The Covid Restrictions Support Scheme (CRSS) was announced on Budget day and further details were included in the Finance Bill 2020 which was published on 22 October 2020. A guidance document released by Revenue entitled Guidelines on the operation of the Covid Restrictions Support Scheme was published on 23 October with further updates released on 27 October. The information below is a summary of the information provided in this guidance document. Download our CRSS Publication Summary of Scheme The CRSS is a targeted support for businesses significantly impacted by COVID-19 restrictions. This support is for businesses which are forced to close temporarily or operate at a significantly reduced level because of COVID-19 restrictions generally at Levels 3, 4 or 5 of the Government’s Plan for Living with COVID-19 which prohibit or significantly restrict customers from accessing their business premises. The scheme will apply from 13 October 2020 to 31 March 2021 but may be extended to 31 December 2021 if necessary. Eligibility The scheme is available to companies and self-employed individuals that carry on a taxable trade. In order to qualify, two key conditions must be met: The business must either be closed to customers or substantially restricted in operating, and As a result of these restrictions, turnover for the restricted period must be no more than 25% of 2019 levels (“turnover test”). Also, the business must intend to reopen and resume trading once restrictions are lifted. For a new business that commenced trading on or after 26 December 2019, the turnover test will be applied by reference to average weekly turnover in the period from 26 December 2019 to 12 October 2020. Requirements The company or self-employed individual carries on a trade or trading activities, either solely or in partnership, from a business premises located wholly within a region of the country for which restrictions announced by the Government to combat the effect of Covid-19 are in operation – referred to as a ‘relevant business activity’, and Under the specific terms of the Covid restrictions in operation for the region in which the relevant business activity is carried on, members of the public are either prohibited from accessing, or restricted from accessing, the business premises in which the relevant business activity is carried on, and As a result of the Covid restrictions, the company or self-employed individual’s turnover from the relevant business activity in the period for which the restrictions are in operation, will be no more than 25% of an amount based on the average turnover of the business in 2019 (or in the case of a new business, an amount based on the average turnover of the business in 2020), and The company or self-employed individual meets certain other conditions such as having a tax clearance certificate and having complied with obligations in relations to VAT. The above eligibility criteria must be met by a claimant in respect of each period for which an ACTE is being claimed under the CRSS, referred to as a “claim period” (refer to section 5 for information on how a claim period is determined). Where a person meets the eligibility criteria, the person will be able to make a claim under the CRSS. Amount of Claim The support will be provided by way of an Advance Credit of Trading Expenses (ACTE) for an amount equal to 10% of the average weekly turnover of an affected business up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for each week that their business is affected by the COVID-19 restrictions. In order to make a claim under the scheme a business must satisfy a number of other conditions in addition to the 25% ‘turnover test ‘above, including: Have an up to date tax clearance certificate in place. Comply with all VAT obligations. Register to claim the CRSS on ROS. Make a declaration on ROS that they satisfy the conditions to make a claim under section 485 Taxes Consolidation Act 1997. Turnover Test The turnover test is applied by comparing average weekly turnover during 2019 (or for 2020 effectively for new businesses as outlined above) with the average weekly turnover during the restricted period. For example, say a restaurant business in Drogheda had turnover of €2 million in 2019 and has since 22 October 2020 been subject to Level 5 restrictions for an initial six-week period. Average weekly turnover for 2019 was €38,461, therefore, in order to apply for CRSS there must be a reasonable expectation that total turnover for the six-week period will be no more than €57,691 which works out at a weekly average of €9,615. Amount Receivable The weekly payment will be calculated by reference to the average weekly value of the VAT-exclusive turnover for 2019 (or effectively 2020 in the case of new businesses), as follows: 10% of the first €20,000 5% of the balance Up to a maximum payment of €5,000 per week Per our above example, the payment due to the business in Drogheda is calculated as follows: (€20,000 X 10%) + (€18,461 X 5%) = €2,923 Payment due for the six weeks of restrictions = €17,538 The maximum payment of €5,000 per week would therefore apply where a business had turnover of €4.16 million or more in 2019. A business with turnover above this level is not precluded from applying for CRSS buts its payment will be capped at that level. Registration / Claims The business must register for the scheme on Revenue’s Online System (ROS). To register, the business must provide certain details that Revenue consider necessary and appropriate for the purposes of registration, including, the name, address and details and description of the business activity and the location where it is carried on. Once registered, the business must complete an electronic claim form to claim the ACTE and provide Revenue with the details of their claim. These details would include, for example, details of average weekly turnover, the VAT paid and the percentage reduction in business turnover for the claim period and other particulars. The business must also submit a declaration for the claim period, stating that they satisfy the conditions of the scheme. Where COVID-19 restrictions for a geographical region are extended beyond the date on which they were due to expire, a new claim will be required for each extension period. To avail of the scheme the business must have complied with their VAT obligations (i.e. have registered for VAT or filed VAT returns, as required). They must also be eligible for a tax clearance certificate throughout the COVID-19 restrictions period. In the case of temporarily closed businesses, the taxpayer must have the intention to resume the business activity once the restrictions that prohibit or restrict public access to the business premises are lifted. The registration facility is expected to go live on Friday, 30 October 2020. A claim portal in respect of CRSS will be available on ROS from mid-November. We expect that Revenue will provide detailed guidance on the operation of the CRSS and we will update this webpage with further details on the registration and claims process when the online facility goes live. Time Lines A claim in respect of the ACTE must be made no later than 8 weeks from the date the claim period commences (i.e. 13 October 2020). Tax Treatment of Payments The ACTE payment is an advance of tax deductible business expenses. Therefore, when computing the taxable profits for the current accounting period or tax year, the amount of tax deductible expenses in the tax computation must be reduced by the amount of the ACTE payment received. The ACTE will not otherwise be included in computing the taxable profits or gains for the current period. Treatment of Incorrect Claims Where a company makes a claim for a period and it subsequently transpires that it was not permitted to make the claim under the scheme rules and the company has not repaid the amount claimed, the company will be liable to tax on an amount equal to four times of the amount of the claim that the company was not entitled to claim. The tax will be assessed under Case IV of Schedule D and the company will not be entitled to offset any loss, expense or credit etc. against this amount. Interest will also apply from the first date of the claim period. Where an individual makes a claim that he/she is not entitled to which has not been repaid to Revenue, the individual will be liable to tax at the standard rate on five times of the amount of the claim that was not permitted (the “unauthorised amount”). This unauthorised amount shall be liable to tax under Case IV of Schedule D. No tax deduction or credit can be applied to reduce the tax due on this amount. In cases where an individual makes an invalid claim or over claims ACTE interest will also apply. How long is the duration of the scheme? The scheme is due to expire on 31 March 2021. However, the Finance Bill gives the Minister for Finance authority to monitor and superintend the administration of the scheme and to vary it by Ministerial Order. The Minister can extend the scheme beyond 31 March 2021 but to no later than 31 December 2021. And Finally A business must hold a valid Tax Clearance Certificate and keep their tax affairs up to date for the duration of the scheme. Download our CRSS Publication Contact a member of our team today. +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie Revenue published an updated version of Guidelines on the Operation of the Covid Restrictions Support Scheme (CRSS) on 27 Octo ber. #2020 #BusinessinIreland #Covid #GrantScheme

On the 19th October 2020 the Minister for Finance, Paschal Donohoe, T.D., announced that the rates of subsidy provided for under the Employment Wage Subsidy Scheme (EWSS) will be revised to achieve better alignment to the Pandemic Unemployment Payment (PUP) rates. On the 21st October 2020 Revenue provided further information for employers in relation to the new subsidy rates payable and the planned significant changes to the EWSS payment schedule. The revised scheme will operate in respect of payroll submissions with pay dates on or after 20 October 2020. The combination of the increased subsidy rates and making EWSS payments in as close as possible to ‘real-time’ following  the receipt of relevant payroll submissions will enable employers, in so far as possible, to retain the very important links with their employees during this very difficult period and be prepared for when business levels start to resume. EWSS Revised Rate The revised EWSS subsidy rates effective from 20 October 2020 to 31 January 2021 are as follows: Gross weekly payRevised Rates Less than €151.50Nil€151.50 – €202.99€203€203 – €299.99€250€300 – €399.99€300€400 – €1,462€350Over €1,462Nil The revised subsidy rates mean that, for example, if an employer is currently availing of the EWSS for an employee on a weekly wage of €350, the subsidy has increased from €203 per week to €300 per week. Similarly, for an employee on a weekly wage of €475 the subsidy has increased from €203 per week to €350 per week. Additionally, the EWSS is available to employers who have had to temporarily close their business due to Level 5 restrictions in respect of eligible employees that are maintained on the payroll during the period they are closed. Frequency of EWSS payments The EWSS was originally designed to pay the subsidy due once a month in arrears as soon as possible after the due date of the relevant monthly Employer PAYE return (the 14th of the following month). On 6 October 2020, Revenue announced that it had brought forward the date for EWSS payments to the fifth day of the following month. October EWSS payments, including the increased rates announced by the Minister for Finance in respect of payroll submissions with pay dates on or after 20 October 2020, will be paid by 5 November 2020. Revenue is currently working to further significantly shorten the EWSS payment timeframe. In this regard, the first EWSS payments in respect of November payrolls will be made in early November, rather than by 5 December. Thereafter, subsequent payments for November will be paid following the receipt of a payroll submission containing an EWSS claim. This means EWSS will be paid on a similar basis to the Temporary Wage Subsidy Scheme (TWSS), providing a significant positive cashflow boost for businesses. Finally, due to the current Level 5 restrictions, employers who previously did not qualify for EWSS may now be able to show the necessary 30% reduction in turnover or customer orders between 1 July and 31 December 2020. Revenue is reminding employers that it is still possible to register for EWSS once all qualifying criteria are met. Once registered, employers can then claim subsidy payments in respect of payroll submissions with a pay date on or after their registration date. If you would like any more information on this, please contact a member of our payroll team. +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie #2020 #BusinessinIreland #GrantScheme #HR

It was announced yesterday – 19 October 2020 –  that  Ireland will be placed on Level 5 COVID-19 restrictions from midnight tomorrow –  Wednesday 21 October. As a result of these new restrictions, the COVID-19 Pandemic Employment Payment (PUP) will be increased. The Employment Wage Subsidy Scheme is also being amended to align with the amendment to PUP. This means that there will be 5 payment bands and associated rates: Please note that the subsidy will be paid to the employer and will not be shown on the employee’s payslip.  In order to claim the EWSS, an employer must have Tax Clearance and must meet the minimum 30% reduction in turnover or customer orders test (unless you are a registered childcare provider). Gross Salary from 0 to €151 = €0 in subsidy Gross Salary of more than €151 and less than €203 = €203 in subsidy Gross Salary of more than €203 and less than €300 = €250 in subsidy Gross Salary of more than €300 and less than €400 = €300 in subsidy Gross salary of more than €400 and less than €1,462 = €350 in subsidy The main aim of this scheme is to ensure where possible employees retain their link with their employer rather than become unemployed. This revised scheme will run to the end of January 2021. This change to payment rates will apply for payments issued from Tuesday 27 October (PUP is paid weekly on a Tuesday) in respect of all existing and new applicants. If you would like any more information on this, please contact a member of our payroll team. +353 42 933 9955 info@fdw.ie Jane Jackson janejackson@fdw.ie #2020 #Covid #BusinessinIreland #Payroll #GrantScheme #TAX

In the recent Budget for 2021 the Minister for Finance announced that the tax debt warehousing scheme which is currently available to corporate taxpayers will be extended to self-employed individuals. For self-employed individuals the scheme will cover 2019 income tax and 2020 preliminary tax liabilities. While this is welcome news for taxpayers that cannot afford to pay their upcoming income tax liabilities, it does however come with a pitfall that we want to highlight to you. While you are probably aware that the filing deadline for 2019 income tax returns has been extended to 10 December 2020, this extension only applies to taxpayers that actually pay their tax liabilities on 10 December 2020. As such, for taxpayers that are not in a position to pay their income tax liabilities by 10 December 2020, the filing deadline for the 2019 income tax return reverts to the default due date of 31 October 2020. If the income tax return is not filed by this date then Revenue can apply a late filing surcharge of 5% or 10% of the tax liability. If you feel you will not be in a position to pay your income tax liabilities in full by the 10 December 2020 please contact Jane Jackson or Mairead Rooney on our tax team as soon as possible. If you would like to speak to one of our tax team professionals, please contact us: +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie #2020 #Budget2021 #GrantScheme #TAX

On 13 October 2020, The Minister for Finance Paschal Donohoe introduced the budget and spending measures proposed for 2021. Find out what new measures were announced and how they might affect you and your business. Focal Points These are some of the focal points from the announcement Budget 2021 Highlights Download our Budget 2021 Highlights Budget 2021 Video We also have a video to view with a brief summary on Budget 2021 Watch our Video Highlights Contact our team with any queries you have Contact our Tax Team Today Call Us +353 42 933 9955 Email Us info@fdw.ie #2020 #Budget #Budget2021 #BusinessinIreland

The company develops solutions for more natural, sustainable plant, animal and human nutrition and health. Its ‘blue biotech’ focus on the complete food chain – from sea to plate – might sound ambitious, but the science behind the soundbites makes sense. So does the company’s decision to appoint UHY member firms to help its expansion into South America.  Olmix marine solutions are based on macroalgae, a varied source of nutrients and bioactive compounds. Macroalgae offers a range of innovative ways to reduce the need for pesticides in plats, antibiotics in animal feed and chemical additives in human food and healthcare. The company is based in Brittany, France, but has now expanded into 28 locations, including the Americas. The group has a turnover of around USD 200 million and over 900 employees. It opened its Mexico subsidiary – Olmix Mex – 2014. LOCAL KNOWLEDGE IS KEY Olmix faced the same challenges all businesses encounter when seeking rapid international expansion. Each new location demands local knowledge. As a French company, Olmix needed local partners to steer the business through the intricacies of national and regional regulation, especially as it moved beyond the familiar tax, accounting and legal regimes of the European Union. “Our group strategy is to use local specialists in every country we are active in – partners with knowledge of local legislation, accounting and politics,” says Robert Bandner, regional manager for the Americas at Olmix Group. “We made a strategic decision long ago not to use the Big Four.” As Robert implies, the role of an accounting firm, in this scenario, is about more than tax and audit. Olmix operates in a heavily regulated sector. When the group prepared to open a Mexican subsidiary in 2014, it looked for professional services providers that also offered a wider advisory function. Olmix met with three local accountancy firms, and as a result UHY Glassman Esquivel y Cía, UHY’s Mexican member firm, was awarded the task of helping Olmix develop a successful presence in the country. Six years later, the UHY member firm – and specifically UHY’s José Carlos Villegas and his team in Mexico City – is still Olmix’s preferred accountancy partner. RANGE OF SERVICES The team provides Olmix with accounting, tax, payroll, and invoicing services. Additionally, UHY Glassman Esquivel y Cía provides legal support and business advisory services, and prepares price transfer studies. “We chose UHY Glassman Esquivel y Cía because they gave us the complete set of services we needed,” says Robert. “We were also attracted by reasonable pricing and trustworthy people.” Since Olmix Mex was created six years ago, the company has significantly expanded its activities in the country. Robert believes the partnership between Olmix Mex and UHY Glassman Esquivel y Cía has been key to that success. “We have achieved our strategy in Mexico thanks to the support of UHY Glassman Esquivel y Cía,” he says. “We rely on the cooperation and vigilance of the people at UHY to give us the service we need.” PERU CONNECTION The partnership between Olmix Mex and UHY Glassman Esquivel y Cía has been so rewarding that, when Olmix was considering opening a subsidiary in Peru, it asked José Carlos Villegas for a recommendation. He had no hesitation in reaching out to UHY Blancas Sandoval & Asociados, UHY’s member firm in Lima. Olmix has now created a Peruvian subsidiary with the help of Carlos Sandoval at UHY Blancas Sandoval & Asociados. What is more, the company is considering opening further import and sales offices in Central and South America. José would not hesitate to recommend other member firms of the UHY global network in future, as Olmix Mex continues to be delighted with the service it receives. “The quality service we get from UHY goes beyond a simple accounting service,” says Robert. “We have a special relationship and we trust them to make sure Olmix can keep developing in the right way.” For more information about UHY’s capabilities, email the UHY executive office info@uhy.com  or visit www.uhy.com #2020 #LatestTopics #BiotechampPharma #CaseStudy #UHYGlobalIssue

Revenue have extended the deadline to apply for a phased payment arrangement with Revenue on ‘Non-Covid 19’ debts. Taxpayers, or tax agents acting on their behalf, now have until 31 October 2020 to finalise payment arrangements covering non-Covid tax debts. The reduced interest rate of 3% per annum will apply for outstanding ‘non-Covid-19’ tax debts, where there is a phased payment arrangement in place between the business or individual and Revenue by 31 October 2020.  ‘Non-Covid-19’ tax debts are debts that cannot be warehoused, i.e. older liabilities, including those from a compliance intervention, and debts not associated with COVID-19.  The 3% rate, which applies from the date of the agreement, is available across all tax types and is a significant reduction from the standard interest rates of 8% and 10% per annum that normally apply to late payments of tax. Revenue is strongly encouraging individuals or businesses who have not yet agreed payment arrangements in respect of ‘non-Covid-19’ tax debts with Revenue, and who now wish to avail of the reduced interest rate, to ensure the following steps are completed by 31 October 2020: ensure ‘non-Covid-19’ tax debt, across all tax types, is quantified through the filing of all relevant tax returns, and formally agree a phased payment arrangement with Revenue. Normal interest rates on late payment of taxes of 8% and 10% per annum will continue to apply to outstanding ‘non-Covid-19’ debts that are not included in a phased payment arrangement with Revenue by 31 October 2020 . The reduced interest rate will also not apply to unpaid taxes where Court proceedings for the recovery of that debt have been initiated or where judgments have already issued. If you would like to speak to one of our tax team professionals, please contact us: +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie #2020 #TAX #Tax2020

In response to the ongoing COVID-19 pandemic, the Irish Government introduced a number of jobs stimulus measures which included the introduction of the “Stay and Spend” Tax Credit scheme. This incentive has been introduced to encourage people to support the Irish tourism sector. The credit will be available to taxpayers who incur qualifying expenditure from 1 October 2020 to 30 April 2021, subject to certain limits and conditions being met. There is no requirement for taxpayers to be on “staycation” to avail of the scheme. The maximum tax credit available under the scheme is €125 per person, or €250 in the case of a person who is married or in a civil partnership and is jointly assessed to tax. The credit can be offset against a liability to income tax and universal social charge (USC). Qualifying Expenditure  Qualifying expenditure includes expenditure on accommodation and food and non-alcoholic drink provided by a qualifying service provider. Food and drink provided on a “take-away” basis is not a qualifying service. The taxpayer must spend at least €25 on qualifying expenditure in a single transaction. Using the new Revenue Receipts Tracker App, they must submit proof of expenditure with their claim, along with details of the service provider, type of service received, total amount of expenditure incurred and how much of that expenditure is not qualifying expenditure (i.e. expenditure on alcohol). Qualifying Service  Qualifying services include the provision of holiday accommodation and food and non-alcohol drinks by a “qualifying service provider”. Qualifying criteria for Service Providers  Holiday Accommodation The holiday accommodation premises must be registered or listed with Fáilte Ireland. Food and Drink The food provided must be in a form suitable for human consumption without further preparation, supplied in a hotel, restaurant, café or licensed premises. The food and drink must be consumed on the business premises in which they are served. Food and drink provided on a “take-away” basis is not a qualifying service. The service providers should ensure that all receipts issued clearly show the name of the business that provided the service and an itemised breakdown of the services provided. Where a bill is split between two or more customers, each customer should receive an individual receipt for the share of the services they have paid for. The service provider must complete the Stay and Spend registration process and receive confirmation from Revenue that the service provider’s status is a qualifying service provider. A list of all qualifying service providers who are participating in the scheme will be available on Revenue’s website in due course. Registration for Service Providers In order to register as a qualifying service provider, the business must: Provide qualifying services, i.e. holiday accommodation or “sit-in” food and drink; Be registered for VAT; and Hold valid tax clearance certificate. Registration must be completed on Revenue Online Services (“ROS”) by accessing the “Stay and Spend – Service Provider Registration” link in “Other Services”. If registration is successful, a notice will be sent to the service provider’s ROS inbox. If registration is unsuccessful, the service provider will be advised that they are not a qualifying service provider along with the reasons that Revenue believe they do not qualify. If you would like to speak to one of our tax team professionals about registering your business for the scheme or have any questions about the scheme, please contact us: +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie #2020 #Covid #GrantScheme #TAX

As part of the recently published July Stimulus package, the Irish government announced a new Employment Wage Subsidy Scheme (EWSS) which will replace the existing Temporary Wage Subsidy Scheme (TWSS) with effect from 1 September 2020. The EWSS is expected to run until 31 March 2021. Financial Provisions (COVID-19) (No.2) Bill 2020 (published on 24 July and signed on 30 July 2020), provides the legislative footing for this new wage support scheme and sets out various details of the scheme, including the employer and employee eligibility criteria; the rates of subsidy payable; and other administrative aspects. Eligible Employers To be eligible to participate in the EWSS, the employer must be able to demonstrate to the satisfaction of the Revenue that their business has been significantly disrupted by reason of COVID-19. Specifically the employer needs to demonstrate at least a 30% decline (or such other percentage as the Minister for Finance may specify) in either the turnover of the employer’s business or in customer orders received during the period 1 July 2020 to 31 December 2020, as compared to the same period in 2019. In cases where the business of the employee has not operated for the whole of the corresponding period in 2019, the following will apply: Where the business operations have commenced on or before 1 November 2019, the 30% decline test must be determined in 2020 by reference to the same reference period last year in which the business was in operation. For example, if the employer’s business commenced on 1 September 2019, then a 30% decline in the period 1 September 2020-31 December 2020 must arise as compared to 1 September 2019-31 December 2019. Where the business operations have commenced after 1 November 2019, the employer must be able to show that the turnover or customer orders during the period 1 July to 31 December 2020 will be at least 30% less than what the turnover or customer orders would have been had there been no disruption caused by COVID-19. The Bill provides that Revenue will publish guidelines to assist employers in determining whether the reduction in turnover/customer orders will occur by reason of COVID-19 and the disruption that COVID-19 is causing to business. The Bill requires employers to review their eligibility criteria at the end of each month for July 2020 to March 2021. If as a result of the review, it transpires that the employer does not meet the eligibility criteria they should withdraw themselves from the scheme on ROS with effect from the first day of the following month. Any employer who is entered in the register established and maintained under the Child Care Act 1991 will be considered eligible for the scheme without having to satisfy the reduction in turnover or customer order tests. This would include pre-schools, play groups, creches and other services catering for pre-school children in addition to creches etc that cater for primary school children. Tax Clearance In order to be eligible for the EWSS throughout the entire period, the employer must be entitled to a tax clearance certificate . An employer can only register for the new EWSS if they have tax clearance prior to entering. If a payroll submission in without a registration for EWSS being submitted, it will be rejected. This is a key requirement as it requires employers to be fully up to date with all tax filings and tax payments (if such tax amounts due are outside the scope of a warehousing agreement with Revenue). It is therefore absolutely essential that, should an employer have outstanding tax returns (e.g. VAT, VAT RTDs, Corporate tax returns etc) and/or outstanding tax liabilities (not covered by a warehousing agreement) that these outstanding tax returns are filed together with any outstanding taxes paid prior to entering into the new EWSS. Interaction with existing TWSS Where an employer is entitled to receive a subsidy for an employee under the existing TWSS during July and August 2020, the employer shall not also be entitled to claim a subsidy under the EWSS in respect of the same employee. Assuming employers meet the qualifying criteria, the EWSS will be available from 31 July for: TWSS employers who have non-TWSS employees (i.e. new hires), and Non TWSS employers, who have not previously availed of the TWSS Eligible Employees Any employee who was considered an eligible employee under the existing TWSS provisions will also be considered an eligible employee for the EWSS. When TWSS ceases to be claimed for an employee (latest 31 August) an EWSS claim can commence. The new EWSS extends the definition of eligible employee to now include an individual who is on the payroll of the employer at any time in the “qualifying period” i.e. at any time between 1 July 2020 and 31 March 2021. Previously, with a small number of limited exceptions, an employee was only considered eligible for the TWSS where they were included on the employer payroll on 29 February 2020. Revenue has now confirmed that in cases where TWSS was not previously being claimed, that payments under EWSS can be backdated to 1 July. The initial drafting of the bill excluded an individual who is a proprietary director of a company. It would seem, however, that following a government announcement on 31 July, proprietary directors who retain ordinary employees on payroll will also be eligible with effect from 1 September. A Finance Bill amendment is anticipated in respect of this. An individual who is connected with the employer (unless such connected person  received pay from the employer between 1 July 2019 and 30 June 2020 ) is excluded from EWSS under the Bill. The extension of the EWSS to seasonal workers and new hires is a very welcome development, particularly to those sectors such as hospitality or other seasonal businesses who perhaps were closed in February 2020 or operating at a reduced capacity. Rates of Subsidy Under the EWSS, eligible employers will receive a per-head subsidy on a flat rate basis which will be determined based on the amount of gross pay that the employer pays to the eligible employee as follows: Gross PaySubsidy Payable <€151.50€0€151.50 – €202.99€151.50 per week€203 – €1,462€203 per week>€1,462€0 Revenue have confirmed that EWSS support will be backdated to 1 July for eligible employers who did not qualify for TWSS. The rates payable under the new EWSS have been simplified considerably compared to the rates payable currently under the TWSS. Under the existing TWSS, those employees with gross pay in excess of €960 per week are not eligible for the subsidy. This upper gross pay limit has been increased to €1,462 under the new scheme. However, a lower gross pay limit of €151.50 is now provided for which doesn’t exist under the TWSS. The EWSS payments to the Employer will now be monthly and no longer weekly. The EWSS payments will be paid on the 14th of the next month. As a result, for weekly paid employees, the employer will not receive the EWSS repayment until six weeks after the first weekly payroll submission of that particular month. Tax & PRSI Revenue has confirmed that all gross payments made to employees under the EWSS should be fully liable to PAYE, USC and employee PRSI in the normal way. Employers will be required to operate PRSI on all gross payments to be made to their employees having regard to guidelines to be published by the Revenue. However a 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy. Anti-avoidance The Bill includes a specific anti-avoidance provision which seeks to counteract contrived situations whereby any gross pay due to an employee is deferred, suspended, increased or decreased with a view to securing the wage subsidy or situations where an employee is laid off and removed from the payroll and replaced with two or more employees in relation for whom the subsidy would be available. If Revenue identify any such cases, the employer will be treated as having never been eligible for the scheme and any subsidy payments received would need to be refunded, together with possible interest and penalties. Publication As was the case for the TWSS, the names and addresses of all employers who receive a wage subsidy payment under the new EWSS will be published on revenue.ie Please contact a member of our Team for more information. +353 42 933 9955 info@fdw.ie Niall Donnelly nialldonnelly@fdw.ie #2020 #GrantScheme #Payroll #TAX

Smart city initiatives are sprouting across the globe, with the aim of creating truly connected cities for life and work.  In January 2020, Japanese car manufacturer Toyota revealed plans to build an entire city from scratch near the foot of Mount Fuji. Named for its integrated design, Woven City will not be large, but it will be smart. Around 2,000 residents will live and work in the 175-acre site initially, surrounded by some of the most sustainable and connected technology currently available. Woven City streets will hum with the sound of electric and driverless vehicles. Renewable energy will power its sustainably designed homes. Everything – people, vehicles, buildings – will be digitally connected, with inhabitants acting as the pampered lab rats of a real-world experiment in ultraefficient, AI-assisted urban living. “With people, buildings and vehicles all connected and communicating with each other through data and sensors, we will be able to test connected AI technology, in both the virtual and physical realms, maximising its potential,” said Akio Toyoda, Toyota’s president. PRESSURE ON INFRASTRUCTURE The concept of a smart city is not new, but growing concerns about climate change and overpopulation are driving ever-more ambitious projects. Scores of nations around the world are piloting their own interpretations of smart urban design, as authorities react to growing pressure on public amenities and city infrastructure. The Netherlands, for example, has adopted a nationwide Smart City Strategy, with the aim of developing projects that will create healthier, greener, more liveable urban environments. Paul Mencke, partner at Govers Accountants/ Advisors, UHY’s member firm in the Netherlands, says the need is obvious. “The ambition of the government arises from global developments such as urbanisation, climate change, labour participation, digitisation, mobility and natural resources becoming rare. These global developments have a disruptive impact on societal systems, and they put pressure on cities to create new business models,” he explains. Paul cites the example of his own city, Eindhoven, which is creating a 32-kilometre-long cycle loop around and through the city, currently in its final stages of construction. “The route is an example of a sympathetic initiative that has a positive combined impact on mobility (reducing congestion), the reduced use of fossil fuels, public health and parking problems,” he says. Dubai, meanwhile, has long embraced the concept of technology-driven urban living. Now, its Smart City 2021 initiative boasts the ambition of demonstrably improving happiness. It aims to embed technology into every element of public life, helping to create more satisfying interactions between inhabitants, businesses and government bodies. There are currently 545 planned or ongoing smart city initiatives, harnessing AI, blockchain and paperless technologies to drive efficiency. “The basic premise for smart city adoption is to ensure every aspect and transaction of daily life in the city adds to the happiness quotient of its residents, from a smart technology standpoint,” says James Mathew, CEO and managing partner of UHY James, based in Dubai, United Arab Emirates. While smart city technologies do not have to be digital – the Eindhoven cycle track is a case in point – many inevitably are. Dubai is a leader in blockchain adoption, for instance, with a blockchain community 5% larger than the global average. And innovation does not stop there, as James explains: “By 2030, Dubai is set to have the first smart police station with 25% of its workforce being ‘robocops’,” he says. “The first robot officer was launched in 2017 to patrol Dubai streets.” TECHNOLOGY FOR LOCAL NEEDS Around the world, cities are promoting smart technologies that best meet their specific needs. According to Sunil Hansraj, joint managing partner, Chandabhoy & Jassoobhoy, Mumbai, India’s Smart Cities Mission was created to help ease overcrowding in the country’s biggest cities. “Its aim is to provide the burgeoning middle class with an aspirational lifestyle in their own hometowns, rather than have a large population continually migrate to the larger cities – which are bursting at the seams,” says Sunil. Overcrowding is not unique to India, of course. Combined with overall population growth, urbanisation is likely to add another 2.5 billion people to cities globally over the next three decades. But a number of India’s cities have reached saturation point already, accelerating the need for smart city initiatives. The aim is to improve quality of life in India’s biggest urban centres, while at the same time making smaller towns and cities more economically viable, slowing the pace of internal migration. “Accordingly, the purpose of the Smart Cities Mission is to drive economic growth and improve quality of life by enabling local area development and harnessing technology, especially technology that leads to smart outcomes,” says Sunil. “Growth and development will enable smart cities to use technology, information and data to improve infrastructure and services.” Mexico, meanwhile, has seen the creation of ‘smart zones’. “They are ‘little cities’ in or near a major city,” says José Carlos Villegas, partner at Mexican member firm UHY Glassman Esquivel y Cía. “In addition, the Mexican technology firm Netcity is creating smart initiatives in Mexico City.” These smart zones are testbeds for technology that might eventually be rolled out across the country and, again, are aimed at helping to solve some of Mexico’s most pressing urban challenges. “With technology, we hope we can improve security systems, communication and telecommunication, electricity provision and clean water supplies,” says José. SMART MONEY Smart city initiatives aim to improve quality of life, and by doing so confer real economic benefits. For a start, they make doing business easier. A connected network of Internet of Things (IoT) sensors could alter traffic light timings in response to changing needs, making commutes quicker and smoother. Sensors on lampposts might guide vehicles to free parking spots. At the same time, blockchain technology could be used to speed up bureaucratic processes and cut red tape, while data gleaned from thousands of IoT devices could lead to better evidence-led business decisions. Smart buildings, meanwhile, can reduce energy costs while maintaining optimum conditions for creative work. And truly digital cities make home and remote working easier and more productive. Even before the first IoT sensor has been installed, the creation and management of smart city initiatives offers a significant opportunity for companies in a range of sectors. Telecoms providers, software firms, construction companies and component manufacturers are all scrambling to be involved in the first wave of smart city projects. Some forecasters estimate that the global smart cities market could exceed USD 2.5 trillion by 2025. That is an enormous figure, and the excitement around smart cities is real. SLOW PACE OF CHANGE For the moment at least, hype might be outpacing reality. While mega projects like Woven City create interest and publicity, in many cases the push towards smart cities is piecemeal, local and relatively small scale. In India, Sunil points out that the Smart City Mission was first discussed in 2014. Six years later, only 50% of the budget for projects has been allocated, of which about 75% has been released and an even lesser proportion utilised. “There is still some distance to go before the physical benefits will be visible,” he says. “The Covid-19 crisis is not going to hasten the progress of these projects and so for now the smart cities concept may remain just that – a great concept.” In Mexico, too, government inertia is slowing the pace of change. “For example, despite the fact that businessmen and investors are aware of the importance of clean energy initiatives and are willing to invest, the government is less proactive in promoting the use of clean energy,” says José. Paul says the current situation in the Netherlands is also a scattered picture of sympathetic initiatives. “While there are quite a lot of projects, they seem to be on a local level, and relatively small in size.” A CONNECTED FUTURE? Nevertheless, while the development of smart cities is haphazard at best, the direction of travel is set. Increasing pressure on urban environments will force authorities to act. Big business is eyeing an opportunity. Few cities are as far down the path to a fully connected future as Dubai, and the city is already seeing economic benefits. “Smart technology initiatives are expected to account for savings worth almost USD 1.2 billion through shared government infrastructure and services,” says James. “And Dubai has become a playing field for startups – the smart initiatives provide startups with a platform to scale their business and demonstrate their capabilities to contribute to the futuristic vision of Dubai.” Retail is a major contributor to Dubai’s economic success, and James says the city’s move to enhance data collection and analytic capabilities is providing the sector with new and valuable information. “The end objective of leveraging data and analytics in the retail sector is to gauge retail trends, analyse the performance of the sector and improve the environment for doing business in the city,” he adds. Dubai’s high-end retail sector may be unique, but it is one example of what smart initiatives can do for business when targeted at local needs. In the meantime, the fully connected city may be some way off, but it is on the way. When companies like Toyota start building entire neighbourhoods from scratch just to test their technology, you can be certain that the momentum behind the adoption of smart city initiatives is only going to increase. For more information about UHY’s capabilities, email the UHY executive office info@uhy.com  or visit www.uhy.com #2020 #Construction #LatestTopics #UHYGlobalIssue

View our Tax Book 2020 which has all the taxation information you will need covering topics such as Income Tax Rates, Investment, Retirements & Pensions, Employee Share Schemes and much more reflecting all changes announced in Budget 2020 Download Tax Book 2020 Request a printed copy of our Tax Book 2020 – email nicolamernagh@fdw.ie Contact our Team Today Contact our team with any queries you have Call us +353 42 933 9955 Email us info@fdw.ie #2020 #BusinessGuide #TAX #Tax2020

Ensuring that your loved ones are looked after is a priority for most of us. In these uncertain times it is more important than ever. The current pandemic has had a huge impact on our lives and has also seen individuals assessing their current position and wishing to ensure their loved ones are looked after by updating or making their Wills. Death is not something we like to think about or plan for but if you do some planning now you could ease the practical and financial issues your family may face. Not having a Will means your estate will be divided according to the laws of intestacy and that may not be what you wish as it can put your loved ones at risk. Making a Will is one way you can ensure your loved ones are looked after when you are not here to do so. Irish Inheritance Tax Under Irish tax law, an inheritance received by an Irish resident automatically falls within the scope of Irish Capital Acquisitions Tax (“CAT”) i.e. inheritance tax. The current rate of CAT is 33% and this can result in a significant and real financial strain on beneficiaries of a Will. There are various tax exemptions and reliefs from CAT available for beneficiaries/assets under a Will. Very many of these reliefs and exemptions require some forward thinking and consideration prior to an inheritance actually being received to ensure that the beneficiary/asset qualifies for the relief in question. As such, the key to limiting the financial impact and stress of CAT on your family members and beneficiaries is to plan in advance and this begins at the Will creation stage. It is very understandable to wish to get your affairs in order in these uncertain times and our tax professionals would be very happy to assist you and your legal representative in optimising the impact of CAT for your beneficiaries during the process of your Will creation and finalisation. CAT Tax- Free Thresholds Once you have made a Will you should review it every five years to ensure, it is still valid and up to date. This is important for a number of reasons including the fact that CAT can change with each annual budget. By reviewing and updating your Will you ensure that you maximise the benefit of any available tax reliefs/exemptions while also utilising the group thresholds allowed for your family members and beneficiaries. The current tax-free inheritance thresholds are based on relationships and are as follows: Group AGroup BGroup C Son, Daughter, including certain foster children and minor children of a predeceased childParent, Brother, Sister, Niece, Nephew, Grandparent, Grandchild, Linear Descendants of the TestatorAll other persons who do not fit within Group A or B €335,000€32,500€16,250 Is it possible to make or amend a Will during the COVID-19 Pandemic? In short, yes! The process will be slightly different to normal to ensure all parties adhere to current protocols. If you are considering drafting or updating your Will and wish to ensure that CAT is minimised for your family members then please contact our Care Team member Susan and she will organise a consultation with one of our tax experts via video call or over the phone, to begin the process. In certain circumstances for estates with significant assets values, it may be worth putting a life policy in place to cover any CAT liabilities for beneficiaries. Our Care Team can also organise a video or phone all with a trusted CAT insurance policy expert. Main Considerations On Drafting A Will We have set out below some of the main considerations you should give some thought to prior to drafting a Will. Review and take account of your assets Decide whom you would like to benefit Consider if you will need to appoint guardians to your children; Considered a trust arrangement Is there a specific asset you want someone to have Consider the tax implications for various beneficiaries of your Will; and Plan accordingly to reduce the CAT impact on your beneficiaries. Validity of a Will Please note that for any Will to be valid: You must be over 18 years of age You must be of sound mind Your Will must be in writing Your Will must be signed at the bottom of the document in front of at least two witnesses, neither of whom should benefit under the Will Some elements you should also be aware of: A Will has no affect until a person dies; Your Will can be changed at any time; Your marital status is of relevance when you make a Will; Subsequent marriages revoke a Will; If you are making a Will and have been separated or divorced, you will require advice in relation to the succession rights of former spouses or partners including their entitlements Making a Will is an ideal opportunity to benefit any charity and once your family and friends have been looked after, this is a great way to support a cause important to you Enduring Power of Attorney We always recommend to our clients to have an Enduring Power of Attorney in place. A Power of Attorney (POA) is a deed executed by an individual which empowers another person(s) to act on their behalf. One instance where appointing a POA is common practice is where a client is getting older or becoming incapable of looking after their financial affairs and themselves. Whilst this is not the only reason why someone may wish to consider granting a POA it is perhaps the most common. Important information when appointing a POA: It is a legal device that enables you to choose a person called an attorney to make certain personal care decisions on your behalf in the event of you becoming mentally incapacitated You may choose one or more attorneys You must notify two people that you have executed the power If you become incapable of managing your own affairs your attorney must apply to have your enduring power registered in the High Court The enduring power will not come in to force until it is registered Our Specialised Team Our team are working constantly to bring you the latest updates on all the changes affecting you and your business in the current climate. Our Care Team are available to assist you with your queries and will facilitate making an appointment via video call or phone call with any of our team experts. Keep up to date by signing up to our mailing list, follow us on social media and check our website for more details. Check out our COVID-19 Resource Centre to view information on supports available, updates from the Revenue Commissioners and more. We hope you and your families are keeping safe and well and we wish you continued good health. Susan: susanmcgeough@fdw.ie #2020 #Covid #TAX #Wills #Finance