TAXATION GOING GREEN

The period during which tax debts could be warehoused ended 30 April 2022 and tax debts can then be ‘parked’ interest-free until 30 April 2024. At that point the warehoused debt may be paid in full without incurring an interest charge or can be paid through a tailored phased payment arrangement at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 8% or 10% per annum that would otherwise apply to such debts. Any tailored phased payment arrangement will take account of the taxpayer’s particular financial circumstances and can be extended over a longer timeframe as required provided current liabilities continue to be paid as they fall due.

Temporary Reduction VAT / Excises

The VAT rate for the tourism and hospitality sector was reduced from 13.5% to 9% in November 2020 and this has been extended to end Feb 2023. The Excise Reductions on Motor Fuels have been extended to Feb 2023.

Remote Working Relief

An employer can pay up to €3.20/day free of all tax to e-workers, and Benefit In Kind does not apply to employer-provided equipment or broadband services. In addition, an e-worker can claim Tax Relief at their top rate on 30% of vouched expenses on heat, light, broadband for those days spent working from home.

Employment Investment Incentive Scheme

The EIIS aims to incentivise private investors to make equity investments in qualifying Irish SME companies. Investors can obtain tax relief of up to 40% to a maximum of €250,000 or in shares of a company or in Designated Investment Funds which are held for 4 years or more, or €500,000 held for 7 years or more.

- Investors will be able to access the income tax relief at the time of making the EIIS investment.

- Companies can raise up to €5m per year, up to €15m under the scheme. Start-Up Capital Incentive is a similar relief to EIIS but is for family members of shareholders to invest in shares in a company to carry on a brand new venture. The shares must be held for 4 years. The maximum a company can raise is €500,000.

Start Up Refund for Entrepreneurs (SURE)

If you are a PAYE worker and start up and work full-time in your own company, you can get tax relief on the capital you invest in the equity of the company. The relief is a refund of the income tax you paid on an equal amount of income in any of the previous six years, but if this does not give full relief on your investment the relief can be claimed in later years. The maximum investment on which relief can be claimed is €700,000 in a claim, but two claims can be made.

Three Year Corporate Tax Exemption: New Companies get relief from Corporate Tax for each of the first five years. The relief is equivalent to the PRSI you paid for employees up to a maximum of €5,000 per employee and €40,000 overall. However the relief is curtailed if the Corporation Tax due exceeds €40,000 and does not apply over €60,000.

Entrepreneurial Relief from Capital Grants

Entrepreneurs who worked in a company for three years can get relief on up to €1 million on gains from the disposal of qualifying business assets. The relief involved applying a lower 10% rate to these gains.

Research and Development

Expenditure on research and development is not only an allowable expense against taxation, but also qualifies for a 25% credit against corporation tax.

Accelerated Capital Allowances allow businesses to reduce your taxable profits by the full level of expenditure on energy efficient equipment in the year the investment is made. More information is available on Revenue.ie

Budget 2023

Employers can give up to €1,000 in non-cash benefits under a Small Benefit Exemption from PRSI, USC and Income Tax to their workers in a single payment or in two tranches. This can be paid in 2022 and 2023.

In Budget 2023, a number of targeted Reliefs for business have been extended -

- Knowledge Development Box for 4 years to end 2026 (but the 6.25% rate will increase during the period)

- Key Employee Engagement Programme to end 2025

- Special Assignee Relief Programme to end 2025 with a higher qualifying income of €100,000

- Foreign Earnings Deduction for staff placed in export markets temporarily to end 2025.

Green for Micro

This is a free-of-charge programme run by the Local Enterprise Office, available to companies with up to 10 employees. Two days of mentoring with a specialist Green Consultant is available, including recommendations on specific changes which your business can implement. The consultant will prepare a detailed Green for Micro Report on your business. It is particularly suited to businesses in construction and the built environment, retail, manufacturing, textiles and fashion, food, electronics, plastics, and packaging. In 2023, this scheme will be strengthened with grants for measures to cut emissions and energy costs

Climate Toolkit 4 Business

A new dedicated website climatetoolkit4business.gov.ie allows businesses to input some simple information and get an estimate of your carbon footprint and a personalised plan to reduce it.

Energy Audit

Your business may be eligible for a €2,000 voucher towards the cost of a professional energy audit. An energy audit can be useful for businesses to save money and energy. An energy audit may be carried out on buildings, processes, or systems and it is a three-step process which involves preparation, a site visit and reporting. The audit report that compiles the findings will help you to understand:

• how much energy your business uses

• the equipment and processes that use the most energy

• what actions you should take to save energy, and their estimated cost and impact Find out more and apply through SEAI.

EXEED Certified grant

SEAI provides grant support for projects which are following the EXEED Certified standard for Excellence in Energy Efficient Design. Small companies can receive up to a 70% grant for pre-investment professional services to implement EXEED processes and up to a 50% grant for eligible expenditure to implement EXEED processes.

Support Scheme for Renewable Heat

This grant scheme is designed to promote the adoption of renewable heating systems by commercial, industrial and agricultural users not covered by the emissions trading system. The Scheme will support an installation grant and/or on-going operational support. The installation grant provides funding of up to 30%. Find out more and apply through SEAI.

Electric Vehicles

SEAI provides grant supports towards the purchase of new N1 category electric vehicles for business. N1 category vehicles are typically small goods carrying vans with a technically permissible maximum mass not exceeding 3500kg. A maximum grant of €3,800 is available for qualifying N1 category EVs when purchased commercially. Approved EVs with a list price of less than €14,000 will not receive a grant. This grant applies to new vehicles only.

Ukraine Crisis

Exporting Companies who have suffered a 15% decrease in operating surplus, whose unit gas/ electricity has more than doubled in 2022 compared to 2021 and spend more than 3% of turnover on energy can get support of up to 30% of the costs in excess of doubling up to a maximum of €2million In a second stream of aid, up to €500,000 is available where the company is experiencing trading difficulties as a result of the Ukraine War, and must have an energy efficiency and a sustainability plan. These schemes are administered by EI and IDA. Other investment aid may be available for a Sustainability Project Plan.

Temporary Energy Support will apply to trades or professions where the unit price of the energy bill has increased by more than 50%, and will provide support equivalent to 40% of the amount of the increase in the total bill up to a maximum €10,000 per month per business unit, subject to a max of €30,000 per month for a qualifying business. Payment will be backdated to September and run until February. It will be operated by the Revenue Commissioners.

SBCI has also launched a loan specially for investing in energy saving equipment in amounts €10,000 to €150,000 at very competitive rates available through the banks.

Solar Grant

SEAI (Sustainable Energy Authority of Ireland) offer a grant up to €2,400 for the installation of solar panels, (€900 for 1kW capacity, €1,800 for 2kW, €2,100 for 3kW and €2,400 for 4 - 6kW). Such installations can earn payments for surplus going back to the grid. For new installations of over 6kW - 50kW a payment for power exported to the grid over 15 years is being developed by CRU.

Apprenticeships And Traineeships

Apprenticeships

You can apply to be approved as a national apprenticeship employer. There are now 68 distinct areas of apprenticeship and 18 more in development. They cover a range of apprenticeship options in the traditional craft trades but now there are also apprenticeships in finance, insurance, hospitality, ICT, sales, biopharma, logistics, hairdressing, to mention just a few. A payment to employers of €2,000 per apprentice per year is available for the new apprenticeships (which are not eligible for the payment of off-the-job training allowances). It is paid two tranches in June & December. An additional payment of €2666 is payable for the minority gender in apprenticeships with more than 80% of one gender. Apprentices vacancies can be advertised on apprenticeship.ie which is now being linked to the CAO. See apprenticeship.ie

Traineeships

A traineeship combines learning in the classroom and experience in the workplace to improve employment outcomes for participants and increase retention and productivity in the sector. Traineeships can give employers access to a pipeline of learners who are developing cutting edge skills and gaining on-the-job experience in relevant sectors. Over 75 programmes are available nationally in a range of industries.

As a partner employer, you can help shape future traineeship courses by identifying skills needs and contributing to the design and content of the programme. To find out more about becoming a partner employer with your local ETB, contact the Further Education and Training Director at your local ETB (Dublin and Dún Laoghaire ETB, ddletb.ie, 01 4529600) or the Dublin Regional Skills Forum (connect.regionalskills.ie/dublin).

Work Experience

An employer can take on a person who has been six months on the Live Register for Work Experience for 30 hours per week provided there has been no displacement. The weekly payment of €311 will be met entirely by the Department of Social Protection.

JobsPlus

JobsPlus is a subsidy paid to employers who recruit long-term unemployed people for new positions in their workplace. Employers can avail of JobsPlus when filling new positions or positions that arise as a consequence of natural turnover. The subsidy is €7,500 paid over 24 months for a person aged under 30, who has been unemployed for 4 months in the past 6 and for aged 30-50 who have been unemployed 12 in the past 18 months. A higher subsidy of €10,000 for those over 50 or under 50 who have been unemployed for 3 years. Jobs must be at least 30 hours.

Wage Subsidy Scheme provides financial incentives to employers, outside the public sector, to employ disabled people who work more than 20 hours a week. A person on the Wage Subsidy Scheme is subject to the same conditions of employment as the other employees. These conditions include PRSI contributions, annual leave, tax deductions and the going rate for the job.

Springboard offers the employer an opportunity to be involved in placement of persons reskilling in areas of demand. Each year over ten thousand places for part-time flexible courses are offered in areas of skill shortage, digital skills, finance, engineering, manufacturing, construction, over 300 options. It offers the opportunity to upskill existing staff or offer placement to participants with an eye to recruitment.

Skillnet is a service to businesses to support all types of training needs, with typically half of the cost covered by the State. There are a range of programme options or networks can be informed to develop a bespoke programme. There are mentoring programmes for owner managers to build capacity and specific training to upskill for challenges like climate, digital and logistics across a wide range of sectors.

Opportunities to train up staff continue to expand in Budget 2023 with 4,800 new apprenticeship places, 12,500 Skillnet Places (climate, digital, market adaptation) and 14,000 places at third level which are 90% subsidised for existing employees.