Message from / The CEO ISME Welcomes / New Members ISME / News HR Update / Employment status Member Feature / SME Comply Training Courses / Course Updates Tax Update / Dates for the Diary Finance Update / TWSS update
MESSAGE FROM THE CEO Dear Member, Thankfully we are now in the reopening phase of the pandemic, good news for most of you, but also the time when a lot of businesses will find a return to pre-pandemic sales to be slow. We are hearing from some hospitality businesses telling us of trading levels 30%-50% below the same period in 2019. The revised Work Safely Protocol from the Department of Enterprise is much better than the one published last year, but it still has significant issues in how it addresses the vaccination issue. On the one hand the protocol says vaccination is a matter for Public Health alone, on the other hand, the HSA advice suggests that some employers need to know whether their staff are vaccinated or not. These positions are irreconcilable, and we have made the ISME position on the matter clear to the Tánaiste. While ISME has always supported the state’s position on maintenance of the 12.5% corporation tax (CT) rate, it is clear that there is a consensus among OECD countries that there should be a global minimum CT rate of 15%. We have asked the Minister for Finance to consider updating our Capital Gains Tax (CGT) regime if this change becomes inevitable. The President of the High Court Ms Justice Mary Irvine called on Government last month for more High Court judges. While we acknowledge her point that Ireland has the lowest number of judges per head of population in the EU, we pointed out to the Minister for Justice that a great deal of reform is required in our courts system. We believe the judiciary must commit to reform before we throw more taxpayers money at the problem. We were delighted to see the Companies (Rescue Process For Small and Micro Companies) Act 2021 signed into law last month. Rarely does a lobbying effort pay off so quickly, since we put our request for this legislation into Government in April 2020. This is a fast turnaround for a major adjustment to the Companies Act, and we are grateful to the Tánaiste Leo Varadkar and Minister of State Robert Troy for their determination in pushing this through to statute. It remains to be seen how small business rescue will work in practice, but we are confident that vulnerable but viable SMEs will be saved because of this amendment. Lastly, the Criminal Justice (Perjury and Related Offences) Act 2021 was commenced on 28th July. This is another issue we have campaigned on (for four years) so it was great to see it signed into law. We are not naïve, and do not expect this to be the silver bullet I the insurance cost issue, but it will give people pause for thought before they sign an affidavit that is not true in every material resect. We have written to the Chief Justice, Presidents of the Court of Appeal, High Court, Circuit Court and District Court, Garda Commissioner, DPP, and the Chief Executive of Insurance Ireland to advise them that we expect to see this offence treated seriously, and prosecuted where necessary. I wish you and your staff the very best as we slowly exit the pandemic shutdown. Neil McDonnell | CEO | neil@isme.ie
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NEW MEMBERS: NEW MEMBERS
New members:
CeMac Office Solutions Ltd Cole Arc Engineering DBC Group Edge 7 Networks Edit Office Warehouse & Showroom IGate Muffproducts Prisma Financial Skylark Media Services Ltd t/a RadioHub Stillgarden Distillery The Mind Institute Turbotricity Limited
NEWS NEWS Have you entered our draw? Supporting Shop Local can be win for everyone as ISME is running regular draws on Twitter until 31st August! To be in with a chance to win a selection of products /services from the businesses listed on both portals, and to support this campaign, just share hashtag #ISMEShopLocal on Twitter. It’s so easy to enter, just hit the Twitter symbol on any page of the portals. Visit our B2B and B2C portals We have been delighted with the response to our Shop Local campaigns which we ran for Mother’s Day, Easter and Father’s Day. Our B2C portal is now running a Summer Spending campaign and welcome Members to participate. The need to Shop Local is just as important for businesses ,so we have launched a B2B platform to encourage SMEs to support Irish businesses for their B2B needs. Don’t miss out, advertise your products and services by completing the form here. This is a great opportunity to promote your business and the opportunity for inclusion is free with your ISME Membership. Non members are welcome to be included but must pay an advertising fee. Take a look at the portal here Promote your business with ISME Advertising with ISME is an effective way to reach Owner / Managers of Irish SMEs. Members can advertise in our online publication The bISME, the next issue is due out in August. If you wish to receive members rates and more details on promotional opportunities including the 2022 Wallplanner please email Marketing@isme.ie
NEWS NEWS ISME calls for refresh of Ireland's commercial tax code ISME has written to the Minster for Finance Paschal Donohoe TD concerning Ireland’s Corporation Tax (CT) rate of 12.5% and plans by the Organisation for Economic Co-operation and Development (OECD) to adopt a global minimum rate of 15%. While Ireland has had a long-standing position of advocating an OECD position on CT, ISME believes Ireland must fall in line with the proposed standardised global minimum rate. Read more here.
Concern over planned appointment of Judges ISME has written to Justice Minister for Justice and Equality Heather Humphreys TD following calls from the judiciary for more High Court judges. While ISME recognises that Ireland has a relatively low number of judges per head of population, there is also a great deal that can be done within our legal system to reduce the administrative burden on our judges and on our Courts Service before we embark on large-scale recruitment to the judicial benches. Read more here. Progress on rescue process for SMEs ISME is delighted to welcome the second stage debate on the Companies (Rescue Process for Small and Micro Companies) Bill 2021. When the lockdown measures to combat the COVID-19 pandemic were introduced last year, ISME warned that the consequences for tens of thousands of small businesses would be dire. In April 2020, we wrote to the Minister for Enterprise seeking the urgent introduction of an affordable insolvency resolution mechanism for small businesses. Read more here
Support Scheme for Energy Audits The SEAI has launched their Support Scheme for Energy Audits. The scheme offers a voucher of €2,000 for eligible SMEs to enable them to get a high-quality energy audit from a Registered Energy Auditor. You can read full details on the the SEAI website here.
NEWS NEWS Podcast and advice from the HSA Learning to manage your own stress and potential stressors will make returning to work less uncertain and easier to deal with by listening to this podcast from the Health and Safety Authority (HSA). It features their inspector Patricia Murray, who is the Authority's Senior Psychologist and in this episode, Patricia discusses the "Psychosocial risk assessment of returning to work under COVID19. The HSA has recently published useful guides for employers including Checklist on Ventilation and their Fitness for Work Guidance for Employers and Employees after COVID-19 absence.
Guidance On Processing COVID-19 Vaccination Data The Data Protection Commission has issued guidance on Processing COVID-19 Vaccination Data in the context of Employment. The full guidance note can be downloaded here. The general position of the Data Protection Commission is that in the absence of clear advice from public health authorities in Ireland that it is necessary for all employers and managers of workplaces to establish vaccination status of employees and workers, the processing of vaccine data is likely to represent unnecessary and excessive data collection for which no clear legal basis exists. The DPC guidance considers the voluntary nature of vaccination and confirms that information on a persons vaccination status is special category personal data for the purpose of GDPR.
Springboard+ Courses Now Enrolling Griffith College announce Springboard+ free or 90% funded offering is now enrolling for the following courses in September. • • •
Certificate in Business in Pensions, Insurance, and Investment Certificate in Digital Sales Transformation Certificate in Music Production for Games
Don't miss out on this fantastic opportunity to up-skill in these exciting disciplines. To learn more, visit Springboard+ website and choose Griffith College as the provider. Or, you can email springboard@griffith.ie for more information.
NEWS NEWS How To Win New Business In Northern Ireland Cross-border trade is a significant slice of the economy and it’s remarkably robust, reaching €7.4 billion in 2020 and growing at an annual rate of 4 per cent, per year. Put simply, these figures can’t be ignored, says Anne-Marie McAteer, Project Manager with InterTradeIreland’s Acumen programme. For companies moving forward, exporting to Northern Ireland is an option to seriously consider. Sales are crucial to success and for small businesses with limited resources or first-time exporters, the cross-border market is the perfect place to begin. InterTrade Ireland offer some tips including: 1. Research your new market 2. Understand your brand and skills – ask the hard questions 3. Make a market entry plan/set targets 4. Engage an experienced market research consultant. 5. Contact InterTradeIreland With over 20 years’ experience, we know both marketplaces and have assisted over 42,000 businesses they offer a number of supports, including funding for a sales person in NI via Acumen.
Back to Business: Pitch My Business – a virtual networking event. The next Pitch my Business will take place on Thursday 9th September, 10.30am It is free and open to all. As an attendee you can network and promote your company. Each attendee will have 2 minutes to pitch and you can include a special offer that will appear on screen. Register here
ISME release results of latest COVID Survey ISME released the results of our eighth flash survey on COVID-19. The survey found that 62% of respondents are availing of the TWSS or EWSS, meaning wage supports remain by far the largest liquidity solution availed of by business. 17% of those surveyed are availing of the COVID Restrictions Support Scheme, up 9% from April. Read in full here.
NEWS NEWS Keep your business costs down As Ireland has been e-opening across most sectors, we want to keep costs down for our Members with our ADVANTAGE Affinity programme. •
In the spirit of Shop Local, PaymentPlus have extended their launch offer - for 6 months free terminal rental until November 2021. They are also offering Merchant services on a no contract basis, no termination fees, a price promise guarantee, next working day fund settlement and much more, see details on here.
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With Vodafone, ISME Members can avail of fantastic broadband discounts - 10% discount on Vodafone Simply Broadband, 15% discount on Vodafone Mobile Broadband – Simply Broadband 4G and these discounts all run for the duration of the contract, details here.
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Reduce your advertising costs with BuyMedia and get 15% reduction in the cost of advertising p.a., free access to consumer reports & insights, a dedicated Media Strategist and more, details here.
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Big Red Cloud are offering 22% discount off Big Red Cloud Annual subscription and Big Red Book Payroll – for new customers only, details here.
View all our ADVANTAGE Affinity programmes here. ISME launch legal challenge for pension equality ISME is raising funds for a legal challenge to force the creation of a fair system for private sector pension savers. By way of crowdfunding, ISME intends to raise €500,000, with the support of our Members, so far we have raised over €11,000. Find out more, donate and view our new video appeal here.
NEWS
HR UPDATE
Code of Practice on determining employment status An updated “Code of Practice on Determining Employment Status” has recently been published. The purpose of the Code of Practice is to provide a clear understanding of employment status, taking into account current labour market practices and developments in legislation and case law. These developments include, for example, new forms of work such as platform work and the gig economy. It is intended that it will continue to be updated to reflect relevant changes into the future. The Code of Practice sets out the typical characteristics of (a) employees and (b) selfemployed individuals, which can be used as a helpful guide in determining employment status. The Code of Practice lists the “key factors” in making a decision on employment status as follows: •
Mutuality of obligation
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Substitution
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The enterprise test
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Integration
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Control
It is important to note that none of the factors will be considered on their own and all factors must be taken into account when making a determination as to the employment status of an individual. Where a determination is made that a worker has been incorrectly classified as being self-employed, the employer will be required to pay the relevant PRSI contributions for the employee(s) for the full period in question and may be subject to a range of penalties under the Social Welfare Consolidation Act 2005. Additionally, employees are entitled to certain mandatory employment rights which are not available to selfemployed individuals. Employers should review and assess their classification of workers without delay.
NEWS
STANDARD CONTRACTUAL CLAUSES-ISSUES FOR IRISH (AND OTHER EU) COMPANIES. Advice from ISME Members SME Comply
Most EU companies (including, of course, Irish companies) use third party processors in one form or another to undertake data processing for them both in the EU and abroad: for example, online payment providers, email marketing or simply cloud data storage. When personal data is exported to another country the rights and protections imposed by GDPR must travel with the personal data. The EU have a number of mechanisms that can be used to ensure these rights and protections, and to legitimise the transfer of personal data from the EU to a country outside the EU, referred to as a ‘third country’: The UK is of course no longer part of the EU and is therefore considered a third country. Two of these mechanisms (and the most relevant) have been the subject of much discussion recently, namely an ‘adequacy decision’ or the use of ‘standard contractual clauses’ (or SCCs for short), and this blog discusses how they apply to EU companies with a UK client base. What you should do In terms of updating contracts, you may have thousands of contracts to go through. Our advice is for EU companies to prioritise contracts now and start implementing the new EU SCCs from now if possible, unless the data transfer is for a short term project not exceeding 18 months (the date by which all old EU SCCs must be replaced). The alternative is a rushed exercise at the end of 2022. Other issues with the new SCCs There will be other issues to consider as well with the new EU SCCs, such as liability clauses. Many companies will have spent considerable time negotiating data protection contract terms, including on liability in the run up to GDPR. The new EU SCCs stipulate that in the event of any contractual dispute the new SCCs will prevail, so any financial cap negotiated under old contracts may no longer be compatible with the new SCCs liability provisions. It should also be noted that neither the adequacy decision or the new SCCs relieve EU companies of their requirement to appoint a UK representative under Article 27 UK GDPR, or similarly, for UK companies subject to the EU GDPR to appoint a representative in the EU. In fact, the new SCCs go further and ask for representatives details. As lawyers based in the UK and Ireland we are perfectly placed to help and advise you with both the UK and EU SCCs. We can assist with contract reviews and also offer EU and UK representative services for our Irish and EU customers from our Dublin and UK offices.
UPCOMING WEBINAR Return to Work Protocols Join us on August 13th at 8am where we will answer your questions on return to work protocols, vaccinations, wearing of PPE at work and much more. The session will be followed by a Q&A session, please send any questions in advance to marketing@isme.ie The webinar will be lead by Katherine McVeigh B.L. Katherine is a practising barrister with a general civil practice, specialising in employment and equality law. She appears regularly before the WRC, Labour Court and civil courts in employment law disputes. She frequently publishes and presents on employment law issues. Katherine is the Secretary of the Employment Bar Association (EBA) and committee member of the Employment Law Association of Ireland (ELAI).
Tickets available here
Areas we will cover on the day are listed below: Topic 1: Mandatory vaccinations Topic 2: GDPR/ Data Protection Act 2018 and vaccinations Topic 3: Returning to work after Covid-19 Topic 4: General compliance with Covid-10 procedures Topic 5: Mask wearing at work Topic 6: Dealing with vulnerable employees and Covid-19 Topic 7: The Supreme Court decision of Zalewksi – an update on the Act and the current status of the WRC. Topic 8: An Update on the current status of the Labour Court Topic 9: New 2021 Codes of Practices (Statutory Instruments) Topic 10: New legislation This will be followed by a Q&A session, please send any questions in advance to marketing@isme.ie
LEARNING & DEVELOPMENT Introductory Certificate in Bookkeeping using Big Red Cloud This practical, certified course with 12 weeks’ access to Big Red Cloud gives you a strong foundation in Bookkeeping Principles using practical worked examples and real-to-life case studies. You will also be introduced to VAT and RCT as well the key skill of Cash Budgeting. Ensuring that your business is as economical as possible we look at deductible expenses, including capital allowances, and payments that can be used to make employee payments most tax efficient. Click HERE for full course details. Learning Objectives: Basic Principles of Bookkeeping Dealing with VAT Business Documentation and Dealing with Discount Relevant Contracts Tax Cash Budgeting Deductible Expenses and Tax-Free Payments to Employees Depreciation and Capital Allowances Misc tax and business topics and queries from participants. Fees: €210 for ISME members, €245 non-members The full cost of this programme through the Bookkeeping Academy of Ireland is €349, but we are subsidizing this by 40% for ISME Members and 30% for Non-Members. Dates: •Launch dates dependent on your own timeline, but once starting the programme, it is recommended you complete the course in 3 months (or less, depending on your own pace). Register for free here
TAX UPDATE
August
Dividend Withholding Tax
14th
Due date for payment and filing of returns of withholding tax on dividends paid by companies in July 2021.
PAYE/PRSI/USC/LPT 23rd
Payment of PAYE/PRSI/USC/LPT deductions for July 2021 (ROS Filers).
VAT 23rd
Payment of July 2021 VAT liability and filing of related VAT return (ROS filers). Payment of August 2020 – July 2021 VAT liability and filing of related VAT return (ROS filers).
Corporation Tax 23rd
Company year-end 30th September 2021: Preliminary tax due, minimum 90% of total liability for the year. Small companies can pay 100% of previous year’s liability (ROS filers). Company year-end 30th November 2020: Payment of balance of corporation tax and filing of corporation tax return (ROS filers).
31st
Company year-end 29th February 2020: Close companies with undistributed profits may have to make a distribution by this date to avoid surcharge. Company year-end 30th November 2020: Filing of ‘Return of third party information’ (Form 46G).
Company Secretarial 31st
Company year-end 30th November 2020: Final date for holding Annual General Meeting and latest possible Annual Return date for 2021.
Revenue extends facility for Employers to pay employee’s TWSS Tax The June deadline for employers wishing to pay their employee’s Temporary Wage Subsidy Scheme (TWSS) tax liability, without the imposition of a BIK charge, has been extended to the end of September 2021. Revenue wrote to the CCAB-I confirming the extension of the BIK concession following consideration of the issue raised by the CCAB-I on foot of members’ feedback. Revenue issued an eBrief confirming the concessional BIK treatment facilitating employers who wish to pay the 2020 income tax and USC liabilities of their employees arising from the TWSS now applies until the end of September 2021. Revenue also confirmed that the concession applies where an employer pays the tax and USC liabilities: • •
Of an employee who is a self-assessed taxpayer or, in jointly assessed cases, if the employee’s spouse is self-assessed; and Of a proprietary director(s) in the company, provided the employer pays the TWSS related liabilities of all employees in the company.
The relevant pages of the Revenue website are updated to reflect this and provide further information on the offset of direct TWSS payments. The CCAB-I wrote to Revenue in early March informing them of the feedback and TWSS issues raised by members in a survey conducted by Chartered Accountants Ireland, ACCA, CPA Ireland and CIMA.
2021 Extended Pay and File deadline for ROS customers The 2021 extended ROS return filing and payment date for self-assessment income tax and capital acquisitions tax is Wednesday 17th November 2021. Revenue confirmed that the due date of 31st October 2021 is extended to Wednesday 17th November 2021 for taxpayers who file their 2020 Form 11 and make the appropriate payment through ROS for preliminary tax for 2021 along with the income tax balance due for 2020. The due date for beneficiaries who received gifts or inheritances with valuation dates in the year ended 31st August 2021 and who make CAT return and the appropriate payment through ROS is also extended to Wednesday 17th November 2021. To qualify for the extension, taxpayers must both pay and file through ROS. Where only one of these actions is completed through ROS the extension does not apply and the required date to submit both returns and payments is no later than 31st October 2021.
Prepared for ISME by: Byrne & McCall Tel: (01)612 0580 Fax: (01) 620 5625 email: info@byrnemccall.ie www.byrnemccall.ie
Accountants && Tax Advisors, Accountants Tax Advisors, Core B, Block 71, Core B, Block 71, The Plaza, The Plaza, Park West, Dublin 12.12. Park West, Dublin