Small and medium enterprises (SMEs) should be supported in becoming more resilient and agile, as they emerge from the pandemic, according to Chartered Accountants Ireland. The largest accountancy body on the island of Ireland today published a position paper informed by extensive engagement with members in business, practice, and the public sector.  The focus is on improving government policy for businesses all around Ireland without demanding additional exchequer funding or support.    The Institute, which represents 30,000 chartered accountants, states that while greater government intervention in the economy may be necessary in the wake of the pandemic, it does not need to result in increased complexity or red tape which constrains business growth. Rather, The Next Financial Year promotes recovery through sustainable government approaches to business needs.   Commenting, Dr Brian Keegan, Director of Public Policy, Chartered Accountants Ireland said  “Government in the future will be bigger. There will be more regulation, more direct government intervention, greater accountability. Government and its agencies collaborated with business better in the last 18 months than before. As supports are withdrawn, a continuation of this partnership-based approach would position Ireland’s SMEs strongly for growth.   “As well as emerging from the restrictions, businesses will be dealing with increased compliance from developments such as the proposals for an auto-enrolment pensions system and statutory sick pay. The timing of these initiatives and their immediate impact on SMEs as they re-open has to be managed.”  The Institute’s proposals to support businesses include:  Improvements to the digital facilities of business regulators such as the Company Registration Office and the Revenue Commissioners Greater use of verifiable electronic signatures for official purposes Overhaul of Companies Act provisions to permanently reduce the need for physical meetings and events Extension of commercial rates waiver for businesses impacted by the public health restrictions.  Tax rules for new ways of working   While remote working has been one of the biggest recent shifts in working lives, the pandemic has shone a harsh spotlight on the taxation system. Payroll tax amounted to €18.83 billion in 2020, a reliable source of Exchequer revenue made possible by flexibility in where an employee could work during the pandemic. The current tax system is inadequate however for the purposes of fairly reflecting the costs for businesses and employees of working from home. Tax supports should be put in place for businesses to upskill employees and upgrade their technology, while the tax system must be reformed to allow employees off-set the cost of working from home against tax liabilities.  Norah Collender, Professional Tax leader, Chartered Accountants Ireland said:  “Currently, employers can contribute up to €3.20 per day to cover an employee’s additional costs of working from home, without triggering benefit-in-kind. However, many employers cannot afford such a contribution. The UK’s ’express claim’ tax relief measure, while more modest, is easier to claim. A similar measure should be considered by the Irish Government if working from home continues to be required.    “At present tax relief can only be claimed on expenses incurred for equipment used “wholly, exclusively and necessarily” in the performance of the duties of employment. Revenue applies a strict interpretation of this, resulting in complex rules and slim odds of making a successful claim. Fairer and more accessible tax rules must be developed as part of an effective strategy for remote working.”  In the area of taxation, in The Next Financial Year the Institute also calls for the rules to establish a normal place of work to be reconsidered considering the move to hybrid or blended working. An employee’s normal place of work should be based on where the employee carries out most of their work, whether their home or their employer’s office or another workspace.  Green taxes and sustainable reporting  Businesses, particularly SMEs, will play a crucial rule in meeting the Government’s net-zero carbon emissions targets by 2050. However, businesses will only be able to deliver if they are supported by the right policy frameworks and encouraged by Government to commit to carbon-reduction targets.   Chief among the Institute’s proposals in this area are:  Aligning tax policy with decarbonisation objectives to steer business investment and consumer choice towards low carbon alternatives Allocating all revenues from increasing carbon taxes to climate action initiatives An enhanced R&D Tax Credit to fast track the development of technology making renewable energy cheaper and more readily available Extending the tax breaks for energy efficient equipment scheme beyond the current expiration date of 31 December 2023 and giving the scheme a permanent basis. Other key proposals in the wider position paper include:   Tax policies to tackle the blockage to housing supply by reducing development costs, including tax payment holidays for developer PAYE and VAT, offsetting the costs of training construction workers and enhanced tax deductions for safety equipment A new ‘super-deduction’ capital allowance regime for a limited period (two years), providing companies a 130% capital allowance deduction for investments in plant and machinery Application of the current tax relief model to the proposed pension auto-enrolment system A cost/benefit analysis to consider the reduced interest rate of 3% on unpaid tax debt available under the Tax Debt Warehousing Scheme being applied on a permanent basis. The Next Financial Year can be downloaded in full here   

Annual survey from Chartered Accountants Leinster Society shows changing work practices & values focused on health and work-life balance following Covid-19 2 September 2021 - A new survey published today places the average salary package (including base salary, car or car allowance, plus bonus) for a Chartered Accountant in Leinster at €112,033, consistent with recent years. But in contrast to previous surveys, a strong shift in work practices, values and priorities has emerged for many following the onset of the Covid-19 pandemic.  The survey of more than 1,000 Chartered Accountants, published today by Chartered Accountants Ireland Leinster Society in partnership with Barden, Ireland’s leading accounting and tax recruitment firm, and in association with Coyne Research, provides the most up-to-date guide to Chartered Accountant salaries and employment prospects in the Leinster region. Strong Earning Potential  The survey, carried out between 22 July and 9 August, highlights strong earning potential for those entering the profession, with newly qualified (2020 and 2021) Chartered Accountants receiving an average salary package of €57,164. The majority of members surveyed said they hold full-time permanent roles (96%), up slightly on 2020 (95%). Over 4 in 5 (82%) said their total remuneration has increased within the past three years, with 1 in 3 claiming it has increased by more than 25%. The survey also showed a significant increase in those anticipating a bonus payment in 2021 (67%) versus 2020 (52%), with €20,000 the average bonus expected to be paid this year. At 85%, the majority also have a pension, unchanged from 2020, with employers contributing on average 9% of their salary. New Ways of Working  As with many professions, the pandemic has changed how Chartered Accountants work with regards to place of work, the role of technology, and hours worked. Key findings include:   8 in 10 respondents considered location flexibility (a mix of home and office/client location, work from anywhere) the most valuable aspect of flexible/hybrid working for the future More than 8 in 10 believed personal productivity tools such as MS Teams, Zoom, etc. have positively impacted their career However, almost half (48%) of Chartered Accountants also claim they are working more hours at home than they were when working in the office 60% know what their future working arrangements will entail, while one-third (32%) do not yet know – but among this group, 7 in 10 would like to collaborate with their employer on a plan Just 6% would be happy to return to a full-time, Monday to Friday office routine in the future. Future Outlook  At this stage in the pandemic, respondents are more positive about the future, both in terms of their own personal career progression and the outlook for the profession in general.  Key findings include: More than two-thirds (67%) believe the employment market is buoyant, a significant change from 25% in 2020. Only 9% believe the market is contracting in 2021 compared to 36% in 2020 Over half (51%) said they have been promoted in the last three years, with one-fifth of members moving job in the last 12 months. This remains on par with recent years 90% of Leinster Society members are not concerned about job security, a significant improvement on last year when Ireland was in the early stages of the pandemic. At that time, almost one fifth (18%) of those surveyed expressed concern about their job security  Just 4% said their salary has reduced as a result of the pandemic, versus 13% in 2020  Only 3% were in receipt of the Employment Wage Subsidy Scheme, a fall of 6% on 2020. Jilly Harvey, Chairperson of Chartered Accountants Ireland Leinster Society, said: “While our survey shows that 84% don’t believe the pandemic has changed their work as a Chartered Accountant, it is clear that ways of working have changed, and that the pandemic has been a catalyst for much of this change. Greater work-life balance with flexible arrangements are valued by members in greater numbers than in any previous Leinster Society survey. It is reassuring that employers are providing tangible ways to meet those needs as part of the overall remuneration package on offer to new and established professionals. The survey points to a profession that is adapting well for the post-pandemic world of work, while retaining the many benefits, such as strong starting salaries and flexible entry routes, that make Chartered Accountancy an attractive career path for so many.” Elaine Brady, Managing Partner at Barden, said: “This survey gives employer firms, recruiters and anyone considering a career in Chartered Accountancy the big picture on what it means to work as a Chartered Accountant in Leinster today. The findings look far beyond the traditional remuneration packages to ask about the real life work arrangements and non-financial benefits increasingly valued by employees. Over half of those surveyed are satisfied with their work/life balance and the non-monetary aspects of their job. As Ireland emerges further from the pandemic, all the signs point to continued confidence in both the employment market and equally the career progression outlook for Chartered Accountants across Leinster.”  Where Chartered Accountants Work The survey highlights the wide range of industries and sectors that Chartered Accountants work in. The majority of members surveyed work in Dublin (84%). Of the 19% of members employed in practice, 48% work in a Big 4 practice. 68% of those working in practice are in a Manager or Director role. The majority of those not working in practice currently work in financial services (25%). Members also work in IT and Telecommunications (13%), Government/Public Sector/Education (10%), Construction (8%), Pharmaceutical (8%), and across a broad range of other sectors including manufacturing, not-for-profit / charities, food industry and more. Among those not employed in practice, almost four in ten (39%) work for companies that are a subsidiary of a foreign-owned multinational compared to a private Irish company (29%) or the business unit of an Irish plc (11%). ENDS Note to editors The survey was conducted by Coyne Research on behalf of Chartered Accountants Ireland Leinster Society, in partnership with Barden, between 22 July and 9 August 2021. About Chartered Accountants Ireland Leinster Society Chartered Accountants Ireland Leinster Society is a district society of Chartered Accountants Ireland, representing over 14,950 Chartered Accountants throughout Leinster. Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing 29,500 influential members around the world and educating 7,000 students. The Institute aims to create opportunities for members and students, and ethical, sustainable prosperity for society. An all-island body, Chartered Accountants Ireland was established by Royal Charter in 1888 and now has members in more than 90 countries.  It is a founding member of Chartered Accountants Worldwide, the international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants.   Chartered Accountants Ireland members provide leadership in business, the public sector and professional practice, bringing experience, expertise and strict standards to their work for, and with, businesses in every sector. Chartered Accountants Ireland engages with governments, policy makers and regulators on key issues affecting the profession and the wider economy. About Barden Barden is a partner led expert recruitment firm consumed with supporting companies that really know the value of their people. Barden’s expertise covers Accounting, Finance, Tax, Legal and Financial Services recruitment. Our people are trained/qualified in their expert areas, and our approach is consultative not transactional.  Barden has proudly partnered with the Chartered Accountants Ireland Leinster Society, for the last 4 years, to bring you the annual salary survey. Over the next 2 years Barden will also be working closely with Chartered Accountants Student Society of Ireland (CASSI) to make sure their members get access to the right information, at the right time so when they qualify they can make the right decisions about their professional future. For more information: Jill Farrelly PR & Communications Manager Chartered Accountants Ireland