http://dca-ireland.ie DCA Ireland : News & Views http://dca-ireland.ie/news/2012/5/18/the_personal_return/   2012 is whizzing by. We’re already nearing the end of May and, while four months might sound like a long time in business, the October 31 deadline for the filing of personal tax returns is starting to loom large. Even with the typical ROS extension to November 15, filing the return isn’t something you can put off forever.   Ideally, people should start the process as early as possible in the following year. At DCA Accountants and Business Advisors, we like to try and start the process off around June. It’s good practice to follow up with your accountant in the next week or two looking for a checklist of what documents you need.   The vast majority of the hunting will be in receipts. If you’re a naturally disorganised person, you’re leaving yourself exposed to a higher tax bill by not holding on to your receipts or payment details. There are a lot of things out there that people may not be aware that they’re entitled to claim. Examples include medical expenses, bin tax credits, subscriptions for trade unions or other organisations, charity donations, and college or course fees that are relevant to your work.   Even if you don’t have receipts for everything, you shouldn’t give up. You can look at bank statements to see what’s paid out of the account, or you can look at cheque stubs. For items like insurance, subscriptions and things like that, it’s often the case that people don’t hold on to the receipts, but they’ll have the record in their chequebook. If you can’t locate the receipts, you can follow up with the provider. Many of these places will give you the supporting information you need by email. The key thing is to give yourself enough time to discover what back up receipts you have and what you don’t have. That way, you can email people to supply a copy of the receipt. If you’re not able to get your hands on receipts but you’re comfortable that, if push came to shove, you’d be able to stand over those payments, give the accountant the estimate of what you paid amounts.   Aside from not declaring everything they’re entitled to, many people make the mistake of under-declaring income. For example, some people might have income from a salary, but they might also have arranged to charge the company directors fees. It often happens that, when filing their return, they don’t bring these fees into their personal tax return. That can result in underdeclared taxes and possible penalties or charges from the Revenue.   The biggest mistake you can make, though, is filing and paying late. The Revenue will be quite happy to take a surcharge of up to 10% on anything paid late, and interest on top of that. Sometimes, people don’t pay preliminary tax – a tax you must pay before the year expires. Many people miss the boat on that – either they’re unaware or they turn a blind eye. But the Revenue can and will penalise you. The rule here is that preliminary tax must equal 100% of your previous liability, or 90% of your expected liability for 2012.   More to the point, filing and paying late can draw attention that nobody wants. The Revenue tries to narrow down the businesses they select for an audit. One thing that can bring a business to their attention is where they’re late with filing their return and late paying their return. By doing that, you’re increasing your chances of being audited.   If you genuinely are struggling to meet your deadlines, it is worth getting in touch with the Revenue as soon as possible. It won’t guarantee that you’ll avoid a penalty, but it depends on each case. The Revenue can be understanding of a late return if the circumstances are genuine. If there’s a bereavement or an accident, they might take that on board and allow you some breathing room. In any case, it’s always good to approach them first. It’s even better, though, to get the filing process started well in advance so you’re not put in that position.    .... Fri, 18 May 2012 14:37:00 CEST http://dca-ireland.ie/news/2012/5/14/dca_qanda_what_should_i_do_about_a_bounced_chequ/   Q: After harrying a client for quite a while, they finally stumped up with a postdated cheque. The only problem is that, when I lodged it, the cheque bounced! I’m absolutely furious – what are my legal options?   A: The first thing to note is that there may well be an innocent explanation – either an honest mistake about what money would be in the account on the day you cashed it, or an unexpected delay in processing another payment. After all, it doesn’t make sense to issue a cheque that will bounce, because the issuer gets hit with charges, and it won’t look great if they’re seeking credit either. In any case, the company will have been informed about it by their bank.   I reckon your first action should be an initial call to the company itself, asking them to put through a bank transfer immediately. Depending on how close they are, you can call in personally and gauge the situation – if they were simply caught short and are prepared to pay what they can when they can, that’s a very different situation to a can-pay-but-won’t attitude.   In the worst case scenario, having a cheque that bounced (rather than being stopped by the issuer) is a big advantage if you need to take legal action: after all, it’s an acknowledgement that a debt exists, so it would be a lot harder for the company to claim they shouldn’t pay up. If this company were intending to stiff you, sending out a cheque was a very silly thing to do.   For that reason, I’d be inclined to approach this assuming a genuine mistake. Your frustration is pretty understandable, but I’d try to resolve it amicably before getting a solicitor to seek a judgement against the firm.    .... Mon, 14 May 2012 16:18:00 CEST http://dca-ireland.ie/news/2012/5/4/emigration_isnt_the_only_answer/ Lately, there’s been quite a lot of emphasis on people emigrating from Ireland. It’s hardly surprising of course since a generation of people seem to be fleeing the country in the hope of creating a better life for themselves elsewhere. Documentaries like RTÉ’s Generation Emigration capture the plight of some of these individuals in an illuminating and revealing way and in most cases, the problems faced by some of those showcased before they emigrated can be aligned with many people who still remain here.   However, there are still opportunities in Ireland, despite what some of the media reports say. At DCA Accountants and Business Advisors, we come across people every day who have or are thinking about setting up their own businesses. Many have turned to entrepreneurship out of necessity as jobs in the wider economy continue to be thin on the ground, while others have always had a burning desire to be their own boss and create their own jobs. Regardless of how each individual came to the decision to go it alone, in most cases they are finding that Ireland is becoming a very good place to do business.   Obviously the business environment here has improved markedly in recent years – rents are lower, labour is more readily available and there has been a growing emphasis at Government level to support those who want to start their own company. The negatives point to constricted cash flow and the availability of credit to get you up and running. However, if your business idea and your business plan can stand up to scrutiny, there are opportunities to secure funding either through financial institutions or private investment. For example, one company we work with managed to attract €50,000 worth of investment last week from an angel investor – we’re finding that with continued volatility in the stock markets and the uncertainty and instability that casts a cloud over much of Europe, those with resources to invest are seeking credible and potentially lucrative opportunities. In the case of the example I mentioned, the investor will receive a 15% return on his money while the business in question now has the funds to develop and expand – it’s win win.   It certainly isn’t plain sailing nor do I mean to make it out to be. Having said that, there are opportunities to go it alone and set up your own business. The generation of 20 or 30 somethings also have the advantage of not being saddled with crippling debt nor are they likely to be as plans are challenged over and over again before a decision is made on whether or not to support a new business idea.   The Government have also weighed in with some good initiatives. The Back to Work Allowance is a good starting point for budding business people and it offers a helping hand to get a company off the ground. Enterprise Ireland are also worth investigating but if you’re planning on setting up your business with the indigenous market in mind, you’ll be better off talking to your local Enterprise Board or organisations like the Dublin Business Innovation Centre. Starting off with good advice from those with experience will be useful in the long run and they’ll be able to help and provide guidance on sources of finance too.   If you would like any information on setting up a business here or advice on how to go about it, get in touch with one of our advisors at DCA Accountants and we’ll gladly offer you a consultancy session free of charge.     Eamonn Garvey, Partner, DCA Accountants and Business Advisors     For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter.     .... Fri, 04 May 2012 17:06:00 CEST http://dca-ireland.ie/news/2012/4/27/dca_qanda_can_we_hold_back_wages_for_incomplete_/   Q: We had to let one of our employees go last week – it was a mix of cash-flow and levels of competence, as we’d had a couple of clients complaining. As part of a redundancy settlement, we agreed to pay him his full wages at the end of the month. However, as I’ve been going through his emails and files, I’ve found several jobs that he told me were finished are only half complete. I’ve also found that the clients he was managing are far more angry than I’d thought, and with good reason: he’s been making (and breaking) frankly batty promises to try to keep them happy for months now. I’m furious – I’ve got to clear up this mess, and I’m 90% sure that we’ll lose business as a result. Do I have to pay him the full wage despite the fact that he clearly misled us?   A: Unfortunately, you do. There are set circumstances when an employer can withhold an employee’s wages. If the deduction is required by law (for PAYE or PRSI) or a court order (such as maintenance for a spouse), that’s fine. You can also deduct if an employee has been on strike, or to recover an overpayment of wages or expenses. Any other deductions call for an employee’s consent – arbitrarily taking away the money will get you in a lot of trouble. That’s not to say, though, that an employer has no recourse if an employee’s conduct has actually cost them money – they can seek redress through the courts. Of course, this costs money, and is fairly uncertain, so I doubt you want to do that. What I’d suggest is writing to him outlining exactly what you have discovered, and noting that you do not intend to let the matter lie. The more documentary evidence you have that he deceived you in the run-up to you letting him go, the better. The neatest solution to this, in all honesty, would be for him to waive his right to some (or all) of the payment he’s yet to receive as full and final settlement of any claim you have. However, if he does not agree to do this, you’ll have to pay him what he’s owed and pursue your claim for compensation separately. In the longer term, of course, you’ll have to have a think about what systems and controls you adopt to ensure an employee doesn’t run rings around you again, though I’m sure you already know that. Your best bet is to increase your own contact with clients, letting them know that they can come to you if they’re having any problems. Eamonn Garvey, Partner, DCA Accountants and Business Advisors  .... Fri, 27 Apr 2012 17:17:00 CEST http://dca-ireland.ie/news/2012/4/19/the_finance_act_2012__what_it_means_for_you/   Last month, President Higgins signed the Finance Act 2012, a bill which introduced a number of new measures to improve the business tax regime, into law.     One of the key features in the Bill was the corporation tax relief scheme for start-up companies. Under the new rules, and in accordance with an announcement by the Minister for Finance on Budget Day last December, new companies may be exempt from corporation tax on trading income for the first three years of operation. While this relief was already in place, the Bill confirms that is has been extended to companies commencing trade up to and including December 31st, 2014. Here, the maximum annual liability for which shelter is available under this scheme is €40,000 but the amount of relief available will be dependent on the amount of employer’s PRSI paid by a company and the number of staff it employees.   Another key development for business is the tax relief that applies where a company receives dividends from trading profits of a business that is tax resident in the EU or country that Ireland has a double tax treaty with. The rate of tax on dividends received from foreign bodies is usually 25%. However, under this scheme, the relief provides exemption from tax on dividends received by share dealers from portfolio shareholdings. The relief has also been extended in the Bill to also include dividends from companies located in countries with which Ireland has ratified the OECD Convention on Mutual Assistance in Tax Matters This opens up new markets for Irish companies, including Brazil, which is due to ratify the OECD Convention this year.   Generally, the Bill includes measures to support job creation and enhance Ireland as a destination for foreign direct investment, including foreign earnings deduction to support businesses that promote Irish exports to high growth economies such as Brazil, Russia, India and China. Also, the Bill sets out to reward the R&D efforts of companies here by allowing firms to reward key staff in this area by giving them the option of transferring a portion of their R&D tax credit to personnel who are heavily involved in research and development. Also, the government has set out guidelines which will make it much easier for businesses to claim the credit.   The Special Assignee Relief Programme, which was announced on Budget Day late last year, was confirmed in the 2012 Act. The purpose of the programme is to allow tax relief for Irish companies seeking to attract highly experienced personnel from abroad. Much has been written about the ‘brain drain’ that the Irish economy is suffering and the decision of highly skilled and specialised individuals to snub Ireland in favour of other jurisdictions with less penal tax codes. This measure should go some way to addressing the issue.   The Act also saw the extension of tax relief for corporate investment in renewable energy generation while improved relief for excess tax on royalties for the software industry were also highlighted.   For a full copy of the Bill, click here or contact us to see how we can help your company take advantage of some of the new measures announced by the minister last month.   Declan Dolan, Partner, DCA Accountants and Business Advisors    .... Thu, 19 Apr 2012 16:30:00 CEST http://dca-ireland.ie/news/2012/4/12/should_we_charge_vat/   Q. We’ve just signed a contract to do some work on behalf of a well known charity. Our payment terms are 50% of the agreed amount upfront, 25% to be paid on completion of half of the contract, with the outstanding balance due once the project has been delivered in full. However, when we submitted our first invoice, I was told that the charity wasn’t registered for VAT and that I would have to amend the invoice accordingly. I thought this was a little unusual so I asked a colleague of mine who works in another firm that carry out work on behalf of other charities if this was the case. He said that his firm charged VAT in the way they would any client. Is that the case here?   A. Generally, you should charge VAT in the normal way irrespective of whether the organisation you are dealing with has charitable status or not. There is no general exemption in respect of VAT for such organisations and therefore you should charge accordingly.   However, I can see how this could cause some issues for you – you don’t want to tell your client how to do their job or question their practices. As charities are not regarded as supplying goods or services in the way a trading company would be, they are neither obliged nor entitled to register and account for VAT on their income. However, since your company supplies good and/or services in the normal course of business, you must charge VAT.   The problem here is that the charity will not be entitled to a repayment of VAT incurred from its business dealings with you. It’s best to explain to them that you have to charge and that they should look into recouping any funds they feel entitled to themselves.   If you feel that they are being non-cooperative, you may have to renegotiate the terms of the contract to take into account a smaller margin if you’re left to foot the VAT bill yourself, or simply walk away from a project that isn’t as profitable as you first thought. This isn’t your problem but it will be if you don’t carry out normal business procedure.    .... Thu, 12 Apr 2012 16:37:00 CEST http://dca-ireland.ie/news/2012/3/27/personal_insolvency_bill_is_the_right_way_forwar/   In January this year, Minister for Justice and Equality Alan Shatter announced what I believe to be one of the most progressive pieces of legislation that we have seen for some time. The Personal Insolvency Bill 2012 will be welcome news to thousands of Irish people right now in that it deals with the financial difficulties of general insolvency, negative equity and mortgage debt.   If the Bill is approved in the Oireachtas, a state-operated Insolvency Service will be set up to run new non-judicial insolvency arrangements. Three voluntary debt-settlement systems will be put in place while the period of bankruptcy is likely to be reduced from the draconian 12 years to three years.   All of this is good news for struggling households and it means that if you are suffering with large debts, you may soon have some breathing room.   The first of the three voluntary debt-settlement systems deals with those who have unsecured debts worth under €20,000. If this is you, and you do not have assets with a total value of more than €400 and have less than €60 disposable income per month, you can apply to the new Service for a Debt Relief Certificate. This allows for a one-year moratorium period where creditors cannot pursue you for debts covered under the certificate. If, at the end of the year, you have not paid off the debt, it will be written off. As good as that sounds there is of course a catch. A single person can only apply for two debt certificates in their lifetime and the award of two certificates can only be six years apart. Regardless, this will allow those struggling with debts some time to get their house in order without the pressure of creditors breathing down their necks.   The second system deals with unsecured debt of over €20,000. Someone in this position can apply for a Debt Settlement Arrangement. To begin with, if you find yourself in this situation, you must prepare financial statements with the help of a personal insolvency trustee. Once complete, an application can be made to the Insolvency Service for a Protection Cert – while this is being prepared, debtors cannot move against you. It will take roughly 30 days. Once in place, the arrangement outlines how debt is to be repaid over a five-year term and is presented to your creditors. However, your plan can fall down if 65% of creditors do not approve the proposal – creditors can also challenge the arrangement and have it annulled by the Courts. Again, there is a limit on how many times an individual can apply here – in this instance, just one Debt Settlement Arrangement is permitted in a ten-year period.   The third and final proposal applies to those with secured and unsecured debts of between €20,000 and €3m and is known as a Personal Insolvency Arrangement. You can apply here even if you have income but are unable to pay your debts as they fall due. A personal insolvency trustee will decide if you fall into category two or three – in this case, you must show that you will be insolvent for a period of five years. While preparing a certificate under this proposal, creditors cannot pursue you for 60 days. Unsecured creditors are then offered an agreed percentage of what they are owed, which will be repaid over six years. If you are in negative equity, this amount could well be written off under this arrangement. 55% of unsecured creditors must agree to the terms, while 75% of secured creditors must get behind your plan before it can be enforced. However, if you sell your home during the six-year period and it fetches more than you expected, this will be taken into account and any amount that was written off can be adjusted. The same rules apply if you inherit a large sum during the six-year term. Because of the magnitude of debt the Personal Insolvency Arrangement deals with, it is no surprise that it is a once-in-a-lifetime deal.   These proposals will certainly help those struggling with debts and may stave off bankruptcy for many. However, if every avenue fails under the proposed new agreement, judicial bankruptcy is still an option. The new Bill provides ways to avoid it and if implemented correctly, it could help thousands of Irish people suffering under the weight of their debts.      .... Tue, 27 Mar 2012 14:34:00 CEST http://dca-ireland.ie/news/2012/3/23/dca_qanda_should_i_look_for_an_investor/   Q. I have been running a small photography business in Galway for the last two years. Up until now I’ve managed to keep the company going through savings that I had myself and also by increasing the amount of clients I have. However, lately I’ve found myself in a tight spot when it comes to cash flow – there are plenty of outstanding invoices but people are taking a lot longer to pay: I’m generally waiting 90 days for payment on most of my accounts. I also want to grow the business – now that I’ve created enough business to pay myself and more, I’m thinking of opening a studio in the city and taking on another photographer. I’ve accepted that cash flow is going to be tight in terms of getting paid on time for the work I do so I’m considering looking for an investor to get me through. I think somewhere between €20,000-€30,000 would help me get to where I want to be. Is this the right road to take?   A. First of all, congratulations on setting up by yourself. It’s never easy to take that first step and, by the sounds of it, you’ve built a good company in a relatively short space of time. Unfortunately, you’re not alone when it comes to outstanding invoices – 90 days (or more) seems to be the norm these days from what we have seen. I’m not sure that finding an investor is the right thing to do here. If you manage to find someone who wants to invest in your business, which can be a difficult challenge in itself, you’ll have to give away equity in your company in return. Depending on how much business you’ve created and how much the company is valued at, that figure could be as high as 50%, meaning that all of the decision making about how the business is run is taken out of your hands. You’ll have someone else to consider when you’re making plans and end up drawing up a partnership agreement or shareholders agreement. If, however, you feel that the investor can bring other opportunities (such as new contacts/potential customers) or expertise to your business and is not just a cash investor, then perhaps it’s worth taking it more seriously. But I believe that the best route for you is to prepare some management accounts and cash flow projections and an outline of how your business is performing and apply for a business development loan with your bank – it’s likely that an investor will seek this information also and so it should not be a wasted exercise. Once your financials are in order, you will have a good chance of securing the money you need and can structure the repayments to suit. If your bank is closed for business, as some are these days, go to another lender. Just because you have an account with one institution, doesn’t mean you can’t approach another one. There are other options such as First Step Finance who provide loans to start-ups to €25,000 over three years. However, the interest rate is slightly higher here so you’ll end up repaying more than you would if you managed to secure the money through your bank.   Eamonn Garvey,   Partner,   DCA Accountants and Business Advisors     If you have a question that you would like answered, please email us at info@dca-ireland.com and we’ll get back to you. Individual’s names and company names will not be published in our Q&A section to protect privacy.   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter.         .... Fri, 23 Mar 2012 16:47:00 CET http://dca-ireland.ie/news/2012/3/12/dca_qanda_how_can_we_wind_down_our_company/ Q. I’ve been in business with four other business partners for roughly six years now. Things had been going well for us – we are suppliers of materials to the construction industry – until last year when our sales took a big drop.   We did everything any business would do to get through a difficult patch – we made cuts to our staff and tightened up on housekeeping where we could. It looked as if we were going to be ok but one of the directors of the company suggested that we delay our returns to the Revenue in an effort to sustain cash flow.   I was completely against the idea but was out-voted after we had discussed it at length. Since then we’ve decide to wind down the company but the other partners still do not want to pay the taxes that are owed given that we won’t be in business any longer. What should we do?   A. If you fail to file annual returns, the Companies Registration Office can shut down your company in what is known as an Involuntary Strike Off – the CRO has the power to do that if you miss even a single return so you and your business partners are playing with fire.   If you haven’t received a warning of this already, expect it to come soon. When it does arrive, bring it to the intention of all of the directors and make sure they are aware of the consequences of not paying their dues.   If you, as a board of directors, continue to ignore the warnings, the company will be struck off and any assets that you have will become the property of the State. What’s more, you will all lose your entitlement to limited liability – therefore you will no longer be protected and the debts of the company will become yours and your business partners. This is a pertinent point as even if the company is struck off by the CRO, the company’s creditors can take a case to the high court to have the company restored and a liquidator appointed – you will all be held personally responsible for any outstanding debts. Also, if you pursue this course, you may be disqualified from becoming a director of another company in the future.   If you are certain that the company needs to cease operating, then a voluntary strike off is by far the better option for you – at least this way you are in control of the situation. However, you can only apply for this as long as there are no assets or liabilities within the company and when all tax affairs are in order. This may involve the directors loaning the company money to pay up creditors and then writing that debt off.   If you go down this road, you will first need to make sure your CRO and revenue filings are all up to date. You then request a letter of no objection from the Revenue Commissioners. Click here to find out where to send your request and what to write.   Even after this is done, you have to place an advert in a national newspaper with details of your intentions – this must be done up to four weeks prior to the application for strike off. It seems outmoded but, to the CRO, it’s the most effective way to ‘smoke out’ any creditors of the company who might object to a voluntary strike-off.   In this situation, I wouldn’t advise a game of cat and mouse with the CRO – after all, there will only be one winner. You and your business partners, as the losers in the whole affair, could be getting yourselves into more trouble than you know.   Eamonn Garvey,   Partner,   DCA Accountants and Business Advisors .... Mon, 12 Mar 2012 15:16:00 CET http://dca-ireland.ie/news/2012/2/29/ways_to_save_for_your_company/   Over the past 18 months or so, a number of our clients have asked our advice on how they can cut business costs without harming the day-to-day running of their company, or indeed productivity. Obviously, there is only so far one can go when it comes to making redundancies – a reduced workforce, after all, harms the capability of the business to produce or provide the product or service that they are in business for in the first place. After a little research and some implementation into our own business, it struck us that there are a number of areas where non-detrimental cutbacks can be made. What’s more, most of these trimmings have a lasting effect on the bottom line. When I delved into it a little further, I found the Sustainable Energy Authority of Ireland (www.seai.ie) to be a great resource for helping with energy costs. With a couple of clicks on the SEAI website, business owners can find the ‘Quick Wins’ section that offers helpful tips on how to ensure that you are making the most efficient use of energy in your business. The helpful people at SEAI have even broken it down by sector so you can see at a glance some useful hints relating very specifically to your own business. That’s not even the best bit. There are grants available from SEAI for commercial entities to help companies introduce better and more efficient energy saving mechanisms. For more on financial help available from the Authority, click here. Also, it seems that the SEAI are pushing hard to promote the use of electric vehicles. The Authority can help those companies with large fleets to make the transition with a grant towards the provision of electric vehicles. There’s also the added benefit that companies can make up to 33% savings in fuel costs by making the switch. Cloud computing We’ve also looked closely at introducing cloud computing into our operations at DCA Accountants and Business Advisors. The big advantage from a savings point of view is that cloud computing negates the need to maintain a main server. It also helps reduce the loss of man hours – staff can get access to their work information from anywhere, which also helps speed up the time it takes to carry out projects. Downloading information and files is also much quicker and more efficient than using a regular server. Introducing cloud computing to a business will save on IT maintenance costs in the long run too. There is also a decreased risk of downtime in the office if there is no longer a reliance on a server. However, what one should be aware of here is that cloud computing is only available in an area where there is fibre optic cable as opposed to copper wiring. There have been giant strides made in getting businesses online throughout the country in recent years so if your area is not equipped with fibre optic cabling right now, it shouldn’t be too long before it is. There’s much more information here on the benefits of cloud computing. There are obviously more immediate measures that can be taken to reduce costs that won’t alter in any way how you do business. By comparing mobile phone providers, or other utility suppliers like gas and electricity companies, businesses can shave a lot off their bi-monthly bills in one go. When making decisions on providers in all of these areas though, it’s wise to read the terms and conditions carefully and to carry out an analysis of what you would typically pay for electricity, for example, over a three year period. Armed with that information, you can make an informed decision on which supplier suits your company best. It’s also a good idea to have a housekeeping discussion with your staff and possibly introduce new policies on the use of printers, company telephones and other resources that are not necessarily for personal use. Spending some time reviewing company outgoings every month is well worth the effort – most businesses that we’ve dealt with or spoken to have made savings as a result, some more than others obviously. Nevertheless, the more that is put back into the company, the more productive it will be in the long term.   .... Wed, 29 Feb 2012 11:11:00 CET http://dca-ireland.ie/news/2012/2/17/is_invoice_discounting_a_viable_option_for_my_bu/   Q. I’m having real cashflow problems in my business at the moment – we’re still outstanding payment on some invoices going back as far as August last year, while others we’ve had to right off as bad debts and accept that the account won’t be paid for one reason or another. We are a small business with 10 employees in total. My wife and I are responsible for the accounts but now I’m worried that I won’t be able to meet the wage bill in March if the situation doesn’t improve quickly. I’ve looked at ways of getting cash in to help tide us over but the only option I think is open to me is invoice discounting with my bank. Should I go ahead with it? A. First off, you’re not alone. Hundreds of businesses like yours are struggling with cashflow right now. Sales may look good on paper but if you’re not getting paid on time, it can really harm your business, as you are finding out right now. Invoice discounting can work in a situation like this but you need to enter into it with your eyes wide open – it’s certainly not a long term solution to your problems and it could end up costing you more than you initially think. A lot of business owners think that getting 80% of the value of an invoice is akin to getting cash up front – it’s not. You’ll be charged at least 3% as long as you make the repayment in time. If your debtors are dragging their heels, like they are in this situation, then you could end up being penalised even further and you’ll end up with another problem of your own making. If you fail to meet your end of the bargain when it comes to repayments, your bank is likely to reduce the amount that they’re willing to give you on future invoices. You’ll find that you’ll receive a diminishing percentage of an invoice if you can’t meet your obligations and therefore cashflow becomes a problem again. You’ll also be hit with higher charges. My advice to you is to talk to an expert in credit control before you make any decisions. You will probably be better off outsourcing that function in the long term – a professional services company in this area is much more likely to recoup payments than you are yourself given that it’s their area of expertise. Invoice discounting can help and it can be beneficial to a company if it is in a situation where clients make more regular payments than you are experiencing now. However, in this case, I would advise you to explore other options, like speaking with a specialist in credit control, before going down this route.  .... Fri, 17 Feb 2012 17:59:00 CET http://dca-ireland.ie/news/2012/2/8/dca_qanda_how_should_we_set_a_new_company_up/   Q. A client of ours wants us to go into business with him. He currently operates as a sole trader while our company is set up as a partnership agreement, with three partners involved. We've obviously discussed the opportunity at length between ourselves and it sounds like a great chance for us to grow our business. However, our client wants us to set up a new company so as to make everything transparent and above board. We're fine with that but we were wondering how it effects our current situation. For example, are we exempt from corporation tax with the new company under the new rules despite the fact that we've been operating our own business for four years now? As I mentioned, we're very keen to enter into business with this client but we want to make sure that we've set it up properly from the outset. Can you advise us on how we should go about it?    A. From the information that you have provided here I think the cleanest way of doing this is to set up a limited company whereby all parties involved decide on a share split. From a legal perspective, if things don’t work out or if the business doesn’t grow to where you would’ve liked it to after a certain period of time, it’s a lot easier to wind up. Hopefully that won’t be the case for you but as a legal entity, there are very defined constraints in terms of who owns what and what the company can actually do in an incorporated structure. If one party decides further down the line that they want out, it’s much easier to buy shares from a limited company than to organise a buy-out in a partnership arrangement, for example.   If you do decide to incorporate the company, ensure that there is a shareholders agreement in place from the outset. This basically sets out the rules and guidelines of how the business is run and in the event of a disagreement between the parties involved, it can prevent an escalation of legal proceedings as the rules are defined at the very beginning and everyone involved is aware of them.   Another option available to you is to set-up a Joint Venture (JV). Here, you will have to register another entity for tax. While, on the face of it, a JV is similar to a partnership, from a legal point of view they are very different things. For example, with a partnership, you have to make sure that all ends are tidied up – if it’s left open-ended and a partner hasn’t been moved on or hasn’t terminated his/her position within the company, in theory, he or she is entitled to a percentage of the profits earned for the rest of time. However, if the new company is set up as a JV, it protects both parties from the new business encroaching on the other companies that you both already have.   I would advise setting up a limited company here on the basis that it’s tidier and it’s easier to wind up if things don’t work out in the future. Also, it offers limited liability so nobody involved will be personally liable for the any debts accrued.   The downside is that a limited company is more expensive to run from an accounting and administration perspective – at the end of the year you can expect to add on an extra €1,000 for accounting services. However, there are a lot more tools available to lower tax liability with a limited company so the net financial gain will probably outweigh the extra costs.   You will also qualify for a corporation tax exemption given that you are setting up the company this year. Minister Noonan announced that the three-year exemption for start-ups is to be extended for companies that commence trading in 2012, and 2014 in an effort to encourage entrepreneurship.   Best of luck.   Declan Dolan,   Partner,   DCA Accountant and Business Advisors.   If you have a question that you would like answered, please email us at info@dca-ireland.com and we’ll get back to you. Individual’s names and company names will not be published in our Q&A section to protect privacy.    .... Wed, 08 Feb 2012 09:52:00 CET http://dca-ireland.ie/news/2012/2/3/relief_for_research_and_development_taxes/   Being the driving force of a smart economy, research and development is heavily encouraged in Irish business – so much so that there are tax incentives for conducting such activities.   Subject to certain conditions being met, Research & Development tax relief can return up to 25 per cent of a company’s qualifying expenditure either as a corporation tax credit or as a cash refund. This credit is in addition to the usual corporation tax deduction at the standard rate (12.5 per cent).   Many companies engaging in research and development are unaware that their expenses in this area could qualify for R&D tax relief. However, now is the time to take note, as changes to this scheme due to come into effect with the Finance Bill 2012 will be of particular benefit to SMEs with R&D portfolios.   Where relief was once calculated on an incremental basis using 2003 as a base year, the new bill will introduce a volume-based system for the first €100,000 of qualifying expenditure. This change is particularly appealing for SMEs as the base-year R&D spend will not be taken into account. Also of benefit to small businesses with limited in-house capabilities is the allowance for out-sourced R&D activities to universities or organisations.   R&D relief applies to expenses related to the research and development of new – or the improvement of existing – products and processes, which includes wages, related overheads, plant and machinery and buildings. For your R&D efforts to be considered eligible, they must be systematic, investigative or experimental; seeking to achieve scientific or technological advancement; and using basic or applied research, or experimental development. You must also be conducting research in an approved field of science or technology, which includes areas as varied as software development, pharmaceuticals, financial services and horticulture.   This tax credit can also apply to expenditure on premises used for research and development. As long as at least 35 per cent of all activities carried out on the site within a specified four-year period are R&D-based, credit can be claimed for the proportion of use of the building for these activities.   The Revenue Guidelines for Research and Development Tax Credit is a 33-page document available for download from www.revenue.ie. What it boils down to is that claims must be made within 12 months of the end of the accounting period in which the expenditure was incurred, and they are submitted within your corporation tax return.   Ensure that your claim has been compiled in accordance with all of the legislation before filing. Some businesspeople erringly believe that once the CT1 is in the post, the claim is complete. However, you must remain aware that a claim is generally not accepted by Revenue until they have audited it. In this case, Revenue has the right to audit the claim within four years of receiving it and, given that the R&D tax credit scheme is a cash-paying system, they are quite diligent when it comes to following up on these claims.   These audits can be rigorous and the penalties can be harmful, so be prepared. Uniquely, these claims are reviewed by a Revenue inspector and a technical expert with specialised knowledge in a relevant field to the R&D work undertaken. For your end, you must be sure that the activities undertaken comply with the statutory definition of R&D, and that you have records of expenditure incurred in carrying out these activities.   As with all things tax-related, it’s best to talk to a professional before proceeding with a claim. Give us a call on (01) 823 0000 and we’ll see what we can do to help.              .... Fri, 03 Feb 2012 17:42:00 CET http://dca-ireland.ie/news/2012/1/31/how_accounting_can_save_you_cash/   With the first month of the year drawing to a close, businesses everywhere, as we know from our clients, are still looking at ways of cutting costs. Thankfully the numbers of redundancies has slowed down when compared to a last year and the year before as business owners seek new ways of trimming the monthly bill. This, of course, includes fees for accountancy work carried out on a company’s behalf by its preferred firm. Depending on the size of the company and the amount of people it employees, fees can seem to vary wildly when one business owner talks to another. At the same time, though, the amount of work that goes into managing a particular company’s books can be drastically different than another. However, there is one common component that all businesses should share – they should seek advice from an experienced accountant on how to set up their accounts. This applies to start-ups and established companies who are finding it hard to keep track of sales and purchasing invoices using their current system. After all, the more work you ask your accountant to do, the more it’s going to cost you. By being organised, by operating a proper filing system and by being aware of how that system interacts with the accounting system that you have in place, you’re much more likely to save in the long run. In recent years it’s become more noticeable to us that many companies do not have a dedicated in-house accounts person whose responsibility is ensure that all paperwork relating to the company’s sales and purchases is administered correctly. Add to that the work involved in preparing wage slips, ensuring VAT and other taxes are kept up to date, and it’s easy to see why some business owners can’t find the time to manage to piece together a proper paper trail every month. Some accountancy firms, as part of an ongoing agreement with their client, will assign an expert to manage all relevant paperwork for that business on a weekly basis. It’s a practice that we’ve become accustomed to at DCA for two reasons – firstly, it makes our job of preparing monthly accounts much less onerous and, secondly, it ends up costing the client less as information is much easier to come by and decipher. For business owners, the first and foremost priority must be driving sales – their prime responsibility is developing and maintaining activity on a daily basis. Building an efficient and cost effective team around that activity comes next. At the core of that team should be a voice in accounts who can look dispassionately at whether or not a project makes financial sense for the firm in the long run. Also, by managing the company accounts more wisely from the outset, businesses can save money all year long.    .... Tue, 31 Jan 2012 17:18:00 CET http://dca-ireland.ie/news/2012/1/27/how_county_and_city_enterprise_boards_can_help_y/   County and City Enterprise Boards (CEBs) exist to provide support to new and existing small businesses in the commercial sphere, and it’s important to know how to go about getting this help when it’s needed. There are three types of financial support offered by CEBs: Priming Grants, Business Expansion Grants, and Feasibility Grants. Priming Grants are for businesses that are still in their start-up period and can only be granted within the first 18 months of a business setting up. Established businesses (over 18 months in action) can apply for a Business Expansion Grant; however, if you have previously availed of a Priming Grant you’ll have to wait another 18 months to apply. The maximum amount payable for these grants is 50% of the investment up to €150,000. That said, grants over €80,000 are considered exceptional and generally only apply in the case of projects that clearly demonstrate potential to grow beyond micro-enterprise level and/or export internationally. Subject to the 50% limit, a maximum grant of €15,000 per full-time job created shall apply in respect of any employment support granted. The third form of financial support, Feasibility Grants, is there to assist with market research to examine the sustainability of a product or service. This covers consultancy requirements, hiring of expertise from third level colleges, private specialists, design, patent costs and prototype development. In the Southern and Eastern regions, the maximum amount payable for a Feasibility Grant is 50% of the investment, up to €20,000, while for those in the Border, Midlands and West regions this rises to 60%. CEBs are in a great position to help small businesses, due to their knowledge of enterprise in the catchment area and their understanding of local needs. The businesses they support are considered ‘micro-enterprises’ so, to qualify, your business must have no more than ten employees. CEBs receive many applications for funding but their priority is to support viable businesses that could create sustainable employment and have potential for expansion. There are, of course, other criteria to be met, but a meeting with a CEB Business Advisor, where you can discuss your proposal in detail, should clear up the particulars. If this goes well, you will be asked to complete an application form and provide supplementary documentation to support your application. Enterprise Board staff are available to assist you with this, and the Business Advisor will review your application once it is complete to make sure nothing is amiss. Your application will then be appraised by an Evaluation Committee comprising members of the business community, financial institutions and local authority. These committees usually meet every six weeks, so be prepared to wait for feedback. Following this, a written recommendation from the Committee will be considered by the Board at their next meeting. At this point it may still be deemed necessary to defer a decision pending receipt of additional information, so it’s best to provide as much as you can with your original application. When the Board has made a decision, you will hear from the CEO in writing. This will, hopefully, be a formal offer of grant aid along with the relevant terms and conditions. There are certain projects that CEBs cannot grant funding to. For example, they won’t consider a proposal that could lead to job displacement or result in unfair competition, nor will they provide financial assistance that duplicates support available from an existing programme or agency. If it is believed that a project could be implemented without financial assistance from the CEB, then the application will not be approved. An ideal project for CEB funding is one that is commercial and capable of attaining economic viability without ongoing support. Be sure that you can demonstrate a definite market and evidence of adequate finance to fund the project in the long-term. You must show that you have the necessary management and technical capacity to implement your proposal and that the project can sustain or – even better – create employment. Essentially, your project must be seen to have value, and be of economic benefit to the locality. As well as financial support, CEBs can also provide small businesses with information, advice, training, mentoring and technical assistance. To find your local CEB, visit www.enterpriseboards.ie.    .... Fri, 27 Jan 2012 15:25:00 CET http://dca-ireland.ie/news/2012/1/20/networkings_a_numbers_game/   Many business owners dread January – it’s the time of year that despite best laid plans, the year ahead can seem uncertain, especially if there’s less work to do than there was in the lead up to Christmas. However, while it may be a quiet time for day-to-day operations, this month provides the perfect opportunity to get out and sell your business. Of course, it’s not an easy thing to do and it’s often difficult to know where to start, but with a little research, finding a good networking event can be a major boon for your business. If you’ve done your homework and are well prepared in advance, you’ll find that you can generate high-quality leads and find new opportunities that you may not have considered to date. Even if you don’t manage to develop any new or meaningful business relationships, talking to like-minded people can often give you a different perspective on the direction of your company. On the other hand, if you feel like you’ve wasted time going along to a pointless event, it’s unlikely that you’ll give over more time when the next meeting comes around. It’s also likely that you haven’t done your homework properly or followed the very simple and straightforward rules of networking in the first place. It might seem obvious, but don’t turn up to a networking event in a crumpled suit, or worse, casual wear. Make sure you have more business cards than you’re likely to need too. More importantly though, it’s crucial that you have a clear plan of what it is you want to achieve with every conversation that you have, so if you’re looking to get your foot in the door, keep in mind that you’ll need a clear and concise outline of what your company does – you may only get a limited amount of time to get your elevator pitch across. If you can’t give an outline of your business and what you do in 30 seconds, you’re not explaining it correctly and your unique selling point (whatever that may be) won’t be clear. Be mindful that you need to leave time to answer any questions and to listen to your conversation partner’s pitch. If you constantly talk about your business without giving the other person a chance, you won’t come across well and any possible relationship will be a non-starter. Remember that they are attending the event to build links and find possible opportunities too. Even if you don’t think you could do business together, either of you may have developed other connections that could help the other. Networking events will give you the opportunity to meet with potential clients, possible business partners or even future investors, but it is a numbers game. That’s why it’s vital that you spread yourself out and don’t spend the entire evening talking to just one or two people – the more conversations you have, the more you’re building up your own network and spreading the word about your company. Speed networking, where you have five or ten minutes per conversation, is becoming increasingly popular. However, if you find yourself in a less structured environment, don’t hesitate to end a conversation politely when it’s appropriate. After the event, make sure to get in touch with everyone that has given you a business card, even if you haven’t identified some of them as a potential business opportunity. It’s nice to be polite after all, and they could well advocate your product or services further down the line. But prioritise – if you’ve been given the opportunity to pitch as a direct result of the event, make sure you do so while the memory of the meeting is still fresh.     .... Fri, 20 Jan 2012 17:53:00 CET http://dca-ireland.ie/news/2012/1/13/dealing_with_insolvency/   You may have noticed the National Competitiveness Council’s Annual Report was released earlier this week. In it, the Council said that the cost base has not fallen nearly enough in Ireland to return the country to a position of competitiveness. It offered suggestions and recommendations to help the Government boost competitiveness – however, most of the suggestions revolve around cutting costs and public sector reform, which we’ve all heard before. In fairness to the Council, in their report, they did highlight issues such as the non-implementation of the Local Authority Efficiency Review Group’s report, which could save €500m every year. However, as costs continue to remain high, the truth is that Ireland cannot maintain or indeed create any position of advantage in the international market.   Translate this on a smaller scale to your business and you’ll get a real understanding of the situation. Last year, according to The Insolvency Journal, 1,638 businesses found themselves to be insolvent – up over 100 from the year before. As more and more companies here feel the pinch, whether it’s through declining sales and, by association, decreased revenue, it’s becoming clear that more companies are getting into trouble and going to the wall when perhaps, in a lot of cases, there is no need to.      To know whether or not your company is insolvent or likely to head that way, ask yourself the following questions: Am I getting more calls from irate creditors than I used to? Has my sales stream declined since the last quarter? Are we making as much money as we used to? How has the decline in the economy affected my business and can we stay afloat if it falls further? If you don’t like the answers that you’re giving yourself, your company is most likely headed for trouble.   In such a situation, it’s very easy to panic – after all, most business owners worry about paying salaries at the end of every month and bury their heads with that particular problem without dealing with the wider issues. By ignoring calls from creditors, for example, you could be putting your supply chain at risk which will, in turn, hinder any chance that you have of recovery. If you have no suppliers or can’t get credit because you’ve developed a reputation rating within the industry, you can’t operate your business. Instead, talk to your creditors, and explain the situation to them – in most cases, we have found, they’ll be happy to work with you as long as they know what’s going on.   Probably the most important piece of advice we can give you is that it’s senseless trying to deal with an insolvency issue yourself or with business partners who don’t have the necessary expertise to help you get out of trouble. Get professional advice as soon as you can – you may think that it’ll cost you more when the debts are already piling up but a good insolvency expert should be able to tell you within half a day where your business stands as long as they have all of the relevant information available to them. What’s more, they can help you put a plan in place to get your business in a solvent position again or prevent a disaster before it happens.   Eamonn Garvey, Partner, DCA Accountants and Business Advisors   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter.       .... Fri, 13 Jan 2012 18:14:00 CET http://dca-ireland.ie/news/2011/12/22/find_funding_for_your_business_in_2012/   Funding a business idea or sourcing finance for a business expansion can be a tricky path to negotiate. A squeeze on credit from financial institutions means that many businesses have been refused loans or overdraft extensions. If that road is closed off, finding an investor for your business is another alternative but if it’s a path you choose, you’ll need to understand that you are allowing an external individual, often a stranger, access to a portion of your company. Of course with proper background checks and balances, it can be a great way to fund a new product or service idea or give your business the boost it needs to grow to the next stage.     There are other ways to find the investment you need – these are usually in the form of grants or short-term loans from agencies like the City and County Enterprise Boards or Enterprise Ireland, for example.   Whichever route you feel suits your company best next year, be aware that there is a lot of red tape and paperwork involved. Also, finding funding can be a long and often frustrating process but if you have your paperwork prepared, a viable business plan and an interesting idea that will grab attention, you’ll find that there is money out there that you can gain access to.   We’ve broken done some of the avenues for you to explore.    Enterprise Boards   City and County Enterprise Boards have been set up to support ‘micro businesses’ with 10 employees or less. They make Priming Grants available to establish suitable sole traders, partnerships or limited companies when the principal is a female returning to the workforce or unemployed. The board will match a principal’s investment or offer a maximum of €150,000 (whichever is lower), but grants of over €80,000 are only given in exceptional circumstances. As a general rule, they’ll offer €15,000 per full-time job created. Business expansion grants – giving the same levels of funding – are available for businesses seeking to grow, and feasibility grants offer up to €20,000 or 50% of an investment, whichever is lower. This rises to 60% for the border, midland and western regions. As a general rule, all the businesses that get Enterprise Board support need to be domestically traded but have the potential to trade internationally.   Investors   Getting an investor to fund your business can be a long process and can go badly wrong if you choose the wrong partner. That’s why many businesspeople choose to tap into their direct and indirect professional network when they’re looking for a potential investor. When you are talking to would-be investors, it’s important to be direct and up-front about every aspect of the business: financial projections need to be detailed and realistic, you need to have a sense of the potential pitfalls the business can face, and you need a clear idea of the funding requirements before the business starts turning a profit. They’ll naturally want to know exactly what the money will be used for, and will be wary of vagueness or wild promises. An independently-drafted legal agreement between yourself and the external investor, which includes dates for receiving the tranches of funding, as well as their share in the venture, is also essential. Investor money comes with fewer overheads than other forms of credit, but there are far more strings attached.   Bank Credit   When you talk to a bank, you will quickly pick up whether your business will be considered a viable candidate for credit. It’s best to approach the bank with, once again, a clear picture of what the money you need will be used for, and realistic projections about what the business’ financials will be like in years one, two and three. The more visible research that goes into this, the better. If you’re looking simply for a small ‘fighting fund’ to cover day-to-day issues that may arise and ensure you can pay suppliers, an overdraft is probably the simplest solution, though it is easy to become too dependent on it if you’re not careful. For larger working capital, most lenders will be more comfortable giving a business loan, so you need to ensure the repayment plan can realistically be covered with cash-flow.   Enterprise Ireland   Enterprise Ireland have funding available for start-ups, High Potential Start-Ups, established SMEs with less than 10 employees, and for larger companies with up to 250 staff. Obviously the category you fall into will depend on the size of your business and the stage that it’s at in its life cycle. In most cases the decision for funding will be based on the need for financial support, the sales and job creation potential of the company, its location and if any funding has been made previously available. Once you become a client of Enterprise Ireland, you’ll be assigned a development adviser who will be a dedicated point of contact when engaging with the organisation and will help out with applications for funding and other development supports.   Business Angel Networks   Angel networks are groups of individuals with the means to invest in businesses. They’re brought together and vetted, usually by an organisation such as the Halo Business Angel Partnership, which is run by the Dublin Business Innovation Centre. The advantage of having an Angel Investor on board is two-fold: generally they’ll have invested in businesses before and the organisation that they are a part of will match a specific investor who has proven experience in a certain sector with a company seeking investment in that industry. However, the amount of equity that a company has to give up as part of the deal varies depending on the level of input the investor has. Many of the business angel networks host seminars and events that anyone can attend to get a better understanding of what’s on offer and how to get involved. See our list below for some of the Angel Networks operating in Ireland today.      The Irish Investment Network Halo Business Angel Partnership Halo Business Angel Network WestBic Business Angel Partnership Halo Northern Ireland    .... Thu, 22 Dec 2011 17:01:00 CET http://dca-ireland.ie/news/2011/12/21/buyer_beware/   We’ve dealt with enough entrepreneurs over the years to know that going it alone is fraught with dangers. Setting up on your own, especially when business and consumer sentiment is so volatile, is very often a difficult choice to make.   However, there are ways to give yourself the best start possible. One such avenue is to buy an existing business. Buying an existing business can add significant value to a portfolio or give an entrepreneur a head start. However, without proper analysis, costly or even ruinous mistakes can easily be made.   As we’ve all seen, the tide of emigration continues unabated. Perhaps what isn’t so evident is the effect it has on the local economy here. As people continue to leave the country, they leave behind businesses that were presumably, at one time or another, profitable entities. Of course, it doesn’t make sense to up sticks and leave behind a company that more than pays for itself, but with some digging, there are businesses out there that could well compliment an existing portfolio with a little cash and a lot of hard work.   For anyone buying a business, or thinking of taking the plunge, the first thing to identify is the opportunity. Ask yourself if it stands alongside an existing business or if it is in a new area where you’ll need additional expertise to make the acquisition successful.   If you have established that a certain business holds opportunity, it’s time to look at the nitty gritty. Insist on an information pack from the seller – this should provide soft details like when the company was formed, its background and current profile, identifying key personnel and senior management. It should also mention whether those people are willing to stay on or not during and immediately after any possible buy-out to make the transition as smooth as possible.   From there, one can expect detailed financial analysis of the company and its performance over the past three years at least. If this is not forthcoming, insist on it. This should contain details on sales by product and/or sales by geographic area, for example. It should also demonstrate, in detail, the company’s history with its top clients and customers, and outline any contractual details that are in place for the coming months and years. It is vital that this information is timely and correct – having major clients pull the plug at the beginning of a new era for any company can stop any progress before it even starts.     Of course, having the financial clout to buy the business in the first instance is a must, but how payment is transferred varies from case to case. In my experience, unless the business is a local shop, for instance, handing over the full agreed amount in the beginning should be avoided. An earn-out period is the best option – by incorporating this into any contract gives the new owners some breathing room when it comes to cash flow and will also allow sufficient time for any anomalies to show up in the accounts history, if there are any.   Buying a business, just like setting up a company, can be a tricky path to negotiate but some careful planning, sound advice, along with knowing what to look for at the full disclosure of accounts stage, will help smooth the ride.    .... Wed, 21 Dec 2011 15:45:00 CET http://dca-ireland.ie/news/2011/12/9/opportunities_for_business_from_budget_2012/   This week’s budget wasn’t pretty, but then, unless you’ve been living under a rock for the last few years, you wouldn’t have predicted otherwise. While more austere measures were delivered, it wasn’t all bad, especially for the business community. Retaining the corporate tax rate was crucial – when Minister Noonan announced it would be held at 12.5%, a collective sigh of relief would have emanated from businesses here. However, events in Europe this week and the strong possibility of tax harmonisation in any new treaty may take the choice of setting the rate in future out of the Government’s hands. But that’s for another blog. Many have criticised the budget, especially the cuts to social welfare and disability allowance – some said it did nothing to breathe new life into the economy. The Government’s hands are tied somewhat but closer scrutiny of the plans shows that businesses here didn’t do too badly at all. First off it seems that Minister Noonan understands that the R&D regime in Ireland had to be adapted to support a new wave of Irish companies, especially as such a large bet is being placed on sectors like IT kick starting a recovery here. The announcement that the first €100,000 of R&D expenditure will be allowed on a volume basis for the purpose of tax credit is a positive step in that regard. Also, the enhancement of the Special Assignment Relief Programme is welcomed. It should go some way to attracting specific talent to Ireland as well as creating more jobs and allowing for the expansion of businesses here. However, for SMEs, probably the most important aspect of Budget 2012 was the extension of the corporation tax and capital gains tax exemption for start-ups. This will apply to all new ventures starting in business for the next three years. It wasn’t all good news though. The abolishment of all employer PRSI relief on employee contributions to pension schemes starting from January 1 next year is estimated to cost around €90m to business next year. Also, amendments to the Redundancy and Insolvency Scheme will see payments reduced to 15% from 60%. Some concessions had to be made of course, but despite a resounding negative reaction, it’s important to remember that, insofar as they could, the Government seems to have eased the burden a little for many who had been suffering for some time now. If you have any specific questions or would like to know more about how these changes affect you and your company, contact us for a free consultation. We’ll be happy to talk through how the changes can benefit your business and how you can make the most out of a budget that could well have been a lot worse.       .... Fri, 09 Dec 2011 17:03:00 CET http://dca-ireland.ie/news/2011/12/5/budget_2012__get_creative_to_help_smes/   If you watched Enda Kenny’s state of the nation address on RTE last night, you’ll have guessed that the omens for tomorrow’s budget aren’t good.     That’s not good news for SMEs in Ireland who are struggling as it is. There’s a lot of trepidation among SMEs come Budget Day because they can never quite see how a budget is going to be of benefit to them. Quite the opposite in fact – most businesses are preparing themselves for higher taxes and higher costs of running their business.   However, it is crucial to the wider economy that the SME market is protected as much as possible. That is not to say of course that small business owners shouldn’t pay their way – but in previous budgets, the focus has been on ensuring larger corporations and multinationals are continually persuaded to do business here, while the export market and high potential start-ups have been akin to the firstborn come budget time. While both are certainly important, the playing field has been anything but level when it comes to promoting SMEs and the local indigenous market. Indeed, after the public sector, the SME community is the largest employer in Ireland but yet suffers disproportionately at this time of year.   To help, Minister Noonan must tackle the problem of job creation and the willingness of people to take up positions when they become available. As it stands, an employer must offer a high base salary to attract the right individuals to their company because with social welfare rates as they are, potential employees will compare their after-tax income with their welfare entitlements. If there is little or no difference, then there is hardly an incentive for an individual to work.   Previous budgets have provided some incentives for employers to recruit new staff – the reduced PRSI rate for employees on a low salary is one that comes to mind. However, rarely do these measures carry any weight as stand-alone motivations – there needs to be a more coordinated and joined up approach. We need to work harder to develop a more creative strategy that will allow employers to take more people on. Simply cutting spending and raising taxes won’t work any longer – in fact, there is nothing more that can be achieved in creating employment in the SME sector by increasing taxes any further.   SME should be allowed to put themselves in a position whereby they can earn as much profit as possible – contrarily, what is happening with the new tax system, the Government is making it less attractive to go beyond a certain level of earnings for self-employed people. It is almost impossible to incentivise a business owner to invest in and expand their business if the profits that arise from that expansion are taxed at 50%. It is very difficult for an SME to justify moving to that level. While I understand the challenges facing the Government in terms of cutting costs, they have gone as far as they can go when it comes to increasing taxes for individuals – after all, any further hikes will damage their overall objective, which they say, is job creation.   Tomorrow will tell us a lot about how this Government really views the SME sector here and whether or not job creation is at the heart of a revival plan for Ireland.     Declan Dolan.  .... Mon, 05 Dec 2011 17:06:00 CET http://dca-ireland.ie/news/2011/12/1/when_the_auditors_come_calling/   Some business owners think that once a tax return is filed with the Revenue Commissioners their worries with tax are over for another year. In most cases that’s true, but if your business has been selected for a revenue audit, it’s critical that you’re prepared for a very thorough search of your accounts that could go back a few years and then some.   The main problem that companies face is they approach an audit with a ‘them against us’ attitude – in most cases any company selected feels hard done by because they feel they are being singled out unfairly. However, the selection policy of the Revenue Commissioners is not so cut and dry – companies might be picked for audit because they operate in a certain industry and because Revenue has planned special projects in that sector in a certain year, for example. In other cases, some businesses only have themselves to blame – consistently filing late tax returns generally acts as a beacon to auditors. Also, irregularities in an annual statement compared to monthly submissions can act as a trigger.   Regardless of the circumstances of why a company is selected for audit, it is critical that they comply. In general, a company will receive 6-8 week’s notice of an audit taking place – the period that will be inspected will also be highlighted in an early correspondence. The onus then falls back to the company to have their house in order ahead of the review. On the day, the auditors will give business owners the opportunity to make a voluntary disclosure, which is a chance to outline any anomalies and declare any outstanding taxation that was overlooked for whatever reason in the past. This must be in the form of a written statement ahead of an audit taking place.   The essential element, however, is transparency and full disclosure – the penalties, if there are any, can be drastic if anything discrepancies are found during the review. This is why it is critical that a company, especially small and medium sized business, have their accounts in order every year. We have covered how to organise and manage your accounts before in this blog but it’s worth highlighting the importance of it again and again. A confusing system can spell disaster for any firm and if a business finds itself in an audit situation, a disorganised accounts system certainly won’t help – in fact, it will most likely make things much worse and penalties more severe as even the smallest details are scrutinised.    We realise that many businesses are of the mind that survival above all else is the priority right now but neglecting to comply with Revenue if selected for audit should always be a concern. By ignoring responsibilities in firstly having a proper accounting system in place and secondly filing returns on time, business owners run the risk of putting their company in the spotlight when it could so easily have been avoided.         .... Thu, 01 Dec 2011 19:18:00 CET http://dca-ireland.ie/news/2011/11/24/the_art_of_negotiation/   Lots of companies that we’ve come across are having trouble with cash flow – it’s understandable given that many SMEs have difficulty sourcing and accessing credit in what is becoming an increasingly challenging business environment. However, sticking your head in the sand and ignoring the endless calls from aggravated suppliers who are looking for payment tends to worsen the problem in our experience.   Of course there’s no silver bullet solution, especially for some companies who have overstretched in the past and are now having difficulty just keeping their heads above water. But being open, honest and transparent with suppliers about a company’s cash flow situation won’t just give a struggling business some breathing room, it can also help to salvage relationships that would have otherwise turned sour.   You might be pleasantly surprised at how a formerly cold suppliers will react when a client explains the situation and, crucially, works with them to pay up. People don’t like putting each other out of business – they much prefer to get a workable payment plan in place that keeps them ticking over and keeps a client on board.   Having dealt with situations like this on numerous occasions in the past, my advice to business owners is to carry out an honest assessment of cash flow projections for the months and possibly year ahead. Only when that picture is clear should you begin to negotiate with suppliers and debtors about putting in place a payment plan – don’t ever promise to pay a monthly figure in an effort to reduce your debt if you know you can’t afford it. The last thing anyone needs in a situation like this is a retraction on an agreement that suited both parties. Projected cash flows allow business owners to make informed decisions about their ability to repay – plucking a figure from your head will only make things worse because, once you’ve renegotiated your terms, it is crucial that you stick to them.   The other obvious issue that this throws up is a business owner’s reputation, as well as the reputation of his/her company. If you cannot afford to meet an agreed repayment plan, it’s likely that other suppliers in your sector will become aware of the company’s financial predicament either through industry gossip or if your company is dragged through the courts by suppliers desperately trying to salvage some sort of payment. If that happens, securing the services of another supplier will be highly unlikely. If you get into this kind of spiral, simply running the company – let alone paying people what they’re owed – becomes extremely hard.   At DCA Accountant and Business Advisors, having negotiated on behalf of some of our clients, we have a good idea of what a supplier is looking for. At the same time, because we work with a large variety of businesses, we understand the pressures and stresses involved in running your own business. Because of that insight, we know how to address issues of payment and negotiation so that everyone involved can get on with the day-to-day running of their companies, as well as repairing working relationships to the benefit of both parties in the future.   Declan Dolan,   Partner,   DCA Accountants & Business Advisors      .... Thu, 24 Nov 2011 10:55:00 CET http://dca-ireland.ie/news/2011/11/11/letting_go/   Making cuts to the payroll is a difficult process for any business. What’s more, failing to approach redundancies in a structured, organised way can result in costly cases that put a company under even more pressure, defeating the purpose of the exercise. None of us like firing people, and that’s perhaps why many businesspeople put their heads in the sand, only moving to cut staff in a disorganised way when the situation becomes critical. This can be disastrous, both for morale and for the businesses’ bottom line.   For starters, you need to determine how much you will have to save on your staffing costs for the business to remain viable. This requires a keen eye on cash flow which, as we’ve noted in previous posts, is essential. If you employ more than 20 people, a ‘collective redundancy’ situation may exist – this comes with heavier legal obligations that I’ll cover in a future article. For now, I’ll just say that you should get professional advice for managing these larger scale redundancies.   For any redundancy, though, you need to follow certain procedures. Firstly, you need to select employees for redundancy using criteria that you can credibly show is fair and reasonable – this will be crucial if a claim for unfair dismissal arises. You have some freedom in this, of course. Many employers choose ‘last in – first out’ because it’s ostensibly objective, and less damaging to morale of established staff. You are allowed to select certain employees over others based on their skill-sets, though it would be a good idea to have some kind of evaluation made in writing in case you’re challenged on it. It should go without saying that discriminating based on gender, marital status, beliefs, sexual orientation or other factors is not allowed.   Aside from this, you have a responsibility to act reasonably in making redundancies – this is an extremely vague term, and leads to many cases of perfectly compliant employers reaching the Rights Commissioners. Anecdotally, we know that employers who let staff make an alternative suggestion to save their jobs – either collectively or singly – tend to fare far better in these proceedings. The more you can consult, and prove that you did, the better.   Staff are entitled to a set notice period of at least two weeks when they’re being let go – people with five years of service are entitled to double that, those with ten years get six weeks and people working at the same company for 15 years or more are entitled to eight weeks. Rather than having a potentially angry employee around the office for a month or even more, many employers prefer to let them go straight away. This is allowed, but you’ll have to pay a person’s wages and holiday entitlements right up to the end of the notice period.   Moreover, you’re also obliged to make a redundancy payment for staff with two or more years of service – the Department of Social Protection has produced a useful calculator for working this out here. You can claim 60% of this back by filling in the RP50 form and submitting it to the Department of Social Protection. Employers who simply can’t pay have a heavier burden: they have to tell the Department that they’re unable to make a redundancy lump sum payment, and submit evidence to support their claim, while accepting liability for 40% of the sum in writing.   As you can see, there’s quite a lot of paperwork and planning involved in making redundancies without opening yourself up to large liabilities. At DCA, we’d work with clients making this genuinely painful decision, helping them work out how much the payroll needs to be cut by, devising criteria that are fair and allow business to continue, and working out a company’s total liability. We can also handle the substantial amount of paperwork involved. When redundancies are needed, it’s hard for any business owner to assess a situation coolly, and all too easy to make a mistake that ends up costing serious money. Consider getting in professional advice for this process – it will prove a worthwhile investment.   Eamonn Garvey, Partner, DCA Accountants and Business Advisors  .... Fri, 11 Nov 2011 18:18:00 CET http://dca-ireland.ie/news/2011/11/4/how_to_get_paid_on_time/   Nearly all businesses in Ireland, except for maybe consumer-focused companies, have one very bad characteristic in common – they rarely get paid on time. As a nation we’ve always been known for our generosity but it seems that we find it hard to stump up for work that has already been carried out. That creates a myriad of problems of course, not least that it starves businesses up and down the country of the main resource needed to operate and survive – cash!   When you don’t get paid for a job on time you are, inadvertently extending your credit terms. This means that you have given the client more time to pay without actually specifying or agreeing any new arrangement. As you can probably guess, this sets a very dangerous precedent. If the contagion spreads to other customers you’ll very quickly start to notice a real problem and most likely a downward spiral of your cash flow.   Of course, the last thing any businessperson intends to do is to put their company in harm’s way. However, if payment isn’t forthcoming or if credit terms are being blatantly ignored, then, whether you like it or not, the existence of your business is called into question. For any company – especially start-ups, who are particularly poor when it comes to dealing with debtors – it is important that you set out your credit terms and policies in writing at the very beginning of a business relationship. This clears up any ambiguity that may come into play further down the line. It’s also prudent to have a system in place to issue invoices promptly – on the first of every month for example – even if some of your clients are still in arrears.   It’s important that you keep your emotions in check too. We know how hard it is for new businesses who are struggling with cash flow – especially when they’ve put their heart and soul into a piece of work, only to be told that it’ll be another 30 or even 60 days before they receive payment. However, anger or frustration won’t get the bill settled any quicker. What does help some people is sending a statement of account along with every invoice, acting as a reminder for customers that the last bill won’t just go away if they don’t think about it! Specifying an additional charge or interest rate on late payments can also help motivate customers to pay up.   Of course, calling people to ask for money isn’t an easy job. Many entrepreneurs tend to put this unpleasant task on the long finger, and their business suffers as a result. If you find yourself in this situation it’s a good idea to enlist the help of professionals – at DCA Accountants and Business Advisors, for example, we offer a credit control service so you can get on with the business of running your company. We’ll contact your debtors on your behalf, which means that you won’t be put in the situation of chasing a client for payment while at the same time trying to build a lasting business relationship with them.   We always advise our clients to set up a standing order facility with their customers, which means that they are assured of being paid on time as long as that client has the necessary funds to do so. If they don’t, it should set off some alarm bells. Aside from helping with with cash flow, it also takes awkward conversations out of the equation, meaning you can concentrate on developing and building your business relationship. We can help put that arrangement in place for you.   Running a business today is not easy but the last thing we need to do is make it harder for ourselves. Following these steps or handing over the credit control function to an experienced outsourced provider can alleviate a lot of the pressures that can very easily strangle a business if not managed correctly.   Declan Dolan, Partner, DCA Accountants and Business Advisors.      .... Fri, 04 Nov 2011 16:18:00 CET http://dca-ireland.ie/news/2011/10/27/be_compliant/   Most people will have seen advertisements indicating the end of the tax year, which is coming up next week. However, for new limited companies – those in their first or second year of operation – the tax deadline depends on the accounting period that began when the company was set up or incorporated. The adverts that you see now are for self-assessment tax returns, which is very different to a company’s corporation tax liability. The first and most important step when preparing your tax returns is knowing the difference between the two. Having a good accountant will help but being able to differentiate between when your company’s corporation tax liability is due and the self-assessment deadline is key. After a 12 month trading period a company must file a corporation tax return and comply with the preliminary corporation tax deadlines, meaning that returns must be filed and paid somewhat in advance. The requirements for companies in their second year or more of operation are clearly outlined by Revenue, who use a formula based on previous tax returns by company to calculate how much should be paid over three instalments.  The first instalment is due 31 days before the end of the accounting period; the second instalment is due within six months after the end of the accounting period; while the third instalment (i.e. the balance of the full liability) must be paid within one month after the company’s corporation tax assessment is returned. For the first instalment, companies must return 18% of the full liability, while 72% is due before the deadline for the second instalment. For start-ups in their first year, the burden is not so great. The rules by Revenue state that any company has the option of paying 90% of the final liability up front or 100% of the previous year’s liability, which, for new companies, is obviously zero given that they have not been trading before. We always encourage companies to avail of that option when it comes to filing preliminary tax returns as it protects cash flow, which is at the cornerstone of a start-up’s success or failure. The consequences for missing deadlines can be severe. Not only will a company be subject to penalties and interest of up to 20%, but they are also putting themselves in the firing line of Revenue and potentially classed as high risk in the future. What this means, of course, is that the likelihood of being selected for audit by the Revenue Commissioners increases dramatically. At DCA Accountants and Business Advisors, we help companies avoid any unwanted spotlight when it comes to their tax liability. From the moment we meet a potential client, whether they are a sole trader or limited company, we identify all tax deadlines relevant to them. Every company is unique of course and so we alert our clients at least 90 days in advance of upcoming deadlines. We also encourage companies to help us to complete their annual accounts as soon as possible – after all, the more time we have the more likely it is that we can find ways of reducing the overall liability of a business. Keeping a watch on deadlines and ensuring your company is compliant can be a tricky and confusing business, especially when a company is in its early years and not familiar with the system and rules. However, the dangers of non-compliance and putting your company on the radar of Revenue are great, which is why professional assistance should always be sought.    Declan Dolan,   Partner,   DCA Accountants and Business Advisors.   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter.  .... Thu, 27 Oct 2011 15:16:00 CEST http://dca-ireland.ie/news/2011/10/20/taxing_time_for_everyone/   Most people think that self-assessment tax returns only apply to the business community. It’s an easy assumption to make given the advertising campaign that goes into reminding business owners of the October 31st deadline. But all workers, and even pensioners, must submit a return to Revenue every year.   In a lot of cases, the accounts department of the company you work for will take care of it for you – hence the high level of inertia and disinterest that most people show when it comes to their tax bill at this time of year. But by perking up a bit and taking control of the situation, you could save yourself a lot of cash in the year ahead.   When employees receive their tax credits from the revenue each year – or officially, the ‘Notice of determination of tax credits and standard rate cut-off point’ – they can calculate their tax liability for the coming 12 months. If you know what to look for here, you can start making plans to save money immediately.   Firstly, make a list of everything that you pay for over the year. Items like bin charges, water charges (if they apply in your area), medical bills, college or school bills, and anything else that puts money in state coffers directly from your pocket should be itemised. Once you’re satisfied that you’ve covered everything – don’t forget to include your rent or mortgage payments – you can start working out what the Government owes you!   If you want to file your own tax return you can do so in one of two ways. You can register with the Revenue Commissioners and use the ROS Direct Debit system or you can submit forms which can be picked up from your local tax office or printed from www.revenue.ie. The self-employed will need Form 11, as will company directors, while PAYE workers and pensioners should use Form 12. If you’re in business, a registered company should complete Form CT1 and for partnerships, Form 1 should be filled out.   Once you’ve calculated your overall tax liability you can post payment to the Collector General’s office or you can go there yourself and pay in person. They have offices in Apollo House on Tara Street in Dublin and Francis Street in Limerick.   Sometimes, especially when it comes to tax returns, a little professional advice can go a long way. At DCA Accountant and Business Advisors, our team have dealt with members of the public on many occasions to handle tax returns. Depending on an individual’s situation, the types of rebates differ. For example, a single parent will be entitled to a higher tax credit than a two-parent family receives. By having an introductory and largely informal chat with our clients, we can generally find credits that people didn’t know they were entitled too or simply didn’t know existed. What’s more, our consultation is free. From there, we can file the paperwork for you and make sure that you receive everything that you’re entitled to – not just this year but for the previous four years.   Whatever way you decide to go, it’s crucial that you are up to speed on your tax liability, how to file it and how to claim any overpayment – it’s your money, after all.     Eamonn Garvey, Partner, DCA Accountants & Business Advisors.   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie or follow us on Twitter..... Thu, 20 Oct 2011 13:20:00 CEST http://dca-ireland.ie/news/2011/10/6/can_you_claim/   Right now, people up and down the country are preparing to submit their tax returns for 2011. It can be a time of great stress and worry for those who do not have their paperwork in order but, even for highly organised people, there is a chance that money is being thrown away.   Few people are aware of the full set of tax reliefs available to them and, therefore, returns are filed in excess of what actually should be paid. The good news, however, is that it’s not too late to reclaim what’s still rightly yours from the taxman.   The first thing anyone preparing a tax return needs to do is to look at reliefs available to them. If you are paying rates towards the collection of household rubbish, for example, you’re entitled to a credit for your bin tax on your overall taxable income. Another credit may be available when there is a dependent family member or relative at home – claims can be made against the care of that relative too, based on the amount paid throughout the course of the year for their care. It must be documented, of course. Also, if you are a one-parent family, you will qualify for double the tax credit of the average person, which amounts to roughly €7,000 against total annual income. Rental income or expenditure, depending on whether you’re the landlord or the tenant, is also subject to relief.   The trouble that most people have is that, while they may be aware that they are entitled to reliefs, they simply don’t bother to claim them if they are already struggling with the paperwork requirements that go with filing a return. What’s more, it seems that a lot of individuals believe that, after filing a return to beat the October 31 deadline, they lose the right to make a claim. That is not the case. Claims can made retrospectively for up to four years, meaning that depending on your case, you could be entitled to a rebate covering that period from the Revenue Commissioners.   But how do you go about claiming? There are software packages out there but I would caution against using a programme that simply regurgitates what you feed it. The best thing to do is talk to a qualified tax advisor. At DCA Accountants and Business Advisors, our team are well versed and experienced in all tax reliefs available and depending on your personal circumstances, which ones apply to you. In many cases, having discussed a personal situation with a client, we often stumble upon avenues where they can lower their overall tax liability by claiming reliefs – many of which they were not aware of before.   Our consultation service is free of charge so all you have to lose by not talking to us is really what was rightfully yours all along.      Declan Dolan,   Partner,   DCA Accountants and Business Advisors      .... Thu, 06 Oct 2011 12:21:00 CEST http://dca-ireland.ie/news/2011/9/29/the_golden_rules_of_bookkeeping/   Second to managing customer accounts and attracting new sales, bookkeeping is one of the most important functions in any business. If you’re diligent and have proper processes in place, you’ll have access to timely information that shows the true performance of your company. If you’re ambivalent in any way, though, your business could wind up in very serious trouble without you even knowing it.   A lot of companies, particularly small businesses that are just getting off the ground, tend to focus on getting as many sales as possible– it’s a natural way to start. After all, without customers a company might as well not exist at all. However, if source documentation when filing accounts for the company is not easily available, all of the effort put in on the sales side may prove worthless if the bookkeeping processes are not up to scratch.   When keeping accounts, the first rule is that it’s all about routine. If a company does not have a full-time accountant or financial controller then it is almost always up to the owner-manager himself or herself to look after one of the most important functions of the company. In some cases the responsibility will fall on a member of the owner’s family. Nevertheless, it is vital that the person in charge knows the financial state of his or her business at all times. Having a complete understanding of what is required to maintain proper accounts on a weekly or monthly basis will add an appreciation to the role of whoever it is assigned to and will also place a greater level of importance on it in the overall running of the business.   At DCA Accountants and Business Advisors, we take our clients through the key steps in bookkeeping from the outset. We explain in simple, jargon-free terms everything that they have to do to keep their accounts and books in order – by following the simple rules of consistency, completeness and communication, you’ll find that any information you need at any stage regarding your accounts will be readily at hand.   However, we’re also very aware that accounts management and daily bookkeeping are not necessarily a skill set that everyone has, which is why our clients find our bookkeeping service so valuable to their businesses. We can take care of all invoicing as well as PAYE payments and/or VAT returns. If there are pieces of information missing such as credit notes or invoices, our experienced bookkeeping department will follow up with the company’s clients to ensure everything is in order and that the information is accurate.   The key point, however, is that proper bookkeeping procedures are essential when running any business. Get it right and you’ll see very quickly just how much of an asset it can be to your business; get it wrong and the future of the business could be very bleak indeed.    Eamonn Garvey,   Partner,   DCA Accountants & Business Advisors    .... Thu, 29 Sep 2011 17:33:00 CEST http://dca-ireland.ie/news/2011/9/22/planting_the_seed/   Two weeks ago, I looked at the Business Expansion Scheme (BES) as part of DCA Accountants and Business Advisors’ investment advice series. An extension to the BES is, of course, the Seed Capital Scheme, which is another tax refund for new enterprises.   The Seed Capital Scheme is very similar to the BES but what makes it potentially more attractive is that it provides for a refund of tax on an investment already made by an individual. That investment can be offset against the previous six years of PAYE income that an individual has earned and there’s a real opportunity to obtain a sizeable tax rebate up to €100,000.   The scheme is particularly attractive for anyone who has been on a good salary for a number of years. If someone has been made redundant recently, for example, he or she can use their redundancy payment to set up a new business that may qualify for the scheme under Revenue rules. If money is invested in the business it can be offset against the previous six years of income to trigger a tax rebate, meaning the cost of investing in the business is drastically reduced.    There are restrictions on the type of businesses that are eligible for investment, however. For starters, an individual who invests must enter into a full-time employment contract for at least one year, either as a director or as an employee. The second condition is that there are limits on the type of company that can qualify – the main categories for qualification include companies in the manufacturing industry or internationally traded services, while those involved in commercial research or development activities are also likely to meet the necessary criteria. The common theme, as you’ll have noticed though, is that innovation is required to qualify.   Companies seeking approval for the scheme should apply in the first instance to their County Enterprise Board for initial approval – by doing so, a company can fast-track its application to the Revenue for approval of seed capital relief. Your application will then be dealt with by the Revenue Commissioners’ branch in Dublin Castle.   The process itself may seem long and arduous but it’s worth it – right now the success rate for applications is particularly high given that the Government are doing all they can to incentivise people to invest in projects that are likely to create employment here. If the business plan is fundamentally sound and approval has been granted by a county enterprise board, the chances of success increase significantly.   At DCA Accountants and Business Advisors, we can help with applications for County enterprise board grants and also qualification under the Seed Capital relief scheme and assess whether or not a plan is likely to be approved at all levels. Once we have reviewed a business plan, we can point out areas where improvements need to be made therefore maximising the chances of success.   When we look at a business plan and application for any kind of investment, we can generally conclude very quickly if it will be successful in the approval process – our background when dealing with these matters is quite extensive and a number of our clients have secured investment through schemes like this after consulting our advisors. Like those that make the final decisions on applications, we closely scrutinise a business plan against the key criteria of the grant or investment scheme that a company is applying for and see how it measures up. If it does, then we can help with the necessary paperwork; however, if tweaks or adjustments need to be made in any area, we can point them out to give you and your business the best possible opportunity to qualify.   Declan Dolan, Partner, DCA Accountants and Business Advisors  .... Thu, 22 Sep 2011 16:09:00 CEST http://dca-ireland.ie/news/2011/9/15/tax_deadline_looms_large/   This is the time of year that owner managers dread most. With the tax return deadline looming, most SME business owners are keen to make sure that their house is in order and that their files are up to date ahead of the cut-off point.   But it doesn’t have to be a time viewed with trepidation – when a company or sole trader sets up in business, they should have first appointed an accountant who would have indicated very specifically the records that need to be maintained, both for statutory compliance and from a personal perspective so that they know exactly what is going on in the business at any given time.   If you’re not sure what records you should be keeping, it’s a good idea start with a full list of sales and purchase invoices for the trading period – this list should also include any credit notes (including discounts and/or returns to and from customers and suppliers) that were received in the same period. All invoices must be in the trading name of the company or sole trader as registered with the Revenue Commissioners   Details of all lodgements to the company’s bank account for the trading period as well as customer receipts, details of bank loans and refunds must be filed and to hand. The company must also keep a record of all business bank statements for the period outlined including all credit card statements. Also, a record of all payments to suppliers including payments to trade suppliers, payments on loans, insurance, pensions and life assurance should be kept. If an audit takes place, the Revenue Commissioners will also ask for details of any loans or hire purchase agreements that the company has entered into – copies of the agreements should be readily available for review. Also, copies of all debtor and creditor statements showing balances due and owing from both customers and suppliers should be accessible. All of this information should be contained on your accounting software but it is also necessary to have hard copy records to vouch for all entries.     Companies should aim to submit a copy of their records to their accountant as early as possible after year end. Doing this will allow the accountant to provide you with timely information in respect of the company’s trading performance for a certain period; crucially, it can also act as an alert for any potential issues that need to be addressed as a matter of urgency.   It may sound complicated but in fact, the earlier you engage with your accountant, the easier it will be. At DCA, we are particularly proactive in that we will be in contact with our clients from the off, ensuring that they fully understand the records that have to be maintained. We also provide assistance to them through our bookkeeping service to ensure that monthly records such as VAT and PAYE returns are up to date.   If you are thinking of changing accountant for any reason, then talk to us. In such circumstances, we would initially carry out a complete review of the books and highlight any issues and implement recommendations on your say so. We’re here to help you run your business more efficiently by providing you with the timely information that you require.     .... Thu, 15 Sep 2011 15:38:00 CEST http://dca-ireland.ie/news/2011/9/8/business_expansion_scheme__do_you_qualify/   In the first of a series of investment focused pieces, Declan Dolan takes a closer look at the Business Expansion Scheme.  Wary investors are treating today’s market with extreme caution and who can blame them? After all, the turbulence of the last three years hasn’t exactly inspired confidence – even those at the higher end of the risk profile are scaling back after, in many cases, suffering huge losses in their portfolios. However, there are still opportunities out there for those with the means and the will to invest. The Business Expansion Scheme (BES), for example, is one. Set up as an incentive for individuals to invest in a new enterprise or business idea, the BES allows investors to offset their investment amount against their existing PAYE or other taxable income for the year. As a tax relief mechanism, it is quite an attractive scheme from two perspectives. Firstly, if an investor puts in €10,000 into a BES, for example, he/she is entitled to offset that amount in full against his/her total income. Secondly, 41% of that investment can be reclaimed through a PAYE tax refund meaning the cost of the initial investment is reduced by 41% as long as there are sufficient earnings in the high income tax bracket to absorb the full amount.  For companies too, the benefits are numerous, not least the marketing opportunities that come with being accepted for the scheme. Once a business idea or innovation has been rubber-stamped by the Revenue Commissioners, the business will immediately start attracting the attention of outside investors. However, it’s not the case that every company will secure investment – but if the idea is strong enough, is innovative, brings forward a product or service that does not currently exist and, perhaps most importantly, is exportable, then the chances of investment increase significantly.   In general terms, the BES offers benefits to both the company and private investor but more needs to be done by tax advisors and by government to make people more aware of the opportunities that exist within it. Since it was launched in its current format in 2007, very little has been done to promote the scheme, and so, in my opinion, while I believe it is an excellent vehicle for all concerned, it really hasn’t worked in terms of the reach it should have achieved.    One instance of where it has worked was when a client of DCA Accountants and Business Advisors came up with an idea of producing an infra red, energy efficient product for rooms in homes without radiators. We felt at the time that the product could qualify for BES relief, which we applied for successfully – we subsequently obtained a €20,000 tax rebate for the client. Up until that point he wasn’t aware of such reliefs, which highlights the point that not enough professional advisors are making their clients aware of all of the options available to them. On the face of it, the BES seems very appealing but don’t be fooled – it is extremely difficult to obtain and not every project will qualify. While the Revenue Commissioners are certainly widening the net in terms of the types of projects that can apply, the process can be a slow and frustrating one. But we can help. With our extensive experience in applying for the scheme, our experts can tell pretty quickly whether or not a project will qualify. We’ll also look at each application on a case-by case basis without charge so there’s really nothing to lose. However, if your project is innovative enough, there is certainly everything to gain.   .... Thu, 08 Sep 2011 16:28:00 CEST http://dca-ireland.ie/news/2011/9/1/were_here_to_help_you_set_up_your_business/ Following on from my last blog on how to set up your business, this week’s focus is on the determining factors that can help you decide whether the sole trader or limited company option is best for you. When deciding which best suits your needs, the most important thing to take into account is your forecasted profits and how much your turnover is likely to be year-on-year. A lot of people, when setting up a business, get hung up on details like having the appropriate measures in place when it comes to registering with the CRO and how they have to go about registering for various tax heads that relate to the sector that they will be entering. While it’s a prudent practice, it’s not nearly as daunting as some think. Setting up as a sole trader is relatively painless and the process is much quicker than the limited company route. The same applies to a partnership if there are two or more people involved in getting the company off the ground. In both instances, the criteria and characteristics are very similar and the paperwork requirements are minimal. Before you decide on setting up as a sole trader or partnership, ask yourself if you are likely to earn over €36,000 in your first year. If you feel you’ll be taking home in and around that figure, you’ll pay tax of 20% on the first €36,000 and 48% tax on anything above that. However, if you believe, having carried out some research into your market and calculated projected sales figures, that it’s likely that you’ll earn much more than that, then a limited company is the route you should take. To set up as a limited company, however, a company needs to be formed and it has to be registered for taxes. However, the real differentiator between the two is projected profits. If, for example, a single person goes into business and their profit forecast is in the region of €100,000, then we would advise them to set up a company. There is, however, more paperwork involved and annual accounts and bridged accounts must be filed with the companies office. How can DCA Accountants and Business Advisors help? First of all, having discussed your business with you, we’ll decide on the appropriate structure. Once all the paperwork has been handled, our advisors ensure that you are fully aware of the checks and records that must be kept throughout the year. In a lot of cases, a new company wants to concentrate on getting their business up and running so, at DCA, we can manage all of your records throughout the year ahead of filing annual accounts on your behalf, regardless of the structure that is most suitable to you. In the case of a limited company and on top of the necessary paperwork, the team here can register your business for VAT, PAYE and all other necessary tax heads. We can also assist in securing finance for your business whether that is an overdraft or term loan to get you started. Once your company is up and running, our dedicated bookkeeping department can help you issue timely sales invoices and even follow up with your clients to ensure that payments are being made and processed on time. When you are setting up a business, it can be very easy to lose sight of your core objective, especially in the beginning when there seems to be so much red tape to get through. We’re here to help you and your company get off to the best start possible, and with our expert team behind you, you can concentrate on why you set up the business in the first place. Eamonn Garvey, Partner, DCA Accountants and Business Advisors  .... Thu, 01 Sep 2011 16:16:00 CEST http://dca-ireland.ie/news/2011/8/25/how_to_pay_yourself_tax_efficiently/   Even when a business is operating profitably, paying yourself a good salary isn’t quite as straightforward as you think. Owner-managers of small businesses are subject to several obligations that they need to be aware of before they begin paying themselves, along with the same taxes as any ordinary employee. Business owners can, however, control and manage their tax liabilities while still complying with all the Revenue’s guidelines: the key is careful advance planning, organisation and engaging with the revenue authorities when you need to. Things to consider Before taking any money from a business, the most obvious and important factor to consider is the company cash flow. A business owner has to be careful about what he’s looking to pay himself if, in turn, it jeopardises the cash flow resources of the business and its ability to pay other key overheads. For example, if he pays himself such an amount that it jeopardises the wages of the other staff or if the cash flow resources are affected to such a point that the company is not in a position to pay the VAT or PAYE/PRSI bill, then the problems begin. Business owners also have to factor in their personal tax liability. He or she may only have a single person’s tax credits available meaning that, for every euro taken above the standard tax threshold, the business will pay substantially on top of the net amount the business owner is paying  him or herself. Despite what some commentators may make out, there’s no special exemption from tax for business owners – they’re exposed to the standard tax rates also, starting with the PAYE rate, PRSI rate and now the Universal Social Charge (USC) rate, which has a particularly damaging effect on the tax situation of business owners earning over €100,000. It’s very probable that, for someone of that income, their average tax rate could rise to over 50%. Reducing exposure Of course, every business wants to limit their exposure and liability – the key is to be organised so that you can take advantage of generous reliefs. One that a limited company can look at is mileage and subsistence. Rather than just hanging on to petrol receipts, the director or owner of the company can complete a revenue-approved spreadsheet that, we feel, gives generous allowances in terms of travel he has incurred on behalf of the company. This is only applicable, though, if the director owns their own vehicle and it’s not owned by the company. Often, directors make the mistake of thinking it’s an advantage to let the company own the motor vehicle. At DCA, we would, in most cases, advise against that because the employer is leaving himself exposed to be taxed on a benefit-in-kind whereby be he will be exposed to an additional PAYE/PRSI charge on it. Another idea is to employ a spouse that may not be working to avail of tax credits. This is perfectly legitimate as long as that person is actually carrying out work for the company. It could be an administrative role or helping with the paperwork at weekends. And of course, the business owner could have children off for the summer who may be able to help out, for which they could also avail of their tax credits. Another option is pension planning, where by the business owner can look at the generous reliefs available for company directors, in particular if they look towards setting up a company executive pension scheme. This type of pension has more generous tax breaks than ordinary PRSA/personal pension scheme and is worth investigating. The compliance issue Of course, availing of these reliefs calls for organisation and planning. Certain businesses, particularly sole traders, tend to leave their tax returns until the final month before the submission deadline. Our view is that these businesses should look towards getting their tax computations and income tax returns completed as early as possible once the tax year is over. That gives them time to anticipate what lies ahead, both in terms of their ability to pay and also any tax planning measures that they might still be able to put in place to reduce their liability. Being organised will stand to the company when the thorny issue of compliance comes up. The most important thing is to file VAT returns and P30 returns on time. That minimises exposure to interest or penalties for filing late returns. Far too many businesses end up exposed to unnecessary costs of that nature. Working for you At DCA, we come across many cases where we find that client cash flows are in such a situation that they’re not able to pay all their taxes at once. In this instance, we write to the Revenue and look towards an instalment plan. For any clients that are suffering tax problems, we have a very strong relationship with the Revenue and can negotiate on a client’s behalf to help that client trade out of his taxation difficulties at that moment in time. More than that, though, we like to think of ourselves as a one-stop shop for these smaller businesses. We have a bookkeeping bureau, whereby we look after the PAYE, VAT, and month-to-month tax requirements of the business, and would act as their tax agent when it comes to dealing with the Revenue. We follow up with a client to make sure he sends in books or records promptly so that we can file returns on a timely basis – in general, we aim to have everything completed five months ahead of the deadline to give the client peace of mind to save towards the liability, or to look at measures that reduce the liability, rather than coming to a client two weeks before the deadline. From experience, we know that planning ahead leads to major savings and far less business stress in the medium to long term.    .... Thu, 25 Aug 2011 16:34:00 CEST http://dca-ireland.ie/news/2011/8/18/setting_up_a_business__your_options/   Sole Trader/Partnership   Setting up as a sole trader is the easiest way of establishing a business. However, sole traders can only be registered to individuals; if you find yourself in a situation where you are registering a business with another individual or indeed, more than one other person, the business can be registered as a partnership.    In order to set up a sole trader or a partnership, a TR1 Tax Registration form must be filled out and sent to the Revenue Commissioners. On this form, businesses can register for income tax, register as an employer, and also register for VAT and RCT (Relevant Contracts Tax), which mainly relates to businesses in the construction industry. Registration takes roughly four weeks but Revenue may request further information if the business is registering for VAT. In some cases, Revenue may ask for a copy of a lease of premises if the business is renting, for example.   The deadline for submission of tax returns for sole traders and partnerships is October 31st each year so if you register your business in 2011, your submission of income tax return is due on or by October 31st 2012.   In some instances sole traders or partnerships can register a business name so that they can trade under that name – for example, Mary Smith T/A Dublin Photographers. To register a business name, a form must be sent to the CRO (Companies Registration Office) or alternatively, it can be filled out and sent online at www.cro.ie.   Once you have registered with the CRO, the next step is to open a bank account for your company. This is a relatively straightforward process and is similar to setting up a personal account in that the bank will require photo id (a driving license or passport) and proof of address (a utility bill dated within three months). If the business is trading under a registered business name, the bank will require copy of the business name registration as supplied by the CRO.   For sole traders and partnerships it is vital that proper and up-to-date accounts and records are maintained from the day you start your business – if the books aren’t in order from the beginning, it tends to be much more difficult to prepare annual accounts, which could possibly lead to higher fees come tax return time.   For new businesses, it is always a good idea to meet with your chosen accountant and have them explain the records that need to be kept on a daily basis. If after the accounting process has been explain to you and you still don’t understand it, chances are your accountant isn’t explaining it properly, which could land you in serious trouble with Revenue when it comes time to file your accounts.   A minimum of two people are required to set up a limited company, which, like a sole trader or partnership, can be registered through the CRO.   It is important to remember that once the limited company is established, it becomes a separate legal entity and that members’ liability is limited to the amount of share capital each has subscribed to. In all cases, members become directors of the company so it is crucial that everyone involved is aware of their legal duties, responsibilities, and obligations as a company director.   To register a limited company for VAT and PAYE and other taxes, a TR2 Tax Registration form must be forwarded to the Revenue Commissioners. This can only be done after the company has been set up through the CRO. Once you have received your company number, registration for all tax heads can take up to four to six weeks.   Setting up a bank account for a limited company is slightly different than if you were applying as a sole trader or partnership. As well as proof of identification and address from two directors, the bank will require your certificate of incorporation and certified copies of both your memorandum and articles of association.   For a limited company, financial statements and a corporation tax return must be prepared each year. Financial statements have to be in format as prescribed by the various companies’ acts and filed with the CRO, normally within nine months of the accounts year end.   How can DCA Accountants and Business Advisors help?   In most cases, anyone setting up a business will need to be advised of their options. Our experts will take you through every aspect of setting up the business you have in mind and recommend the specific structure that suits your requirements.   We can also submit and follow up with all documentation required for the Revenue Commissioners and the CRO, as well as assisting with opening bank accounts, and ensuring that all other issues are addressed, such as ensuring your business has appropriate insurance so you can start trading.   Once the company is up and running, DCA can provide a full bookkeeping service to ensure that your monthly VAT and PAYE returns are forwarded to Revenue on a timely basis, which will help you to avoid interest payments and penalties.   Above all else, however, our expert full service accounting package for SMEs ensures that you, the business owner, can concentrate on getting your business off the ground safe in the knowledge that your accounting records are compliant and maintained properly.   Eamonn Garvey, Partner, DCA Accountants and Business Advisors   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca-ireland.ie         .... Thu, 18 Aug 2011 16:37:00 CEST http://dca-ireland.ie/news/2011/8/11/beware_the_dangers_of_bad_cashflow_management/   Cashflow management is one of the biggest problems facing Irish businesses today. A company may well be able to monitor its profit and loss results on a month-to-month basis but regardless of profit forecasts, no business can expect to continue to trade if it is not in control of its cashflow.   To pinpoint the exact problem when it comes to cashflow is difficult – after all, no two companies are the same. However, at DCA Accountants and Business Advisors, we have seen a trend developing where credit control is one function in a lot of companies that falls down – the knock-on effect of course is that day-to-day cashflow management generally falls with it.   There are macro issues at play of course – a shortage of credit in the economy being the primary difficulty. People, it seems, are less willing to give out credit terms these days, the result being that credit is much tighter than before. Therefore, third party contractors are less willing to carry out a job in full before receiving payment. This situation damages the economy as a whole from the point of view there is less and less work being initiated. Without having the cash in place, it therefore becomes irrelevant whether or not a company has the ability to generate profits further down the line.   There are solutions, however, but it is imperative that directors, managers and business owners alike are aware of the discipline it takes to improve a cashflow situation.   The first step most companies must take is to try to work their credit terms more efficiently – this is what we call ‘The Matching Concept’. In other words, businesses need to match the level of credit that they obtain from their suppliers with the level of credit that they supply to their customers.   I would also strongly recommend that companies appoint a credit controller – someone who is responsible for and dedicated to managing the business’s debtor’s ledger book on a daily basis. By having this system in place, a company can have someone who can answer queries, can input daily updates to the debtor’s ledger, and can stay consistent when it comes to following up outstanding payments, which is very often left on the long finger by business owners themselves.   One of the core functions of the team at DCA Accountants and Business Advisors is to drive home the importance of cashflow management and the effects it can have on the future of our clients’ businesses. In most cases, we prepare cashflow projections for the month ahead and try to help our clients anticipate when and where they will have difficulties in this area. After all, if they are armed with the information, they have the ability to do something about it before it negatively impacts on their company.   We can also manage the debtor’s ledger on behalf of our clients. By appointing a dedicated member of our staff, our clients avoid the expense of having to employ a full-time credit controller, as well as knowing that their outstanding accounts are being followed up and managed on a daily basis, which allows them to concentrate on their core business and of course, to generate more sales.   Whatever your situation when it comes to cashflow management, it’s always wise to remember that if this most important aspect of your business is not managed correctly every day, you are, whether you realise it or not, putting your business in serious jeopardy.   Declan Dolan,   Partner,   DCA Accountants and Business Advisors   For more on our services or to receive a free consultation for your business from one of our experts, visit www.dca.ie            .... Thu, 11 Aug 2011 16:54:00 CEST http://dca-ireland.ie/news/2011/8/3/the_truth_behind_bank_debt/   How your company can handle debt effectively Tighter controls from all financial institutions in Ireland are taking their toll on small businesses. From what we see at DCA Accountants and Business Advisors on a day-to-day basis dealing with our clients is that while it may seem that the banks are closed for business, they are simply much more stringent in their loaning policies. Some business owners, who may be running viable companies but at the same time cannot get credit, can often be left wondering what it is they’ve done wrong. The answer is simple. While it is true that banks do have much tighter financial controls in place, many of them will still engage with businesses as long as the financial information being supplied to them is accurate and can be relied upon. Whilst it is true that credit is much more difficult to acquire and it can be tough to get, banks will listen and evaluate the financial information presented and then make a decision based on same. With the advent of the Credit appeal process there is then an opportunity for business person to get independent party to evaluate banks decision if not happy with it. During the boom years, banks were literally giving money away and lending decisions to a large extent were perhaps based on the value of property a business person had rather than the fundamentals of the business itself. Due to the availability of credit, some businesses allowed their credit control procedures and cash flow management to deteriorate and hence when the economy began to contract, businesses found it difficult to manage their cash flow due to both poor historical credit control policies and also banks tightening up on lending/overdraft facilities. The credit contraction in Ireland over the last 3 years has lead to business owners realising the benefit of proper cash flow management and also strict credit control policies.  Also the availability of accurate up to date financial information is now paramount to businesses to allow them know in a timely manner how business is performing. Because of the availability of credit in boom, some of these practices were not adhered to /used. Another consequence of credit contraction is that the banks staff have had to learn how to interpret financial information which is based on actual business performance rather than the value of a property. There has been a steep learning curve for both business owners and bank staff with regard to how best to manage cash flow/debt in tight financial situations so that the client can operate their business and the bank can see that client has ability to pay loan by working with client rather than penalising client. At DCA Accountants and Business Advisors all of our clients know that they need to be armed with the facts of their business when they enter into discussions about accessing credit or restructuring loans for their business from their lender. They know that they need proper profit and loss accounts, a list of signed-off sales orders for the next six months, and prudent/realistic  cash flow projections over that period. If that information is presented to a financial institution, more often than not, business owners will find their bank is willing to engage with them. By working with clients and offering practical sound advice, we find that clients can perhaps have clarity with regard to how best to deal with bank/debt problem. In current climate it’s all about working together to achieve a solution that perhaps is not ideal for everyone but is realistic for all parties. Top tips for dealing with bank debt ·         Present timely and accurate information so you can have a frank and open discussion with   your bank. ·         Be certain that what you are promising is reasonably achievable – don’t ever over-   promise. ·         Keep the bank up-to-date on your company’s financial progress. ·         Keep in regular contact with your accountant and return his calls! ·         If you are doing the best you can and your business is fundamentally sound, you’ll find   that your bank will work with you.   Eamonn Garvey    .... Wed, 03 Aug 2011 15:04:00 CEST http://dca-ireland.ie/news/2011/7/29/how_to_get_your_company_back_on_track/   Right now many companies in Ireland could be classified as insolvent. As cashflows are disrupted by slow paying customers and as bad debts stack up, business owners who find their company in an insolvent position often wonder what the next steps are. Firstly, don’t panic – after all, if you’re confident that your company can trade its way back into a profitable position (which it can in a lot of cases) then you’ll be fine. It’s in nobody’s interest for a company to fold just because there are cash flow issues, least of all the company’s creditors. However, many business owners lose sleep when their company is in the red. The monthly wage bill and the day-to-day operating costs have to take priority to keep the company going but the real acid test of whether or not you can get back to a solvent position is by taking a close look at your balance sheet at the end of each year. If your company’s performance is improving in terms of reducing the level of losses or if profitability is increasing on a gradual scale over a period of say three years, then you can continue trading and at that point, it will generally be agreed that the company and the company’s creditors are of the opinion that the company is returning to a solvent position. Considering options On the other hand, if there is really no way of knowing whether or not the company can get back in the black, the directors must consider a number of options. The first is whether or not to put the company into liquidation. It is the responsibility of the directors to be honest here and acknowledge the true financial position of the company. Delaying the liquidation process can have, after all, grave consequences – reckless trading being the most serious.     There are three types of liquidation. The first is a voluntary liquidation whereby the owners of the company are in a position to wind-up the company themselves. This can only arise in a situation where the company is solvent in the first place though. In other words, the directors should know that if they cash in their overall assets, the money they receive will be sufficient to cover any liabilities that exist within the company. The second and most common type of liquidation is a creditor’s liquidation. This is where the directors realise that they are in an insolvent position. Under company legislation, they are obliged to hold a creditor’s liquidation if they are of the opinion that they will not be able to trade out of their troubles and return the company to a solvent position. The third type of liquidation is a compulsory liquidation, where by a petition has been presented by a creditor to the courts under section 2.3.1 of the Companies Act 1963 to wind up a company and sell off its assets in order to receive outstanding payments in full. How we can help If you find your company is in financial trouble, the first thing your accountant or business advisors should do is take a look at the state of the company’s finances and restructure where appropriate and possible.  At DCA Accountants and Business Advisors, we often start with the company’s costs and see if there is any room for reducing outgoings. In many cases there will be. It is also important to ensure that the company in question is maximising the resources at its disposal. Once the internal process is complete, creditors need to be informed of the situation – the company’s primary aim, which we always advocate at DCA Accountant and Business Advisors, should be to try to trade back into profitability. To do that takes time and creditors need to be made fully aware of the restructuring process and payment plans that have been put in place. If there is really no other course of action left having explored all possible avenues to keep the company in business, liquidation may be the only option. If that’s the road that you have to go down, it is imperative to ensure that the entire process is carried out as efficiently – from a professional and financial point of view – as possible. Declan Dolan  .... Fri, 29 Jul 2011 11:16:00 CEST http://dca-ireland.ie/news/2011/4/19/monthly_return_deadlines_for_may_2011/ 14/05/11 - PAYE/PRSI: P30 monthly return and payment for April 201114/05/11 - DWT: Return and payment of DWT for April 201114/05/11 - PSWT: F30 monthly return and payment for April 201114/05/11 - RCT: RCT30 monthly return and payment for April 201119/05/11 - VAT: VAT 3 return and payment for period March/April 201119/05/11 - VAT: 4 Monthly VAT 3 return and payment (if due) for period January/April 20111-21/05/11 - Corporation Tax: PT for APs ending between 1-30 June 20111-21/05/11 - Corporation Tax: Returns for APs ending between 1-31 August 20101-21/05/11 - Corporation Tax: Pay balance due on APs ending between 1-31 August 20101-31/05/11 - Corporation Tax: Returns of Third Party Information for APs ending between 1-31 August 2010.... Tue, 19 Apr 2011 14:00:00 CEST http://dca-ireland.ie/news/2011/3/18/monthly_return_deadlines_for_april_2011/ 14/04/11 - PAYE/PRSI: P30 monthly return and payment for March 201114/04/11 - PAYE/PRSI: P30 quarterly return and payment for January/March 201114/04/11 - DWT: Return and payment of DWT for March 201114/04/11 - PSWT: F30 monthly return and payment for March 201114/04/11 - RCT: RCT30 monthly return and payment for March 20111-21/04/11 - Corporation Tax: PT for APs ending between 1-31 May 20111-21/04/11 - Corporation Tax: Returns for APs ending between 1-31 July 20101-21/04/11 - Corporation Tax: Pay balance due on APs ending between 1-31 July 20101-30/04/11 - Corporation Tax: Returns of Third Party Information for APs ending between 1-31 July 2010.... Fri, 18 Mar 2011 14:00:00 CET http://dca-ireland.ie/news/2011/2/22/monthly_return_deadlines_for_march_2011/ PAYE/PRSI:14/03/2011 - P30 monthly return and payment for February 2011DWT:14/03/2011 - Return and payment of DWT for February 2011PSWT:14/03/2011 - F30 monthly return and payment for February 2011RCT:14/03/2011 - RCT 30 monthly return and payment for February 2011VAT:19/03/2011 - Bi-Monthly VAT 3 return and payment (if due) for period January/February 2011Corporation Tax:1-21/03/2011 - PT for APs ending between 1-30 April 20111-21/03/2011 - Returns for APs ending between 1-30 June 20101-21/03/2011 - Pay Balance due on APs ending between 1-30 June 20101-31/03/2011 - Returns of Third Party Information for APs ending between 1-30 June 2010Income Tax:31/03/2011 - Return of Share Options and other Rights for 201031/03/2011 - Deadline for claiming Separate Assessment for 201131/03/2011 - Deadline for nominating Assessable Spouse for 2011.... Tue, 22 Feb 2011 14:00:00 CET http://dca-ireland.ie/news/2011/2/1/p35_deadline_reminder/ The P35 deadline is fast approaching. Have you returned your payroll information to us? The deadline for filing is 15th February. Remember avoid penalties, a possible audit or even criminal prosecution by filing on time..... Tue, 01 Feb 2011 09:00:00 CET http://dca-ireland.ie/news/2011/1/26/monthly_return_deadlines_for_february_2011/ PAYE/PRSI:14/02/2011 - P30 monthly return and payment for January 2011DWT:14/02/2011 - Return and payment of DWT for January 2011PSWT:14/02/2011 - F30 monthly return and payment for January 2011RCT:14/02/2011 - RCT 30 monthly return and payment for January 2011PSWT:15/02/2011 - F35 annual return for year ended 31 December 2010RCT:15/02/2011 - RCT 35 return for year ended 31 December 2010PAYE/PRSI:15/02/2011 - Issue P60 2010, to each employee15/02/2011 - Due date submission of Form P35 for year ended 31 December 2010Corporation Tax:1-21/02/2011 - PT for APs ending between 1-31 March 20111-21/02/2011 - Returns for APs ending between 1-31 May 20101-21/02/2011 - Pay Balance due on APs ending between 1-31 May 20101-28/02/2011 - Returns of Third Party Information for APs ending between 1-31 May 2010.... Wed, 26 Jan 2011 16:09:00 CET http://dca-ireland.ie/news/2010/12/22/monthly_return_deadlines_for_january_2011/ PAYE/PRSI:14/01/2011 - P30 monthly return and payment for December 201014/01/2011 - P30 quarterly return and payment for October/December 2010DWT:14/01/2011 - Return and payment of DWT for December 2010PSWT:14/01/2011 - F30 monthly return and payment for December 2010RCT:14/01/2011 - RCT 30 monthly return and payment for December 2010VAT:19/01/2011 - Bi-Monthly VAT 3 return and payment (if due) for period November/December 201019/01/2011 - Bi-Annual VAT 3 return and payment (if due) for period July/December 201019/01/2011 - 4 Monthly VAT 3 return and payment (if due) for period September/December 2010Corporation Tax:1-21/01/2011 - PT for APs ending between 1-28 February 20111-21/01/2011 - Returns for APs ending between 1-30 April 20101-21/01/2011 - Pay Balance due on APs ending between 1-30 April 20101-31/01/2011 - Returns of Third Party Information for APs ending between 1-30 April 2010Capital Gains Tax: 31/01/2011 - Payment due on gains arising between 1 December 2010 to 31 December 2010.... Wed, 22 Dec 2010 15:55:00 CET http://dca-ireland.ie/news/2010/11/25/monthly_return_deadlines_for_december_2010/ PAYE/PRSI:14/12/2010 - P30 monthly return and payment for November 2010DWT:14/12/2010 - Return and payment of DWT for November 2010PSWT:14/12/2010 - F30 monthly return and payment for November 2010RCT:14/12/2010 - RCT30 monthly return and payment for November 2010Capital Gains Tax:15/12/2010 - Payment due on gains arising between 1 January 2010 - 30 November 2010Corporation Tax:1-21/12/2010 - PT for APs ending between 1-31 January 20111-21/12/2010 - Returns for APs ending between 1-31 March 20101-21/12/2010 - Pay balance due on APs ending between 1-31 March 20101-31/12/2010 - Returns of Third Party Information for APs ending between 1-31 March 2010.... Thu, 25 Nov 2010 15:39:00 CET http://dca-ireland.ie/news/2010/10/28/monthly_return_deadlines_for_november_2010/ PAYE/PRSI:14/11/2010 - P30 monthly return and payment for October 2010DWT:14/11/2010 - Return and payment of DWT for October 2010PSWT:14/11/2010 - F30 monthly return and payment for October 2010RCT:14/11/2010 - RCT30 monthly return and payment for October 2010VAT:19/11/2010 - Bi-Monthly VAT 3 return and payment (if due) for period September/October 2010Corporation Tax:1-21/11/2010 - PT for APs ending between 1-31 December 20101-21/11/2010 - Returns for APs ending between 1-28 February 20101-21/11/2010 - Pay balance due on APs ending between 1-28 February 20101-30/11/2010 - Returns of Third Party Information for APs ending between 1-28 February 2010.... Thu, 28 Oct 2010 15:29:00 CEST http://dca-ireland.ie/news/2010/9/21/income_tax_deadline_-_october_31st/ The Income Tax deadline is fast approaching.Have you returned your Income Tax information to us?The deadline for filing is 31st October.Remember avoid penalties, fines or even criminal prosecution by filing on time..... Tue, 21 Sep 2010 19:06:00 CEST http://dca-ireland.ie/news/2010/9/20/monthly_return_deadlines_for_october_2010/ PAYE/PRSI:14/10/2010 - P30 monthly return and payment for September 201014/10/2010 - P30 quarterly return and payment for July/September 2010DWT:14/10/2010 - Return and payment of DWT for September 2010PSWT:14/10/2010 - F30 monthly return and payment for September 2010RCT:14/10/2010 - RCT30 monthly return and payment for September 2010Corporation Tax:1-21/10/2010 - PT for APs ending between 1-30 November 20101-21/10/2010 - Returns for APs ending between 1-31 January 20101-21/10/2010 - Pay balance due on APs ending between 1-31 January 20101-31/10/2010 - Returns of Third Party Information for APs ending between 1-31 January 2010Income Tax:31/10/2010 - Preliminary Tax 201031/10/2010 - Pay balance of 2009 tax liability31/10/2010 - Return of income for 2009Capital Gains Tax:31/10/2010 - Return of Capital Gains for 2009.... Mon, 20 Sep 2010 10:42:00 CEST http://dca-ireland.ie/news/2010/8/24/monthly_return_deadlines_for_september_2010/ PAYE/PRSI:14/09/2010 - P30 monthly return and payment for August 2010DWT:14/09/2010 - Return and payment of DWT for August 2010PSWT:14/09/2010 - F30 monthly return and payment for August 2010RCT:14/09/2010 - RCT30 monthly return and payment for August 2010VAT:19/09/2010 - Bi-Monthly VAT 3 return and payment (if due) for period July/August 201019/09/2010 - 4 Monthly VAT 3 return and payment (if due) for period May/August 2010Corporation Tax:1-21/09/2010 - PT for APs ending between 1-31 October 20101-21/09/2010 - Returns for APs ending between 1-31 December 20091-21/09/2010 - Pay balance due on APs ending between 1-31 December 20091-31/09/2010 - Returns of Third Party Information for APs ending between 1-31 December 2009.... Tue, 24 Aug 2010 12:40:00 CEST http://dca-ireland.ie/news/2010/7/26/monthly_return_deadlines_for_august_2010/ PAYE/PRSI:14/08/2010 - P30 monthly return and payment for July 2010DWT:14/08/2010 - Return and payment of DWT for July 2010PSWT:14/08/2010 -       F30 monthly return and payment for July 2010RCT:14/08/2010 -       RCT30 monthly return and payment for July 2010Corporation Tax:1-21/08/2010 - PT for APs ending between 1-30 September 20101-21/08/2010 - Returns for APs ending between 1-30 November 20091-21/08/2010 - Pay balance due on APs ending between 1-30 November 20091-31/08/2010 - Returns of Third Party Information for APs ending between 1-30 November 2009.... Mon, 26 Jul 2010 12:39:00 CEST http://dca-ireland.ie/news/2010/6/24/monthly_return_deadlines_for_july_2010/ PAYE/PRSI:14/07/2010 - P30 monthly return and payment for June 201014/07/2010 - P30 quarterly return and payment for April/June 2010DWT:14/07/2010 - Return and payment of DWT for June 2010PSWT:14/07/2010 - F30 monthly return and payment for June 2010RCT:14/07/2010 - RCT30 monthly return and payment for June 2010VAT:19/07/2010 - Bi-Monthly VAT 3 return and payment (if due) for period May/June 201019/07/2010 - Bi-Annual VAT 3 return and payment (if due) for period January/June 2010Corporation Tax:1-21/07/2010 - PT for APs ending between 1-31 August 20101-21/07/2010 - Returns for APs ending between 1-31 October 20091-21/07/2010 - Pay balance due on APs ending between 1-31 October 20091-21/07/2010 - Returns of Third Party Information for APs ending between 1-31 October 2009.... Thu, 24 Jun 2010 12:37:00 CEST http://dca-ireland.ie/news/2010/5/24/monthly_return_deadlines_for_june_2010/ PAYE/PRSI:14/06/2010 - P30 monthly return and payment for May 2010DWT:14/06/2010 - Return and payment of DWT for May 2010PSWT:14/06/2010 - F30 monthly return and payment for May 2010RCT:14/06/2010 - RCT30 monthly return and payment for May 2010Corporation Tax:1-21/06/2010 - PT for APs ending between 1-31 July 20101-21/06/2010 - Returns for APs ending between 1-30 September 20091-21/06/2010 - Pay balance due on APs ending between 1-30 September 20091-30     Corporation Tax: Returns of Third Party Information for APs ending between 1-30 September 2009.... Mon, 24 May 2010 12:33:00 CEST http://dca-ireland.ie/news/2010/4/26/monthly_return_deadlines_for_may_2010/ PAYE/PRSI:14/05/2010 - P30 monthly return and payment for April 2010DWT:14/05/2010 - Return and payment of DWT for April 2010PSWT:14/05/2010 - F30 monthly return and payment for April 2010RCT:14/05/2010 - RCT30 monthly return and payment for April 2010VAT:19/05/2010 - VAT 3 return and payment for period March/April 201019/05/2010 - 4 Monthly VAT 3 return and payment (if due) for period January/April 2010Corporation Tax:1-21/05/2010 - PT for APs ending between 1-30 June 20101-21/05/2010 - Returns for APs ending between 1-31 August 20091-21/05/2010 - Pay balance due on APs ending between 1-31 August 20091-21/05/2010 - Returns of Third Party Information for APs ending between 1-31 August 2009.... Mon, 26 Apr 2010 12:26:00 CEST http://dca-ireland.ie/news/2010/3/25/monthly_return_deadlines_for_april_2010/ PAYE/PRSI:14/04/2010 - P30 monthly return and payment for March 201014/04/2010 - P30 quarterly return and payment for January/March 2010DWT:14/04/2010 - Return and payment of DWT for March 2010PSWT: F30 monthly return and payment for March 2010RCT: 14/04/2010 - RCT30 monthly return and payment for March 2010Corporation Tax: 1-21/04/2010 - PT for APs ending between 1-31 May 20101-21/04/2010 - Returns for APs ending between 1-31 July 20091-21/04/2010 - Pay balance due on APs ending between 1-31 July 20091-30/04/2010 - Returns of Third Party Information for APs ending between 1-31 July 2009.... Thu, 25 Mar 2010 10:28:00 CET http://dca-ireland.ie/news/2010/2/26/monthly_return_deadlines_for_march_2010/ PAYE/PRSI:14/03/2010 - P30 monthly return and payment for February 2010DWT:14/03/2010 - Return and payment of DWT for February 2010PSWT:14/03/2010 F30 monthly return and payment for February 2010RCT:14/03/2010 - RCT 30 monthly return and payment for February 2010VAT:19/03/2010 - Bi-Monthly VAT 3 return and payment (if due) for period January/February 2010Corporation Tax:1-21/03/2010 - PT for APs ending between 1-30 April 20101-21/03/2010 - Returns for APs ending between 1-30 June 20091-21/03/2010 - Pay Balance due on APs ending between 1-30 June 20091-31/03/2010 - Corporation Tax: Returns of Third Party Information for APs ending between 1-30 June 2009Income Tax:31/03/2010 - Return of Share Options and other Rights for 200931/03/2010 - Income Tax: Deadline for claiming Separate Assessment for 201031/03/2010 - Income Tax: Deadline for nominating Assessable Spouse for 2010.... Fri, 26 Feb 2010 11:53:00 CET http://dca-ireland.ie/news/2010/1/28/p35_deadline_reminder/ The P35 deadline is fast approaching. Have you returned your payroll information to us? The deadline for filing is 15th February. Remember avoid penalties, a possible audit or even criminal prosecution by filing on time. .... Thu, 28 Jan 2010 13:34:00 CET http://dca-ireland.ie/news/2010/1/28/monthly_return_deadlines_for_february_2010/ DWT: 14/02/2010 - Return and payment of DWT for January 2010 PSWT: 14/02/2010 - F30 monthly return and payment for January 2010 15/02/2010 - F35 annual return for year ended 31 December 2009 RCT: 14/02/2010 - RCT 30 monthly return and payment for January 2010 15/02/2010 - RCT 35 return for year ended 31 December 2009 PAYE/PRSI: 14/02/2010 - P30 monthly return and payment for January 2010 15/02/2010 - Issue P60 2009, to each employee 15/02/2010 - Due date submission of Form P35 for year ended 31 December 2009 Corporation Tax: 1-21/02/2010 - PT for APs ending between 1-31 March 2010 1-21/02/2010 - Returns for APs ending between 1-31 May 2009 1-21/02/2010 - Pay Balance due on APs ending between 1-31 May 2009 1-28/02/2010 - Returns of Third Party Information for APs ending between 1-31 May 2009 .... Thu, 28 Jan 2010 13:33:00 CET