An exemption from Corporation Tax (CT) for the first three years of trading applies to certain new startup companies.
Where a company is incorporated after 14 October 2008 and commences to trade in 2016, 2017 or 2018, it is exempt from CT and Capital Gains Tax (CGT) on the disposal of assets used for the purposes of the new trade. The exemption is subject to a liability threshold, and no relief will be available where profits exceed €480,000.
CORPORATION TAX LIABILITY FOR THE PERIOD AVAILABILITY OF RELIEF
€40,000 Full exemption
€40,000 to €60,000 Marginal relief
€60,000 Fully taxable
The relief is restricted to new trades and does not apply where the trade was previously carried on by another person, where the trade, or part of trade was carried on by an associated company.
Any unused relief in the first three years of trading may be carried forward to subsequent periods.
The relief is limited to the amount of employer PRSI that is paid. There is a cap of €5,000 applicable per person, with an overall limit of €40,000.
The relief does not apply to companies carrying on professional services, nor does it apply to companies which carry on a trade of:
This relief is due to end on 31 December 2018 as it will not apply to companies who commence trading in 2019.
IE Domain Registry (IEDR) has reported that 39,523 new .ie domains were registered in 2017- an average of 108 a day. The figure is a 14% increase on 2016 and the biggest single year for new registrations. The increase was driven by nationwide demand, with new registrations up in all but four counties on the island of Ireland. Corporate bodies and sole traders make up the majority of new .ie registrations (67%) in 2017. The following table shows the figure per province:
LEINSTER 66% 24,776
MUNSTER 20% 7,905
CONNACHT 9% 4,866
ULSTER 5% 1,976
Online address registrations are often recognized as a forward indicator of economic growth and entrepreneurship.
We would like to hope that these increases in .ie domains are leading to larger increase in local businesses in Ireland.
With the current scandals of Facebook and Cambridge Analytica coming to light. Is it the perfect timing for the introduction of the GDPR legislation or is it too late? How many other companies, institutions or elections benefited from taking data in an unethical way?
With large companies such as Disney, Bose, and Google all breaking regulations, for their personal data collection methods. All spanning over the past five years. It seems that the illegal collection of personal data has been ongoing and the introduction of this legislation seems to be far past its due date. Will we see a dynamic change of companies data collection in the EU when the GDPR fully introduces this legislation most likely not, as no news has broken out of large companies to make this dynamic shift to become GDPR compliant. It is more likely users will continue to be forgotten and be misinformed on the on-goings of their personal data.
Here are some tips to look out for when deciding on a new or your first accountant:
Obviously, there are many more reasons to why start-ups would benefit hugely with having an accountant but these are what we think are the best reason to why an accountant would be helpful to starting up companies.
5. Businesses need a plan.
One of the core reasons start-ups fail is because they do not have a plan in place. These are where the accountant can come in and develop a sort of roadmap for the client to guide them in the right direction of success. A professional on board can be a huge advantage to a small start-up.
4. Understand tax
Simple but hugely necessary with the consistent change of rules and regulations, an accountant at your side can avoid a hefty fine. Especially with the first few years of a start-up, every cent is needed, a fine at any stage would not help the business.
3. A new perspective
Oftentimes entrepreneurs are so involved running the day-to-day operations of their business that they may not be able to see the whole picture. Someone on the outside looking in can get a different view of the ongoings and accountants fresh outlook from the outside may lead to something beneficial for the start-up.
A good accountant will represent the company in the best way possible. This is important for new businesses looking to build strong relationships with good clients and customers.
1.Find a work-life balance
Regardless of how established the company all owners find it the most difficult task to find a balance between work and their own personal lives. It has been the most challenging aspect to all new start-ups and this is how accountants will help, but taking tasks entrepreneurs are less thrilled by and give them the opportunity to focus on selling and marketing their business to allow growth.