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The Business Guide to Cloud Accounting is an ebook from our UHY FDW Cloud team. It covers the basics, the benefits, implementing cloud accounting, case studies, testimonials and details of how our cloud accounting service differs. After reading this guide, you will have an understanding of the difference transitioning from a traditional accounting model can do for your business. “Even if your on-premise accounting solution seems to function “just fine”, the risk associated with maintaining old processes isn’t a question of capability – rather, it’s a question of whether or not you want to grow your business and maintain a competitive edge.” Download a free copy #2018 #CloudAccounting

Let’s have a look at three global trends impacting business: Generational Trends As Baby Boomers and Millenials grow older, shifts in the habits or life status of these groups will change business and the world as a whole. Baby Boomers (people born 1944-1964) are now reaching their retirement years in masses which means their relationship with money and possessions changes from accumulation to liquidation. People born in this time have collectively had a massive impact on economies. “They are moving from income earners and taxpayers to pensioners and welfare recipients. They are shifting from wealth accumulation to wealth liquidation. This trend will impact financial markets, economies and government policy.” Millennials, on the other hand, are heading into management roles, starting families and finding homes. “They believe in “access over ownership”, choosing to stream music rather than own albums and preferring Uber and AirBnB over cars and holiday homes. The business models of the past simply don’t cut it with this group.” Austerity “Governments will struggle to generate taxes to sustain the normal spending and borrowing habits of the past.” Governments have historically been bounded by a geographical location, but given large corporations act in a borderless fashion because of digital advancements – taxation is becoming more difficult. In the past, when governments failed to collect sufficient taxes from corporations, they were able to compensate from individual worker income tax. A combination of outsourcing cheap labour to foreign countries and a freer movement of people living and working in foreign countries, this will create friction. Consumption to Connection Successful businesses don’t just sell a commodity. A highly competitive marketplace has forged a new way of doing business, where there is an emphasis on creating a strong connection between the business and the customers. “Consumers want meaning, they want to see businesses that solve real problems and even tackle social issues. As we move into the 2020s, every entrepreneur will need to articulate what they stand for or stand against or face being bland and commoditised.” Resources: Irish Tech News #2018 #BusinessGuide #LatestTopics

UHY Capability Statement 2019 An annual publication showcasing the breadth and depth of UHY member firms’ services and cross-border business development capabilities presented through a series of client case studies. This edition includes eight case studies featuring a range of international clients across a variety of sectors: construction, pharmaceutical, retail, energy, transport & infrastructure, media & communications, minerals, metals & precious stones, high-tech, electronics & IT. Read Here #2019 #CapabilityStatement #UHYGlobal

The building boom in Ireland is not coming to an end, despite the sector’s struggles in 2018. The collapse of Carillion and thin margins are among the things that severely impacted the industry, sending many construction companies into liquidation or examinership. It’s evident that the problems of the construction sector in Ireland have to be addressed. CIF (Construction Industry Federation) is trying to rise to the occasion, warning the community of the difficulties faced by the construction companies, as well as coming up with possible solutions. But what needs to change so that the sector continues to grow? Let’s have a look at the current situation. State of the Crisis According to Sunday Independent, at least 42 construction companies in Ireland have gone into liquidation while many of them entered examinership. It was due to several reasons: public sector contracts that forced companies into lower bids, thin margins, as well as the collapse of Carillion. CIF director general Tom Parlon feels the completion of public-sector construction projects is at risk. Companies are being forced out of business by the public sector contracts’ inflexibility, Parlon appeals for something to be done about it. The willingness of company directors to take on projects with thin margins is an issue because when actual construction costs exceed the agreed fixed price, construction companies have little wiggle room. Lack of Workers in the Construction Industry Given the considerable shortage of construction workers exceeding 112 thousand, could a solution lie in drawing more women to the sector? Women working in the construction industry are few and far between. According to CIF’s survey , 99% of onsite construction workers are male. Offsite, the balance is not skewed so much in favour of men, with 54% of male offsite workers compared to 46% female.  3% of construction CEOs are female. It is why CIF proposes a widespread promotion of the construction sector, as well as raising awareness of the opportunities available to women in the industry. They’ve made it their central objective and started their #BuildingEquality campaign to focus on encouraging women to launch careers in construction. Conclusion In order to avoid more liquidations, decision-makers in construction companies could be more considerate to the risks in excessively undercutting competitors’ prices and committing to fixed price contracts. #2018 #BusinessinIreland #Construction

“ Despite our best efforts, delays in the approval process have forced us to make other plans and we will not be able to move forward with the data centre, ” Apple on the planning delays in Ireland. In our last construction piece, we gave focus to the inadequate level of property supply compared to the level of demand in Ireland. Several factors hold back the development of property in the country, including a shortage of around 112,000. What about the Irish planning process? There are several factors causing difficulties in delivering a sufficient property supply. Ireland has a time-consuming planning process that holds up the development of infrastructure. Could the system for planning permission approvals in Ireland be improved? Especially concerning the emerging plans of multi-national data centre builds. People opposing data centres are pointing towards the impact they could have on the electrical grid and the environment, which is a fair argument. There is arguably an excessive amount of time taken by authorities to make decisions and move the process forward. Ireland losing the contract for a €850 million (Apple) data centre in Athenry is a fitting example of the time-consuming planning process. The original planning application commenced in 2015, but when the process ran into 2018, the company scrapped the plans. Irish Planning System Speeding up the planning approval process would require a change to the centralised Irish planning system. One possible strategy is to increase the amount of designated Strategic Development Zones (SDZ) in Ireland. Planning applications in SDZ cases are innately straightforward and less time-consuming. An example is the Adamstown development (large scale residential development, integrating services such as a railway station, schools and other services into the area). Countries like England and Germany are comparatively less efficient than Ireland at meeting new levels of housing demand. But with levels of supply expected to fall short of demand for the next couple of years, one can argue changes need to be made to solve ‘the Government’s biggest issue’ – the housing crisis. Foreign Direct Investment in Ireland looks promising for the foreseeable future, but barriers in the construction sector should be dealt with sooner rather than later to maintain the positive influx of FDI. Changing the structure of the Irish planning system and using Strategic Development Zones for less time-consuming approvals are ways we could garner more efficiency in our building supply. Sources: ( data-economy.com , cif.ie , dora.dmu.ac.uk , Irish Times ) #2018 #BusinessinIreland #Construction

Is ‘the boom back’? What issues are limiting the growth of the construction sector? For one, a lack of skilled and unskilled construction workers. Skilled and unskilled construction workers left Irish shores as opportunities dwindled after the property crash hit Ireland. Those construction workers left the country for opportunities in countries like Australia, Canada, the US, New Zealand and Dubai. Why won’t these workers return? For one, the qualifications these Diaspora workers received in those countries aren’t recognised by Irish authorities, which is repelling workers that have received further qualifications while working in foreign countries. The construction industry is recovering after the property crash of 2007-2010. However, the high demand for property is not being met with an adequate level of supply. The value of construction output was estimated at €12.7 billion in 2015. The volume of construction output by 2020 is forecast to reach €20.2 billion (in 2015 prices), or just over 10% of GNP. The need for housing is at a demand level of 30,000 units, and the number of completed units that the Construction Industry Federation estimated for 2017 was 18,000 units. The supply of new homes is expected to fall considerably short of demand for several years. The Economic and Social Research Institute has increased the ‘desired output target’ of housing from 25,000 units to 35,000 units. Another factor in why the industry is growing strongly is the influx of foreign investment, resulting in the construction of industrial plants and data centres. A major problem that is stunting the growth of the industry is the lack of construction workers. Emigration following the property crash has resulted in a shortage of 112,000 workers according to the Financial Times. Ireland’s construction industry is experiencing strong growth. The construction of housing, industrial centres, and data centres are all on the rise in Ireland. However, the shortage of construction workers is one factor that may continue to limit the potential growth of the sector. Aside from a shortage of workers, other difficulties exist in this sector. UHY FDW can assist your business in navigating around key challenges like getting access to finance, adapting to the ever-changing tax regulations, managing the current cost of construction and more. Sources: ( Financial Times , Irish Times , EKM Economic Consultants , irishbuildingmaagzine.ie ) #2018 #BusinessinIreland #Construction

Back in September 2017, the European Commission set out the approach to the taxation of the digital economy. Fast-forward to March 2018 to when there were two separate legislative proposals for taxing digital business in the EU – the Digital Services Tax (DST). The proposed digital services tax (DST) figured currently at 3% is to be implemented by member states by January 1st, 2020. One of the main aims of the proposal is to protect the development of small business. Limiting this digital tax to companies with global revenues of €750 million and EU revenues of €50 million consolidating that aim. The ECON (EU’s parliament economic and monetary affairs) committee has weighed in on the issue and gave recommendations to how the Commission should amend the tax proposal. The stand-out amendment being the increase in excise tax from 3% to 5%. This revised DST (digital services tax) would level the playing field between digital and traditional business. Bricks-and-mortar businesses pay an estimate of 20.9%, increasing the digital services tax to 5% creates an imputed corporate tax rate of 20% in contrast to the 13% envisaged by the Commission. The proposed taxation of digital business includes firms in advertising sales, intermediary activities and user-generated content. ECON is suggesting to broaden the scope of what types of companies will be tax liable. Businesses that supply content via digital interfaces and sales of goods/services via e-commerce platforms should be in the proposal. At the Economic and Financial Affairs Council (ECOFIN) meeting on the 6th of November, proposals were discussed. Ireland, Sweden, and Denmark were all critical of the measure during the meeting. Although there has been progress on definitions, tax collection, and administrative cooperation, two key issues found with the proposal include the scope of taxable services covered by the proposed regime and the duration the new tax would be in operation. All member states are in agreement that once a comprehensive solution to taxing the digital economy has been found at an international level, DST should cease. The next meeting about the digital tax will be held on the 4th of December, in the meantime, there is technical work required on the proposal given identified technical issues with the details of the plans. EU Vice-President Valdis Dombrovskis: “ Reaching [a] deal as soon as possible is important for two reasons. First, our taxation system needs to be updated to reflect [the] economic realities of the 21st century. Our economies are increasingly digital and this trend is here to stay. ” Sources: tax-news.com , taxjournal.com . #2018 #BusinessinEU #Economic #TAX

Alan’s appointment to the UHY board of directors reflects his longstanding experience in the auditing & accounting profession and follows on from his previous role as president of CPA Ireland. UHY, the international accounting and consultancy network, has appointed the Managing Director of Irish member firm UHY Farrelly Dawe White Ltd., Alan Farrelly, to the board of directors of UHY. Alan began his career when he started Farrelly Dawe White in 1989 after being active in the industry since 1981.  As well as being a well-respected accountant, auditor and business advisor, Alan also has extensive experience in corporate finance, insolvency, mergers & acquisitions and transactional services. He was the chairman of the UHY Membership Training Working Group for three years and has represented the brand at numerous conferences. During his more than 37 years’ experience in the industry, Alan has been president of CPA Ireland, chairman of the Leinster Society CPA Ireland and the Joint Accountancy Conference Ireland. He still sits on the disciplinary committee of CPA Ireland. Alan comments: “It’s a great honour that fellow members of UHY International have elected me to this position.” One of Alan’s key priorities during his time as a board director is to maintain the position of UHY as one of the global leaders of the accountancy world. “I believe in representing all members by being open and approachable. I understand that the Accountancy profession is in the ‘grip of change’ and so I will strive to keep UHY at the forefront of the profession.” Technological revolutions like cloud computing, artificial intelligence, and data analytics are at the core of innovative new accounting practices. UHY knows the potential these technologies have for the profession, especially in terms of efficiency. Alan comments: “The ever-changing accounting environment is now being driven by AI, cloud accounting and data analytics. This represents a huge opportunity for the accounting profession but will require an element of upskilling. These changes will ultimately lead to an advisory based profession that will drive better management information for client businesses.” New UHY president, Rick David: “With a more globalised and connected world than ever, the industry has to ‘think local, go global.’ The UHY network is a key vehicle to help us build relationships with clients and serve them by tapping into that wider bank of expertise across the world.” A ten-member board of directors develops, implements and supervises UHY’s strategic activities and governs daily management activities at a global scale. Alan joins the board of directors consisting of individuals from the US, Mexico, Spain, UK, Argentina, Australia and China.  Alan takes the place of Muriel Nouchy from UHY GVA in Paris. “After getting a vote of confidence from UHY members to become a board director, I’m looking forward to the challenge of maintaining and developing high-level brand performance globally.” #2018 #HR #UHYFDWTeam

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