How to claim for Tax Relief for your Start-up Company?

The start-up scene is growing rapidly in Ireland. Driven by business visionaries and bolstered by government associations like Enterprise Ireland and local start-up gatherings around the nation, the start-up network in Ireland is growing exponentially year on year. While new companies can have the skill, drive and the involvement in their specific region to amplify the eco-system, there is still one area where numerous entrepreneurs, new or old, can find quite overwhelming and that’s the convoluted universe of Irish tax returns.

This guide identifies a few territories you need to talk about with your tax specialist if you are a part of startup eco-system

 What are the reliefs for individuals looking to set up/ invest in a company

Following are the few points using which companies can set up their investment in other companies.

 SURE: If you have recently set up your very own business, you might be qualified for tax relief under the Startup Refunds for Entrepreneurs scheme. Under this scheme, entrepreneurs can make a claim for a refund against income tax they paid over the past six years.

Employment Investment Incentive: This plan provides tax relief, subject to specific conditions being met, to people for purchasing new standard share capital in another or existing business. A taxpayer who invests into an approved EII investment can reduce a substantial amount from their taxable income for the year in which the investment was made. The maximum investment allowed is €150,000 per year

The EII Scheme offers one of the few remaining income tax reliefs and is one of the few sources of total income tax relief (which includes, but not limited to, Pension funds, ARF distribution income, Rental income).

What are the Tax Reliefs for all businesses (including partnerships, sole traders, and limited Companies)

The following are tax reliefs offered to businesses of different types, including sole traders, partnerships and limited companies: 

Pre-trading expenditure:  Pre-trade expenses are the expenses you had incurred within seven years of you starting the trade or while you were trading. The calculation begins from the first day of tradingThese tax-deductible business expenditures include expenses, such as buying inventory, equipment, paying rent, getting insurance, marketing, and advertising.

Think about the activity of the business: Certain extra tax relief might be available relying upon the activities of the business – for instance, relief for expenditure on research and development. 

What is the tax relief for companies only?

Companies can also gain some relief from the tax. Following are a few methods through which companies can apply for tax relief:

 Company tax relief: Certain organizations don’t need to pay for corporation tax on their profits, subject to meeting certain conditions, for a timeframe subsequent to starting a business. Note that, the relief does not matter to specific trades, for example, those including the essential production of agricultural items, the preparing and promoting of agricultural products, export-related activities and so forth. Moreover, the relief won’t have any significant bearing where the trade was recently carried on by someone else in the State.

Costs of doing business: You can guarantee a tax relief against your business benefits for some operational expense that you cause entirely and solely for the motivations behind the trade. 

Research and development tax credit: As an impetus for organizations doing certain R&D exercises, a tax credit might be available. Audit your business activities with your tax specialist to check whether you meet all requirements for R&D tax credits.

Losses: Tax treatment of misfortunes is an important region, and tax specialist advice is suggested for this (and, to be sure, for all areas of expense). At last, the relief available for losses will rely upon whether the business is working as a sole broker/organization or through an organization.

Capital allowances: A capital allowance is an expense derivation for expenditure caused by capital hardware, for example, office furniture. It merits checking on your fixed-asset register to check whether you are asserting capital allowances on all passing assets.

IP: Tax relief is available for capital use acquired by organizations on an expansive scope of intangible assets, including trade names, brands, know-how, publishing titles, copyright and goodwill specifically derived from those intangibles.

To check whether you are eligible, speak to the advisors here. 




How Your Business Can Protect its Name, Brand and Ideas

Establishing a unique identity in this vast marketplace is not a cake walk. Businesses work very hard to create an identity that reflects the true essence of their core values,  products, and services. An identity that even the stakeholders can resonate with. However, there are few companies which accidentally or deliberately use another company’s trademark and brand, thus potentially creating confusion among consumers. This also affects their overall marketing visibility. Therefore, companies need to protect their brand image and business with due diligent monitoring and careful preparation.

Following are a few methods businesses can use to safeguard their name, brand image, and innovative ideas from being deliberately utilized by other parties.

Registration of company name: Make sure to register your company name first. Once a company is registered online or offline, the company holds the exclusive right to the corporate name along with the designation such as a Corporation or Corp., Incorporated or Inc., Limited or Ltd., Company or Co., among many others. The registration acts as a foundation stone in building a great brand value of the company.

Domain Name Registration: The second method is registering the domain name of the website. When you register a domain name, it puts your business name on the global forum, i.e., the world wide web. It is through this medium you can get wide and easy access to a global market. This will also make it easier and convenient for the consumers to find information about your business such as products and services, contact details, information on founders and lots more.

Copyright: Copyright is the process of granting the creator of an original work all the exclusive rights of its distribution and uses. This applies directly to the songs, poems, any form of content in writing and recorded format from internet to software, drawing, film, photography, music and much more.

Companies having copyrights over original works can profit from royalty payments using licensing agreements. All the copyrighted works are marked with the symbol “©”, the owner and the year in which it was created.

Trademarks: Trademarks are very crucial in protecting the brand identity of the company. It helps to differentiate the business in the marketplace. Registering a trademark helps businesses to protect business name, logo, and brand.

Patents: A patent is a form of “industrial property”. It can be licensed, assigned and transferred by the owner. The patent helps protect the ideas and creativity of business from plagiarism and copy. A patent is granted for a specific period of time and the holder reserves all the right to use, make, sell and license the innovation.

Design: All the new visual designs of a product, company logos are protected in order to save them from being copied by another individual, companies, etc. This will enable your company to get a distinctive competitive advantage over other competitors.

Protect trade secrets: Trade secrets are confidential information as they help companies to protect their secret business deals, agreements, information from being stolen by other interested parties. This also helps companies to gain economic advantage over others. They hold great commercial value, and which is why companies need to protect them very carefully.

Protection – Proactive Approach: As infringement, theft, plagiarism is very much common in today’s competitive corporate marketplace, companies need to take a proactive approach in protecting information, what truly belongs to them. With laws varying from place to place, companies need to be aware of the legislation that applies to the markets in which they function. This will help protect their product, brand value and gain rights over protected assets.

A company’s brand image, idea, value acts as a foundation stone for the company visibility in the global marketplace. This is something every company must do to protect proactively.


Why a married woman should have a separate retirement plan

Is it recommended to have a combined retirement plan for a married couple? Yes and No. Retirement is a major financial and life-changing event of anyone’s life but requires more planning than any other type of investment. Married or committed couples might think that having a combined retirement plan would suffice their individual as well as joint needs, but the story is far more complicated than it seems.

In this section, we are going to focus on why having a separate retirement plan is important for a woman, and how it can benefit both the partners in the long run.

Women are from Venus

Quite literally, and theoretically. Women have different needs, different life cycle and of course, their idea of pending their retirement years would be very different from that of their partner. Yet, 95% of married or committed partners choose to go with a combined retirement plan. While in most countries, the needs of both the partners are taken into consideration when designing a retirement plan for them, but in depth a lot of factors are missed out that often play a crucial role in a woman’s life. Let’s take a look at these factors:

Longer life: According to Population Reference Bureau, women outlive men, around the globe.In developed countries, the average life expectancy for men and women is 72 years and 79 years respectively. In developing or less developed countries, women can expect to live an average of 66 years, compared with 63 years for men. Read the full study here. Perhaps there is a substantial need for financial fortification for women. They are the ones to be using the kitty built for retirement for a longer time.

High healthcare costs: When it comes to planning for health-care expenses, most couple retirement plan takes into consideration the general average cost of healthcare expenditures in the country. However, according to the Department of Health and Human Services, women pay an average of 20% higher healthcare cost in retirement, compared to men. Longevity is the main reasons for this gap.

Fewer Work Years, Less Savings: Let’s face it, every woman, at one point of time in her life has to take a break from her career due to a number of reasons like pregnancy, family responsibility or her own health. Therefore, they often miss out on opportunities to save for their retirement corpus.

Gender Pay Gap: No matter how progressive the world gets, Gender pay Gap is one of the biggest contributors to low retirement corpus for women. Recent figures published by the Central Statistics Office suggest the gender pay gap in Ireland is approximately 14%, i.e men get paid 14% more than women in all member states. This means that even if a woman started her career at the same time as the man, saving the same percentage of money for her retirement, for the same number of years, she would still be saving 20% less compared to her male counterpart.

Marriages are not for forever –  There is a possibility of getting divorced or widowed with children. These scenarios can partially or completely change the equation and the retirement kitty. To make sure that you are able to live an independent and comfortable life post-retirement, you need to be proactive about handling your finances.

What women need to do

To begin with, don’t put off retirement planning. Having a joint retirement plan may not be a bad idea, but putting all your eggs in one basket is. Have a separate retirement plan for yourself too, where you can be confident and comfortable about your whereabouts in the future. For instance, if you are putting 250 per month toward your retirement fund, it is advisable to split the amount into 60% and 40%. You can choose to put 60% into your personal retirement plan and contribute the remaining 40% toward the joint retirement plan, or vice-versa.

Speak to your spouse about how retirement planning will impact you differently and discuss how major life-turning scenarios, unexpected ones, in particular, could further complicate the situations for both of you. Remember to plan your portfolio in such a way that benefits both the partners in the long run. The power of compounding works wonders if you know where and how to invest. So start early and save regularly.

Don’t know where to start? Confused about which retirement plan works best for you? Schedule your free first no-obligation appointment with the experts now. Our team of accountants and advisors can help you find the most suitable retirement plan.