Tips to help your business survive Coronavirus

Posted in Business Tips, Good Advice

Cashflow

To assist SMEs experiencing cashflow and trading difficulties, the Revenue has suspended the application of interest for late payment of tax in respect of February and March 2020 PAYE liabilities.

Importantly, taxpayers should continue to file tax returns on time.

Contact your bank

If you are experiencing cashflow difficulties or foresee this occurring, engaging with your bank early on is vital. At such a stressful and difficult time it is easy to put our head in the sand but this is a recipe for disaster.

All major Irish banks have encouraged their customers to engage with them to discuss the impact of the current crisis on their repayment capacity.

2019 Income Tax Returns

Individuals can continue to file their 2019 tax returns, and any liability due does not need to be paid until the Pay and File deadline of November 12, 2020.

Individuals who are due a refund for such items as health expenses, medical insurance credits etc, can file their return to claim the refund now.

Tax Expenses – if you are working from home

The Revenue has updated its ‘e-Working’ guidance for those working from home. This states that in situations where the government recommends that employers allow employees to work from home to support national public health objectives, as in the case of Covid-19, the employer may pay the employee up to €3.20 per day to cover the additional costs of working from home such as light and heat.

If the employer does not make this payment, the employee may be entitled to make a claim on their personal tax return in respect of these expenses. Such expenses will need to be supported by receipts.

During the Covid-19 crisis, some employers have provided equipment such as laptops, printers, scanners, telephones and office furniture, but these items will not be treated as a benefit in kind (BIK) expense.

Please call Noel Murphy on (021) 4310266 to discuss these or any other concerns you may have.

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