Budget 2018
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Budget Response from CPA Ireland
The Institute of Certified Public Accountants in Ireland (CPA Ireland), while broadly welcoming Budget 2018, has said it is growing frustrated by the Government’s continued failure to end tax discrimination against the self-employed. The organisation did welcome the introduction of the Key Employee Engagement Programme (KEEP) which will allow SMEs to reward staff with share options. Commenting on the budget Deirdre Kiely, CPA Ireland President said: “The ongoing tax discrimination against the self-employed is very regrettable, and we have consistently called on the Government to address this. The increase of €200 in the earned income tax credit for the self-employed is derisory, and there remains a significant gap of €500 between self-employed and PAYE workers which is both unfair and a disincentive to entrepreneurs. As the Government had previously committed to ending this imbalance, it is now long overdue. The Government needs to clarify its time frame in this regard “In this context we also note, with regret that no progress has been made in this budget to improve the Capital Gains Tax regime for entrepreneurs to bring it more into line with the more generous UK regime. “With the challenge of Brexit looming ever nearer now is the time to harness Ireland’s underlying economic strength to support SMEs. That is what a number of measures announced today by Minister Donohue are intended to achieve. The introduction of the €300m Brexit Loan Scheme should provide welcome support to SMEs in preparing for Brexit.
“For small and medium enterprises retaining talented staff is always a key priority the introduction of KEEP will be a welcome tool in this effort. Share based payments are an excellent way to rewarded for their talent and their overall contribution to employers. This new scheme, which had been called for by CPA Ireland, will enable to SMEs to offer shares as part payments to key employees without being subject to punitive levels of tax. SMEs will be able to use the new scheme boost their growth and employ more people. “The reduction in the rates of Universal Social Charge, and the increase in the standard rate cut off point for income tax are both welcome. However we will continue to urge that more is done to ensure the economy is not over reliant on higher income earners.” It is important that the details of both KEEP and the Brexit Loan Scheme are finalised as soon as possible to provide all businesses with certainty. Similarly it is important that with an increase in the National Training Level employers are advised on the improvements to training this will create. We look forward working with the Minister and his officials to finalise these details.
Issued Kinsella Mitchell & Associates with grateful thanks to the CPA 10/10/2017 for initial comments
The Institute of Certified Public Accountants in Ireland (CPA Ireland), while broadly welcoming Budget 2018, has said it is growing frustrated by the Government’s continued failure to end tax discrimination against the self-employed. The organisation did welcome the introduction of the Key Employee Engagement Programme (KEEP) which will allow SMEs to reward staff with share options. Commenting on the budget Deirdre Kiely, CPA Ireland President said: “The ongoing tax discrimination against the self-employed is very regrettable, and we have consistently called on the Government to address this. The increase of €200 in the earned income tax credit for the self-employed is derisory, and there remains a significant gap of €500 between self-employed and PAYE workers which is both unfair and a disincentive to entrepreneurs. As the Government had previously committed to ending this imbalance, it is now long overdue. The Government needs to clarify its time frame in this regard “In this context we also note, with regret that no progress has been made in this budget to improve the Capital Gains Tax regime for entrepreneurs to bring it more into line with the more generous UK regime. “With the challenge of Brexit looming ever nearer now is the time to harness Ireland’s underlying economic strength to support SMEs. That is what a number of measures announced today by Minister Donohue are intended to achieve. The introduction of the €300m Brexit Loan Scheme should provide welcome support to SMEs in preparing for Brexit.
“For small and medium enterprises retaining talented staff is always a key priority the introduction of KEEP will be a welcome tool in this effort. Share based payments are an excellent way to rewarded for their talent and their overall contribution to employers. This new scheme, which had been called for by CPA Ireland, will enable to SMEs to offer shares as part payments to key employees without being subject to punitive levels of tax. SMEs will be able to use the new scheme boost their growth and employ more people. “The reduction in the rates of Universal Social Charge, and the increase in the standard rate cut off point for income tax are both welcome. However we will continue to urge that more is done to ensure the economy is not over reliant on higher income earners.” It is important that the details of both KEEP and the Brexit Loan Scheme are finalised as soon as possible to provide all businesses with certainty. Similarly it is important that with an increase in the National Training Level employers are advised on the improvements to training this will create. We look forward working with the Minister and his officials to finalise these details.
Issued Kinsella Mitchell & Associates with grateful thanks to the CPA 10/10/2017 for initial comments
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