BRUCE STANLEY

Tax Consulting Partner HLB Sheehan Quinn

Bruce Stanley notes that the importance and opportunities afforded by utilising cloud-based systems have been emphasised over the past six months. “It is an area that we encourage all of our clients to consider,” he adds. “That said, I for one, am looking forward to getting back to the office on a full-time basis and being able to meet with clients face-to-face once more.”

WAGE SUBSIDIES The economy is clearly in a precarious position. Well-run businesses that were thriving pre-Covid-19 may end up becoming insolvent because their model is unsustainable in a socially distanced world. Those business models may become viable again in the future, for example, if a vaccine is found that would return the world to a preCovid-19 state. However, the existing business owners may not be in a position to re-open at that time, if they suffer too many losses in the interim.

It’s clear that the country needs to pull together, to support those operating in sectors that have suffered the most during the pandemic, in order that they do not face irreparable damage.

SELF-EMPLOYED TAX RELIEF As we operate a self-assessment regime, it will be up to the taxpayer and their advisor to calculate and submit the claim. Revenue will be able to check any claims against the third-party information they receive and possibly subject claims to aspect queries or audits. Our advice would be to ensure that you have the books and records in order to support the loss claim, work with your tax advisor to ensure that it is calculated and claimed correctly, and to get the return submitted as early as possible. Where there is a refund due, you can’t start that process too soon.

BUDGET 2021 A tax deduction for generating employment could be considered. Where a company takes on new hires, the business could be offered a 150% deduction for the salary. This would have to be carefully legislated to ensure it achieved the goal of job creation, but if done correctly, could be a valuable incentive. It would also be attractive for FDI opportunities, as an additional reason to start up in and relocate employees to Ireland.

'A tax deduction for generating employment could be considered'