Message from / The CEO ISME Welcomes / New Members ISME / News ISME / Research Member Feature / IE Digital Town Awards Training Courses / Course Updates Tax Update / Dates for the Diary Finance Update / Exemption from income tax for out of court settlements
MESSAGE FROM THE CEO
Dear Member, We have suffered yet another false dawn on the reopening program, as hospitality businesses hoping to facilitate indoor dining on 5th July will now have to wait until another undefined date. This is extremely morale-sapping for businesses, as well as worrying for creditors and suppliers. If the State was doing all it can to facilitate reopening, this might be acceptable. The fact that NPHET continues to oppose the introduction of antigen testing in the workplace though is completely unacceptable. We will continue to pressure Government on this, but you need to press the case locally. The bill for the Small Company Administrative Rescue Process was published on 25th July, which is record time for a new piece of legislation. Regarding leases, it proposes a twin-track approach- (1) a voluntary arrangement agreed to by the lease-holder or (2) a court-approved variation. We hope that the power of a process advisor to take a lease-holder before a court will sharpen minds, and a sensible approach is adopted to lease values which will likely fall substantially. We were delighted to see the Perjury Act finally signed into law last month. We know that it is no magic bullet for the insurance issue. It will require a culture change among judges, gardaí and the DPP to start taking this offence seriously. However, it will change the conversation between solicitor and client when an affidavit is being sworn. Perjury is no longer a common-law offence, practically impossible to prosecute. It is on the statute book, and has up to a 10-year prison sentence or €100,000 fine attached. It looks like our proposal for a basic business qualification, tax incentivised, might be going somewhere. I hope to have some more news for you on our “Blue Cert” plan next month. Lastly, after years of lobbying to get an SME representative onto the Competitiveness Council, the Tánaiste finally relented and appointed me to the NCPC Council. Let me assure you that I will thoroughly and energetically represent the cost concerns of small business on this Council during my six-year term.
Stay Safe, Neil McDonnell | CEO | neil@isme.ie
Read here
NEW MEMBERS: NEW MEMBERS
New members:
AllHR Solutions Amy's House Arbelos Limited AsIAm BCL Furniture Retail Limited t/a Lakewood Furniture CICS/Siloclean Ireland Ltd Claremorris Auctions & Equestrian Centre Conran International Imports Limited Deventure (Ireland) EPM Group Geoline Ltd Irish Tube & Fittings Supply Limited Kelly Rahill & Company Chartered Certified Accountants Kruno Gajger Lennon Quarries Limited Luminate Digital Ltd. National Broadband Ireland Nicola Ross Boutique Páistí le Chéile Teoranta Parkmore Nursery PMD Device Solutions Limited t/a PMD Solutions Shandon Travel Simply Workflow Ltd. Sluamor Limited Westport Medical Clinic
NEWS NEWS 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. ISME Calls For Clarity On Next Phase Of Re-Opening For Indoor Hospitality Despite concerns about the reopening of indoor hospitality due to the COVID-19 Delta variant, Government is duty bound to give businesses, suppliers, airlines, accommodation, and employees as much notice as possible. According to ISME, a few days’ notice for businesses that have been closed for an extended period is not acceptable. despite the fact that Ireland’s vaccination program is advancing faster than Denmark’s, their economy has reopened at a faster rate due to the introduction of mass testing. The longer the Government waits before taking executive control of the reopening of our economy, the greater and more expensive will be the economic damage. ISME welcomes passage of Perjury Bill Offenders will face up to 10 years in jail and a €100,000 fine after new law passed ISME is delighted to welcome the passage of the Criminal Justice (Perjury and Related Offences) Bill 2018 through all stages in the Oireachtas. ISME has campaigned for the introduction of a statutory perjury offence since 2017. Ireland is the last common law country in the world to pass such legislation. ISME believes that this legislation is long overdue and is needed to tackle white-collar crime and fraudulent litigation. Exaggerated and false personal injuries claims place a burden of hundreds of millions of euros annually on motorists, homeowners, charities, sporting bodies and business owners through excessive insurance costs. Read more here
NEWS NEWS ISME Launch B2B Support Irish & Each Other platform 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
Community Finance Ireland launches €10 million All-Island Recovery Loan Fund Community Finance Ireland has announced a €10 million All-Island Recovery Loan fund, its first all-island loan scheme. The fund will offer flexible loans of £/€10,000-£/€500,000 to community sector organisations including faith-based groups, sports clubs and social enterprises. Click here for more information and to apply.
NEWS NEWS Minister English establishes Joint Labour Committee for the Early Years Service Sector Minister of State for Business, Employment and Retail, Damien English TD, has formally accepted the recommendation of the Labour Court for the establishment of a Joint Labour Committee (JLC) for the Early Years’ Service sector. Giving effect to this recommendation, the Minister has signed an establishment order that shall come into effect on 1st July 2021. Read more here HR updates The WRC has produced a code of practice for employers and employees on the right to disconnect. The code applies to all work types including work from home arrangements, fixed location work or mobile working. Workplaces must put in place policies and procedures to ensure that employers and employees adhere to their statutory obligations. Read more on page 18 or download documentation here. We have also updated our documents on the management of a formal Disciplinary Process. These can be found here. VAT for Cross-Border E-Commerce Transactions Change The European Commission announced on 28 June 2021 that e-commerce taxation rules will change. The new VAT rules for online shopping enter into force on 1 July 2021 in order to both simplify crossborder e-commerce and ensure greater transparency for EU cross-border shoppers when it comes to pricing and consumer choice. The new rules will apply to all: • online sellers • online marketplaces/platforms • postal operators and couriers involved in online deliveries • customs and tax administrations applying the tax regimes for online purchases • individual consumers i.e., customers shopping online outside the EU/EEA. In brief, the changes are: • VAT is now charged on all goods entering/imported into the EU from non-EU countries, irrespective of value. • All e-commerce sellers based within or outside the EU/EEA, selling directly to consumers or via online marketplaces, need to have an EU VAT registration and pay VAT for all of their EU sales. Read more here
NEWS NEWS Local communities in the west to benefit from SEAI energy grant A new partnership between the Sustainable Energy Authority of Ireland (SEAI) and the Atlantic Seaboard North Climate Action Regional Office, which consists of counties Donegal, Sligo, Mayo and Galway, will pay communities up to €25,000 towards the upfront costs of their energy upgrade projects. The partnership will provide vital bridge funding to assist communities in achieving their sustainable energy ambitions. According to the SEAI, between 8% and 15% of a farm’s overhead expenses are spent on energy every year. Read more here laya Healthcare: Managing Culture, Antigen Testing and the Return to the Workplace Maintaining company culture has become a huge challenge as the pandemic has rolled on. In a recent event in their Brave New Era series,’ Managing Culture, Antigen Testing and the Return to the Workplace’, they discovered how to tackle issues, including how to: Prevent onboarding problems, Understanding Antigen Testing, Help demotivated staff, Rally team spirit. Their panel of speakers, which included industry experts on HR, health and wellbeing, employment law and managing teams remotely, offered expert insights to attendees. This session can be watched back here and more information about ISME’s Wellness programme with laya can be found 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 please email Marketing@isme.ie
NEWS NEWS Keep costs down for re-open Ireland Now that Ireland is re-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
Opportunities for SMEs that are ready to adapt
The pandemic has had a huge impact on economies globally. As we begin the recovery stage, now is the time for SMEs to re-enter productive phases in their businesses, according to Professor. Alan Ahearne, special economic adviser to Irish Taoiseach, Micheál Martin. Speaking on the important business impacts and opportunities associated with Covid-19, Professor Ahearne’s webinar forms part of a content series from InterTradeIreland’s All-island Innovation Programme, which aims to give cross-border SMEs access to cutting-edge thinking through practical business advice. As we exit a second lock-down we examine why his message is still relevant. Industries most critically impacted by the pandemic were consumer-facing sectors, butas the economy reopens, signs of growth are the reason for optimism. Tourism A key ingredient for prospering in recovery is “agility and adaptability”. Professor. Ahearne also explains SMEs need to find a way to tap into consumer savings. The tourism sector has been heavily challenged, but continued restrictions will encourage domestic travel. For companies who wish to avail of these opportunities InterTradeIreland’s E-Merge support can help your business develop its online sales and marketing. The Green Economy Climate change is a pressing issue and governments need to enable a green recovery in order to become low-carbon. This means opportunities exist for firms to re-brand and “ride the tailcoats of the green economy”. InterTradeIreland has committed to enabling businesses to adapt to a low carbon economy, including our Synergy programme. which has supported projects such as the Irish Bioeconomy Foundation on an all-island biomap Localised supply chains Global supply chains were interrupted during the pandemic and many think this may lead towards de-globalisation, meaning a shift towards more localised supply chains, with businesses producing locally and consumers buying more locally. For companies looking for ways to drive growth and recovery, cross-border trade can be a lucrative opportunity and both InterTradeIreland’s Acumen and Elevate programmes can provide funding to do so. For more information on InterTradeIreland supports Contact us today.
NEWS
HSA publishes Fitness for Work Guidance for Employers and Employees after COVID-19 absence
The Health and Safety Authority (HSA) has published interim guidance on its website to assist employers to manage workers’ return to work following COVID-19-related absence. It sets out the steps involved in determining/assessing Fitness for Work of any employee, after an absence due to COVID-19 Infection or suspected infection. The Guidance can be considered within existing sickness and absence management procedures and policies. It applies to Non-Healthcare workers and specific guidance for Healthcare workers can be found here. The HSA has also published Guidance for Workers returning to work after COVID-19 absence. Fitness for Work (FFW) refers to a state of (physical and psychological) health and wellbeing, which enables a worker to carry out their work, reliably, safely and effectively, and in a way which does not affect their safety or the safety of others. The Guidance outlines general return to work criteria for workers returning after an absence from work due to COVID-19 Infection or testing which allows for the timely and safe return of the worker to their normal role and responsibilities where possible. Most workers who contract the COVID-19 virus will recover with no long-term health effects. Some workers, however, may suffer serious or on-going health effects and need additional support to return to work. The Guidance also covers vulnerable workers and assisting workers to return to work after COVID-19 infection. The following scenarios are outlined in the Employer guidance: A. Returning to work following a suspected case of COVID-19 B. Returning to work following a confirmed case of COVID-19 without health complications C. Worker unfit to return to work following a confirmed case of COVID-19 Each scenario guides the employer through the steps involved and emphasises good communication between employer and employee throughout. An interactive checklist accompanies each scenario to assist employers in complying with public health guidance and the Government’s Work Safely Protocol. Amongst the list of further information and resources included is the HSA’s Work Safely Induction online course which provides a short 20 minute COVID-19 Induction for those returning to the work. It should be noted that this is interim guidance and it will be reviewed and updated as public health advice and government advice changes. Employers should keep up to date at https://gov.ie for the most current information on government restrictions and can keep up to date with public health advice here. The HSA Interim Guidance for both Employers and Workers on Fitness for Work following COVID-19 Absence can be found on the HSA website here. The Guidance was published in collaboration with the National Standing Oversight Committee (NSOC) on Cases and Outbreaks of COVID-19 in High-Risk Workplace Settings.
NEWS
ISME’S LATEST RESEARCH
ISME’s Q2’21 Bank Watch survey shows SME demand for credit and loan refusal rates have dropped suddenly, decreasing from 35% to 22%, although 9% of respondents reported being only partially successful with their request. Demand for credit fell from 43% to 33%. Waiting time from decision to drawdown is on average between one and three weeks. The Q2’21 Government Satisfaction report shows SME satisfaction with government continues to decline. OF SMEs, medium enterprises most satisfied with government and small businesses least satisfied with government performance. Services and manufacturing sectors most dissatisfied with government performance. The government’s handling of costs to businesses begins to trend positively. The Q2’21 Prompt Payments report shows that SMEs continue to suffer as payment delays persist. Credit days for this quarter have risen slightly, now at 50 days, bucking a steady downward trend that was evident throughout 2020. Businesses in Dublin are waiting the longest to be paid at 66 days followed by Munster at 62 days. The retail and wholesale sectors are waiting longest on payment; an average of 68 and 64 days, respectively. ISME emphasises the importance of businesses paying each other on time. The Q2’21 Business Trends Quarterly survey showed 13 out of 14 confidence indicators yielding declining results, compared to the 5 negative confidence indicators in Q1’21. ‘Brexit uncertainty’ dropped by a further 4 percent to 38%. ‘Business confidence’ rose massively again this quarter, increasing by 43%, bringing the Q2 total to 49%, compared to -6% in Q1. This continues to align with ‘economic uncertainty’, which dropped by a further 18% this quarter. There was another significant rise in ‘business expectations’, which rose from 36% in Q1 to 48% this quarter, rising by 12%. The ‘business environment’ confidence indicator changed completely, going from -38% to 29%, while ‘profitability expectations’ increased by 23%. The continued recovery of these trends since their initial lows in Q1’2020 cannot be overstated. The ‘current employment’ confidence indictor increased by 28%, while ‘future employment’ increased by a further 16%, from 19% to 35%. ‘Current sales’ have increased from -46% to 14%, while ‘sales expectations’ have shown further recovery, increasing from 28% to 54%. ‘Current investment’ rose by 17% this quarter, while ‘future investment’ grew by another 12%. ‘Current exports’ rose by 5% and remains the only negative overall confidence indicator this quarter. ‘Export expectations’ also increased by 17%. Economic uncertainty concerns remain high, but have dropped significantly from 62% to 44%, remaining below initial Q1 2020 levels. Brexit concerns remains a significant concern at 38% but continues to drop steadily.
You can take our COVID-19 business survey here Sheema Lughmani | Research & Press Officer | Sheema@isme.ie
NEWS
ISME MEMBERS HOST .IE DIGITAL TOWN AWARDS
The .IE Digital Town Awards were launched earlier this year to honour local town projects and people that have demonstrated how digital projects have contributed to enhancements or digital improvements in areas such as health, tourism, education, public services, employment opportunities, citizen empowerment, and social entrepreneurship. Dingle Peninsula’s ‘Reimagining Creatively through Digital’ project was announced as overall winner by Minister Damien English, Minister of State for Business, Employment and Retail at the inaugural .IE Digital Town Awards, which took place on Thursday 10 June. At a virtual awards ceremony, the town was chosen from the five town category winners as overall winner. In addition to winning the Small Town category prize of €9,000, Dingle Peninsula was awarded an additional prize of €10,000 – bringing its total prize winnings to €19,000. The aim of the awards was to ‘Shine a Light’ on the good work and achievements of towns that demonstrated digital thinking and innovation for the betterment of local people, services, and society. There was a total prize fund of €100,000 across 14 award categories. Eleven of the awards were for individual town projects, with a further three special awards recognising a Digital Changemaker, a Digital Rising Star, and a Digital Hero. Dingle Peninsula came out on top for their innovative project ‘Reimagining Creatively Through Digital’. The focus of the Dingle team was on promoting innovation and imagining new ways of doing things through digital. Among the highlights was a pilot initiative to increase sustainability and productivity by collecting ‘real-time’ data using sensor technology such as current and predicted weather and soil conditions, and grass growth rates. This will result in carbon efficiencies that can extend the grazing season. Localised ‘real-time’ weather data also enabled tourism providers to tailor tourist packages based on changing weather conditions. Well done Dingle!
LEARNING & DEVELOPMENT 6 Clear Steps to Reduce Your SME’s Risk of a CyberAttack - FREE webinar on the 16th July Spector presents a webinar on the current cyber-crime trends affecting SMEs today. We will explain, in plain English, what the main threats are and how best to prepare your practice against them. We will provide guidance, vendor recommendations and a checklist that will assist you in improving your cyber security posture. The aim of the course is to outline common Cyber Security threats to SMEs with 6 clear steps that SMEs of all sizes can implement to defend against cyber criminals and hackers. Learning Outcomes: On completion of this course attendees should have a knowledge of: 1.What are the most common threats posed by hackers to organisations today. 2.Steps to protect your practice against these threats. 3.How to develop a checklist to prepare and stay on top of cyber security.
Dates and Time: Friday, 16th of July at 12pm – 1:15pm 45 minutes presentation, followed by 30 minute QA Register for free here
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
July
Dividend Withholding Tax
14th
Due date for payment and filing of returns of withholding tax on dividends paid by companies in June 2021.
PAYE/PRSI/USC/LPT 23rd
Payment of PAYE/PRSI/USC/LPT deductions for June 2021 (ROS Filers). Payment of PAYE/PRSI/USC/LPT deductions for April - June 2021 (ROS Filers).
VAT 23rd
Payment of June 2021 VAT liability and filing of related VAT return (ROS filers). Payment of May/June 2021 VAT liability and filing of related VAT return (ROS filers). Payment of January – June 2021 VAT liability and filing of related VAT return (ROS filers). Payment of July 2020 – June 2021 VAT liability and filing of related VAT return (ROS filers).
Corporation Tax 23rd
Company year-end 31st August 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 31st October 2020: Payment of balance of corporation tax and filing of corporation tax return (ROS filers).
31st
Company year-end 31st January 2020: Close companies with undistributed profits may have to make a distribution by this date to avoid surcharge. Company year-end 31st October 2020: Filing of ‘Return of third-party information’ (Form 46G).
Company Secretarial 31st
Company year-end 31st October 2020: Final date for holding Annual General Meeting and latest possible Annual Return date for 2021.
Many disputes between employees and employers concerning the infringement of employees’ rights and entitlements or employers’ obligations to employees are settled by agreement without referral to a ‘relevant authority’. A payment made under such an agreement may qualify for exemption from income tax where all of the following conditions are met: •
the agreement in settlement of a claim is evidenced in writing;
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the original statement of claim by the employee is evidenced in writing;
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the agreement is not between connected persons as defined in section 10 of the TCA 1997 (e.g. employer and relative, employer and director);
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the claim would have been a bona fide claim under a ‘relevant Act’ had it been made to a ‘relevant authority’ (e.g. sufficient grounds for the claim; claim is within the scope of one of the relevant Acts; claim made within specified time limits, etc.);
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the claim is likely to have been the subject of a recommendation; decision or determination by a relevant authority that a payment be made to the person making the claim;
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the payment does not exceed the maximum amount which could have been awarded under relevant legislation by the Rights Commissioner, Director of the Equality Tribunal, Employment Appeals Tribunal, Workplace Relations Commission or Labour Court as appropriate (e.g. a claim made under the Employment Equality Act 1998 for acts of discrimination – maximum amount cannot exceed a sum calculated as being not greater than 104 weeks pay).
NOTE: The relevant employment legislation is available on the Irish Statute Book website. Employers are obliged to retain copies of any such agreements together with the employees’ statements of claims for a period of six years from the date the payment was made, and to make these documents available to any officer of the Revenue Commissioners when requested to do so. The format of the employees’ original statement of claim, which must be evidenced in writing, and the details to be included in same, will vary depending on the facts and circumstances of each individual case. However, such written documentation may reasonably be expected to include information such as the nature of the claim, the nature of the relationship between the parties involved or a high-level summary of the allegations and the impact of same. The employee need not engage an external advisor to prepare such written documentation on their behalf and there is no requirement for the statement of claim to have been formally submitted to a relevant Authority, provided all other conditions set out above are met. There is no obligation on employers to look for advance approval of exemption under section 192A TCA 1997 in respect of out of court settlements. However, where any employer does seek such an approval, a copy of the agreement and statement of the employee’s claim should be sought and examined before granting the exemption, if due. 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