CIARÁN MEDLAR

Partner, Head of Tax BDO

TAX ISSUES At the beginning of the pandemic, the primary focus for many businesses was about survival – maintaining their staff and customers. This subsequently developed into the opportunity that the new business environment presented, and how companies might restructure their business and the tax issues surrounding that.

A notable aspect to emerge from the pandemic is how businesses are dealing with warehoused tax debt, which will need to be repaid in 2022 and 2023. We are advising clients to start putting funds aside now to have the requisite funding in place. This could be a challenge for many businesses while still maintaining their day-to-day business commitments.

REMOTE ADVICE Over the past 18 months, video calls have worked very well to facilitate a continuous level of engagement. However, for clients who wish to discuss confidential or sensitive business matters, they often want to do so in-person. I don’t think virtual interactions will suddenly disappear with the easing of government restrictions, but there are certain client interactions that will always warrant a face-to-face engagement.

GREEN ECONOMY The future implementation of carbon tax will be a new cost that businesses will need to consider as part of their operating costs and margins. Where those costs can be offset against capital expenditure relief, this will act as an incentive for companies to re-examine their supply chains and invest in clean technologies.

RETIREMENT RELIEF People often underestimate the time it takes to exit a business. If your plan is to exit your business at the age of 55, we recommend that you start the planning process at 50. Your plan should include how you will go about identifying a purchaser or a successor to your business and how you can access the tax reliefs that are available to you.

‘People underestimate the time it takes to exit a business’