The impending introduction of pension auto-enrolment in 2025 is set to significantly impact Irish employers, particularly small and medium-sized enterprises (SMEs). This government initiative aims to increase the number of people saving for retirement by automatically enrolling eligible employees into pension schemes. While the goal is commendable, the practical implications for businesses, especially SMEs, could be far-reaching.

In business finance, understanding key financial ratios is crucial for evaluating the health and performance of a company. These ratios provide insights into various aspects of a business, from profitability to liquidity, and can guide strategic decision-making. Here, we explore some of the most important financial ratios every business should monitor.

There have been some recent updates to Capital Acquisitions Tax (“CAT”) reporting obligations in respect of certain loans between close relatives. The new rules, which came into effect from 1 January 2024, apply to both new and existing loans and apply irrespective of whether any tax is due or not. This new tax filing requirement does not create any new tax liabilities.

The government has announced details of new legislation for the auto-enrolment pensions savings scheme. It’s designed to encourage workers to save for their retirement and make it more straightforward for businesses to offer a workplace pension option.

As part of Budget 2024, the Government signed off on a package of €257m for the Increased Cost of Business (ICOB) Grant as a vital measure for small and medium businesses.

Businesses in the retail and hospitality sectors are in line for a top-up payment of up to €3,000 in the Energy Efficiency Grant. Businesses in these sectors, who employ up to 50 people, are already eligible for a capital grant of up to €5,000 and now they will be eligible to apply for up to €8,000 in capital grant assistance to improve their energy efficiency.

The Minister for Finance, Michael McGrath T.D., has announced that the interest rate applicable to warehoused debt will be reduced to 0%. Revenue has confirmed that it will operate the reduced interest rate on an administrative basis pending the legislative change.

Effective from the end of 31st August 2023, the special 9% VAT rate for certain services in the industry has been discontinued. As we transition into this new phase, these specific services will be subject to the standard VAT rate of 13.5%.

The claim period for the Temporary Business Energy Support Scheme (TBESS) ended on Monday, 31 July. Qualifying businesses have until 30 September 2023 to make claims for the calendar months from September 2022 to July 2023. Claims cannot be made after this date.

Effective from 11th June 2023 (originally 23rd April 2023), directors are required to include their Personal Public Service Number (“PPSN”) when filing certain forms with Companies Registration Office (forms A1, B1, B10, B10a and B69) .

Changes to the Companies Act 2021 will require Directors of all Irish registered companies to supply their Personal Public Service Number (PPSN) to the Companies Registration Office (CRO).

The Government has confirmed that the 9% reduced VAT rate for the hospitality sector has been extended to 31 August 2023. The reduced VAT rate will return to 13.5% from September 2023. Along with this, the Temporary Business Energy Support Scheme (TBESS) will be extended to the end of May 2023.

The Temporary Business Energy Support Scheme (TBESS) has been introduced by Finance Bill 2022 to assist businesses with increased energy costs over the winter months. Businesses can now register for this scheme through ROS and the portal to claim repayments will open next Monday 5th December 2022.

As announced in Budget 2023 the Department of Enterprise, Trade and Employment’s Budget package is designed to help businesses with escalating energy costs and to plan for the future.

Overall funding allocated to the Department of Enterprise, Trade and Employment in Budget 2023 has increased by €36 million, to €940 million.