Philip Hammond has delivered the Autumn Budget. Here we look at some of the main points from the budget as well as the more relevant aspects of the budget for Northern Irish business. Business Minimum wage to increase from £7.83 to £8.21 from April 2019 Extension to Entrepreneurs’ Relief qualifying period, from 12 to 24 months Increase in Annual Investment Allowance from £200k to £1 million for all qualifying investment in plant and machinery made on or after 1 January 2019 until 31 December 2020 From October 2018 businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings off their profits before they pay tax Some employers will see a reduction in their contribution to the costs of apprenticeship training from 10% to 5% The VAT threshold will be maintained at the current level of £85,000 for a further two years until April 2022 Personal taxation The tax-free personal allowance will rise by £650 to £12,500 from April 2019 The Higher Rate Threshold will increase from £46,350 to £50,000 in April 2019 Property and construction Stamp Duty Land Tax (SDLT) relief for first-time buyers extended to shared ownership properties From April 2020 lettings relief will be reformed so that it only applies in circumstances where the owner of the property is in shared occupancy with the tenant The cap on borrowing for local authorities to build housing is being lifted from today Private residence Capital Gains Tax – final exempt period to be shortened from 18 months to 9 months Automotive and transport Fuel duty to remain frozen in 2019 for the ninth consecutive year £420 million to fix potholes and roads and renew bridges and tunnels Vehicle Excise Duty from 1 April 2019 will increase in line with RPI for cars, vans and motorcycles Education £400 million extra for schools, representing an extra capital payment averaging £10,000 for a primary school and £50,000 for a secondary school Health and social care An increase to the NHS budget by £20.5 billion after inflation by 2023/24 £2 billion a year in spending on mental health services within the NHS by 2023/24 Further £650 million in social care funding next year ( Source, UHY Hacker Young ) Northern Irish Businesses The majority of the announcements made in Budget 2018 were welcomed by business representatives in Northern Ireland. Two announcements directed at Northern Ireland directly included: £350m City Deal for Belfast and eastern councils £2m relief fund for Belfast city centre (in aftermath of the Primark fire). Northern Irish businesses look likely to miss out on the move to cut rates bills by one-third for retail properties with a rateable value below £51,000. The new National Living Wage represents a £690 annual pay rise for a full-time-worker but it could pose challenges for some small employers. “Given the size of Northern Ireland’s hospitality sector, meeting the goal of a 38p per hour increase will be a struggle for many local employers,” – Janette Jones, PwC NI. “Overall, the announced investments, coupled with changes to personal allowances and higher rate tax thresholds will help relieve pressures on employees and put more money in their pockets, which will be very much welcomed by our hard-pressed retailers.” – Tina McKenzie, Federation of Small Businesses in NI. #2018 #UKNI

Plenty of things are still unclear when it comes to UK’s impending exit from the EU. Will it be a soft Brexit or a hard Brexit? What will be the implications of each for UK-based businesses? With the amount of uncertainty and debate still going on, many business owners in the UK find themselves confused and worried. Although nothing has been decided, it’s already time to start preparing for Brexit. In these circumstances, an overview of the current situation might be helpful. Let’s have a look at what the implications of soft and hard Brexit are, as well as how to prepare for either. Current Brexit Timeline There has been a serious lack of progress in Brexit talks and a final deal seems to be further away than we thought it would at the start of November. Businesses are becoming frustrated by the lack of progress and in many cases have withdrawn plans to invest in the UK. However, both EU and UK parliament officials will continue talks this week in the hope of a breakthrough after EU leaders agreed they would try to get closer to striking a deal with Theresa May. By December, there could be three EU summits where the terms of Brexit could finalise. After that, it’s up to the parliament to vote on accepting the Brexit deal. It would be followed by an EU summit that would ratify it in March 2019, and the Brexit Day of March 29th, 2019. Will It Be Soft Brexit or Hard Brexit? UK Prime Minister Theresa May seems to be in favour of the “hard” Brexit option, which would likely give up full access to the single market and the customs union along with the membership in the EU. According to May, preserving access to the single market at all costs is the “wrong way” of looking at the issue. Hard Brexit would mean that the UK would get full control over its borders and rely on WTO rules for trade with the EU going forward. However, leaving the customs union and giving up the single market would see an increase in the costs of business with new tariffs and bureaucratic checks on goods and services. On the other hand, the “soft” Brexit option would likely keep the UK in a similar arrangement as Norway, Iceland, Liechtenstein and Switzerland. These countries have access to the single market despite not being EU members but are required to observe the EU’s “four freedoms” of movement of goods, services, capital and people. Preparing for Brexit For businesses that have no experience dealing with tariffs and other non-tariff barriers that Brexit could create, it all sounds like a nightmare. If you’re worried about suddenly not being able to operate across EU borders when Brexit goes into effect, there is a solution. UHY FDW Limited offers a way to break through Brexit barriers by setting up a subsidiary in Ireland. With a 12.5% corporate tax rate, an excellent workforce, developed infrastructure and low operating costs, Ireland is the ideal country to do business in. Among the benefits of setting up a subsidiary of a UK company in Ireland is having access to the EU single market, eligibility for EU tender frameworks, as well as there being no customs for your EU customers. EU VAT rules and trade tariffs would also apply. With UHY FDW Limited, you’ll be ready to weather the storm of Brexit, whatever it may bring. For €995 plus VAT, UHY FDW Limited will form and register your company subsidiary in Ireland and help open a bank account. After that, it’s up to you to get your business soaring, regardless of Brexit. Click here for more information on our Be Brexit Ready service. #2018 #Brexit #UKNI

Finance Bill 2018 Yesterday, the 18th of October, the Irish Government published the Finance Bill 2018, which will give effect to the measures announced in Budget 2019. The bill also includes new measures that weren’t announced by Minister for Finance last week. Here are some of those new measures: 1) Capital Gains Tax on Trusts Trusts moving to another country will be able to pay Capital Gains Tax through instalments over the following five years, rather than being liable to pay the full amount immediately. 2) PAYE Modernisation Technical Changes There will be several technical changes made to allow for the rollout of PAYE modernisation. (You can watch our webinar on PAYE Modernisation here ) 3) Capital Gains Tax relief The rules which provide Capital Gains Tax relief to the transfer of land by a parent to a child for the construction of a home will be changed. This will be amended so that the child and their spouse or civil partner will be able to benefit from the relief. 4) Capital Acquisitions Tax Loophole A loophole that allowed individuals to avoid Capital Acquisitions Tax on an inherited property, by transferring their existing property to a discretionary trust, is to be closed. 5) VRT on Leased/Hired Cars Vehicle Registration Tax relief will not be available to leased or hired cars. Leased cars that are temporarily based in Ireland will be charged VRT on a pro-rata basis. 6) Minimum Rental Period There will be a minimum rental period of 29 days for those claiming the Rent a Room relief. This will ensure it is not used for AirBnB properties – although there are provisions to ensure that respite, student digs and accommodation for foreign language students are still eligible. 7) ‘Co2 Emissions’ Definition The definition of ‘Co2 emissions’ will be changed to bring the country into line with the new Worldwide Harmonised Light Vehicle Test Procedure. This is the new emissions standards that cars will be tested on. 8) Changes to Farmer-related Supports Changes are being made to some farmer-related supports to ensure they comply with European State Aid rules. This largely impacts the Young Trained Farmers scheme, and will mean that a business plan has to be submitted by those seeking a retrospective refund of Stamp Duty. 9) Defence Force Member Benefit in Kind Member of the Defence Force who receive medical treatment or accommodation as part of their employment will not be liable to pay Benefit in Kind. #BusinessGuide #2018 #BusinessinIreland #TAX #Finance

How can the rise of cloud accounting help construction company managers/directors? Enabling construction company managers to work more efficiently is being helped by the rise of new technologies like cloud computing . In plenty of industries, especially those where employees spend a lot of time working out of office, many businesses are using technologies that make their business operations less dependent on working hours in the office. It comes as no surprise, considering that the right software can help cloud computing cover every aspect of a company’s day-to-day activities. One such solution is cloud accounting, which has many benefits for company directors that spend the majority of their working hours outside the office. 24/7 Access Anywhere The main reason why cloud accounting is more convenient than on-site accounting is its non-stop accessibility. With on-site accounting, data is usually stored on one or two office computers. Outside of the office space, it’s inaccessible, which can be challenging to work around for construction company managers who don’t spend a lot of hours in the office. In any industry where out of office work hours are required, on-site accounting might become a problem at some point. With cloud accounting, businesses don’t encounter these difficulties. All the accounting data is accessible on the cloud 24/7 and from any location. You need to only log in with your password, and work from anywhere as long as you have internet access. Working Remotely When you can do accounting in the cloud, it reduces the working hours needed in the office. Cloud computing enables managers to work remotely, yet still, see accounting information being updated in real-time.  It’s flexible and easy to scale with, since it doesn’t require you to purchase new licenses and pay increased fees whenever your business grows. The ability to work remotely can be invaluable in industries such as construction, where critical information needs to be available 24-7. Data Security One of the benefits of cloud services is that your data is safe and secure. Leave worries about the security of your financial data behind, as the cloud accounting provider will have it managed. Although there are usually concerns about working remotely for companies that allow that, a cloud system takes care of security on their end. Automatic backups protect data from being lost to computer crashes, and regular updates ensure all users are working with the latest technology. The best part about cloud accounting is that this way, no data remains on the computers — it’s all in the cloud. Your financial data will always be safely encrypted and backed up. Adaptable to Different Industries It’s not only the construction sector that could make use of cloud accounting. The technology is flexible to industries and job roles that can benefit from having the ability to manage finances while out of the office. Additionally, any business that seeks to increase the efficiency, flexibility, and accuracy of the accounting process can make good use of a cloud system. You’ll also be cutting staff costs, as well as doing away with all the downsides of using traditional accounting software. Cloud accounting is business and technological innovation at its finest, making everyday business operations more efficient. Here at UHY FDW, we’re proud of our focus on innovation and our very own UHY FDW Cloud Accounting solution. Learn more about the service we offer and avail of a one-hour free consultation with our cloud accounting team. #2018 #Construction

Budget Summary On 09 October 2018, The Minister for Finance Paschal Donohoe introduced the budget and spending measures proposed for 2019. Budget 2019 did not bring any surprises from an Income Tax point of view. We predicted the increase to the 40% income tax band, changes to certain tax credits and the reduction to the rate of USC. These predictions were realised. The minister has introduced new measures to enhance the “Key Employee Engagement Scheme” for SMEs to retain key employees. These measures are to improve poor uptake in the scheme to date. Share options may now be granted up to 100% of salary and there will be a higher overall ceiling of options up to €300,000. On the corporation tax side, Ireland is to introduce a Controlled Foreign Company Regime and an exit tax charge of 12.5% for unrealised gains on the migration of corporate tax residency from Ireland. These introductions have been widely known and confirmed for some time but do represent significant changes for Ireland’s corporate tax regime. The three year tax relief for certain new corporate start-ups has been extended for a further 3 years to 2021 as expected. In the area of inheritance taxes, the minister has increased the tax free threshold for Group A (parent to child) by €10,000 to €320,000. This represents an inheritance tax saving of €3,300. There was an unwelcome change from a VAT point of view. Despite intensive lobbying by the hospitality industry, the reduced rate of 9% VAT has been increased to 13.5%. It is anticipated that this change will result in job losses in the sector. The 9% rate will remain in place for sports facilities and newspapers. On the whole, the Budget was relatively uneventful, as expected and brought in very few surprising tax changes. Download our Budget 2019 Highlights Watch our Video Highlights Contact our Tax Team Today Call Us +353 42 933 9955 Email Us info@fdw.ie #2018 #Budget #Budget2019 #BusinessinIreland

Budget 2019 was announced on Tuesday 09 October 2018 by Minister for Finance Paschal Donohoe. Our team were providing live updates on Twitter and Facebook. Here are their Top Highlights from Budget 2019. Top Highlights from Budget 2019 1. CFC Regime Ireland to introduce a Controlled Foreign Company Regime. 2. 9% VAT rate The reduced rate of 9% VAT for the hospitality sector is to be increased to 13.5% for all areas apart from newspapers and sporting facilities. 3. USC The 4.75% rate of USC will decrease by 0.25% to 4.5%. This affects people on incomes between €19,300 – €70,000. 4. Increase in 40% tax band The 40% tax band rate will now start at €35,300. 5. Parental Leave Increase of 2 weeks paid parental leave to every parent of a child under 1 year, eventually increasing to seven weeks. 6. Inheritance Tax The threshold for Group A (parent to child) is to increase by €10,000 to €320,000 7. Social Welfare Increase of social welfare by €5 per week from March 2019 and a Christmas bonus payment of 100% for 2018. 8. Employer PRSI Higher rate threshold to increase from €376 to €386. Minimum wage to increase to €9.80. 9. Home Carer’s Credit Home Carer’s Credit to increase by €300 to €1,500 per annum. 10. Landlords 100% mortgage interest relief for landlord’s in respect of residential lettings to be fast-tracked to be introduced on the 01 of January 2019. There is expected to be a grant scheme for those who wish to convert their homes in to smaller units which can then be rented out. 11. Key Employee Engagement Programme There will be enhancements to the KEEP programme to retain skilled workers. Share options may now be granted up to 100% of salary and there will be a higher overall ceiling of options up to €300,000. 12. Exit Tax Ireland is to introduce, from midnight on 09 October 2018, an exit tax of 12.5% to apply to any unrealised gains arising on the migration of residency of a company from Ireland or the transfer of assets out of the Irish CGT net. 13. Farming Farmer’s income averaging will be extended to farms with off-farm trading income. The Young Trained Farmer Stamp Duty Relief which was due to expire at the end of this year will be extended for a further 3 years. The existing stock relief measures are extended for a further 3 years. A Future Growth Loan Scheme for SMEs and the agriculture and food sector is being launched providing up to €300m. 14. Start-Up Relief The 3 year tax relief for start-up companies has been extended for certain start-up companies until the end of 2021. View our highlights video: Watch our Budget Highlights Video on YouTube Our Budget Highlights document will be available to download tomorrow. Sign up to our newsletter so you don’t miss out on our updates. #2018 #Budget #Budget2019 #BusinessinIreland

#2018 #CloudAccounting #Events

Brilliant slideshow video with some of the highlights of the summit. The first summit UHY Farrelly Dawe White has organised – and a very successful one at that. #2018 #CloudAccounting #Events

“Cloud computing is the future of accountancy and finance and businesses need to embrace it now or risk being left behind,” was one of the key messages to come from Ireland’s first ever cloud accounting summit. People from all corners of the country packed the Crowne Plaza in Dundalk last Wednesday to hear leading cutting-edge cloud software/cloud accounting experts as they engaged in talks and networking with representatives from SMEs from Dundalk and throughout Ireland. Hosted by UHY Farrelly Dawe White Limited, the North East Cloud Accounting Summit featured speakers including Tibbs Pereira from Microsoft and Stuart Hurst, head of cloud accounting at UHY Manchester. The speakers discussed why businesses should use cloud accounting and looked at how the technology can help businesses manage their finances in 2018 and beyond. Cloud accounting allows businesses the freedom, flexibility and security to managing its work from anywhere, at any time, from any device. It can simplify and reduce the time businesses spend on time consuming tasks. Some of the benefits of cloud accounting that were explored and discussed at the summit, which was MC’d by RTE’s Michael Comyn, include greater control of a business’s finances, the flexibility to work from anywhere at any time securely and access to real-time data to help businesses make the best decisions. Speaking after the summit, Alan Farrelly, Managing Director of UHY FDW Ltd said “We are delighted to have had so many leading cutting-edge cloud software experts take part in the summit. Cloud accounting is the present and future of accountancy and finance. Figures show that Irish businesses are among the most innovative among the European countries, with 36% of enterprises using cloud computing – the 4th highest in Europe and well above the European average. The aim of the summit was to make sure that this trend continues and that more Irish business continue to embrace cloud software so that we stay to the fore of innovation.” Tibbs Pereira, Microsoft Sales Leader said “Organisations of all sizes are embracing Digital Transformation in a rapidly evolving world, with automation and artificial intelligence becoming ever more pervasive. At the Cloud Accounting Summit, attendees were inspired by leaders in Accounting, Finance and Technology demonstrating the benefits of Cloud solutions for a variety of industries. Thanks to UHY Farrelly Dawe White for organising and hosting this important and successful event.” Xero, World’s Most Innovative Growth Company (Forbes 2014 & 2015) and an integral part of the UHY FDW Ltd cloud accounting package was the lead sponsor of the North East Cloud Accounting Summit. UHY Farrelly Dawe White Limited, based in Dundalk, is a UHY member firm and are one of the leading assurance and advisory firms on the east coast of Ireland, working with clients in both Ireland and Northern Ireland to assist business growth at local, national and international level. UHY FDW’s experienced personnel have been providing taxation and accountancy advice for many years.  UHY FDW has been in operation for almost 30 years, now operating out of four offices in Dundalk, Balbriggan, Dublin and Newry, employing over 50 staff making it the largest firm in the North East. Pictured above main: UHY FDW Ltd MD Alan Farrelly, Gavin Fell from Receipt Bank, Gareth Pugh from Chaser, Glen Foster from Xero and Stuart Hurst from UHY Manchester Find out more about our Cloud Accounting Services #2018 #CloudAccounting #Events

Here is our webinar on PAYE Modernisation, that will take effect from January 1st 2019. UHY Farrelly Dawe White Tax Manager, Jane Jackson takes employers through PAYE Modernisation and what it means for their business. #2018 #Events #Payroll

UHY Farrelly Dawe White is hosting the first ever cloud accounting summit in Ireland. The exhibition will take place on the 26th of September in the Crowne Plaza, Dundalk, Co. Louth. The summit will host global leaders in cloud accounting, finance and technology. These leaders will demonstrate how their services/technologies work and how it applies to your industry. In short, the day will consist of presentations, opportunities to speak to the exhibitors and networking opportunities. The summit will focus on the core theme of cloud accounting, but the scope of what attendees can learn about extends further. The North East Cloud Accounting Summit will host high profile brands in cloud accounting and tech industry spaces. These businesses will exhibit there products/services with the aim to show you how they can improve your business. The head sponsor of the summit is Xero, who is an integral part of our cloud accounting package. Other exhibitors include Receipt Bank, Intuit Quickbooks, Parolla, ID Pal, Surf Accounts, Intact Software, Linked Finance, Flender, Big Red Cloud, Sage, Tanda, LEO Louth, CTI Business Solutions and Cheetah Money (with more to be added). Hear from guest speakers, multi-national businesses and our own UHY FDW Cloud team. The summit will present attendees with plenty of networking opportunities and refreshments throughout the day. To attend the summit, you can register for free through this link. #2018 #CloudAccounting #Events

In our Autumn 2018 issue: Every little tax break counts! Keep It In The Family! Family Investment Companies Investors And Entrepreneurs – There’s A (Tax) Difference! Straightforward Asset Protection Can I Claim My Costs For Re-Mortgaging? Benefiting From The Favourable Company Taxes Read the Autumn Newsletter #2018 #UKNI