Also in the news...
Paul Beare Wins IR Global Member Of The Year
Paul Beare has been named Member of the Year at this year’s IR Global Conference in Amsterdam.
The Biggest Problem With Running A UK Payroll
We explore the biggest problem with running a UK payroll, together with the required functions of payroll calculations and net salary.
Taking It For Granted: How The UK Government Helps Growing Firms
In the UK, a number of government agencies offer a range of grants to help smaller firms to grow and prosper. The grants are typically designed to support innovation, encourage job creation, and underpin growth. In the last few years, a number of new initiatives have emerged, including grants aimed at boosting green technology and digital transformation.
Start-ups Wasting Over 2 Weeks And £37 Billion A Year On Admin
UK start-ups and microbusinesses are wasting over two working weeks every year on admin tasks, including managing mobile phone contracts, choosing energy providers, and buying insurance – according to new research.
The Costs For International Businesses Employing In The UK
In an ever-globalising business landscape, expanding operations to the United Kingdom can be a strategic move for international companies seeking new opportunities.
6 Top Tax Reliefs For Business Owners
6 TOP TAX RELIEFS FOR BUSINESS OWNERS
Here are 6 Key tax reliefs available to Irish businesses to help them grow and develop. The reliefs provide business owners with very significant tax savings which is an incentive to grow and then possibly sell on the business at a profit, and pay less tax:
1. Entreprenuers CGT Relief
This relief provides for a 10% rate of CGT on the first €1m of lifetime chargeable gains when a person sells their business, subject to meeting certain criteria, this can save a taxpayer €230,000 in CGT.
2. Retirement Relief
Provides for relief from CGT on up to €750,000 of sales proceeds from sale or passing on of your business.
3. 7 Year CGT relief
This relief provides that for land or property acquired between 7 December 2011 and 31 December 2014 and retained for at least seven years, the capital gain is fully relieved from tax.
4. Start-up Relief for Entrepreneurs” (“SURE”); Start-up Capital Incentive (“SCI”) and the Employment Investment Incentive (“EII”)
These are three related income tax reliefs for investing in businesses “Start-up Relief for Entrepreneurs” (“SURE”); Start-up Capital Incentive (“SCI”) and the Employment Investment Incentive (“EII”).
The income tax relief operates by way of a deduction against total income (value depending on the level of income subject to 40% income tax).
5. Business Property Relief
Business Property Relief provides a valuable Capital Acquisitions Tax relief in respect of a gift or inheritance of business property. The relief reduces the taxable value of the relevant business property taken by the beneficiary by 90%. Subject to conditions and where available, therefore, business relief reduces the CAT payable from a rate of 33% to an effective rate of 3.3%.
6. KEEP Key Employee Engagement Programme
Key Employee Engagement Programme (“KEEP”) allows SMEs to compete with larger enterprises in terms of the share-based remuneration that could be offered. It allows an employer to grant their employees up to €100,000 share options per annum, which will be taxed favourably at 33% instead of the income tax rate which can be as high as 52%.
Summary
If you are in business it is worth reviewing your tax strategy to ensure you are availing of all the existing reliefs available and that there is a plan for the future selling or passing on of the business which doesn’t lead to a very high tax bill.