Gallagher Keane Newsletter

Employers’ PRSI Threshold to Increase from 1 October 2024

In a bid to support small and medium enterprises (SMEs) and reduce operational costs, the Government has announced a range of measures, including a significant change to the Employers’ PRSI threshold. As of 1 October 2024, the threshold will rise from €441 to €496. This adjustment aims to alleviate the financial burden on employers, particularly those paying the national minimum wage.

Currently, employers must pay a higher PRSI rate of 11.05 percent for employees earning above €441 per week. With the new threshold, employers will only pay the lower rate of 8.8 percent for employees earning up to €496 per week. This change ensures that full-time employees on the national minimum wage do not push their employers into the higher PRSI bracket.

This measure is a strategic step towards fostering a more conducive environment for SMEs, which form the backbone of our economy. By reducing payroll taxes, the Government aims to empower these businesses to reinvest savings into growth, innovation, and job creation. It reflects a commitment to supporting the entrepreneurial spirit and sustaining the economic vitality of the SME sector.

Government Announcement: Second Grant Payment Available for Retail and Hospitality Sectors

On 15th May, the Government issued two important updates concerning the Increase in Grant Scheme (ICOB), specifically targeting businesses in the Retail and Hospitality sectors.

The key takeaway from these announcements is that businesses operating within these sectors are now eligible for a second grant payment, equivalent to the initial grant amount. Notably, businesses already registered in these sectors need not re-register to access this additional financial support.

Following the processing of the second grant payment, businesses will receive an additional email notification, streamlining the process for accessing much-needed support.

To align with this decision, the business category initially requested for statistical analysis will now accurately identify businesses within the Hospitality and Retail sectors. For any discrepancies in business classification, beginning Monday, 20th May, businesses can rectify their self-declared Business Type through their MyCoCo account.

This adjustment underscores the Government’s commitment to providing targeted support to businesses navigating economic challenges, ensuring equitable distribution and accessibility of financial aid.

For further inquiries or assistance, please don’t hesitate to reach out to our team at Gallagher Keane Chartered Accountants . We’re dedicated to supporting your business throughout these transitions.

How to Know if You Are a Resident for Tax Purposes

Understanding your tax residency status in Ireland is crucial for ensuring compliance with tax obligations and optimizing your financial planning. At Gallagher Keane, we want to simplify this process for you. Here’s a comprehensive guide on determining your tax residency status in Ireland.

Determining Your Tax Residency

Your residency for tax purposes in Ireland hinges on the number of days you spend in the country during a tax year. The criteria are as follows:

• 183 days or more in a tax year: If you are present in Ireland for 183 days or more in a single tax year, you are considered a resident for tax purposes.
• 280 days or more over two years: If you are present in Ireland for a total of 280 days over the current tax year and the preceding tax year combined, you are also considered a resident. However, if you are in Ireland for 30 days or less in a tax year, you will not be considered a resident.

What Constitutes a ‘Day’ in Ireland?

You are considered present in Ireland for a day if you are in the country for any part of that day. There are specific circumstances where this rule does not apply:

• Airside exemption: If you remain ‘airside’ in an airport or port, meaning you stay in an area that is accessible only to travellers and not the general public, you are not considered present in Ireland for that day.
• Unforeseen circumstances: If you are prevented from leaving Ireland on your planned departure day due to sudden or severe weather conditions or the breakdown of an aircraft, you will not be counted as present in Ireland for the day following your intended departure.

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When is your Tax Clearance Certificate Withdrawn?

A Tax Clearance Certificate?is confirmation from Revenue that your tax affairs are in order. This section outlines the different circumstances where you will need a Tax Clearance Certificate. If you apply for a Tax Clearance Certificate and it is not issued, it is either ‘under review’ or has been refused.

If your tax affairs, or those of your?connected persons, are not in order, Revenue may withdraw your Tax Clearance Certificate. Revenue will also withdraw your Tax Clearance Certificate when your application expires.

Your application for a Tax Clearance Certificate will expire after?one year in the case of a grant application and within?four years for all other applications.

Application Under Review:

In some instances, Revenue may need to review your application for a Tax Clearance Certificate?before issuing it. This may be the case, for example, if you are in a Phased Payment Arrangement?to pay outstanding taxes.

You can contact the Collector General’s office?in relation to your application. You will need your Tax Reference Number or the Application Reference ID.

Application Refused:

Your application for a Tax Clearance Certificate will be refused if your tax affairs, or those of your connected persons, are not in order.

If you apply for a Tax Clearance Certificate online and your application is refused, a message will be shown on the screen giving the reasons for the refusal. You should address the outstanding issues before you reapply for a Tax Clearance Certificate.

If your application for a Tax Clearance Certificate is refused, you may?appeal?the decision.

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