‘Government seems to be listening to business owners’ LISA KINSELLA
ACTIVITY Business owners planning to pass business and personal assets to the next generation is a recurring source of work. Inheritance tax is becoming a significant cost in passing on assets in families, and business owners are increasingly aware of the benefits of planning many years in advance of any transaction.
We now frequently advise on remote working in an international context. This could be where an Irish business has existing employees who want to work abroad, or where they are hiring international employees who wish to remain working in their home countries. The rules on this are constantly evolving and using ‘employers of record’ is not always possible or indeed the best solution.
While the tax advice is important, it is also essential that the employer has a workable and cost-effective solution for paying the employee and ensuring that they are taxcompliant in the foreign jurisdiction, including monitoring VAT and permanent establishment risks. This is where being part of a global network proves invaluable.
TAX POLICY A clear plan for future or enhanced tax measures for the indigenous sector would allow all stakeholders to contribute to the introduction of effective and workable reliefs that achieve the aims of policy makers while maintaining the integrity of the tax system. Perhaps a welcome sign of this is the announcement of changes to retirement relief that will take effect in 2025 rather than immediately.
It was good to see Budget 2024 measures introduced that have been requested for many years. Government seems to be listening to business owners on what tax measures they need to support their businesses. Access to funding and the costs of running a business are frequently cited by our clients as being among their primary concerns. Business supports introduced last year were too restrictive and bureaucratic.
The announcement of €250m in temporary inflation-related supports for businesses is welcome. It is hoped that the lessons of previous schemes will be learned and that the focus will be on getting cash to the businesses that require it in a timely manner.
The increase in the rate of the R&D tax credit from 25% to 30% is welcome, and on the funding side the angel investor relief and the changes to EIIS are welcome too. It is hoped that the rules surrounding the angel investor relief will be easy for investors and companies to understand and operate. Any unnecessary conditions attached to the relief will dampen the impact and should be avoided.