of the reference period.

Deemed reference unit prices will be provided by the Sustainable Energy Authority of Ireland (SEAI) and will be published in these guidelines when available.

Unit price:

A unit price, in respect of an electricity or gas bill, is calculated as the total bill charges, exclusive of VAT, divided by the number of units or electricity or gas, as the case may be, consumed during the period covered by the bill. A unit price must be determined in respect of each electricity or gas bill in respect of which a claim is to be made and a unit price must also be determined in respect of each reference period. If there is a 50% or greater increase in the average unit price determined for an electricity or gas bill when compared to the average unit price of the reference period, then the energy costs threshold will have been met. In order to apply the energy costs threshold, the following unit prices will need to be determined:

• The electricity or gas reference unit price, and

• The electricity or gas bill unit price In practice, a business will supply details of the electricity or gas bills for the claim period and reference period to Revenue on ROS.

Calculating the electricity or gas bill unit price:

In relation to an electricity or gas bill, being a bill that is received during the period September 2022 to February 2023 and in respect of which a business wishes to make a claim, the unit price for that bill is calculated as being the total amount of charges on the electricity or gas bill exclusive of any VAT charged thereon, divided by the number of units of electricity or gas consumed during the billing period covered by the relevant electricity or gas bill.

Example:

 The energy costs threshold calculation:

In relation to an electricity or gas bill, an eligible business is regarded as having met the energy costs threshold for the claim period, where the percentage amount determined by the formula –

(A – B) B x 100

 where –

“A” is the electricity or gas bill unit price, and

“B” is the electricity or gas reference unit price, is greater than or equal to 50 per cent.

The above information is only an overview of the Temporary Business Energy Support Scheme (TBESS). Please also be mindful that if you wish to avail of the above scheme, you must be tax complaint and hold a tax clearance certificate.

Further information on the scheme is contained in the https://www.revenue.ie/en/starting-a-business/documents/tbess-guidelines.pdf

Budget 2023

In autumn of each year the Minister for Finance and Minister for Public Expenditure and Reform announce the Government’s spending, tax and borrowing plans for the following year – in other words the ‘Annual Budget’.

In many instances this ushers in changes in the taxation rates and aids to business that usually required deciphering.

Don’t hesitate in contacting our office should there be any aspects that require further explanation. We would also like to draw your attention to the Government guide which can be downloaded here https://bit.ly/3UI2qUF

Government Websites – a Trove of Information

We have mentioned this before but it’ worth reiterating!

There are a wide range of state aids to business and navigating government related websites is a lot more user friendly than previously.

It is always advisable to have a sound knowledge of where regulations, obligations, licences and taxation impact on your particular business.

We recommend you check out www.gov.ie and navigate to  http://www.businessregulation.ie/  .

“This online portal offers SME owners identify the main regulations that affect their business. The site also helps users connect with relevant agencies to utilize their guidance, tools and contact points. The portal offers advice for SME's at both start-up and established levels.”

Should you require further clarification on any aspect! We can advise and explain accordingly.

Additionally, we would recommend https://revenue.ie/ . The website of the Revenue Commissioners is a trove of information covering all aspects taxation for both individuals and businesses alike. This is an easily navigable website with simple explanations, a vast archive of official forms and step-by-step instructions of how to engage with e the department.

Here at O’Boyle and Associates we find these websites to be excellent reference points and would commend to all.

Contact us Here , if required.

Business Planning

Planning is a key element in all business operations. Surprisingly many individuals get engaged in a business without any comprehensive plans in place or perhaps even being conscious of what exactly is involved.

At O'Boyle and Associates, we can help. Meanwhile, here are a few thoughts.

What is a Business Plan?

A business plan is a document describing a business, its products or services, and how it earns or will earn money.

Additionally, it details management structures, staffing, and its operational model.

There will be a series of activities associated with constructing a business plan.

• Strategic Planning

• Evaluation Ideas

• Research

• Recruitment

• Partnerships

Going through the exercise of 'writing' the plan brings a great focus and drives the evaluation of the business's raison d'etre.

Executive Summary:

The Executive summary is essentially the prologue to your business plan. Its purpose is to distil everything that follows and give time-crunched reviewers (potential investors, collaborators or lending institutions) a high-level overview of your business persuasive in getting them to read further. It should be written last.

Contact us for professional advice on business plans

Business Supports Are Available

As is generally accepted, this year is one of the most challenging for businesses in quite some time.  

Soaring inflation which grabs all the headlines, while being a primary consideration for all businesses, should not be considered a crippling factor. Your individual circumstances and your businesses ‘game plan’ are the primary factors as you navigate your business through the troubled waters of 2022.

There are many government funding initiatives, covering a wide spectrum that may be of use to your business. – Here is a link https://bit.ly/3aRFCzc to government supports, many of which will have been initiated during Covid but are still operational. Here at O’Boyle and Associates we can help you identify what schemes you are eligible for and what would be most beneficial to your business.

The transition to online business – accelerated by the pandemic does offer significant opportunities to businesses best placed to exploit them. We would recommend that you check out the Local Enterprise Office Trading Online Voucher – full details at https://bit.ly/3xKH3Zq

Some Basic Eligibility Criteria:

•            No more than 10 employees;

•            Less than €2m in turnover;

•            be trading for at least 6 months

There is a maximum of 2.5k available on a ‘matching spend’ basis for those deemed eligible. Again, it’s well worth checking out you eligibility and at O’Boyle & Associates, we are here to help

2022 Will be a Challenging Year

Consult the Professionals

Making sense of it all !

We are living in very uncertain times – the global economy has been thrown into disarray by, firstly, the Covid 19 Pandemic and more recently by the war in Ukraine.  We are likely to be living with the consequences of both for quite some time.

While this is essentially a global issue, there will, nevertheless, be a trickledown effect to local business and economies.

Small business owners will ask themselves the question – how does this affect me? If you are interested in the worldwide picture a recent article from Reuters gives a good insight, https://reut.rs/38a0vnM

However, we expect the local interest be the predominant sentiment for most people in Galway and Ireland in general. We recommend https://revenue.ie/  as a site with all the factual information, rules and regulatory obligations relating to both business and personal finances and taxation.

Making sense of it all, however, may require you consult the professionals for specific clarifications and advise on plotting a path through the minefield that is the world of financial regulation

At O’Boyle and Associates we are ready and waiting to assist. Contact us today.

What is Cloud Based Accounting Software?

Accounting software is certainly not a new trend, though the switch to cloud-based accounting software and associated resources is. Switching to a cloud accounting system can help streamline operations by integrating your accounting system with your live financial data.

You can key information into a single application and have that same information available across multiple channels. So instead of spending your valuable time worrying about whether your data integrates with multiple systems, you can spend that extra time growing your business instead.

How Does Cloud Accounting Work?

Cloud computing can offer your business many benefits. It allows you to set up what is essentially a virtual office to give you the flexibility of connecting to your business anywhere, any time. Cloud computing allows you to access your data and programs outside of your own computing environment, rather than storing your data and software on your personal computer or server.

O’ Boyle + Associates use the latest technology to help a business achieve their goals and ambitions. Save yourself time, money and grow your business.

What Are The Benefits of Cloud Accounting?

Access and update your accounts anytime, anywhere and on any device. Online collaboration with your accountant becomes a seamless and real-time event. Business owners and their accountants can work in the system at the same time, making reconciliations, returns and management accounts much easier and quicker to complete.

• Create professional invoices. Receive updates when they are opened. Get paid quickly with our pay now button on invoices.

• Full Irish & UK VAT reporting including VAT3, RTD, VIES and Intrastat built in.

• Import your bank statement directly to say time on posting and easy reconciliation.

Dext reads and extracts data from your receipts, invoices and other financial paperwork quickly and easily. Instantly capture a receipt by taking a photo with the app, or forward items to your unique Receipt Bank email-in address. The app will extract key information from the submitted document. 

1. Easy Document Capture

   Get the paperwork you need, quickly and easily.

2. Automatic Invoice Fetch

   Receipt Bank connects directly to over 2,500+ suppliers, so you never have to download a bill again.

Why Is Cloud Accounting Safe?

Cloud applications use encrypted connections when transferring data. This means that the data is encrypted before it's sent from your device to the remote server and then again when it returns. This means that it can't be intercepted and read by a third party. So, in our opinion – yes, cloud accounting is safe.

If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will give you a better overview of your finances, and speed up your business.

Should I hire an accountant for my small business?

Yes, you should hire an accountant for your small business when you need help with the collection, analysis and reporting of financial information. Accountants can interpret your financial data in order to help you make better business decisions when it comes to your company’s money.

Don’t be a busy fool!!!

You’re so busy. You just cannot get a minute to yourself. Is this you? It seems to be the majority of people who work for themselves because they’re busy working for everyone else’s needs while trying to make ends meet.

Maybe you’re in a hair salon standing all day long and all you want to do when you get home is put your feet up and relax. You might have kids or pets who haven’t seen you all day. Do you really want to have to face into more work and start doing your accounts, bookkeeping, payroll and VAT?… the list goes on when you’re a sole trader!

You’re a builder out working hard. I’m sure the fresh air alone has you drained, do you even know what the deadlines or time limits are for filing taxes? At that stage when you’ve just had your dinner and want to relax for the evening, do you even care!

It is the important stuff though and it’s something that must be kept on top of.

We want to take that part of the sole trader title away from you so you’re not doing it solo. We can give you more free time for your business and the things you love, while keeping all your records in order and adhering to all obligations.

Do not keep putting it on the long finger - the penalties are far too much to risk and if you ignore it then it’s one of the things that will eventually come back to bite you in the (behind!)

Imagine you’re out on your farm feeding all the animals. You have more feed to get but are concerned about some new VAT implications and what it might cost you. Would it be simpler if you could let that worry or concern go and call someone for advice that is up-to date and precise.. an accountant perhaps?

Your new coffee shop is doing so well & you’ve had to hire even more staff. How can you manage all this payroll now? Is everyone getting taxed correctly? Do you know all the legal work breaks, entitlements etc.? I think you’ve enough to be doing just keeping the coffee flowing & the staff & customers happy besides stressing about payroll.

What are you waiting for? Stop being a busy fool, you’ll get nothing for it.

Get in touch with us and we will do our best to help. We want to see your business flourish!

Contact us today info@cobtax.com

I'm a sole trader – do I really need an Accountant?

There is no mandatory requirement for sole traders to use an Accountant but you should not rule out the support of an accountant entirely!

Starting a business is a challenge for anyone and if you’re starting a business from scratch, the outlays can be high and you don’t want to invest in any more than the absolute minimum. If you want to save both your sanity and money in the long run it’s crucial to get the foundations of your business right from the start. Having healthy financial habits from the beginning is essential as you grow your business.

Most small business owners can manage their own bookkeeping and payroll. It might not be the most exciting task but you may not have the time to make sure they are kept updated regularly and accurately so it’s a good idea to talk to an accountant to find out how they can support you with this.

Tax returns can be a nightmare and it’s ok to admit you’re not 100% sure that you are doing it correct. All those receipts piling up can be a headache, what you could or should be claiming for is always the question you are asking yourself. We’re here to support you with that too.

So now your business is thriving… you’re thinking of taking on an employee or two. You are also reaching the VAT registration threshold. Don’t be scared, we are here to help you decide if it’s worth setting up a limited company. An Accountant can support you in all these areas.

What other support might you need?

There are many other ways in which an Accountant can provide small business owners with support:

• Help to identify ways to save your business money

• Support with cash-flow and budgeting

• Assistance with the preparation of funding and grant applications

• Helping you gain clarity on what your numbers are telling you, enabling you to be proactive in your business and not reactive

Book a discovery call with us today and we will be more than happy to assist you with your accountancy requirements.

Email info@cobtax.com