Royal Canal Financial Control Services

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044 937 5962

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Payroll Survey 2021

Revenue Warehousing of Debt

Last Updated: 21st May 2020

Revenue have suspended debt collection (i.e. enforcement) of the following tax payments in 2020:

1) VAT’s for: January/February, March/April and May/June 2020
2) Payroll Tax returns: February through to June P30 Liabilities

In addition Revenue will warehouse the debt for a period of 12 months, being the above debt and any future debt while the business was unable to trade or was trading at a significantly reduced level, plus an additional two months of tax debt to allow the business get back some positive cash flow.

While we await the legislation to be published, “trading at a significantly reduced level” is likely to mean sales activity to be down by at least 15% – 25%.

Covid-19 tax debts will be ‘warehoused’ for a period of 12 months interest free, and if an additional instalment repayment agreement is required after this period has elapsed, interest will be charged at the lower rate of 3%.

Tax clearance will not be affected.

We will update this note when we have legalisation clarifying the matter.

Telephone Line (NEW!)

Last Updated 23/10/2021 – 18.15

Landline number 044 967 5002 – See the table below for staff extensions.

Due to staff remote working we have commissioned a cloud PBX so you can contact some of the team as per the below table or indeed they can contact you all via an app on their phone thanks to BlueFace.com.

You can leave a voicemail with each team member on the system and they are collected by one person and the team member notified and message shared with them with the audio of the voicemail via an email. There is also an out of hours voicemail.

You can call our team directly as well when you call to their extensions from the table below.

For ease of reference we have listed below the staff on the system as follows:

Address for Posting

Due the increased risk of carrying Covid19 from store to store collections are still suspended till further notice we ask that you post the records to the office from 12th June 2020 as some of most of our team are back in the office from Monday 15th June.

Royal Canal Financial Control Services
Office 1, Eastwae Retail Centre

Kinnegad
Co. Westmeath
N91 V593

Temporary COVID-19 Wage Subsidy Scheme

Last modified: 30th March 20 00.16

Please note the following advice is summarised from Revenue website and guidelines given, it is only intended to give you an idea of the scheme and we will always encourage you to come speak with us directly to we can assess your own businesses situation

The information that follows is based on the terms of the Emergency Measures in the Public Interest (Covid-19) Bill 2020 (As passed by Dáil) which was recently published.

Employers are asked to keep employees on the payroll during this emergency and to maintain 100% or a significant part of their income for the period of the scheme. This is currently 12 weeks from 26th March 2020 but can be extended if required.

Please note that in April the scheme will move to pay only 70% of the normal weekly pay of each employee to a max of €410, as per Revenue no later than 20th April that Revenue will pay the subsidy. Normal weekly wage is based on the average weekly earnings from January – February (i.e. insurable weeks average to 29/02/2020).

Do I qualify for the scheme?

  • Be able to demonstrate to Revenue a minimum of 25% decline in turnover (see note on this below)
  • Be unable to pay normal wages
  • Be unable to pay normal outgoings fully and (see note on this below)
  • Keep your employees on the payroll
  • Also Employee must have been on the payroll as at 29th February 2020 and was on a payroll submission between 1st February and 15th March
  • Names of Employers using the scheme will be published on the Revenue website

What does it mean if I qualify from above list?

  • You can claim a subsidy from Revenue via your payroll as follows:
    • Max €410 per week where average net weekly wages is less than or equal to €585 per week or
    • Max of €350 per week where the average net weekly pay is between €586 but less than or equal to €960
    • Greather than €960 will not be supported at all.
  • Refund will be made 2 working days to the business bank account after payroll submitted to Revenue online (we do this if we do your payroll)
  • Employer pays the staff the wages per payslip.
  • Employers PRSI wil not apply on the subsidy element of the payment if no top up. if there is a top up above the Subsidy this will be at a reduced rate of 0.5%. Please remember this top up must be included in the payroll submission before payments made to staff.
  • Employee will not pay PRSI, Income Tax, or USC on their subsidy payment through payroll (however we see that Revenue state the following ”  However, the Subsidy will be liable to Income Tax and USC on review at the end of the year. “)
  • It is up to the Employee to contact Revenue to cease LPT deductions.

Other notes on the scheme not mentioned already

  • Cannot pay more net pay now to benefit from the subsidy
  • Cannot back date employees on the payroll
  • Any Employee Tax refunds from operating the scheme will be refunded.
  • Cannot run for staff making a duplicate claim from DEASP. e,g, Covid-19 Pandemic Unemployment Payment
  • If you put them on the Covid19 Pandemic Unemployment Payment you are encouraged to re-hire the employee as they would have been marked as a leaver on your payroll. Details on how your staff can close the claim of the Covid-19 Pandemic Unemployment Payment can be found here

Further details can be found on the Revenue website here

If you think you meet the conditions or wish to find out more please contact us. So we can discuss this with you and get it set up on your payroll for you.


Further Notes on how to Determine my turnover being down 25%

Revenue have issued some detailed guidance. They have based it on a “honesty” principal and self assessment, this means we need to keep on file our notes and workings on how we determined the reduction.

To calculate the reduction of turnover Revenue are using Q2 2020. This can be a decline in orders as well in March 2020 versus February 2020.

The requirement to be unable to pay other outgoings: – a business with cash reserves can now apply this scheme, we had thought when first announced this was an issue but Revenue have updated their guidance on this and they will continue to do so.

You need to demonstrate that any cash reserves in the business is to fund debt. That is to say the debt is equal or greater to cash reserves.

Revenue have also stated that where there is strong cash reserves and that they are not required to fund debt, will still qualify for the scheme but the Government would expect that they employer continue to pay a significant proportion of the employees’ wages.

As with all the above as this is a very fluid situation we will keep ourselves updated and update the website for your information, so please check the FAQ page and we will note there if there is an update.

SCBI Covid 19 Working Capital Loan Scheme

Updated 29th March 20 @ 15.3

This loan is available via AIB, Bank of Ireland and Ulster Bank.

Loan Features
Amounts €25,000 to €1.5m
Max Interest Rate 4%
Loan Term 1 year to 3 years
Unsecured loan up to €500,000
Optional Interest only repayments at the start of loans

What can the loan be used for
Future working capital requirements
To fund innovation, change or adaptation of the business to mitigate the impact of Covid-19.

Covid-19 Criterion
The business is impacted by the Covid-19 virus resulting in business turnover/profitability being negatively impacted by a minimum of 15%

The steps to apply
Apply online via the below website, obtain an eligibilty letter from SCBI and then apply direclty with the bank, as the banks are responsible for

Here at Royal Canal FCS, we have applied for similar SCBI schemes are familar with the process, if you feel you are entitled to the above please contact Joe or Ronan and we can discuss further with you.

https://sbci.gov.ie/schemes/covid-19-loan-application

Click here to return to the FAQ’s

Budget 2020

8 October 2019

Last Updated: 8 October 2019

Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.

Personal Taxation (from 1st January 2020)
• REMINDER: The proposal to increase the minimum wage to €10.10 per hour from January 2020 is only being brought to Cabinet this week, and does not form part of the Budget day announcement.

•Dividend Withholding Tax (DWT) to increase from 20% to 25% from 1st January 2020. DWT is considered a payment on account with Revenue, where the 25% tax rate is now a more accurate average amount due when USC etc. is considered.

Brexit
• €1.2 billion package announced to respond to Brexit. Key areas: Agriculture, Enterprise, Tourism, Social Protection.

• Rainy Day Fund of €1.5bn created due to likelihood of a no deal Brexit.

Business Taxation & Regulation
• Earned income tax credit increased by €150

Relevant Contracts Tax and Construction Industry
• No changes noted

Indirect Taxes
• No changes noted

Stamp duty
• Non-residential property stamp duty rate increased from 6% to 7.5%. Transitional arrangements where the instruments are executed before 1 January 2020 where a binding contract existed prior to 8th October 2019.

Carbon Tax
• Increase in rate by €6 to €26 per tonne. Household fuels will not be affected until next May.

Capital Taxes
• Increase in the Group A inheritance tax threshold from €320,000 to €325,000

(Local) Property Tax (LPT)
• No changes noted

Miscellaneous Provisions & Announcements
• Excise duty on cigarettes increased by 50c on a pack of 20 cigarettes with a pro-rate increase on other tobacco products

•Monthly threshold for the Drugs Payment Scheme reduced by €10 per month.

• Medical card income threshold increased.

• Free GP care for children under eight, and free dental care for children under six.

• Additional €80m for the Housing Assistance Payment scheme.

• 100% Christmas Bonus in 2019.

• Limited increases in weekly social welfare payments: One Parent Family Payment + €15, Qualified Child Payment +€3 for children over 12, and +€2 for children under 12.

 

Summary Statistics

  Budget 2020Budget 2019
Capital Gains Tax Rate 33%33%
   
Capital Acquisitions Tax Rate 33%33%
Income Tax Rates   
 Lower20%20%
 Higher40%40%
DIRT Tax   
  39% (39% – where payments made less frequently than annually)39% (39% – where payments made less frequently than annually)
Tax Credits   
 Single Person€1.650€1,650
 Married Couple€3,300€3,300
 PAYE Credit€1,650€1,650
 Home Carer Credit€1,600€1,500
 Earned Income Tax Credit€1,500€1,350
Rate Bands   
 Single/widowed€35,300€35,300
 Single/widowed with dependent children€39,300€39,300
 Married -one income earner€44,300€44,300
 Married – two income earners€70,600€70,600
PRSI   
 Contribution CeilingNo limitNo limit
Universal Social Charge   
 < €13,000ExemptExempt
 € 0 – €12,0120.5%0.5%
 €12,013 – €19,8742.0%2.0%
    
 €19,874 – €70,0444.50%4.50%
    
 €70,044 – €100,0008%8%
 Self employed income > €100,00011%11%
 PAYE income in excess of €100,0008%8%
 Age >70/medical card holders with income < €60,000 – Max rate2.0%2.0%

Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.

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