Insights From the FMco Team

Strategic Banking Corporation of Ireland ‘SBCI Covid-19 Working Capital Loan Scheme’

The Working Capital Loan Scheme is targeted at small and medium sized enterprises in order to assist them with future working capital requirements and to fund adaptation of your business to mitigate the impact of Covid-19.

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The Department of Business, Enterprise and Innovation (DBEI) has proposed this Scheme in response to the Covid-19 crisis and the urgent need for retail companies to achieve a step change in online capability.

This is a Competitive Fund which will be administered by Enterprise Ireland on behalf of DBEI with a total fund size of €2m.

The government have released a wide range of supports through the Department of Employment Affairs & Social Protection, Enterprise Ireland and have made finance available through the SBCI and Microfinance Ireland.

Under Phase II - scheme is being simplified

Under Phase II - scheme is being simplified

Section 1003 offers relief on the donation of a heritage item by treating the relief as a “payment on account of tax”. The relief is equivalent to 80% of the market value of the donation.

Requirements of the Key Employee Engagement Programme [KEEP]

The revenue has announced that it does not intend to release a bespoke framework to deal with Cryptocurrencies.

Irish Revenue under a scheme called SARP [Special Assignee Relief Programme] provides Income tax relief for key employees who are assigned by an employer to work in Ireland from abroad.

We deal with a lot of what we casually refer to as the “shoebox” clients. The shoebox client is someone whose financial documents are stored in the aforementioned shoebox and that documentation is presented to us as is. As far as they are concerned, they do their job, and it’s our job to look after the contents of the shoebox.

A large part of our own new business is businesses which themselves have just got started. At this stage the business may have started trading, but it is typical that the administrative side — in terms of the accounts — is not yet at the required footing. This stage is crucial for business because getting off on the right foot makes everything easier as a business grows, both for the accountant and most importantly, for the business itself.

Our rule of thumb at FMco is that if a client is issuing more than 4 or 5 invoices each month, it becomes absolutely vital to move beyond the Excel file (or worse, the notebook) and onto an accounting software package. It’s one of the most important steps a business can take, and something we always recommend.

Our larger and more established clients are trading as limited companies, and in a sense we are hoping to steer the start-ups that we work with down this path by instilling good accounting practices from the beginning of their business.

FMCO has always been a company that has embraced and used the latest technology. One of our recently retired partners, Niall, first hauled a personal computer and a server into our offices back in the mid-1980s. One of our very first clients was in the nascent computer business and Niall quickly recognised where the practice needed to go – and that was in the days of typewriters.

Time and again our clients end up using their own systems to manage and measure basics in their business. We’ve seen some recurring use cases, so we’re sharing our templates here.

Revenue has issued guidance on who must file a tax return under the new full self-assessment regime.

In 2012 the Revenue are continuing their review and audits on individuals who have rental properties and rental income that should be returned through an Income Tax return. The Revenue are focusing on two main areas.

In practice, the Cash Basis of accounting is mainly used by shops, restaurants, public houses and similar businesses, and by any other person, such as a solicitor making supplies of goods or services directly to the public. Businesses who charge VAT under the margin scheme may also opt for the cash receipts basis irrespective of turnover as VAT charged by you under this scheme are not allowable as VAT inputs by the purchaser.

If you are a self employed person and have incurred a loss in a tax year and as a consequence you have no liability to Income Tax, PRSI, USC, remember to pay the minimum PRSI amount of €253 and submit with the form VC7 to the Department of Social Protection, Government Buildings, Millennium Centre, Saint Alphonsus Road, Dundalk, Co. Louth.

The Minister for Jobs, Enterprise and Innovation, Mr Richard Bruton TD, recently announced that he is increasing the number of businesses exempt from the requirement to hire external auditors to the maximum level permitted under EU law, a move that is expected to save Irish SMEs up to €5m per year. 

The Revenue Commissioners have recently issued a tax briefing clarifying their position and setting out their views on the tax treatment of director’s remuneration arising from holding an “office” with an Irish company. A director of a company is an office holder for this purpose.

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