Income taxes fall for high earners by 9 percentage points – faster than European average GDP growth outperforms global average over last 30 years Ireland’s high net worths are among those who have benefitted the most from global reductions in income taxes over the past two decades, according to a new study by UHY, the international accounting and consultancy network. The research reveals that the effective income tax rate for Ireland’s high earners with a salary of USD 1million has fallen at a faster rate (down 8.6 percentage points – from 47.5% in 1996 to just 38.9% today) than the global average (down 5.6 percentage points from 41.4% to 35.8%) in the last twenty years. Income tax cuts in Ireland have also been more substantial than in most other European economies, which have seen average reductions of 8 percentage points since 1996 – from 49% to 41%. This puts it within the top half of the fastest income tax cutting countries in UHY’s study. UHY studied tax data in 26 countries across its international network, capturing the effective income tax rate for higher and lower income workers*. UHY notes that each working citizen in Ireland is entitled to a personal tax credit of €1,650, and an employee tax credit of €1,650. This study does not include social insurance or other taxes impacting people’s net income. Ireland’s workers on lower incomes – those earning USD30,000 – also benefitted from significant tax reductions. They have seen their tax rates fall 25 percentage points, from 33% twenty years ago to 8% today. Russia has seen the biggest cuts of any major economy for higher earners, who have seen their income tax rate fall by nearly two-thirds (from 35% to 13%). The UK imposed the biggest increases of any major economy in the study (see table below) – one of the few countries to do so. British workers earning USD1million saw their tax bills rise by 4 percentage points over the period, from 39% to 43%. Comments Alan Farrelly, Partner at UHY Farrelly Daw White Limited: “Many governments around the world have tried hard to ease the tax burden on take home pay in the past twenty years – and Ireland has been leading the way.” “By making bold cuts to income tax rates, policymakers have sought to bolster consumer spending power, improve their country’s attractiveness to an increasingly internationally-mobile workforce and boost economic growth.” He adds: “It’s an approach which has contributed to Ireland’s robust GDP performance in recent decades.” “While this study did not take account of social security and other taxes such as USC impacting individuals’ net income, the reduction in USC rates in consecutive budgets and the 2016 decrease in the higher rate of income tax from 41% to 40% are positive steps in increasing the net income of individuals that we would encourage the Government to continue going forward.” UHY’s data also reveals the extent of global economies’ GDP growth in the last thirty years, since the UHY network was founded in 1986. Their figures show that Ireland’s GDP has grown by 278% in the past thirty years, outstripping the global average of 135% GDP growth (see third table below). The European average was 74%. Income tax rates for higher earners (USD 1 million) [table id=9 responsive=scroll responsive_breakpoint=device /] Income tax rates for lower earners (USD30,000) [table id=7 responsive=scroll responsive_breakpoint=device /] Change in Gross Domestic Product (GDP) since the UHY network was founded in 1986 [table id=8 responsive=scroll responsive_breakpoint=device /] GDP data from the United States Department of Agriculture. Fill in your email to your right and download the full study now. #2016

Application to Court for an Order Extending Time to File an Annual Return Following the commencement of the 2014 Companies Act on 1 June 2015, a company which has missed, or knows that it will miss the deadline for filing its annual return with the CRO, may make an application to the District Court for an Order to extend the time for delivery of its annual return. The Application can eliminate the need for a company to pay late filing penalties and also allows the company to retain their Audit Exemption which is otherwise lost for 2 years. The company must put the Registrar of Companies on notice that it is applying to the court and must deliver the applicable Court Forms to the CRO at least 21 days before the Court hearing. The CRO will issue a Letter of Acknowledgement which the Applicant must provide to the Court. Under section 343 of the 2014 Act, applications for an extension of time to file an Annual Return may be made to the District Court (or to the High Court). The Court may, if it is satisfied that it would be just to do so, make an Order extending the time in which the annual return of the company, may be delivered to the Registrar of Companies. An application to the Court can only be made in respect of an annual return which has not already been delivered to the CRO. Only one Order may be made in respect of a particular year. The Order may, at the discretion of the Court, be granted to include multiple years for which returns are outstanding. The extension of time to file an Annual Return does not alter the Annual Return Date (ARD) of the company. If the company delivers the annual return for the year in question to the CRO within the extended time period specified by the Court, the annual return will have been delivered on time and company will not have to pay late filing penalties or lose its audit exemption (if applicable). In other words, the annual return will be treated by the CRO as having been delivered on time and the consequences of late filing will not apply to that annual return. How does the process work? The company cannot represent itself so it must have the appropriate legal representation in Court. The main steps of the procedure can be summarised as follows: An application for a Court date must be made to the District Court in which the company’s registered office is situated. A copy of the above notice of application and a copy of the Affidavit must be served on the CRO. The application and a declaration of service to the Registrar are then filed with the Court no later than four days before the date fixed for the hearing. Upon completion of the hearing, if the Order is granted it should be filed at the CRO (usually within 28 days) and the B1, accounts and standard filing fee should be delivered to the CRO no later than the date to which the extension has been granted. Frequently Asked Questions? [accordions id=”2930″] Please contact Richard Windrum, in our Corporate Compliance team, who would be happy to assist you further. richardwindrum@fdw.ie +353 42 933 9955 #2016

Blockchain Technology will eliminate the need for centralised institutions like banks or governments to facilitate trade, evolving age-old models of commerce and finance into something far more interesting: a distributed, transparent, autonomous system for exchanging value. What is Blockchain and how will Blockchain Technology impact us? Bettina Warburg, a blockchain researcher, entrepreneur and educator spoke at the TED summit this year, answering key questions you may have. Watch the clip below to find out more… #2016

Reward your employees with up to €500 tax free under the “Small Benefit Exemption Scheme” Are you looking to reward your employees with a bonus this Christmas? Did you know under the existing Benefit-in-Kind arrangement, an employer can provide an employee with a single “non-cash” benefit up to €500 without it being subject to PAYE, USC and PRSI. “This is effectively a saving to an employer of up to €700 ” Conditions: The treatment does not apply to cash payments, which are taxable in full. No more than one such benefit given to an employee in a tax year will qualify for such treatment. If more than one benefit is given in a tax year only the first benefit will qualify under the Small Benefit Exemption Scheme, even if it is less than €500. The maximum value for this benefit is €500 (up from €250 since 22nd October 2015). Where a benefit exceeds €500 in value the full value of the benefit is to be subjected to PAYE, USC and PRSI. The benefit cannot form part of a “salary sacrifice” scheme. For more information about this please feel free to contact me using the details to your right. #2016

Reduce Risk & Grow Your Cash Flow A healthy cash flow is the lifeblood of every business, particularly in light of recent times, where the current economic climate is uncertain, cash collection is sporadic, and the sourcing of credit can be challenging at the best of times. The implementation and the effective use of a good cash flow management system is a must for all businesses, as the day to day cash flow requirements of a business must be met, in order for the business to survive. Key considerations: 1. Does your business have a cash flow management system in place? 2. If there is a cash flow management system in place, is it effective, up to date, and being monitored regularly? 3. Are your cash flow forecasts and assumptions realistic? 4. Are monthly cash flow statements being produced, and if so, are they being fully utilised to their best potential? 5. Do you have a structured cash collection procedure in place? 6. If so, do you have a designated staff member in place to deal with cash collection, a person who is suitably qualified, and experienced in this role? 7. Is there a clear record of correspondence being kept between you and your customer? 8. Do you have a process for debt recovery where payments are not received? The businesses collection strategies will also have to be borne in mind, considering many factors such as issuing invoices for payment at the appropriate times, follow up contact, or for example, making a note in your diary to contact customers say one week before the month end, particularly customers with large balances due. Regular contact with your customers is a must, in order to reduce any arguments or disputes that you may have with your customers in the future, and to reduce any possibility of “excuses” being made by your customer, which may result in a delay of payment. Other matters for consideration would include the credit terms agreed with customers, the payment profile and history of your customer, and particular attention should be paid to high risk accounts, preferably at the earliest opportunity. Managing Cash Outgoings & Overheads: The managing of cash outgoings / overheads also need some close consideration. Business owners do feel that they have a level of “control” when it comes to decisions regarding expenditure items relating to their business. It is advised that all business owners review their overhead costs “line by line” as potential savings can be achieved in key expense areas such as utility costs, wages & salaries, and purchasing costs, due to the availing of bulk buying discounts. The key to avoiding any cash flow problems is to identify potential problems early, and to take appropriate action immediately! At UHY FDW, we work with businesses to ensure you have cash flow visibility and the most suitable cash flow system in place to meet your cash flow requirements. Contact one of our business experts now using the form provided to have your cash flow issues resolved. #2016

FRS 102 & Tax Implications Irish and UK generally accepted accounting practice or GAAP was completely overhauled in 2012-13 when three new financial reporting standards were published to replace a reporting regime that had been pieced together over many decades. The three new standards were FRS 100: Application of Financial Reporting Requirements, FRS 101: Reduced Disclosures Framework and FRS 102: The Financial Reporting Standard Applicable in the UK and Republic of Ireland. The new Irish and UK GAAP became effective for accounting periods commencing on or after 1st January 2015. It will affect most non listed companies. This article will focus on the tax accounting requirements of FRS 102. First the good news- what has not drastically changed as a result of FRS 102? The majority of the tax accounting requirements of FRS 102 are comparable to the old Irish and UK reporting standards FRS 16: Current Tax and FRS 19: Deferred Tax. CURRENT TAX Current tax is still the Corporation Tax payable to the Revenue Commissioners or HMRC. Similarly, current and deferred tax (see below) should be computed in accordance with the substantially enacted tax rate that prevails in legislation at the relevant reporting date. DEFERRED TAX The timing difference approach largely remains. However, FRS 102 has introduced some additional requirements. This approach is based on the inherent differences between the accounting profit or loss in the financial statements and the subsequent calculation of taxable profit or loss for the purpose of a Corporation Tax return. Therefore, timing differences can arise in one accounting period but can be taxable or deductible in another period. The recognition criteria for deferred tax assets in accordance with FRS 102 are also similar to FRS 19. Both standards approach recognition of same from the point of view of the “probability” of future taxable profits against which deferred tax assets may be offset. “Probable” is defined as “more likely than not”. Finally, deferred tax assets and liabilities can be still be offset provided that that they arise in the same taxable entity and as a result of being levied by the same tax authority. What major changes in tax accounting have occurred as a result of FRS 102? We mentioned above that the recognition criteria for deferred tax assets largely remain unaltered but FRS 102 has introduced a number of additional requirements. FRS 102 has introduced the timing difference ‘plus’ approach in respect of deferred tax calculations. This requires that deferred tax is calculated for three additional types of transaction. Deferred tax should be calculated; For any revaluation gains or losses on non-monetary assets like property, plant and equipment (PPE) and investment properties. On the differences between the fair value of the assets acquired in a business combination (for example, where one company purchases another) and the values subsequently recognised for tax purposes. On accumulated profits sitting in overseas subsidiaries or associates that have yet to be remitted to the parent company by way of a dividend. However, where the parent has the capacity to control the dividend payment capacity of a subsidiary deferred tax should not be recognised. Changes in respect of the useful economic lives (UEL) of intangible assets and goodwill have been among the most noteworthy in the transition to the new GAAP. The old FRS 10, “Goodwill and Intangible Assets” permitted indefinite UELs for intangibles and goodwill. FRS 102 prohibits indefinite UELs and where an entity cannot make a reliable estimate of UEL, these assets must be written off to the profit or loss account or amortised over a period that cannot exceed five years (or ten years for periods commencing on or after 1st January 2016). Consequently, intangibles and goodwill must be amortised. Tax deductions are generally not available for goodwill and intangible assets and this should be borne in mind during the transition to the new GAAP as previously unamortised intangibles and goodwill are written off to the profit and loss account. However, tax deductions are available in respect of capital expenditure on certain intellectual property intangible assets and their associated goodwill. Tax deductions are available in line with the amortisation of such assets in the financial statements or over fifteen years provided an election is made in the period in which the capital expenditure is incurred. FRS 19 permitted the discounting of deferred tax balances to take into account the time value of money. FRS 102 prohibits the discounting of any deferred tax balances. The old FRS 17 standard “Retirement Benefit Schemes” required that the associated deferred tax be presented in the balance sheet with the relevant pension asset or liability. Timing differences arise in this area because tax deductions that are available for pensions are based on cash payments rather than amounts charged to the profit or loss account. However, there is no such requirement in FRS 102. Therefore, deferred tax that arises as a result of these timing differences should be included in the overall deferred tax figures. Disclosure requirements of FRS 102 Finally, the major tax accounting disclosures required by FRS 102 are: The old FRS 19 required a reconciliation of pre-tax profit or loss for the year as per the financial statements multiplied by the statutory tax rate to the current tax expense. FRS 102 requires a reconciliation to the total tax expense, including deferred taxation and taxation payable in another jurisdiction, from an entity’s continuing operations. Deferred tax liabilities are presented in the balance sheet within provisions, and deferred tax assets are presented in debtors. FRS 19 required similar presentation. The total current and deferred tax relating to items that are recognised as items of other comprehensive income or equity. An explanation of changes in the applicable tax rate(s) in comparison to the previous reporting period and any adjustments to deferred tax because of changes in accounting policies or material errors. FRS 102 requires disclosure of estimates relating to the amount of net reversals of deferred tax assets and liabilities expected to occur during the following accounting period. At UHY FDW our dedicated tax team aims to minimise your tax exposures and deliver the best advice for your situation. Contact Us now for any questions you have relating to FRS 102 and the changes in Irish and UK GAAP. #2016

6 Key Strategies to drive up your Motor Dealer Profit Margin Are you getting full value from your Dealer Management System? Your dealer management system should be providing you with accurate and timely metrics across all departments in your dealership. From stock turn analysis to labour recovery rates most dealership systems produce these reports if configured fully. When is the last time your system provider upgraded your system or advised you of enhanced reporting options? Schedule a meeting with your provider to explore if the system can be used more efficiently. Increase your Stock Turn This applies to both car and parts stock. A number of surveys have revealed that the average stock turn is 8 times per annum. The surveys however also revealed that the top performing dealerships had a stock turn of 16 – double the average. Increasing your stock turn on cars involves ensuring that you retain the correct stock profile at the right price. For increasing your parts stock turn consider regular stock checks and system stock reconciliations to avoid over ordering or stock becoming obsolete. Analyse the cost and contribution of different parts lines to identify fast moving and profitable lines of stock. Focus on Warranty and Bonus Accounts Make sure your service and parts team know the specific criteria and process for claiming service warranties and warranty parts for return. Significant revenue can be lost by performing work under warranty that isn’t covered or the claim is not submitted carefully. Warranty return parts should be carefully monitored to ensure that they are returned and a subsequent credit note is received. Encourage your parts manager to avoid the temptation to stock pile or even discard parts that could be returned for warranty credit. Focus on Labour Costs Efficient and economical buying of parts can improve your margin however focusing on controlling labour costs results in much greater increases in profit margin. Profit margins on parts can range between 20 and 30 per cent while labour margins can be in excess of 50 per cent. Consider reducing the benefits (and therefore time commitment) you provide, increase your labour charge out rates or reduce the wages payable. Other strategies could be to add hours to the service timetable and availing of any opportunity to avail of vendor provided training programs. Purchase ledger review and order processing When is the last time someone other than the accounts team reviewed the purchase ledger? Are invoices checked for correct quantities received and agreed pricing or discount structures? Do not assume that you have received a correct invoice from a supplier – this can be a huge source of margin erosion. Implement a robust system of invoice checking and payment approval procedures. Supplier ledger accounts should also be reconciled regularly to supplier statements to not only ensure your month or period end accounts are accurate but also to gauge the level of unallocated payments or unapproved invoices on the system. Another reason for purchase ledger queries is due to errors in ordering. Ordering the wrong part and arranging returns or replacements increases costs and reduces margins. Ensure staff and trained for accuracy and if necessary incentivise to reward accurate stock ordering and management. Encourage departments to Cross Sell Can or does your top salesman recognise an opportunity to sell a car service or an incremental parts sale? Does the service team have an up to date list of new or used car stock for the service customer who finally accepts it is time to replace? Each of the above are opportunities for one department to boost revenue for another. Evidence suggests that for each additional euro of service income, an extra 50 cents of parts revenue can be generated. In addition, encourage staff to build retail business, such as seasonal driving accessories or kits, servicing kits, batteries or fast fit parts such as wiper blades. These can generate additional revenue at a good margin. Do you want to improve your Motor Dealership profits? UHY FDW have been providing relevant hands on business advice to motor dealers, as well as a range of accountancy and taxation services, for many years now. Our focus is to improve your motor dealerships business performance. Talk to us about your motor dealerships business objectives and we will work with you to achieve them. Contact Richard @ richardberney@fdw.ie or dial +353 1 849 1633 , for a no obligations consultation. #2016

Anyone who works for an employer with a regular wage has a contract of employment whether it is in writing or not.  An employer is required under the Terms of Employment (Information) Acts 1994 – 2014 to provide an employee with a written statement of terms and conditions of employment within the first 2 months of commencement of employment. Key things to consider It can be a costly exercise not giving your staff contracts. The easiest way to protect your business is to give staff what they are entitled to under employment legislation. The penalty for not providing a written statement is compensation to the employee of up to 4 weeks salary. There are bigger concerns to consider. Defending claims of unfair dismissal or constructive dismissal are very difficult without written statements of terms and conditions of employment. [one_half] What should be in the statement? The full name of employer and employee The address of the employer The place of work The title of job or nature of work The date the employment started If the contract is temporary, the expected duration of the contract If the contract of employment is for a fixed term, the details Details of rest periods and breaks as required by law The rate of pay or method of calculation of pay The pay reference period for the purposes of the National Minimum Wage Act 2000 Pay intervals Hours of work That the employee has the right to ask the employer for a written statement of his/her average hourly rate of pay as provided for in the National Minimum Wage Act 2000 Details of paid leave Sick pay and pension (if any) Period of notice to be given by employer or employee [/one_half] [one_half_last] [/one_half_last] Further things to consider It is important to seek advice if you are implementing written statements of terms & conditions of employment for the first time.  There are key steps that will ensure the successful implementation of the terms of employment, which if followed will then protect the company against claims down the line. Remember, it is vital the company adheres to its policies and procedures to avoid losing cases based on procedural fairness.  Contracts should be signed and a copy kept on file.  An employer must be able to prove that they have given staff a copy. Any changes to terms and conditions should be documented on file by the employer and signed by the member of staff. If you would like to know more about putting employment contracts in place and your HR obligations as an employer contact UHY Farrelly Dawe Whites Expert HR Consultant, Áine Fox on 086 3807206 . #2016

Ireland is one of the most indebted nations in Europe. Being in debt is very stressful and a huge burden on families. With the right advice, debt can now be eliminated and the steps that can be taken to get out from under it. The causes of debt can make people feel ashamed, guilty, frustrated and angry and can seriously affect both their mental and physical health. In many instances people are finding it very difficult to buy basic groceries. In some cases they have had their electricity cut off. All this is due to the fact they are being pressured to pay debts in monthly instalments for amounts they simply cannot afford. In my experience as a director and Personal Insolvency Practitioner (PIP) at UHY Insolvency, people have got into debt through no fault of their own, and this creates enormous guilt and pressure on the individual, or family. The most important thing to do when in debt is to not ignore the problem and hope that it will go away. It is important to be aware that you are not on your own. Thousands of people in Ireland are struggling financially, there is support available, but be sure to tackle the problem early. Debt will not go away on its own and if you find it difficult to deal with the problem and with creditors, you should get in touch with a PIP for help. One of the biggest mistakes that people make is borrowing more money to get out of debt. Many people think this is a good way of helping them get out of financial difficulty. You cannot borrow your way out of trouble, you must budget your way out of debt. Many people believe that once they are in debt, it is almost too late to do anything about it. What they don’t realise is that debt can be negotiated downwards, as much as 80%! For example, a total debt of €84,500 can have up to €68,500 written off. This only leaves €16,000 that would be paid off over five years. It is also possible to freeze high interest and charges, By using the services of a professional debt management company you can speed up the process of restructuring a debt, and enter into a realistic payment plan that you can afford. You may be entitled to free financial and legal advice under the Abhaile scheme. If you call us using the number below we can check your eligibility. Along with restructuring your debt, there are many small things you can do on a daily and monthly basis to work your way out of debt. One of the most basic tolls is creating a realistic budget and sticking to it. List all monthly bills and necessities and make sure they are covered by your monthly income. Allow only the money remaining after the essential bills are paid to be spent elsewhere. When this is completed prioritise your expenses. Essential expenditure would be your mortgage or rent, utility bills and car lease. Other essential expenditure would be food, clothes, medical and health costs, etc. Non-essential or secondary debt could be credit card, unsecured term loans, overdraft facilities and catalogue debt. Secondary debt payment should be no more than 20% of your overall income, and “do not pay whoever shouts loudest first”. A few extra tips to help you on your way to financial freedom include becoming a savvy shopper and consumer. Look for deals, bargains and savings when you are at the store. Another thing is to look for extra ways to make some money, like taking on a part-time job if you have the time. Another would be taking in a boarder at your home. There are many ways to bring in additional income. I believe that the main and vital thing to do is to face debt head on. You have to acknowledge the problem and start working on a plan to solve it. Do not be afraid or embarrassed to seek help and guidance. Personal Insolvency Practitioners are highly knowledgeable with debt issues and are used to dealing with creditors. They will assist you in forming a plan and a budget to get you out of debt. Just having someone on your side that knows what you are going through can reduce your stress and put you at ease. For more information get in touch with an expert financial adviser at UHY Insolvency on 1890 987 913 or visit our website at www.uhyinsolvency.ie Source: Eugene McDarby – Original article, Dundalk Democrat Tuesday November 22, 2016  www.dundalkdemocrat.ie #2016

Those who paid their 2016 LPT in one lump sum or with regular cash payments will have received a letter from Revenue in relation to LPT for 2017. If you now wish to avail of a phased payment option such as Direct Debit, Deduction at Source or regular cash payments through a Payment Service Provider, you should confirm your payment method by 25 November 2016. Options for paying your 2017 LPT No matter how you paid your 2016 LPT, you can select a different payment method for 2017. You can choose to pay in full, in a single payment or spread your payments over 2017: Deduction at source from salary or occupational pension, or from certain payments received from the Department of Social Protection or the Department of Agriculture, Food and the Marine. Monthly direct debit from a current account in a bank or certain credit unions. Making regular cash payments throughout 2017 or making a single cash payment through a payment service provider (An Post, Omnivend, Payzone or PayPoint). Paying in full by Single Debit Authority (like an electronic cheque) which will be debited by Revenue on 21 March 2017. Paying in full by Debit Card or Credit Card. Your payment will be deducted on the day you complete the transaction online. Paying in full by cheque which will be processed as soon as Revenue receives it. The due date for paying your 2017 LPT depends on the payment method you select: 5pm on 11 January 2017: Latest date for paying in full by cash, cheque, postal order, credit card or debit card. January 2017: Phased payments by deduction at source and regular cash payments through a payment service provider to start in January. 15 January 2017: Monthly direct debit payments start and continue on 15th each month thereafter. 21 March 2017: Annual Debit Instruction or a Single Debit Authority payment deducted. If you would like more information, contact a member of our tax team. View our range of Tax Services Source: Revenue.ie For more information visit the Revenue website: http://www.revenue.ie/en/tax/lpt/lpt-obligations-2017.html #2016

In response to the new pension regulations which the UK government has introduced coming into effect from this year, we would like to inform all employers of their legal duty in complying with the new legislation and the consequence of non-compliance. One of the main reasons for this legislation is to encourage employees to start paying into a pension scheme with the added incentive of receiving tax relief on the amount being paid.  Every employer with at least one member of staff must automatically enrol those who are eligible into a workplace pension scheme and contribute towards it.  It is compulsory for all employers.  This is known as Auto-enrolment. Every employer who is currently operating payroll will obtain information from the Pension’s Regulator this will include a ‘staging date’ this is the date that the employer is legally obliged to start deducting pension contributions from eligible employees. The first stage for the employer is to assess all their workforce to see which employees are eligible and should be automatically enrolled.  Any employees who are not automatically enrolled can choose to join or opt in to the pension scheme. There are three different categories an employee may fall into: Eligible Jobholder – Someone you must automatically enrol Non-Eligible Jobholder – Someone who can opt in Entitled Jobholder – Someone who can join There is earning limits to determine who is automatically enrolled who can opt-in as detailed below: EarningsAged between 16-21 years22 years -State Pension AgeState Pension Age – 74 Less than £5,824Can JoinCan JoinCan Join£5,824 – £10,000Can opt inCan opt inCan opt in£10,000 and overCan opt inAuto-enrolledCan opt in Once you determine who is eligible and who can join in – the employer must inform all employees of the changes including the date the changes occur; how the changes affect them and what they can expect to happen next.  Therefore, an employer may have up to three letters in which he can issue to employees as follows: 1st letter for those who are automatically enrolled (Eligible Jobholder) 2nd letter for those who choose to opt-in (Non-Eligible Jobholder) 3rd letter for those who can choose to join (Entitled Jobholder) If you are using a payroll package – standard letters will be available but need to be amended to suit your company’s details. If an employee is eligible but does not want to join the scheme they must be automatically enrolled and processed for the first payment having the pensions deducted and paid over to the pension provider.  Once enrolled they need to inform the pension provider that they wish to opt-out, who in turn will then refund the pensions already paid.  The employee should receive notification from NEST and will be given a reference number – once received he/she can contact NEST to opt-out if they choose to. In calculating the pension each pay period 1% of the employee’s salary (over the ‘qualifying earnings’ of £5,824 per annum) is deducted from their gross pay; the employer must also contribute 1% of the   employee’s pay.  This is then paid over to the pension provider (NEST Pension) who will hold this in the individual employee’s pension pot.  The government also contributes to this by giving tax relief on the employee’s contribution. ‘Qualifying earnings’ means that pension contributions are deducted from amounts over £5,824 per year which is £112 per week or £486 per month. The level of pension contribution that employers will be required to make is due to increase from 1% to 3% by 2018 as shown in the table below: Staging DateUp to 30 Sept 2017Up to 30 Sept 2018From 1 Oct 2018 onwards Employer Contribution 1%2%3% Employee Contribution 1%3%5% Total Contribution 2%5%8% As an employer who has to offer the NEST service to your employees (irrespective of whether they decide to avail of it or not) you are required to understand their terms and conditions. We have enclosed a copy of the terms and conditions which will explain in more detail the following: Explanation of the terms/words used by NEST; Details of how tax relief is calculated on your pension contribution; How payments are made to NEST by the Employer; Details of NEST website and the Pension Regulator website where you can find more information; Other requirements including how members can opt-out and details on how a member can cease making contributions. Once employers are registered and setup with NEST you can submit a pension contribution schedule for each payroll run completed (this is details of what employees are enrolled and the amount of employee and employer pension deductions made); payments are made directly to NEST for the Pension deductions collected from employees via their website. The employer must ensure that all ongoing auto-enrolment responsibilities are carried out. (new employees are assessed when they commence employment with the employer and setup with NEST if they are Eligible Jobholder.) Finally, the employer needs to complete a Declaration of Compliance with the Pension Regulator within 5 months of the staging date.  This is a form completed to advise the Pension Regulator that you as the employer has taken all the necessary steps to ensure the workplace pension scheme has been put in place. Any employer who does not comply with their auto-enrolment responsibilities will be fined by the Pension Regulator! Further information can be obtained on our website www.fdw.ie Alternatively you can contact our Dundalk team on +353 42 93 39955 #2016

UHY FDW Executive Payroll Services allow the key financial and personal data of your executive team to be maintained confidentially. Learn more about our Executive Payroll service in our service brochure #2016