Throughout the Irish election campaign this year the many parties made numerous promises to improve the lot of small business owners. For example the abolishment of upward only rent assessments, reductions in red tape, lowering of rates and tax incentives for organizations who are out there hiring. Only time will tell what number of these essential developments come to fruition. In the following paragraphs we look at the already present incentive schemes available to help small enterprises.
Employer's Job (PRSI) Incentive program This program was introduced in last year but has been extended to 31st December 2011. The concept is basic - the government are attempting to incentivise corporations to hire workers by exempting them from employer's PRSI on the employee's salaries for the initial 12 months. With an employee on 30,000 annually this is a hard cash saving of 3,225 for you the employer. For larger sized firms a restriction of 5% of your employees could be employed under this scheme. Even so there is a concession accessible for small enterprises that permits them to take on at least 5 employees and take advantage of the saving.
Corporation tax relief with regard to small businesses Any company that started trading on or after the 1st January 2009 can take advantage of an exemption from corporation tax. The exemption is going to stand for your first 36 months of trading.
Accelerated Capital Allowances on High efficiency Equipment This relief has been available since 08 but is extremely important for businesses improving a building. Formerly, relief for investment on capital items (such as air conditioners, heat systems etc.) was given over eight years but this has now changed. In the accelerated capital allowance scheme the entire cost is authorized as a tax deduction in the year of outlay provided the equipment is energy efficient.
This is a positive step as it provides significant cash-flow price savings for smaller businesses. An entire listing of qualifying equipment is available on the Sustainable Energy Authority Ireland internet site.
Employer's Job (PRSI) Incentive program This program was introduced in last year but has been extended to 31st December 2011. The concept is basic - the government are attempting to incentivise corporations to hire workers by exempting them from employer's PRSI on the employee's salaries for the initial 12 months. With an employee on 30,000 annually this is a hard cash saving of 3,225 for you the employer. For larger sized firms a restriction of 5% of your employees could be employed under this scheme. Even so there is a concession accessible for small enterprises that permits them to take on at least 5 employees and take advantage of the saving.
Corporation tax relief with regard to small businesses Any company that started trading on or after the 1st January 2009 can take advantage of an exemption from corporation tax. The exemption is going to stand for your first 36 months of trading.
Accelerated Capital Allowances on High efficiency Equipment This relief has been available since 08 but is extremely important for businesses improving a building. Formerly, relief for investment on capital items (such as air conditioners, heat systems etc.) was given over eight years but this has now changed. In the accelerated capital allowance scheme the entire cost is authorized as a tax deduction in the year of outlay provided the equipment is energy efficient.
This is a positive step as it provides significant cash-flow price savings for smaller businesses. An entire listing of qualifying equipment is available on the Sustainable Energy Authority Ireland internet site.
About the Author:
If you own a small company in Ireland and need to hire tax advisors then visit taxassist.ie. They offer a rnage of tax services including tax returns.