Commenting Brid Heffernan, Tax & Public Policy Lead said
“The extension of the Temporary Business Energy Support Scheme (TBESS) in today’s Finance Bill will come as a huge relief to “Case 2” professional businesses. Many of these, such as dentists, solicitors, and accountants operate as self-employed individuals. The change ensures that the self-employed receive energy costs supports comparable to other businesses, as was the case with the financial supports provided during the pandemic.
“The professional services sector makes an enormous contribution to the economy in terms of employment, exports and tax contribution. Ensuring that this economic activity is supported is of direct benefit beyond the sector.
“Combined with the extension of the Debt Warehousing Scheme to May 2024 businesses no longer have to imminently face warehoused tax debts along with increasing energy bills. Many more SMEs now have a fighting chance this autumn and winter. Simplicity and efficiency in implementation are, however, going to be absolutely critical in getting the supports to businesses as quickly as possible.”
Missed opportunity to tackle property market challenges
The Institute has long highlighted the need to tackle capacity constraints on the supply side of the Irish economy, for example in rental accommodation, and the legislation in today’s Finance Bill will not help renters find accommodation as landlords are still leaving the market.
“The new tax credit provides some much-needed relief for hard-pressed renters, and the measures announced by the Central Bank just this week, will assist people looking to buy, but where are the measures to improve the supply of accommodation?
“It was a missed opportunity to not use the Finance Bill to incentivise landlords to remain in the rental market. Targeted tax measures should have been introduced to halt this exodus and the omission of such measures will lead to continued hardship for renters.”