Tuesday’s Tip – Maximise How You Use Your Tax Credits Continuing our Tax Credit Series, this week we look at Home Carer’s Tax Credit. The Home Carer’s Tax Credit is paid to families where one person stays at home to mind children, or a dependent relative. In many cases you will automatically be granted the tax credits and reliefs you are entitled to, but if you are entitled to a tax credit such as Home Carer’s Tax Credit, you will have to inform Revenue of your entitlements. Am I Entitled To This Tax Credit? Requirements: The Home Carer’s Tax Credit is only available to married couples or civil partners The married couple or civil partners must be jointly assessed for tax One spouse or civil partner must work in the home caring for one or more dependent person You cannot claim for caring for your own spouse The home carer’s income must be under €7,200 (a reduced tax credit applies where their income is between €7,200 and €9,400) A dependent person is defined as: A child who you are entitled to Child Benefit for A person aged 65 or over A person with a disability who requires care Further information: Carer’s allowance and carer’s benefit are not taken into account when determining the home carer’s income but they are taxable sources of income. You cannot claim the Standard Rate Cut-Off Point for dual income couples and the Home Carer’s Tax Credit. What Do I Do Next? If you think you may be entitled to claim this tax credit and would like assistance, please contact a member of our team on +353 42 933 9955 or email our Tax Manager janejackson@fdw.ie [table id=16 /] #2017

Guest Blog Featuring Joe Lavelle FINTECH INCUBATORS: AN OPPORTUNITY FOR IRELAND? The global FinTech sector has experienced rapid growth with the investment in FinTech start-ups resulting in the introduction of niche technologies producing unique service offerings tailored to specific consumer and business needs. Successful entities have benefited greatly from Government support while the existing large payment sector players are choosing to adapt and work alongside these start-up enterprises with a view to embracing their model and innovative approach by supporting “incubators” to nurture start-up entities through their early stage development. Such initiatives have in many instances also received the support of Financial Regulators such as the approach adopted by the UK Financial Conduct Authority “FCA” who have played a key role in ensuring a practical approach to complex financial regulatory compliance obligations which for these low risk classified start-up Companies can prove to be a major hurdle. Incubators have to date provided startups with invaluable support through mentoring, support services, stakeholder connections and investment in research and development. Developing, testing and researching is key to assessing any opportunity with new ideas taking an average of 100 days to pass through innovation funnels such as that at Visa. Dublin has long been renowned for its commitment to investment and ability to attract research and development opportunities while the Irish English speaking labour force has achieved global recognition for its high degree of skill and expertise in areas such as technology and finance and support services such as IT hosting. The rapid innovation in the FinTech sector presents the perfect opportunity for Ireland to become a significant hub for attracting high potential FinTech Companies. Ireland has successfully attracted technology giants such as Facebook, Google and Airbnb however it has been noted to “lag behind” in its ability to attract and nurture FinTech Companies by failing to adopt a “joined up strategy” that would encompass private business, Government Agencies and the Regulatory Authorities. In a recent interview David Page, Innovation Partner at Visa Europe Collab outlined his views on the important role of FinTech incubators and indicated where the emerging European capitals of FinTech were located. According to Page the established innovation hubs include London, Berlin, and Tel Aviv noting that London has being highly successful in becoming recognised as one of the global capitals for FinTech innovation supported by its practical approach to financial regulation, strong startup community in Tech City, early-stage investors and government support allowing new FinTech businesses to thrive. Israel is widely considered to be the ‘startup nation’, with more startups per capita than any other region globally while Berlin which is seen as slightly different as “a creativity hotspot”. Stockholm is becoming the FinTech capital in the Nordics while there are some exciting startups coming out of Barcelona. This trend indicates the significant opportunity for Dublin to join this innovation race and become one of the leading FinTech Capitals in the world. The strong FinTech incubator presence in London, Tel Aviv, Stockholm and Berlin demonstrates the significant opportunity for Ireland to attract high potential start-up FinTech Companies however, if this is to be achieved, the approach taken by the Government and the Authorities will be a major factor in determining if Ireland will indeed be successful in joining in the emergence of this truly innovative FinTech race which is transforming the way global citizens pay for goods and services by exploring technologies to innovate the payments sector. Joe Lavelle ( joelavelle@pay-reg.com ) is Founder and Director of Cloud Payments. He writes on Fintech incubators and opportunities for Ireland for  www.fintechireland.com . A chartered accountant and payments sector regulatory consultant, Joe also specialises in successfully establishing FinTech entities in Ireland, the UK and Malta as authorised financial institutions. #2017

BREXIT: IRELAND AND THE UK IN NUMBERS Following the vote by the electorate in the United Kingdom (UK) to leave the European Union (EU) in June 2016, the CSO compiled a suite of aggregate tables which describes the relationship between Ireland and the UK in numbers. Here are some of the main points from the report from the CSO. Business: Flows of direct investment into Ireland were €169.8bn in 2015 and the United Kingdom had a disinvestment of €4.1bn. Direct investment flows abroad from Ireland were €149.9bn in 2015 and there was a flow of direct investment into the UK from Ireland of €0.5bn. Irish stocks of direct investment abroad were €815.2bn at the end of 2015 and the UK accounted for 10.9% of this. The stock of direct investment into Ireland was €795.6bn at the end of 2015, of which investment from the UK accounted for 4.6%. The value of Irish residents’ holdings of foreign securities was €1,935bn at the end of December 2014 and UK issued instruments accounted for €343bn, or 17.7%, of the total holdings. The number of persons engaged in Irish owned foreign affiliates was 307,999 in 2014 and 86,180 (28%) were located in the UK. The turnover of Irish owned foreign affiliates was €99bn in 2014 and of this €37.6bn (38%) was in the UK. Trade: Ireland exported €101.8bn in services in 2014 and €18bn (18%) of these exports went to the United Kingdom. Imports of services amounted to €109.4bn in 2014 and €11.4bn (10%) of these imports were from the UK. In 2015 Ireland exported €112.4bn of goods and €15.6bn (13.9%) of these goods went to the UK. The  top 5 categories of goods exported to the UK in 2015 were: Meat & meat preparations (€1.9bn), Medical & pharmaceutical products (€1.5bn), Organic chemicals (€1.0bn), Essential oils, perfume materials; toilet & cleansing preps (€0.8bn) and Dairy products & birds’ eggs (€0.8bn). Imports of goods amounted to €70.1bn in 2015 and €18bn (25.7%) of these imported goods arrived from the UK. The top 5 categories of goods imported from the UK in 2015 were: Petroleum, petroleum products & related materials (€1.9bn), Gas, natural & manufactured (€1.1bn), Miscellaneous manufactured articles n.e.s. (€1.1bn), Essential oils, perfume materials; toilet & cleansing preps (€0.8bn) and All other commodities and transactions (€0.7bn). Wondering How Brexit Will Affect Your Business? Contact UHY Farrelly Dawe White Today For Business Advice. #2017

CYBERCRIME & PROFESSIONAL SERVICES FIRMS CYBERCRIME: Criminal activities carried out by means of computers or the Internet. Cyber threats come in many forms such as Malware, Ransomware, Trojan Horse, Spyware, the list goes on. Research carried out on behalf of Big Red Cloud in 2016 found that 40% of SMEs in Ireland have fallen victim to cyber-attacks leading to theft or loss of company data. In Ireland we have seen a vast increase in the last few years in the amount of attacks on professional service firms. The Central Bank of Ireland warns that regulated financial firms in Ireland are not implementing “sufficiently robust” IT systems and controls and must increase their resilience to technology failures to “minimise the potential impact on their business, reputations and the wider financial system.” The Irish Law Society states that any deficit arising in client moneys held by a practice is the personal responsibility of the partner / principal of the practice, whether caused by a solicitor or staff member, or as a victim of cybercrime.” So what steps can be taken to protect your firm from cyber-attacks? There are many steps firms should be taking to protect themselves and their clients. Every firm should look at their own operations and at how they carry on business to assess what vulnerabilities apply to them and what actions they need to take. Click Here To Download Our 10 Steps To Improve Your Cyber Protection #2017

**Tuesdays Tip – Joint Assessment** For married couples or civil partners, joint assessment is normally the favoured form of tax assessment. Generally, a couple will pay less tax when they are jointly assessed compared to being assessed as a single person. Through being jointly assessed you can allocate tax credits or tax bands to suit your circumstances. If only one spouse or civil partner is working some of the tax credits and lower rate band of the non-working partner are given to the working spouse.  This often creates a greater tax saving. Check your tax credits Check you are using the correct tax credits you are entitled to. You can go to back to The Revenue Commissioners and claim the tax credits you have failed to take advantage of in the previous 4 years. Bands of taxable income: In the case of married couples or civil partners with two incomes, the standard rate band is €67,600 (made up of €42,800 plus an amount of €24,800 which may be transferred between spouses; if one spouse earns less than €24,800 there is a loss of some of the benefit of the higher band. Contact our Tax Team and help us help you with your savings today. #2017

NEW GOODS VEHICLES LICENCED FOR FIRST TIME HIGHEST SINCE 2008 The Central Statistics Office released new figures this month showing the number of vehicles licenced for the first time in 2016 compared with previous years. 2016 showed an increase of 22.6% in the number of new goods vehicles licenced in 2016, the highest since 2008 (See Chart Below) There was also an increase in the number of private cars licenced in 2016 of 17.8% compared with 2015. The number of used (imported) private cars licensed rose by 46.9% to 69,381 in 2016 compared with 47,217 in 2015. This is the highest annual number of used (imported) cars licensed on record. (See Chart Below) When compared with December 2015, the number of new private cars licenced in December 2016 fell by 18.3% to 692. The number of used (imported) private cars licenced in December more than doubled to 6,357. Every county showed an increase in the number of new cars licenced in 2016, with 14 counties having over 3,000 new cars licensed in 2016.  Almost half (47.9%) of all new private cars licenced in the country in 2016 were licensed in Dublin (35.2%) and Cork (12.7%) combined. Read the full CSO statistical release https://www.fdw.ie/sectors/motor-transport-distribution/ #2017

The Start Your Own Business scheme provides for relief from Income Tax for long term unemployed individuals who start a new business. The scheme will provide an exemption from Income Tax up to a maximum of €40,000 per annum for a period of two years to individuals who set up a qualifying business; having been unemployed for a period of at least 12 months prior to starting the business. It runs from 25 October 2013 to 31 December 2018. Who qualifies for this relief? You may qualify for this relief if: You have been unemployed for twelve months or more, and During that period you were in receipt of any of the following: Crediting contributions Jobseeker’s allowance Jobseeker’s benefit The one-parent family payment Partial capacity payment Periods of time spent on certain training courses and schemes will be treated as part of a period of unemployment. If you were entitled to jobseeker’s allowance or jobseeker’s benefit immediately before starting on the training course or scheme, then any allowance paid for attending such a course will be treated as if it were jobseeker’s allowance or jobseeker’s benefit. Examples of training courses and schemes would include FÁS training courses, Community Employment Schemes, Job Initiative and Back to Education Schemes. If you are unsure as to whether or not you qualify as long term unemployed please read the following examples or contact your local Social Welfare office. Example 1 John was in receipt of jobseeker’s allowance for 6 months. He then went on a Back to Education Scheme for 1 month after which he was again in receipt of jobseeker’s allowance for 5 months. He is planning on setting up a new business. Can he avail of this relief? Yes. John has been unemployed for 12 months (6 months + 1 month + 5 months) and has been in receipt of jobseeker’s allowance for that period. Example 2 Joan was in receipt of jobseeker’s allowance for 10 months. She found a job but it didn’t work out and after 2 months working, she is back in receipt of jobseeker’s allowance for the last 4 months. She is planning on setting up a new business. Can she avail of this relief? Yes. Joan’s 10 month period of unemployment is linked to her 4 month period giving her a total period of unemployment of 14 months. Note that this link only exists where the two periods of unemployment are separated by less than 12 months. Are there any restrictions for my business under this scheme? If you qualify for this relief, the restrictions under this scheme are: The business must be set up between 25 October 2013 and 31 December 2016 by a person that qualifies for the relief. It must be a new business and not a business that is bought, inherited or otherwise acquired. It must be unincorporated, that is, it must not be registered as a company. How do I apply for the relief? This relief does not require pre-approval unlike the Back to Work Enterprise Allowance scheme which is administered by the Department of Social Protection. Instead, you claim this relief by completing the relevant section of your annual Income Tax return form each year. For more information about: Self-employment Registering for Income Tax Paying and Filing your annual Tax Return Self Assessment go to: Running a Business . You should note that ROS, Revenue’s Online Service, is an easy way to deal with your tax obligations. ROS even provides you with a calculation of the amount of income tax, USC and PRSI that you owe. If you do not want to use ROS to file your tax return, if you file a paper tax return before 31 August, Revenue will send you a calculation of the amount of tax, USC and PRSI you owe to help you meet your payment obligations. The Start Your Own Business relief only applies to Income Tax; it does not extend to USC and PRSI. USC and PRSI will be payable on any profits earned in the new business. If you would like to further information or would like to discuss any tax matters please contact our Tax Manager, Jane Jackson Contact us on +353 42 933 9955 Or email  janejackson@fdw.ie . For Quick Access of Current Rates, Exemptions and Reliefs Click Here #2017

Following on from the increased activity in the construction sector in recent times we have seen a rise in requests for advice on and assistance with the operation of Relevant Contracts Tax (RCT) within their business. The Relevant Contracts Tax system has been totally overhauled since 1st Jan 2012. Gone are the paper RCTDC forms that some would have been familiar with as the system is now fully electronic. The administrative obligations now placed on principal contractors are onerous and significant penalties can apply where these obligations are not met. 1) Notify Revenue of the contract on ROS Where a new contractor is taken on, the contract must be notified on Revenue’s Online Service. The details required to set up a new contract are: Name and tax registration number of the subcontractor Type of work to be carried out Address of the site where the work is to be carried out Estimated term of contract Estimated value of the contract (how much will be paid to the sub-contractor) 2) Create / obtain a site identifier number When the contract is set up Revenue will provide a site identifier number which is relevant for all contracts being carried out on that site. This site number should be used for other new contracts set up at that same location. 3) Notify Revenue of payments to be made to subcontractor Revenue must be notified every time before a payment is made to a sub-contractor. It is essential this process is followed before the payment is made to the sub-contractor or penalties may arise. 4) Obtain the Payment Notification Acknowledgement from Revenue When Revenue is notified of the payment to be made to the subcontractor, Revenue will issue a payment notification acknowledgement which will show the rate of RCT to be withheld from the sub-contractor. This is the authorisation for the principal to withhold RCT on the gross payment due to the sub-contractor. A copy of this should be given to the sub-contractor along with the net payment. 5) Submit monthly / quarterly RCT returns to Revenue Review the deduction summary details as per ROS and submit the relevant RCT30 return. At this stage any RCT withheld from subcontractors will be paid to Revenue. 6) VAT is to be accounted for on the reverse charge basis The principal contractor is obliged to account for VAT on the supply of services from a VAT registered sub-contractor on the reverse charge basis. This means the principal contractor will account for sales VAT on the amount invoiced from the sub-contractor. Where they are entitled to do so the principal can then claim a VAT input credit of the same amount in the relevant period. Current RCT penalty guidelines Revenue introduced a new penalty scheme in January 2015 for non-operation of Relevant Contracts Tax.  Where payment notifications are not submitted to Revenue the penalties applied depend on the relevant RCT deduction rate of the sub-contractor. The penalties applied are as follows: 3% penalty for 0% rate sub-contractor 10% penalty for 20% rate sub-contractor 20% penalty for 35% rate sub-contractor 35% penalty for an unregistered sub-contractor Due to the potentially significant penalties above and increased Revenue audits and reviews in this area it is essential for principal contractors to have a solid understanding of the Relevant Contracts Tax system and to ensure the system is operated correctly within their business. Keep compliant & maximise profits with UHY FDW. For more information about how we can help you comply with your RCT obligations or with any other tax matters please feel free to contact our tax team. #2017

Join us and our industry experts to find out how you can future proof your business and become more profitable in 2017. Michael Bellew, Director, will host our seminar on Thursday 26 January when we will have experts from various industries showing you how by making small changes you can future proof your business and become more profitable in 2017. Click Here To Book Your Place On This Exciting Seminar Today Our Speakers: Niall Clarke – UHY Farrelly Dawe White Limited UHY Farrelly Dawe White Limited 5 Reasons to Outsource Your Payroll James O’Dwyer – Transfer Mate Saving Time & Money on International Payments with TransferMate Aine Fox – HR Partner 5 HR Tips for a Successful 2017 Michael Murtagh – Euler Hermes Brexit: Opportunities & Threats for Your Business Click Here To Book Your Place On This Exciting Seminar Today Alternatively you can call us on +353 42 933 9955 or email nicolamernagh@fdw.ie . #2017

UHY member firms understand the choices and challenges you face in a fast-moving and competitive world full of opportunities and risks. Through UHY Global we want to share a little of the diversity, the thinking and the difference that a global UHY team can make. UHY Global, a twice-yearly magazine previously known as UHY International Business, gives our readers insight into international business topics, featuring thought-leading opinions and experiences from global contributors including UHY member firms, leaders of UHY service and industry groups and external sources. A true representation of what UHY is about… In each issue, we look at three key topics in addition to other features such as ‘Perspectives’, ‘Sharing our world’, ‘Cogs and wheels’ and ‘Awards and celebrations’. Our third issue covers the following topics: The Future Untethered Why Artificial Intelligence is Good for Us Turning the Tide on Cybercrime China’s Changing Fortunes Read the full version here Request a Call Back From Our Team #2017 #BusinessAdvisory #UHYGlobalIssue

It is important to take control of your retirement planning. This is even more significant when your retirement comes at an early age. Finance Act 2002, by enacting Section 480A of the Taxes Consolidation Act, 1997 (TCA), introduced a tax relief for certain classes of sportspersons on their retirement. This tax relief recognises the relatively short career and limited earning capacity most professional sportspersons experience in Ireland and is given by way of repayment of tax. A professional sportsperson can claim a tax deduction of 40% against gross receipts for up to ten years. [accordions id=”3125″] A qualifying sportsperson must satisfy the Revenue Commissioners that he / she has ceased permanently to be engaged in that occupation or to carry on that profession. From 1 January 2014, a sportsperson must be resident in the State, an EEA state or an EFTA state for the year of assessment in which he / she ceases permanently to be engaged in that occupation or to carry on that profession in order to avail of this Special Tax Relief. Prior to that date the requirement was that the sportsperson must be resident in the State. A sportsperson claims the relief by including a claim in his / her return of income. However, where the sportsperson is not required to submit a return of income, he / she may submit a claim directly to the Revenue Commissioners. A claim for relief must be made within 4 years from the end of the year of assessment in which the sportsperson retires. [table id=14 /] [table id=15 /] Your retirement will change your life, make sure you plan for it. Contact Alan Farrelly to discuss this tax relief and your retirement planning. Call us on +353 42 933 9955 or email alanfarrelly@fdw.ie . #2017

WELCOME TO NEW MEMBER FIRMS The UHY family continues to grow, and we are delighted to welcome three new member firms, in Georgia, Afghanistan and Mozambique, extending our coverage within the EMEA and Asia-Pacific regions. [one_third] [/one_third] [one_half_last] GEORGIA Established in 2009, ABG Consulting, our new member firm in Georgia, has a team of 106 staff including two partners and is based in Georgia’s capital Tbilisi. The firm provides a full suite of services including audit, bookkeeping, taxation, insolvency, corporate finance and advisory services to a diverse portfolio of local and international clients.[/one_half_last]  [one_third]  [/one_third] [one_half_last] AFGHANISTAN We also welcome, Ahmed Hassan Naeem Chartered Accountants, our new member firm in Afghanistan. The firm, based in the capital Kabul, has a team of 33 staff including four partners, and was established with the support of the UHY’s member firm in Pakistan, UHY Hassan Naeem & Co.[/one_half_last] [one_third] [/one_third] [one_half_last] MOZAMBIQUE Finally, we welcome SEC – Sociedade de Ensino e Consultoria, Limitada, our new member firm in Mozambique. The firm, based in Maputo, has a team of ten including four partners, and was established in 2010, becoming active in 2011. The firm provides audit, bookkeeping, taxation and management consultancy. As well as knowledge of lusophone (Portuguese) languages, markets and economies, the firm also has experience gained from working with the Big Four and has an affiliation with a local university.[/one_half_last] Find out how our network can help you expand your business internationally. Contact us now and our dedicated team of Auditors, Accountants, and Business Financial Advisors will endeavour to assist you with your needs. #2017