JOE CUNNANE

Managing Partner TRA Professional Services

Different days have different challenges, but that was the situation pre-Covid too, says Joe Cunnane. “Revenue suspending debt collection and the CRO their filing deadline has helped. A lot of time has been spent supporting clients, but that is part of our mission and values and we still work to our own deadlines,” he adds.

WAGE SUBSIDIES The Temporary Wage Subsidy Scheme was a fantastic benefit, despite all the confusion and complexity. Thank you to Revenue for having been so proactive in assisting businesses. With regard to employees’ tax liabilities, most employers intend to pay these liabilities or provide employees with an annual tax-free voucher to cover what is due. Per Revenue, if you want to pay the tax due on your employee's benefits you must arrange this with them.

Probably only about one in six clients will be moving onto the EWSS. What this says about the state of the economy is that certain businesses are suffering and others not as much. It does not seem to be always sector specific. Location is also a factor i.e. compare a convenience store in the Dublin 2 business district with those located in the suburbs. Some of those in D2 were closed while many in the suburbs have never been busier.

TAX WAREHOUSING Advice being given to clients is that this is another fantastic incentive by Revenue and to avail of it if needed. The scheme will involve paperwork to be submitted to Revenue, but this would not be as onerous as an application for bank finance.

SELF EMPLOYED TAX RELIEF I am not sure how beneficial this scheme will be. Our advice to clients is that if they are in a lossmaking position to date in 2020 to prepare projected accounts, as interim claims can be made.

BUDGET 2021 It is important that Budget 2021 inspires confidence. Three billion euro was added to personal savings in April 2020 alone. However, there is a lot more uncertainty around jobs and possible increased taxes. Stimulating job creation and resisting the temptation to increase taxes should be the main focus.

There has been a lot of borrowing by the Exchequer, but this has been at a far lower interest rate than during the previous recession. If job creation is stimulated and individuals have the confidence to spend locally, then the tax take will automatically increase.

‘It is important that Budget 2021 inspires confidence’