Dear Reader,

Welcome to the September edition of our newsletter.

As we enter the home straight of 2018, with the kids settled back in school and the bright evenings fading quickly, most of us will be focused on the road ahead as we plan for 2019 and beyond.

2019 and beyond is also to the forefront of national agenda at present with Minister Donohoe due to present Budget 2019 on October 9^th. With  the “supply and confidence” arrangement between Government parties and Fianna Fail set to expire on Budget Day 2019, we look set for a period of political uncertainty which in the absence of a new arrangement will more than likely result in a general election in the not too distant future, something that very few would seem to welcome.

The last few weeks has seen plenty of speculation on some very important decisions with the debate on tax cuts or increased spending to the forefront. Recent kite flying suggests that the 9% VAT rate is likely be increased.  With most businesses not in a position to absorb any VAT increase it will ultimately result in increased costs for consumers as the price of a hotel stay, a meal out, a trip to the barber or hair salon and the daily newspaper are all likely to increase as a result, never mind the potential impact that this could have on jobs in certain sectors, particularly outside of our main cities.

Speaking of change, most of the articles in this edition of our newsletter deal with recently enacted tax changes or changes that face us in the years ahead. Joan Bourke brings us some news on changes to the qualification requirements for the state pension, Sally Turner has a short piece reminding employers on what the forthcoming changes in the Paye system are and Meadhbh O’Callaghan shares some of the tax benefits applicable to electric vehicles. Jennifer Brosnan reminds us of the basic rules of engagement when it comes to VAT returns and Deirdre McGee takes a brief look at the introduction of Sugar Tax and how it works.

Mark Ryan shares some updates with us on his experiences in the ever-changing world of personal insolvency and shares some of the wins that he has under his belt in recent times and finally we round off with a personal story from Fachtna O’Mahony who reminds all of us that we should take every opportunity to support our own and particularly local businesses. This point is particularly relevant in a week when the people of Cork came out in huge numbers in Pairc Ui Chaoimh to pay tribute to one of our own in the late Liam Miller.  

Happy reading.

Pensions: Total Contributions Approach and Automatic Enrolment Pensions - what does this mean for you?

A key concern for most people is having adequate income in retirement. Current proposals to reform pensions in Ireland could make a significant difference to how you live in retirement.

Earlier in 2018 the Government announced major changes to pensions in Ireland in its Roadmap for Pensions Reform 2018-2023. The Government needed to look at reforms given that people are living longer which has created a big challenge in ensuring the future sustainability and security of the pension system in Ireland. A longer life means we will need to provide ourselves with an income for a longer period of time post-retirement.

PAYE Modernisation is commencing on 1st January 2019. PAYE Modernisation will not change the way that employers calculate PAYE and other payroll taxes. It simply means that employers will need to report pay and statutory deductions to Revenue in respect of each employee as and when they are paid i.e. in real time. Revenue has already commenced sending communications to employers to prepare them for the upcoming changes.

PAYE Modernisation will apply to every employer in Ireland, large and small, and putting together a good plan will be crucial to ensure a smooth transition process.

Is it a case of out with the old & in with the new as electric vehicles become increasingly popular?

Whilst we are all aware of the environmental benefits of going electric, we may not be as familiar with what going electric may mean from a tax saving perspective. Here we take a brief look at the tax advantages and how the system will deal with electric vehicles. 

Under the current system, employees who have the use of a company car for private use outside of work are subject to tax under the Benefit in Kind system. The tax liability is based on a number of factors which include the original market value of the car, the business mileage travelled on an annual basis and the emission rating of the car.

With the ever increasing volume of queries being raised by the Revenue Commissioners with regards to VAT compliance, this article takes a step back look at the essential basics of VAT compliance so as to reduce the risk of costly mistakes and VAT liabilities for businesses.

The Sugar Sweetened Drinks Tax (SSDT) came into effect in Ireland on the 1^st May 2018.

The objective of the tax is to reduce rates of childhood and adult obesity in Ireland by reducing the consumption of sugar sweetened drinks which have been proven to contribute to health deterioration, particularly among young people.

Whilst the tax has been welcomed by many, it has not been met with universal approval, with some commentators describing it as yet another example of our sometimes regressive tax system.

The tax operates as an excise duty and is administered on a self-assessment basis.

Here are some of the facts relating to the tax and how it operates:

Dear Reader,

Welcome to our Personal Insolvency update.

In this update we cover a number of areas which are very topical given the circa 100,000 loans that have been sold in recent months to Vulture funds by AIB, PTSB and Ulster bank. The sale of bad loans to Vulture/Investment funds will continue to be made by the main banks over the next 12 to 24 months.

These so called ‘bad loans’ mostly affect people who due to the economic and financial crash 10 years ago are not able to pay their debts in full.

Many of the ‘vulture fund’ cases that have been referred to me in recent months could have entered the insolvency process 5 years ago rather than the debtors having to face into availing of the personal insolvency legislation now to resolve their debts. In most cases the bank would have made a better financial return through the debtor availing of the personal insolvency legislation rather than selling on the debt to a vulture fund at a large discount.

We have included some recent appeal cases that were approved by the insolvency courts as examples of the work we do every day to help people to resolve their debts and stay in their homes.

I have also included an update on the statistics which are issued quarterly by the ISI. The number of arrangements is still quite low in my opinion, but it is increasing every month.

If you’ve ever sent a child on a school tour you will be familiar with the phrase “in loco parentis”, in place of the parents. During the summer, with tremendous pride, tinged with a little sadness I had the pleasure and privilege of taking my late fathers place and walking my youngest sister down the aisle on her wedding day. Miriam and her now husband Kevin decided to have a humanist ceremony so choosing a hotel for their wedding had the added dimension of needing a venue which would cater not only for the function but could also host the wedding ceremony and their 210 guests.

There’s a turn of phrase in West Cork “we look after our own”, a value my father was keen to have his family be true to in life. With our strong connection to Courtmacsherry and Timoleague not to mention that Ballinscarthy is now the married couples home, they were keen to be true to this value, so it was always going to be an easy decision geographically where to have the wedding. It was simply a choice between the various well-appointed hotels in and around West Cork so they decided upon Fernhill House Hotel on the outskirts of Clonakilty run by the fourth generation of the O’Neill family.

Congratulations to Angela Walsh

Congratulations to our client Angela Walsh of Corporate Travel Management on the recent announcement of their new partnership with Frosch, a U.S. based firm with over 2,000 staff.

Congratulations to Ciaran Mullan

Earlier this year Ciaran Mullan passed his final exams with the Irish Taxation Institute. Ciaran is pictured below with Abina Keanneally, Partner in Quintas.

Staff Announcement

Welcome to our new employees, Adam McCarthy, Brendan Crowley and Adrienne Barry who joined us recently.

Berlin City Marathon

Congratulations to Tim McCarthy and Mark Ryan who recently completed the Berlin City Marathon. Well done boys.

Graduate Program

If you are interested in a career in accountancy, we are now accepting applications for our 2019 Graduate Program. Applications can be made through our website at www.quintas.ie