As the deadline for Capital Gains Tax (CGT) payments approaches, it is essential for individuals, partnerships and sole traders in Ireland to ensure they are prepared. The key date for your diary is 31st January 2025 , the deadline for paying CGT on chargeable gains made during the period from 1st December to 31st December 2024 . If you have sold assets such as property, shares, or other investments and made a profit during this time, you may owe CGT. As your trusted advisors, we can guide you through what you need to do to stay compliant and avoid unnecessary penalties. What is Capital Gains Tax (CGT)? CGT is a tax on the profit (or "gain") made from the sale or disposal of certain assets. You are only taxed on the gain , not the entire amount you receive. For example, if you purchased an asset for €50,000 and sold it for €70,000, the gain subject to CGT would be €20,000. The current CGT rate in Ireland is 33% . However, there are various reliefs and exemptions available that can help reduce your liability.   When to Pay Your CGT For disposals made between: 1 January and 30 November (the initial period), you must pay CGT by 15 December of the same year and 1 December and 31 December (the later period), you must pay CGT by 31 January of the next year. For disposals made under a written contract, the time of disposal is usually the date of the contract. Key Exemptions and Reliefs Annual Exemption : Each individual is entitled to an annual CGT exemption of €1,270 . This means the first €1,270 of your gains in a year are tax-free. Principal Private Residence Relief : If you’re selling your main home, the gain is usually exempt from CGT, provided specific conditions are met. Entrepreneur Relief : This allows qualifying individuals to pay a reduced rate of 10%  on gains from the disposal of certain business assets, up to a lifetime limit of €1 million. Steps to Take Before the January Deadline Review Your Transactions : Identify any disposals made during the period 1st December to 31st December of the previous year. Calculate the gains or losses for each transaction. Apply Reliefs and Exemptions : Ensure you take full advantage of any applicable reliefs, such as the annual exemption or specific reliefs for certain asset types. File and Pay on Time : Use Revenue’s Online Service (ROS) to file and pay your CGT. Late payments can result in interest charges of 0.0219% per day , and penalties may also apply. Why Early Action Matters Leaving your CGT preparation until the last minute can lead to unnecessary stress and the risk of errors. Early planning allows you to: Fully evaluate potential reliefs. Ensure all documentation is in order. Avoid penalties or interest for late payments. Need Help? We’re Here for You CGT calculations can be complex, especially if you’re dealing with multiple transactions or intricate reliefs. Our team is here to help you navigate these complexities, ensuring your liabilities are accurately calculated and submitted on time. Don’t hesitate to get in touch if you need assistance or have any questions about your CGT obligations. Source: Revenue.ie

The liability date Local Property Tax (LPT), a charge arising from the ownership of a residential property in Ireland falls on 1 November each year. This means that if you owned a residential property on 1 November 2024, your property is liable for LPT for 2025. It is important to note that even if you sell or transfer your property between 1 November 2024, and 31 October 2025, you are still the liable individual for the LPT for 2025. What do you need to do? What actions you need to take for 2025 will depend on whether your property: was liable for LPT in 2024 or has become liable for LPT for the first time in 2025 You should have already valued your property and submitted your LPT return by 2 December 2024. If you have not yet filed your return, you should do so immediately.   Your payment options If you have previously paid your LPT by a non-recurring payment method, you need to make arrangements to pay your LPT for 2025. You will need to access your Revenue property record and choose your preferred payment method for 2025. If you are spreading your payments over 2025, you should have confirmed your payment method to Revenue by 2 December 2024. If you have not yet done so, you should do so immediately. Log into the LPT Portal to make, or arrange to make, your payment online. If you pay your LPT by Direct Debit or Annual Debit Instruction (ADI) and recently changed your banking provider, you should update your bank details for LPT. If you pay LPT by a recurring payment method, this will automatically be carried forward to 2025. Recurring payment methods include: Direct Debit (monthly or annual) Deduction at source from your: salary, wages or occupational pension Department of Social Protection payments Department of Agriculture, Food and the Marine payments.   Payment date If you chose to pay your LPT charge by debit or credit card, your payment will have been processed on the date it was submitted. The date by which you need to pay your LPT charge depends on the payment option you choose when filing your return: January 2025  - phased payments start for deduction at source and regular cash payments through a payment service provider. 10 January 2025  - latest date for paying in full by cash (through a payment service provider), cheque, credit or debit card. 15 January 2025  - monthly direct debit payments start, and continue, on the 15th day of every month. 21 March 2025  - deduction date for ADI payment.   How to determine your LPT liability The LPT charge you incur is based on the valuation of your property as of 1 November 2021. This valuation not only determines your 2025 LPT charge but also remains applicable for subsequent years until any new valuations are carried out or changes to your property occur.   For more information, check out the official guide on Liability for LPT . Source: Revenue.ie

UHY Farrelly Dawe White (UHY FDW) are delighted to announce its continued support of Dundalk F.C. through our proud sponsorship of the club for the upcoming season. As part of this ongoing partnership, we are thrilled to have our logo featured prominently on the back of the team’s new jersey. This collaboration highlights our longstanding commitment to the club, as we have proudly supported Dundalk F.C. in various ways over the years. The new jersey will be available for pre-sale starting Thursday, with delivery expected before Christmas, giving fans the opportunity to wear the team’s new kit in time for the festive season. Our partnership with Dundalk F.C. is a reflection of our shared belief in the power of local football, community engagement and achieving a better future together. “We have had the privilege of supporting Dundalk F.C. for many years in different ways, and we are excited to continue this journey alongside them,” said Managing Director, Alan Farrelly, UHY Farrelly Dawe White. “Being a part of the club’s success story and helping promote local talent is something we are truly proud of. We’re excited for the new season and to see the club rebuild, thrive and grow.” “We are delighted to have our new logo featured on the Dundalk F.C. jersey and we are proud to be featured alongside two other community focused sponsors on the jersey, main sponsor Zoma and also Blackstone Motors.” The sponsorship reinforces our ongoing commitment to grassroots sports and further strengthens the bond between UHY FDW and the local community. With the new manager, Ciarán Kilduff, at the helm, we wish the club all the best for the upcoming season. We also extend our congratulations to the board for their dedication to the club and its supporters. “We are excited for the new season under Ciarán Kilduff's leadership,” added Alan Farrelly. “The future looks bright for Dundalk F.C. and we’re proud to continue our partnership with the team and its loyal fans.” The Dundalk F.C. jersey featuring the UHY logo will be available for pre-order https://shop.dundalkfc.com/   Be sure to place your order and support the team as they head into an exciting new season. For more information about the sponsorship and to purchase the new jersey, visit https://shop.dundalkfc.com/

Organisational change is not easy. According to one survey of workers in the US, employees who experience change at work are more likely to report chronic work-related stress, and more of them plan to leave their organisation within a year*.   As we all know, stressed employees are less productive, and replacing experienced members of staff can be expensive and disruptive. With those facts in mind, it is clear that the better your business handles organisational change, the more manageable and successful that change is likely to be. What do we mean by change? It can mean anything from a merger with another business to implementing a new IT system. It might mean an office move, or a comprehensive restructuring of business teams. Whatever the change, it needs to be handled in a sensitive and collaborative way. The days when senior management could demand change and expect everybody to just get on with it are well and truly over.   Change Requires Trust The key to successful change is trust, the key to trust is communication, and the key to effective communication is clarity of purpose.      Articulate your goal Change is disruptive. It will impact the working lives of your employees, and just the prospect of change can lead to confusion and anxiety. To counter that, explain in detail and well ahead of time what the purpose of the change is, and what it will mean for the business. Then dig deeper – articulate the benefits of the change at the department, team and individual level. Help colleagues to understand the benefits of a successful change and the positive impacts on them.   Stress the importance of collective action When change projects fail, it is often because employees do not have any immediate input into the change process. By contrast, when staff take ownership of change they are more likely to commit to its success. Stress the need for collective action, involve all relevant employees at the planning stage and then for the entirety of the change process, and give key members of staff specific roles and responsibilities.   Invite debate Not everyone will agree with what you want to do or how you intend to do it. You need to take these opinions on board. Discussion and debate is healthy, and may actually lead to a better project. Outside consultants can be helpful, but employees who have insider knowledge on specific obstacles to change in your organisation – and ideas on how to do things more effectively – are invaluable. Create project-specific communication channels and give your teams the opportunity to critique, debate and smooth the path to change.   Keep talking One mistake organisations often make is to offer opportunities for discussion and feedback at the start of a change management process, but not thereafter. By keeping the channels of communication open you are more likely to get early notice of upcoming roadblocks or growing staff frustration. People who have experienced the first phase of a large project will be in a better position to suggest ways of making the following phases flow more easily.   Slice large projects into smaller chunks Working towards a distant goal can be demoralising – so split projects into sections and bring goals forward. Large change projects may naturally divide into multiple phases with distinct milestones. Even if they don’t, create milestones with interim goals to your overall objective and celebrate the successful completion of each phase. When a milestone is reached, recognise the achievements of those who contributed.   Accept setbacks Inevitably, there will be challenges. When activities do not go to plan, accept it, learn from it and move on. Trying to hide challenges will only frustrate employees who are working valiantly to overcome them. Be transparent and open to fresh suggestions, whether a project is going smoothly or not.   Be sensitive to changes in culture Change can have a significant impact on the culture of an organisation and individual teams. It can make people uncomfortable and less responsive to the challenges ahead. Be aware and be ready to listen and respond if you detect a rise in tension or if an employee raises an issue that requires focused, positive action. Change is a reality for businesses of all sizes, and how effective organisations are at managing it can make the difference between survival or decline. At UHY we try to embrace change in an open positive way, which means we can always be receptive to new methods of working – an approach that has served our member firms and their clients well.   Strong, Focused Leadership None of this will happen without strong, focused leadership. It is up to your leadership team to create a culture of change that prioritises collaboration on the path to a common goal. Positive change is essential as firms evolve to meet new challenges and grasp new opportunities, so learning to manage change effectively is the key to future-proofing your business. * https://www.apa.org/news/press/releases/2017/05/employee-stress

The adage that businesses develop, or die has always been true, but the phrase feels especially fitting during a time of rapid technological change.   In accountancy, that change is clear to see. We are witnessing the replacement of labour-intensive manual activities with automated workflows at a dizzying speed. Many entry-level bookkeeping tasks have already been taken over by computers. With the growing sophistication of machine learning and AI, technology will soon be creeping into some higher-level functions, too. Master technology for better service How do we respond to this new technological revolution? One way is to make sure we are using new applications as effectively as possible, so we can give our clients the most professional and efficient service. At the same time, we have to acknowledge that the automation of even routine functions is likely to be disruptive. AI and machine learning tools have the potential to increase competition and reduce revenue in a number of areas. Clients may choose to take some easy-to-automate activities in house. If not, more and more competitors – and not necessarily accountants – will be bidding for the work, and fees are likely to fall. So, we must continue to offer a complete range of services, and make sure our teams have the skills they need to adopt new technology and use it in the most beneficial way. And our ability as accountants to adopt new technologies and still to maintain the personal, client engagement is what often sets UHY member apart from many competitors. But we also have to adapt, which means developing new service lines that create added value for clients, make full use of our spectrum of skills and are not in danger of becoming obsolete. Accountants have the skills to evolve As accountants, we are lucky to have a number of potential paths to follow. Different UHY member firms have already expanded their service line offer to include non-financial auditing and reporting (especially in regard to sustainability and ESG), cybersecurity assessments and management consultancy. Adding business advisory services to technical accountancy skills is a logical step for many firms. But a logical step is not necessarily an easy one. Developing new service lines demands detailed research and planning – it is by no means a quick win. The first step is a shift in mindset. As an industry, we should be talking about offering new solutions rather than services, based on in-depth knowledge of what our clients need. That means researching the local market (because challenges in one jurisdiction may be different from those in another), polling current clients about the issues they face, and scanning the horizon for emerging threats and opportunities. At its most basic level, we are talking about the need to develop a customer-centric culture, rather than one focused on service delivery. Firms need to be agile enough to create solutions tailored to the needs of individual clients, rather than offering the same limited range of off-the-shelf accountancy services to everyone who walks through our (physical or virtual) doors. This important flexibility is best achieved by developing an agile base of technical and value-add services that can be mixed and matched to create complete client solutions. Getting ahead of the curve None of this happens overnight. At a practical level, colleagues need to be trained. If you want to offer ESG auditing as part of a rounded solution, you need to have ESG specialists in house or a very good relationship with an external contractor. UHY leads the way on joined-up thinking towards developing a cohesive network of accessible experts providing solutions for our clients. For every new service line, processes need to be clearly mapped and rigorous feasibility testing put in place. Considerable thought needs to be given to the ‘how’ and ‘who’ of service delivery, as well as the ‘what’. It is imperative that nothing is offered to clients before it is ready. Everything from the technicalities of new services to the way you want to talk about them as a business should be in place before they are presented to clients. Do not throw away years of accumulated goodwill because of one poorly designed or hastily implemented service line. The good news here for clients is that forward-thinking accountancy firms are already ahead of the curve. Throughout the UHY network, member firms are accumulating the skills, knowledge and technology to become business advisors and strategic partners as well as technical accountants. New client-focused solutions that combine accountancy and advisory services are coming on stream. UHY is embracing its future so we can help our clients embrace theirs.

Say hello to our new look... UHY Farrelly Dawe White adopts new global branding amid 25% staff growth   UHY FDW has introduced a new visual look as all UHY branded firms worldwide unite under one global brand identity. UHY, ranked in the top 20 networks worldwide, has member firms in 96 countries, employing over 9,700 people.   Managing Director Alan Farrelly said that UHY is an agile, people first business, driven by innovation and global perspective. “That’s why it’s time for all UHY branded firms worldwide to unite under one global brand identity,” he added.   “While our brand’s visual identity - logo, colours, website etc - has transformed, nothing changes day-to-day. Our purpose – ‘Achieve a Better Future Together’ - remains unchanged.   “UHY clients will continue to work with the same teams and receive the same expert service. What’s new is a visual identity that represents the bold, modern firm we have become today,” Farrelly stated.   In tandem with the rebrand, UHY FDW is also launching a new website, uhyfdw.ie .   According to Farrelly, the green colour in the new UHY FDW corporate branding symbolises strength, prosperity, and growth.   “Our choice of green also reflects our commitment to ESG principles, which are the foundation of the responsible and prosperous future we are building for our clients, teams and communities,” Farrelly explained.   UHY FDW is led by a team of eight directors and employs over 75 people. Several of the principals have a ‘Big 4’ background, and the firm provides services to a diverse portfolio of clients which includes several large local and international groups.   Winner of Best Professional Service Award at the recent Louth Business Awards 2024 , UHY FDW currently act as auditors to over 250 companies in Ireland and the UK.   “We are proud of our accomplishments but even more excited about the growth and opportunities that lie ahead,” said Farrelly. “As we continue to expand, we want UHY to be recognised not only for our expertise and service levels but also for our positive and proactive embrace of wellbeing, ESG, and Equality, Diversity and Inclusion.”   UHY FDW is recognised by ACCA as a Gold Accredited employer and last year launched a new Corporate Advisory department.   “We invested in a leading professional in the field, to join the board of directors, specialising in corporate advisory services. Over the last 12 months he has built a team of professionals who have advised on deals valued at over €100m. “   “This director-led team of three seasoned experts is dedicated to providing bespoke advisory services that address the complex and evolving needs of our corporate clients,” said Farrelly.   Farrelly added that the past year UHY FDW has increased headcount by 25% and experienced significant growth in the charity and not for profit sector.

Are you facing tough decisions about the future of your business, whilst trying to plan for a peaceful and happy retirement? As clients approach retirement and begin planning for the future of their business, they have many questions about the options available to them that will allow them exit from their company whilst unlocking its value in a tax efficient way. Liquidation can often present as a strategic option—especially when there’s no successor or potential buyer in place. This option requires careful navigation of the liquidation process, particularly when it comes to Capital Gains Tax reliefs. In this blog, will explore the key reliefs available to retiring shareholders, which we discuss with clients when guiding them through a liquidation. Tax Considerations When a company is liquidated, the distribution of assets or cash to shareholders is treated as a disposal or part disposal of the shareholder’s shares, which are considered chargeable assets for Irish Capital Gains Tax (“CGT”) purposes. This distribution is classified as a capital distribution, meaning Irish CGT may apply if the proceeds received from the disposal exceed the base cost of the shares. In such cases, two key Irish tax reliefs can help reduce the Irish CGT liability: Revised Entrepreneurial Relief; and Retirement Relief. These reliefs are particularly relevant in liquidation scenarios, offering shareholders potential tax savings when winding down the company and distributing its assets. Revised Entrepreneur Relief A common question is whether Entrepreneurial Relief applies during a company liquidation, a scenario not explicitly covered in Irish tax legislation. Generally, capital distributions made to shareholders during liquidation do not qualify for relief, as the company is typically not considered a “qualifying business” at the point of liquidation. Even when a liquidator is appointed, the company may not be actively trading or may have significantly reduced its operations. However, Irish Revenue offers a limited concession in its CGT Tax and Duty Manual. They state that relief can apply if the company was conducting a qualifying business until the liquidator’s appointment and if the liquidation is completed within a reasonable timeframe. Specifically, if the liquidation is finalised within two years of the liquidator’s appointment and the company was still trading up to the point of the liquidator being appointed, relief may be available, provided all other conditions are met. Notably, this concession does not apply to holding companies, as they do not operate a qualifying business before liquidation. Retirement Relief There are two types of Retirement Relief, depending on whether you dispose of your business or farm to your child or someone outside your family (such as a liquidation). Normally for the relief to apply your company must be a trading company. However, Section 598(7) of the Taxes Consolidation Act 1997 (“TCA 1997”) specifically provides for Retirement Relief to apply in the case of a liquidation. The following conditions must be met to qualify: The disposal must be made by an individual, not by a company. The disposal must involve qualifying assets, such as business assets or shares in a family company. The qualifying assets must have been held for at least 10 years immediately before the disposal. The individual must be aged 55 or older, with relief reduced if they are over 70. In the case of family company shares, the individual must have served as a working director for at least 10 years, with at least 5 years in a full-time capacity. Relief may apply to holding companies in certain circumstances unlike entrepreneurial relief above. In the event a company’s liquidation distribution consists solely of assets, without any cash or if the proceeds exceed €1 million, Retirement Relief and marginal Retirement Relief may not apply. The appointment date of the liquidator is often considered the effective date for the disposal of chargeable business assets, meaning any assets held on that date will be included in the disposal. Revenue provides a concession, however, allowing assets sold within six months of the date of the liquidator’s appointment to be included in the calculation of chargeable business assets. This applies to both business and non-business assets. However, since this is only a concession, it’s important to handle these situations with caution.   At UHY FDW, we offer expert guidance on the tax implications and planning strategies for company liquidations. With a deep understanding of the tax considerations during liquidation, and many years of experience providing these services, we are well-positioned to ensure the process runs smoothly and efficiently. It can take time to implement an exit strategy such as a liquidation but with proper planning, a liquidation can be structured and timed to maximise tax efficiency. If you need support with planning your retirement, our team is ready to assist, simply reach out to us using the form below.

Budget 2025 was announced today, Tuesday 1 October, by the Minister for Finance, Jack Chambers. Ahead of a general election in 2025, Budget 2025 provided a crucial chance for the Government to aid businesses and individuals grappling with rising costs in recent times. With a Budget package of €10.5bn, workers and households emerged as the primary beneficiaries with a “something for everyone” approach. While there was some support for private businesses, it lacked substantial tax measures to help them manage increasing costs, regulations, and complexities. More pro-growth initiatives are necessary to encourage entrepreneurship. Budget 2025 also sought to boost Ireland’s competitive position on the global stage and address infrastructural limitations amid global uncertainty and competition for inward investment. Budget 2025 contained significant additional investments in housing, energy and transport which are very welcome announcements however there is much more to do that will require the ongoing commitment from the next Government. Check out our in-depth Budget 2025 Summary to find out how Budget 2025 will affect you and your business. There may be further changes in the Finance Bill next week, so ensure to keep an eye out for further updates from our team. If there are any items you wish to discuss with our team, just give us a call on +353 42 933 9955 or email info@fdw.ie

Increased Cost of Business (ICOB) Grant The increased cost of doing business in Ireland has emerged as a pressing concern for businesses across various sectors. Factors such as rising rents, labour costs, and regulatory compliance expenses have contributed to the overall burden. As a result, companies operating in Ireland are grappling with the challenge of maintaining competitiveness while navigating the economic landscape shaped by these rising costs. The Increased Cost of Business (ICOB) grant in Ireland, which was announced by the Government as part of Budget 2024, represents an important step by the Department of Enterprise, Trade and Employment (DETE) in supporting businesses most affected by the burden of increased costs. The package signed off by the Government was €257m for the Scheme in which eligible small to medium sized businesses can apply to receive a once-off grant payment, based on their Commercial Rates bills. How does the ICOB grant work? This grant is available to eligible business owner’s and will be based on the value of their Commercial Rates for 2023. The scheme will be administered by the local authorities, funded through the DETE. How much is the grant? The grant is based on the value of the Commercial Rates bill received by an eligible business in 2023. For qualifying businesses with a 2023 Commercial Rate bill of <€10,000, the ICOB grant will be paid at a rate of 50% of the business’s Commercial Rate bill for 2023. For qualifying businesses with a 2023 Commercial Rate bill of between €10,000 and €30,000, the ICOB grant will be €5,000. Businesses with a 2023 Commercial Rates bill greater than €30,000 are not eligible to receive an ICOB grant. What businesses are eligible to receive the grant? The following are the main qualifying criteria: Your business must be a commercially trading business currently operating from a property that is commercially rateable. Your business must have been trading on 1st February 2024 and you must intend to continue trading for at least three months from the date you verify your information. You must provide confirmation of your bank details. Your business must be rates compliant. Businesses in performing payment plans may be deemed to be compliant. Your business must be tax compliant and must possess a valid Tax Registration Number (TRN). Businesses who do not have a rateable premises are not within the scope of this scheme. This scheme is a grant not a rates waiver, rates should continue to be paid to local authorities. How do I avail of the grant? Local Authorities are currently in the process of developing systems to manage the submission of essential information. These systems are due to be available in mid-March and each Local Authority is to provide a contact number and, in some cases, a dedicated email address for any queries from businesses. Further guidance will be issued to commercially rateable businesses in the next few weeks. For further information keep an eye on your local county council website. What is the closing date? The closing date for businesses to confirm eligibility and to upload verification details will be 1st May 2024. How UHY FDW can help If you need any assistance with your ICOB grant application, our team can help you Local Authorities The Local Authorities are in the process of putting a system in place to roll-out the grant. Information on the Scheme is currently being placed on Local Authorities websites. Below are some examples of the information available from your Local Authority: Louth County Council Meath County Council Cavan County Council Dublin City Council South Dublin County Council Fingal County Council Dún Laoghaire-Rathdown County Council Kildare County Council  Westmeath County Council  #2024 #LatestTopics #BusinessSupport #GrantScheme #Grant

Managing Partners in leading Accountancy & Business Advisory practices discuss activity, in-demand service lines, and the business outlook UHY FDW was recently featured in Business Plus magazine for our contribution to their survey of Ireland’s leading accountancy and business advisory firms. Our Managing Director, Alan Farrelly, provided insights into our firm’s growth and how the current economy is affecting business in Ireland. Read Alan’s insights in full and access the full magazine here “2023 was a busy year for UHY Farrelly Dawe White, with growth of 16% placing us in the Top 20 firms in Ireland and in the Top 15 firms in UHY globally. We committed to our people that we would set in place a strategic plan that would have a clear emphasis on our purpose, values and behaviours. That has allowed us a clear plan towards our strategic objectives through to 2028. Our purpose is to Achieve a Better Future together, for our people, our clients and the greater community.” – Alan Farrelly, Managing Director, UHY Farrelly Dawe White Limited – Business Plus March 2024 How UHY FDW can help If you need any assistance with your ICOB grant application, our team can help you #2024 #BusinessPlus #LatestTopics #PR

The government has designed an auto-enrolment pension investment scheme for employees, which will take effect on 1st January 2025. This scheme has been designed to encourage employees to save for their retirement and make it more straightforward for businesses to offer a workplace pension option. Currently, only approximately 35% of employees in the private sector have a supplementary retirement saving scheme. This means that they will be relying on the state pension when they retire. Employees who meet the following criteria will be auto-enrolled: earning over €20,000 per year, aged between 23 and 60 who aren’t already in a pension scheme People earning less than €20,000 per year and who are aged outside the 23-60 bracket will be able to opt in, as long as they aren’t already in a pension scheme. Contributions will be phased in so that everyone can get adapt to the new system without a steep change in income. Employees will be able to leave the system or pause their contributions under certain circumstances, but will be automatically re-enrolled after two years if they are still eligible. An independent body, the Central Processing Authority, will be set up to administer the scheme and look after participants’ best interests. What auto-enrolment scheme means for employers All of your employees meeting the eligibility criteria, who do not already have a pension scheme will be enrolled into the auto-enrolment pension. You will need to ensure that your payroll can take instruction for enrolment, calculate and pay employee and employer contributions to the Central Processing Authority. You will be required to match members’ contributions up to an eventual maximum of 6% subject to an earnings threshold of €80,000 Employer contributions will be deductible for corporation tax purposes. If you fail to meet your auto-enrolment obligations as an employer, you will be subject to penalties and possibly to prosecution. How much it will cost employer contributions will start at 1.5% of gross pay in year 4 they will increase to 3% in year 7 they will increase to 4.5% in year 10 they will increase to the maximum rate of 6% contributions will be fixed and employees or employers won’t be able to contribute less or more than the set rate Benefits for employers not having to pay to set up a company pension scheme not having to administer a company pension scheme ensuring that employees are looked after increased competitiveness and attractiveness as an employer employer contributions will be deductible for corporation tax purposes Why employers are being asked to contribute from a market/consumer demand perspective, ESRI research indicates that auto-enrolment will be good for the economy in the long-term, as retired people will have more money than they would have otherwise. This will help to sustain consumer demand and business revenues the employer contributions reflect these benefits and recognise that employers benefit from employees having retirement income security and a greater sense of wellbeing pension provision is not a matter that can be left to employees or the state alone. It is an important element of a tri-partite social contract in a developed economy, recognising that making provision for retirement income is a cost that should be shared between all parties that benefit The Government of Ireland website, gov.ie, has a useful auto-enrolment guide for employers, which you can view here We will keep you up to date on any new details about these requirements as the information becomes available. In the meantime, if you would like to speak to once of our payroll specialists please contract us at info@fdw.ie with your contact details and we can arrange a consultation. Ensure you are subscribed to our mailing list to keep up to date on all developments in relation to this and other technical and industry news. For more information visit Revenue.ie Source: Gov.ie #2024 #LatestTopics #Payroll #TAX

The Sick Leave Act 2022 became law in July 2022 and came into force from 1 January 2023. From 1 January 2024 employers are required to provide 5 days of statutory sick pay leave per annum. Statutory Sick Pay (SSP) is a payment paid by employers to employees who are unable to work due to illness or injury. SSP is paid by the employer of 70% of normal pay up to maximum of €110 a day. Sick pay leave is in addition to other leave including annual leave, public holidays, maternity, and parental leave. This scheme started with 3 days in 2023 and will increase to 10 days or 2 working weeks in 2026. To be entitled to SSP, the employee have to worked for the company for at least 13 weeks. Sick pay leave runs from 1 January to 31 December. Both full-time and part-time employees are entitled to SSP. The entitlement to paid sick leave is being phased in: 2023 – 3 days covered 2024 – 5 days covered 2025 – 7 days covered 2026 – 10 days covered Sick days can be taken as consecutive days or non-consecutive days. What is the difference between sick pay and statutory sick pay? Statutory sick pay is limited to a specified number of days per year and is subject to additional criteria such as length of service The Sick Leave Act 2022 sets out the criteria for employers to determine whether their existing sick pay scheme is more favourable than the proposed statutory provisions as follows: The length of service before an employee becomes eligible for paid sick leave The period for which the sick leave is payable The number of days of absence that accrue before it is payable The amount of sick pay payable The reference period for comparison Employers may already operate their own sick pay scheme under their contract, and they only need to take action if their terms are less favourable. How to qualify for sick pay? Be an employee Have worked for your employer for at least 13 continuous weeks before you are sick Be certified by a GP as unable to work An employee can get sick pay if they are: On probation Undergoing training (interns) An apprentice An agency worker Can an employee get sick pay if they am a part-time employee? Yes, both full-time and part-time employees can avail of SSP. Can an employee get sick pay if they have more than one job? If an employee has more than one job, you are entitled to get 5 days of sick pay from each job They have to work there for at least 13 weeks Is statutory sick pay taxable? Statutory sick pay is treated in the same manner as normal pay Does an employee need a medical certificate to get sick pay? The employee must be registered by a GP to qualify for statutory sick pay They should be certified from day 1 of their sick leave They have the right to SSP from the first day they are on their sick leave How is sick pay calculated? Statutory sick pay is paid based on a proportion of the employee’s income (normal daily pay). They are entitled to 70% of their normal pay, up to maximum of €110 a day. What is normal daily pay? Normal daily pay includes any regular bonus or allowance which does not change from week to week (but excludes overtime or commission) If the employee’s pay changes from week to week (for example, because of regular bonus payments or allowance), their SSP is the average of their pay over the 13 weeks before you are on sick leave How is normal daily pay calculated for part-time workers? For part-time workers the daily pay is based on work pattern. If an employee works: A set number of hours  (for example, they work 4 hours every work day) at a fixed rate , then they get either €110 or 70% of their normal daily pay – whichever is lower Variable hours at a fixed rate , then they get either €110 or 70% of what you would have earned on the day they were sick – whichever is lower If their work pattern does not fit into category (a) or (b) above, then they get the lower amount of either €110 or their average hourly rate. To get their average hourly rate they: Divide their total pay over the past 13 weeks by their hours worked THEN Multiply this by the hours they were scheduled to work on the day they were sick What if an employer already has a sick pay scheme? An employer may offer their employees more generous sick pay arrangements under its own scheme The scheme must be more favourable, when viewed as a whole, than the statutory sick pay scheme if it is to apply Can an employee receive SSP and sick pay from an employer’s scheme? An employee cannot get the SSP on top of the benefits from their employer’s scheme If the employer has their own sick pay scheme that offers more generous benefits than SSP, the employee should be paid under those arrangements What if the employee is off sick for less than 5 days? If the employee is off work sick for less than 5 days, the unused days can be used for any other sick period, up to a maximum of 5 total days in a calendar year How does sick leave affect illness benefit? If an employee is off work sick for more than 5 days, and they have enough PRSI contributions, they can apply to the Department of Social Protection (DSP) for a payment called Illness Benefit Illness Benefit starts from day 6 of illness What if the employee is sick again? If the employee has already used 5 days of statutory sick leave in 2024 and you are still sick in the same year, they can get Illness Benefit from day 4 of their illness (waiting time 3 days). An employee’s employment rights are protected during sick leave, they are treated as being in employment while on sick leave. What if an employee is off sick during public holidays? Full-time If an employee works full-time and they are on sick leave during public holidays, they can get sick pay or Illness Benefit It is up to the employer if they will or will not count a public holiday as a sick leave day Part-time If an employee works part-time and they are on sick leave during public holidays, they are entitled to time off work for a public holiday, only if they have worked at least 40 hours over the previous 5 weeks Exceptions An employee is not entitled to pay or time off for the public holiday if they are on sick leave immediately before the public holiday, and either of the following apply: They have been off work for more than 26 weeks due to an ordinary illness or an accident They have been off work for more than 52 weeks due to an occupational accident Our UHY FDW payroll specialists can assist our clients with queries you may have in relation to SSP or any other payroll matters. Please contact the team on 042 933 9955. Have you considered outsourcing your payroll? If you would like any information on this, please email payroll@fdw.ie or complete the form below. Our other payroll related articles:  Auto-Enrolment Statutory Sick Pay – 2022 Article #2024 #Payroll #StatutorySickPay #UHYFDWTeam