Press release

Challenges facing audit & access to accountancy profession among priorities for new President representing 27,000 members in Ireland  Friday, 17th May 2019. Conall O’Halloran has been elected President of Chartered Accountants Ireland for 2019/2020 at its 131st Annual General Meeting in Dublin today. Addressing the Chartered Accountants Ireland AGM, Mr O’Halloran said his tenure as President would focus on the challenges facing the audit profession, both in Ireland and overseas, while working to broaden understanding of the wider role and value that Chartered Accountants bring to business and society. In addressing the challenges facing the audit profession, he said; “I have recently been looking to our nearest neighbour in the UK and reflecting on the fractured relationship with the regulator, the Financial Reporting Council, and with politicians. Many of the reforms recommended by Sir John Kingman’s recent independent review have now been accepted by the FRC and by the profession and politicians generally. However, the wider review by the Competition and Markets Authority and also the independent review into ‘The Quality and Effectiveness of Audit’ being conducted by Lord Brydon, will be fundamental to our future, and the future of business more broadly. “I think we need to be very careful here in Ireland that what works, and indeed what may be required to work in the UK, is not necessarily or automatically right for Ireland.  I will work very hard as President of Chartered Accountants Ireland to ensure good communication between the profession, politicians and regulators and ensure the very particular strengths that we have in Ireland are protected and nurtured.” Mr O’Halloran also highlighted that access to the profession at graduate level, facilitating more graduates to train in industry and the public sector, and non-graduate entry routes would be a priority in the year ahead.  “In Ireland we are currently very much a vocational profession where the majority of our graduates who train as Chartered Accountants come with a business qualification. This is quite different in other countries and I feel there is a win-win if we can demonstrate the value of being a Chartered Accountant to graduates from different disciplines with diverse skill sets and ways of thinking. “While flexible routes to becoming a Chartered Accountant have opened up opportunities for people in industry and the public sector, the training in business option has declined. When I look to some of Ireland’s corporates there is enormous opportunity in our large companies, particularly those with a global footprint, to train Chartered Accountants in-house. “The other thing we need to get right is our school leaver route. I think it inevitable that college fees for university education will be reintroduced at some stage and will make third level education inaccessible to even more people. So, while the school leaver route in Chartered Accountancy has become a thing of the past, I am pretty clear that it will become a thing of the future again and we need to be ready for it.” Mr O’Halloran, who takes over as President from Feargal McCormack, is Partner and recently served as Head of Audit Practice with KPMG, based in Dublin, from 2013 to 2019.  He was previously nominated by the Irish Government to the UK’s Financial Reporting Council’s Audit and Assurance Board and the Company Law Review Group, where he served for nine years. A graduate of UCC, Conall O’Halloran is married with four children and lives in Dublin. At today’s AGM, Paul Henry was elected Deputy President of Chartered Accountants Ireland. Pat O’Neill was elected Vice-President. Ends Reference:  Brendan O’Hora, Communications & Marketing Director, Chartered Accountants Ireland, 086 2432 428 / brendan.ohora@charteredaccountants.ie Karen Jones, Gibney Communications, 01 661 0402 / 086 866 4501 Note for Editors: Chartered Accountants Ireland represents 27,000 Chartered Accountants throughout the island of Ireland and in 93 countries around the globe. Founded in 1888, It is the largest, longest established and fastest growing professional accountancy body in Ireland.

May 17, 2019

As a fresh round of talks gets underway to break the political deadlock in Northern Ireland, Chartered Accountants Ireland and Chartered Accountants Ulster Society are reminding the political parties that among the rewards for success is the opportunity to reduce the tax burden on Northern Ireland business. Alan Gourley, Chairman of Chartered Accountants Ireland’s NI Tax Committee said: “The 2015 Fresh Start Agreement included a firm commitment to the final stage of devolution of corporation tax to Northern Ireland and agreed upon a date (1 April 2018) and a rate (12.5%). “The trigger in the relevant legislation requires both the NI Executive to re-form and a clear demonstration to Treasury that Northern Ireland’s finances are on a sustainable footing. Once again, it’s over to Stormont.” Chairman of Chartered Accountants Ulster Society, Richard Gillan commented: “Back in 2015 when the rate and date were agreed, the outcome of the EU referendum was an unknown quantity. It is now clear that Northern Ireland will be the UK region most severely impacted by Brexit. The economic opportunity originally presented by corporation tax devolution now takes on added importance. “A freshly constituted Northern Ireland Executive will face some tough decisions in critical areas such as health and education. These decisions may take time. But there is a quick win which should not be allowed to pass Northern Ireland by. Our message is clear – finish the job of devolving corporation tax and take away some of the impending pain of Brexit.”

May 09, 2019
News

The biggest issue facing employers at the moment is the new “real-time” reporting regime, known as PAYE Modernisation, for PAYE that went live on 1 January 2019. From this date, you must make a submission to Revenue on or before making a payment to an employee. After the end of each calendar month, Revenue will issue a statement based on submissions received, which sets out the tax due for the period. The statement is deemed a statutory return by the 14th day after month end. Where errors are made, there is scope to amend the statement in advance of the 14th day of the following month. Payroll taxes are then remitted to Revenue by the 23rd day of the following month. The P35 filing will also no longer be required – the reporting process must be correct for each pay period, otherwise penalties may apply. If not already done so, employers should immediately review their payroll procedures to ensure that accurate information is provided on a timely basis. It is important to have all stakeholders involved so they understand the need for improved processes. How does this effect benefits-in-kind and notional payments? Revenue has advised that benefits-in-kind (BIK) and other notional payments should be reported by: a) The day the BIK or notional payment is made; or b) The earlier of the next pay day or 31 December in the year. A “best estimate” of the taxable value should be included in the next payroll submission after the benefit/notional payment is provided. When the actual value becomes known, an adjustment is to be processed in the following payroll submission. Revenue expect these items to be reviewed regularly – at least quarterly – with adjustments processed in the next payroll submission. Does this also apply to taxable expenses? Revenue has advised that a payroll submission is required on or before any taxable cash payment is made to employees. Many employers reimburse employees for items that, while allowable under the company expense policy, are taxable. To date, these items are generally picked up through retrospective reviews throughout the year and before the P35 is filed. This type of catch up exercise will no longer be possible. Employers should review internal processes to ensure taxable expenses can be identified in advance of reimbursing employees. Further complexities may arise where expenses are reimbursed by the Accounts Payable department or off-payroll-cycle as additional payroll submissions may be required. What about company credit cards? Revenue has confirmed that the use of company credit cards are considered notional payments with the benefit being provided at the date the credit card is used (and not when the credit card bill is settled). Such items should be included in a payroll submission and reported to Revenue by: a) The day the benefit is provided; or b) The earlier of the next pay day or 31 December in the year. This may create practical difficulties for employers in determining what items are reportable each period as you may not have oversight of the taxable expenses incurred until a later date when the employee submits expense details. What will happen if my organisation isn’t compliant? The current penalty regime provides for a €4,000 fixed penalty for each breach of the PAYE regulation. There is also provision for a €3,000 fixed penalty imposed on the company secretary for each breach. These penalties can be imposed on a per-item basis, so if you are even a mid-size level employer, these penalties can mount up. While Revenue have stated that the penalty and self-correction regimes are under review, it is hoped that penalties would only be enforced for significant breaches and only in situations displaying evidence of deliberate behaviour.  However, as things stand, they could be applied to any correction of, or omission from, a payroll submission. Colin Forbes is a Tax Partner of Global Employer Services in Deloitte.

Jan 14, 2019
Press release

The Salary Survey press release issued on Wed June 28, below. Annual Salary Survey shows accountants in Leinster earning €106k average, newly qualified earning €56k-€58k Louise O'Leary, The Panel search and selection with Oliver Holt, Leinster Society Chairman The average salary package (base salary + car or car allowance + bonus) for a Chartered Accountant in Leinster is over €100,000 for the fifth year in a row, according to new research published today. The 2017 average salary package is €106,500, at similar levels to 2016 and reflects significant demand for Chartered Accountants at all levels. The survey of more than 1,700 Chartered Accountants was carried out by Chartered Accountants Leinster Society in association with The Panel search and selection consultancy. The research reveals that eight out of ten Chartered Accountants have seen their salary increase by at least 10% over the last three years. The average salary package for a Chartered Accountant working in industry in their first year post-qualification now stands at €56,800. Those in their first year post-qualification in financial services are earning slightly more with an average package of €58,800. The survey also indicates a healthy level of career progression within the Chartered Accountancy profession, with 45% of those surveyed having been promoted in the last three years. This is up from 41% for the same period in 2016. Chartered Accountants also reported feeling confident about their employment prospects, with 89% finding the jobs market positive. 23% of them reported moving to a new job in the last 12 months.   The salary survey also shows that most Chartered Accountants in Leinster currently work in industry, business and financial services, with 68% working in these sectors all together, while 21% work in an accountancy practice and 11% are in public service. The survey also points to the other benefits enjoyed by Chartered Accountants. 24% of respondents either have a company car (5%) or receive a car allowance (19%).  19% of respondents receive share options.   Commenting on the results of the salary survey, Oliver Holt, Chairman of Chartered Accountants Leinster Society said: “The 2017 Leinster Society salary survey shows a profession much in demand, with considerable career opportunities, whether in financial services, public practice or industry. “I would like to thank the 1,700 Leinster Society members for contributing to one of the most detailed and representative of such studies in Ireland. “As well as benchmarking salaries, satisfaction, career progression and non-monetary compensation were also measured, making it valuable not just for members and employers, but also for those contemplating a career as an accountant. Chartered Accountancy remains the largest single employer of new graduates in Ireland. “For these potential Chartered Accountancy students, we are seeing more training vacancies available in businesses and practices across Ireland for graduates of all backgrounds, and the Institute is championing more flexible entry-routes into the profession for talented people. The survey demonstrates why Chartered Accountancy remains the leading accountancy qualification in Ireland due to its attractive rewards, international opportunities, and rapid career progression.” Paul McArdle, Managing Partner of The Panel, who assisted in analysing the survey results said: “The survey points to a buoyant jobs market where there is real competition for talent. Almost 80% of our survey respondents have seen their salary increase by more than 10% in the last three years. Employers are clearly keen to retain that talent and the survey points to an appetite for greater work/life flexibility as a key priority for these highly skilled finance professionals. It also demonstrates the importance of Chartered Accountants in the current climate and the range of roles they hold.” Full details of the Annual Salary Survey of Chartered Accountants Leinster Society in association with The Panel can be viewed at www.charteredaccountants.ie/Leinster/Salary-Survey The PowerPoint slides from the salary survey breakfast briefing are available online.--> Key Findings: Average Salary Package (base salary + car or car allowance + bonus) for a Chartered Accountant in Leinster is €106,544. (Salaries were surveyed as at 31 January 2017) The Average Salary Package for a Chartered Accountant in their first year post-qualification taking a position in industry stands at €56,800. The Average Salary Package for a Chartered Accountant in their first year post-qualification taking a position in financial services is €58,800. 79% of respondents have seen their salary increase by at least 10% over the last three years. The salary survey also shows that most Chartered Accountants in Leinster currently work in industry, business and financial services, with 68% working in these sectors, while 21% work in an accountancy practice and 11% are in public service. 45% of respondents have been promoted in the last three years (2016: 41%). Members are more confident than ever with 89% finding the jobs market positive. 23% reported moving to a new job in the last 12 months. “How was your bonus calculated?” 1,164 members responded to this question with personal performance being a criteria for 70% of respondents; company performance was a criteria for a similar percentage with one in five respondents citing team performance as a criteria. “What value do you place on work / life balance and flexible working arrangements?”  82% of respondents said that they would sacrifice 5% of their salary for a better work / life balance (45% said they would give up 10% of their salaries, such was the importance of flexibility to them). Ends Note to Editors: Download Annual Salary Survey report here View presentation slides from breakfast briefing Chartered Accountants Leinster Society is a district society of Chartered Accountants Ireland, representing 12,500 Chartered Accountants throughout Leinster. Chartered Accountants Ireland is the largest, longest established and fastest growing professional accountancy body in Ireland with over 25,500 members in 93 countries around the globe.   Average salary package is the total of the basic salary plus bonus and car allowance or car (valued at €12,000 for the purpose of the survey) The survey was conducted by the Leinster Society from 1 to 12 June 2017. Reference:  Bryan Rankin, Marketing Manager, Chartered Accountants Ireland T: (01) 637 7268 / bryan.rankin@charteredaccountants.ie

Jun 28, 2017

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