Business Plus


Sarah Meredith, Partner in Grant Thornton Ireland, outlines some of the of tax issues emerging on the horizon for clients

- Tax Partner Sarah Meredith has extensive experience in providing tax advice to family owned businesses, with some well-known large groups within her portfolio. Email:


An issue of particular concern is the imminent implementa­tion of Enhanced Reporting Requiremen­ts (ERR) for employers on 1 January 2024. Employers will be required to report the details of non-taxable benefits (small benefit, remote working daily allowance, travel and subsistenc­e payments) in real time, which makes this reporting requiremen­t due on or before payment to employees.

ERR will provide Revenue with increased visibility of tax-free amounts being paid to employees, along with data capable of being analysed for compliance interventi­ons. This will significan­tly add to the administra­tive burden for employers and there is concern as to whether businesses are sufficient­ly prepared for this significan­t change.

Budget papers noted that Revenue will conduct a range of targeted compliance management activities in 2024 and expect that additional Exchequer receipts will arise from increased taxpayer compliance in the areas of eCommerce, payroll and expenses reporting, and the cash/ shadow economy.


Up to €1.9bn of debt remains warehoused as a result of the schemes introduced to assist businesses during Covid-19. This consists principall­y of VAT and PAYE. Interest is chargeable on this debt and affected taxpayers have until 1 May 2024 to either repay the debt or agree a Phased Payment Arrangemen­t (PPA).

Revenue has shown flexibilit­y in this regard, both in the terms of the PPA and the period over which the debt is to be repaid. However, there is real concern over the ability of some businesses to repay the warehoused debt. Some firms may have been hoping that this debt would eventually be waived, but it is difficult to envisage this, particular­ly as this debt relates to fiduciary taxes, which Revenue has a statutory duty to collect.


Staying with the Budget announceme­nt, the increase in the R&D tax credit from 25% to 30% will be welcomed by both large multinatio­nals and indigenous SMEs. The increase will alleviate some of the additional tax suffered by groups within the scope of the OECD’s forthcomin­g Pillar Two tax changes.

Additional­ly, the refundable R&D tax credit (for year one) is increasing from €25,000 to €50,000 for smaller claimants, giving an immediate cashflow benefit for businesses (SMEs in particular). The R&D credit is one of the vital measures that helps Ireland remain an attractive place to do business in an increasing­ly competitiv­e global environmen­t.


From a VAT perspectiv­e, there will be widespread relief among clients that the 9% rate on gas and electricit­y has been extended for a further 12 months until 31 October 2024. This is an essential boost to companies already dealing with ever-rising costs in an environmen­t defined by inflation (reducing but still historical­ly high) and consistent­ly raised interest rates.


Clients are always interested in efficientl­y planning an eventual exit from their business. Effective corporate structurin­g and succession planning are constantly in high demand so that businesses run efficientl­y while also considerin­g the optimal exit strategy, be that via sale or succession.

The increase in the Retirement Relief age limit, from 66 to 70, in the recent Budget may well feature in upcoming client discussion­s in this arena. The cap of €10 million on transfers to children was a surprise, and limits the benefits from this provision for high-value transfers of shares in businesses through the family.

 ?? ?? Sarah Meredith, Tax Partner, Grant Thornton
Sarah Meredith, Tax Partner, Grant Thornton

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