Western Society news

Chartered Accountants Ireland has today circulated the Institute's Key Policy Priorities, based on member engagement, as discussions commence on the formation of the next Government. Focused on supporting small business and improving childcare provision for working parents, we will continue to amplify our members' voices as the negotiating process continues.

Chartered Accountants Ireland is warning that family-owned businesses in Northern Ireland, including those in the agricultural sector, will be the biggest losers from the recent tax changes announced in the Autumn Budget. Impacted family businesses are now facing a triple whammy of mounting employment costs, higher Capital Gains Tax on sale or succession, and an unexpected Inheritance Tax bill when passing businesses on to the next generation. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee said: “Northern Ireland family-owned businesses are the heartbeat of our economy with around 80% of businesses here either family owned or managed. Many of these businesses, particularly those who employ minimum wage workers, will face a stark increase in their wage bill from April 2025 as a result of the changes to Employer’s National Insurance Contributions and the National Minimum Wage. For example, a business with 50 part-time staff aged 18-20 working around 15 hours per week will have to find an additional £65,000 from April 2025 just to pay wages. This will particularly impact businesses reliant on part time staff such as in the retail and care sectors but especially for already struggling hospitality businesses.” Reflecting further on what’s still to come for Northern Ireland family-owned businesses, Janette commented: “From 30 October 2024 the rates of Capital Gains Tax have already increased from 10% to 18% and 18% to 24% ahead of a stepped reduction in the benefit of a key Capital Gains Tax relief, Business Asset Disposal Relief, commencing from April 2025. Then, from April 2026 the benefit of two key Inheritance Tax reliefs is being reduced by 50% for businesses (including farms) worth more than £1 million. This means that further down the tracks the same family business owners are facing a significantly higher tax bill when the time comes for the next generation to take over. Those who are approaching retirement will now pay more Capital Gains Tax either when they sell the business or pass it on to their successors whilst still alive. On a death transfer, the Budget’s Inheritance Tax changes from April 2026 mean that whomever inherits the business will be hit with an extra 20% Inheritance Tax bill on any value over £1 million. Figures suggest that an estimated 33% of farmers in Northern Ireland will be affected. Many family-owned businesses and farms here started out small 20 or 30 years ago and through sheer hard work, sacrifice, and determination have grown in size. It would not be unusual for those businesses to now be worth several million pounds. For a business or farm worth £2million, these changes will add as much as £200,000 onto the family Inheritance Tax bill. The reality is that many will be forced to sell the business or farm to pay this new bill.”

Earlier today HMRC advised us that some of its telephone helplines are currently experiencing a reduced level of service due to a technical issue. HMRC first made us aware of this late last week. HMRC is working urgently to resolve this. Taxpayers and agents can continue to use online services, where relevant, which we have been advised are working as normal.

Chartered Accountants Ireland was proud to host the launch of Dublin City University Access to the Workplace 2025 in Chartered Accountants House on Pearse Street this week. Now in its sixth year, this award-winning programme provides professional summer internships for DCU Access students from socio-economically disadvantaged backgrounds, and for neurodivergent students. The launch event, Beyond Bias: Unlocking Future Talent, explored how organisations can develop a workforce that is diverse, inclusive and ready to embrace the possibilities of an unscripted future. Commenting Barry Doyle said  “We are proud partners of this programme and fully support the work DCU do in the area of recognising and supporting those whose potential might otherwise have been overlooked. By opening doors to these talents, DCU and their corporate partners are helping to level the playing field, broaden perspectives, and build a workforce that truly reflects the diversity of Ireland’s future. This event not only shines a spotlight on this hugely impactful initiative but also reaffirms our collective commitment to diversity, inclusion, and innovation in the workplace.”

The VAT in the Digital Age proposal promises a major overhaul of the VAT regime in operation across the EU. Janette Maxwell and Fadi BouKaram delve into the details On 5 November 2024, EU Finance Ministers at the Economic and Financial Affairs Council (ECOFIN) unanimously agreed on the VAT in the Digital Age (ViDA) proposal. Although some formal procedures will need to be completed before the proposal is fully implemented, this agreement is expected to pave the way for significant changes to the VAT system across the European Union. The ViDA initiative comprises a series of significant reforms to the common VAT rules in the EU. Its goal is to enhance VAT compliance, combat tax fraud and modernise VAT regulations to better align with the demands of the digital age. The latest ViDA package has three pillars: E-invoicing and digital reporting Platform economy Single VAT registration E-invoicing and digital reporting For the supplier, electronic invoicing will be established as the standard method for issuing invoices and possessing a valid e-invoice will ultimately be a key requirement for VAT recovery. Invoices should generally comply with the European Standard (EN16931) and its specified syntaxes, but Member States may allow other formats under certain conditions. Electronic invoices for cross-border transactions must be issued no later than 10 days following the chargeable event. The e-invoice must be digitally reported to the relevant tax authorities by the supplier directly after the e-invoice has been issued (or within five days if the customer issues the e-invoice under a “self-billing” arrangement). The customer, however, is required to digitally report information from the e-invoice within five days of receiving it from the supplier. Member States may waive this digital reporting requirement for customers. The requirements above will apply from 1 July 2030. Platform economy From 1 July 2028, a taxable person who uses an electronic platform to facilitate short-term accommodation rentals (max 30 nights) – and/or passenger transport by road – will be regarded as the supplier of those services for VAT purposes and will therefore be liable to account for VAT, unless:  The underlying supplier provides its VAT identification number to the platform operator; or The underlying supplier informs the operator that they will charge the VAT due on that supply. Member States may decide not to designate the platform as a deemed supplier if the underlying supplier qualifies for and chooses the small and medium-sized enterprise (SME) VAT regime. Member States must implement the rules by 1 January 2030 at the latest. Single VAT registration The Single VAT Registration (SVR) pillar aims to minimise the requirement for non-established traders to register for VAT in an EU Member State where they are not established. The One-Stop-Shop (OSS) has been expanded to include additional types of supplies, such as domestic business-to-consumer transactions including the supply of electricity and natural gas, supply and installation contracts, as well as domestic supplies of goods and services. A new OSS module will allow businesses to report the movement of their own goods between EU Member States. Currently, moving goods usually requires VAT reporting and registration in both the country of dispatch and the country of arrival, with some exceptions. From 1 July 2028, businesses can choose to report these movements through the OSS, which means they will not be required to report acquisition VAT in the destination country. Time to prepare The time to prepare for these changes is now. Businesses need to review their IT systems and start thinking ahead as to how these changes will impact their day-to-day operations and related invoicing processes. Janette Maxwell is International Indirect Tax Director at Grant Thornton Ireland Fadi BouKaram is Director of Tax at Grant Thornton

Chartered Accountants Ireland has today launched its new guide to Foreign Direct Investment (FDI) in Ireland at an event in conjunction with IDA Ireland in Dublin.  Over 100 attendees gathered in Chartered Accountants House to hear from a panel of: Cróna Clohisey, Director of Public Affairs Chartered Accountants Ireland Feargal O'Rourke, Chair, IDA Ireland Barry Doyle, President Chartered Accountants Ireland Ireland faces greater competition as a location for global FDI than ever before as we move into 2025, with other countries enhancing their offering at pace. While Ireland’s FDI policy has stood the country in good stead for decades, a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means Ireland’s inward investment model is now at a crucial inflection point. Commenting at the event, Cróna Clohisey, Director Public Affairs, Chartered Accountants Ireland said “Ireland’s record of attracting FDI has been the envy of other countries for decades and IDA Ireland has played a pivotal role. However, against a backdrop of heightened geopolitical uncertainty and intensifying global competition for inward investment, we cannot afford to be complacent about our offering. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.” Barry Doyle, President, Chartered Accountants Ireland said “We are all familiar with the advantages that Ireland holds in attracting FDI - EU membership, strategic location, young talented workforce and a stable business environment. Our members also represent a key competitive advantage, with Chartered Accountants playing a central role in supporting FDI the length and breadth of the country. “Competition has never been greater for the flow of FDI around the world, and with a new US administration taking office in a matter of weeks, there is an increased chance of disruption to the traditional flow of FDI globally. However, investors with a long term, sustainable outlook will look beyond short-term protectionism. Ireland as a safe and stable environment will continue to benefit greatly from FDI and we as Chartered Accountants will be there to lead and support such investments.”

Reacting to today’s Budget, Chartered Accountants Ireland says that small businesses have borne the heaviest burden in the attempt to repair the UK’s finances and the innovative tax policies needed to drive long-term growth and sustainability are not in evidence today. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee noted: “In a rush to repair the funding gap in public finances and keep pre-election promises not to raise tax on working people, the hike in employers’ national insurance contributions (NIC) as well as a rise in the minimum wage means small businesses, many of whom are already struggling, will face increased labour costs. Although some businesses will be partially protected by increased allowances, the 1.2% rise in employer NIC is unlikely to be sustainable for many. “Increasing the rates of CGT was anticipated but the concern remains; a higher rate brings with it the risk of deterring investment and is likely to lead to reduced economic activity across many sectors which could ultimately slow the tax take. “On the business tax side, maintaining the corporation tax rate of 25 percent gives much needed certainty to business leaders. Chartered Accountants Ireland continues to support a reduced rate of corporation tax for businesses operating in and from Northern Ireland and believe that this would raise productivity, increase incomes, and unlock the economic potential in the region.” Gillian Sadlier, Chair of Chartered Accountants Ireland Ulster Society, said: “The extent to which the various measures announced in today’s Budget will lead to real growth across the UK economy remains to be seen. Ultimately, businesses are the drivers of growth and what this Budget has done is increase their overheads. “There were some smaller innovative measures that the government could have announced which would have cost relatively little. For example, we would have liked to have seen an increase in the £90,000 VAT registration threshold to reduce the administrative burden on small businesses and to enable growth. In terms of innovation, a commitment to review the rules around the research and development credit to make it best in class internationally would also have been welcomed.    “The commitment to significantly increase HMRC’s headcount is positive but there must be a definitive drive to improve customer service levels, which have deteriorated in recent years.” ENDS

In a letter to the Exchequer Secretary to the Treasury, the Institute took the opportunity to highlight a range of tax policy and tax administration recommendations and concerns ahead of next week’s Budget and the 2025 Spending Review. From business taxes to the need to invest in HMRC, the Institute also advocates for a lower rate of corporation tax for Northern Ireland.  The full range of areas covered in the letter are as follows: Business taxation and the need for stability, certainty, and supports for investment, How tax policy can support the transition to net zero, The fuel duty dilemma, The Trader Support Service and the customs intermediaries’ market in Northern Ireland, Potential Budget Day announcements on capital taxes, Investment in HMRC, Making Tax Digital for income tax, Tax simplification and policy making, and A lower rate of corporation tax for Northern Ireland.  

On Friday, the Department of Finance held the fourth meeting of the Business Tax Stakeholder Forum at the Department of Finance on Merrion Road. The Institute was in attendance under the auspices of the CCAB-I. The meeting was chaired by Sinead Ryan, Assistant Secretary with responsibility for business and international tax policy.  Among the matters discussed were recent developments in domestic tax (including the recent publication of Finance Bill 2024) and international tax (including recent work in implementing Pillar Two and finalising work on Pillar One).   Of particular interest to readers will be the Department’s request for a list of priority areas within domestic legislation where legislation could be updated with the dual aims of enhancement and simplification. The Institute will be discussing the matter with our Tax Committee with a view to providing a list of issues ahead of the Christmas break. 

As some companies pivot back to full-time office work, Mark Fallon examines the sustainability of remote work and its impact on business culture and talent retention The first few months of the year changed the landscape of the professional working week. From the onset of the COVID-19 pandemic up until 2022, office workers were predominantly ‘working from home’ (WFH). Then came the shift to a hybrid working model, with professionals working part-time in the office and part-time at home. Today, in thew fourth quarter (Q4) of 2024 and trending into 2025, the dynamic is changing once again with many companies doing a U-turn on their WFH policies, demanding their employees to return to the office five days a week. Resurfacing culture concerns In 2020, Coopman Search and Selection ran a survey of more than 400 professionals in Ireland about working from home in the first winter of COVID-19. Out of several interesting findings in this survey, the biggest fear from corporations at this time was the ‘lack of collaboration’ and ‘loss of culture’ with employees not being present in the office environment. Fast-forward to Q4 2024 and this concern has come to fruition, with business leaders ‘feeling’ that employees need to be in the office more , as stated by Andy Jassy, CEO of Amazon, in September 2024, “to be better set up to invent, collaborate and be connected to each other”. There is mixed data on the advantages and disadvantages of WFH. Some claim productivity has dropped since its introduction, while employees who benefit from hybrid working feel more empowered, better at balancing personal and professional responsibilities. Flexibility remains key to talent attraction Flexible remote work policies can significantly impact the quality of talent they attract. Companies based in major cities might miss out on top talent by requiring full-time office attendance, as many skilled workers are located outside of the commuter area. Offering hybrid or remote work options can help businesses remain competitive in the talent market. While studies have shown mixed results on productivity, some report up to a 13 percent increase in output from remote workers, though others suggest a drop in collaboration and engagement. Looking ahead to 2025, many large companies are expected to increase mandatory office days, while smaller businesses may stick to hybrid models. Employees unhappy with stricter office requirements will likely seek more flexible employers, giving those companies a chance to secure top talent. Fully remote workers may face more challenges securing roles as the trend shifts toward in-office work. A future of retention and growth As the debate over remote work continues, companies that balance flexibility with in-office collaboration will likely be best positioned to attract top talent and meet employee needs in Ireland for talent attraction and retention. Organisations must carefully assess their policies to foster environments that encourage both individual efficiency and collective creativity, ensuring a sustainable future in the evolving work landscape. Mark Fallon is Director and Co-Founder at Coopman Search and Selection

Reacting to today’s Budget speeches, Chartered Accountants Ireland has noted that while generous steps have been outlined to support individual taxpayers, the package of supports for business falls short of what is needed to materially reduce the cost burdens facing Ireland’s SMEs. Chartered Accountants Ireland, the largest professional body on the island of Ireland, representing over 38,400 members highlighted the persistent pressure that businesses, in particular SMEs are experiencing, despite supports already committed to by government during 2024. Commenting, Director of Public Affairs, Cróna Clohisey said “While today’s budget announcement featured several positive changes to the business tax landscape including an expansion of the R&D tax credit and extensions to certain investor reliefs, measures of this nature, although welcome, will arguably do little to mitigate the everyday overheads facing many small businesses. “With the higher rate of employers’ PRSI rising to 11.15% with effect from today, alongside a further uptick in labour costs brought about by the rise in the minimum wage and the introduction of pensions auto-enrolment next year, many small businesses may feel that Budget 2025 did little to reduce their overall labour costs which is a real missed opportunity.” The Institute welcomed the Government’s commitment to invest €3 billion to support the development and expansion of water, electricity, and housing infrastructure. Clohisey continued “Now is the time to accelerate investment in the State’s infrastructure if we are to remain attractive as an FDI destination, and competitive in the global race for inward investment. It is vital however that the Government takes meaningful steps to ensure that infrastructural projects of this scale are delivered on time, on budget, and achieve the value for money that taxpayers expect. “On childcare, today’s announcement of an additional €1.37 billion in funding for the sector is a positive development in what is a key tenet of the State’s essential economic infrastructure. Today’s announcement will hopefully go some way towards improving capacity in the sector making it easier for working parents to secure a childcare place for their child”. ENDS

We caught up recently with Marie-Claire McDonnell who has recently returned to Ireland having spent 12 years living and working in Toronto to find out more about the ups and downs of returning home.  1. After 12 years living in Toronto, was there a pivotal moment when you were sure it was time to make the move back to Ireland? We were very happy and settled living in the suburbs of Toronto. My husband (also an Irish accountant) was approached regarding a relocation with his work to their Dublin office. It was a fantastic opportunity for him and a relocation package to your home country is not something that comes up very often. Our three children are still young and we felt it was the right time to move if we were ever going to do it.  2. What was your biggest concern (if any), about moving back and how did you overcome it/them?  I guess the biggest concern is the fear of whether you are making the right decision for everyone in your family. Going from being completely set up in your life after 12 years to starting from complete scratch gets very overwhelming, especially where children are involved. It's important to focus on the reasons for making the move in the first place, the positives of living in Ireland versus abroad.  3. What advice would you give to a member who is at a similar stage?  Preparation is key. Making a list of all the big ticket items that need to be done and working through it with a long lead up time. We had a good six months to prepare before leaving Canada. It is also really beneficial to speak to people who have made a similar move and understand the pain points and the processes involved for various items. I was lucky to have some friends who made the move back before us who I leaned on for advice. Finally, what really helped us moving with small children was that I could take unpaid leave for a few months after we arrived to help get everyone settled. It really helped our family with the transition.  4. What do you think you will miss most about Toronto?  We miss our friends a lot – that is the hardest part. We are lucky that Toronto is very accessible from Dublin so we will be back again soon for a visit.  5. What do you appreciate most about being back in Ireland?   We love being closer to family. When you live abroad you spend most of your holidays coming back to Ireland to visit family and friends. There are lots of options in Ireland for mini breaks and also Europe is on our doorstep so we look forward to many years of fun holidays exploring. 6. What is next for you? I was also very lucky to transfer my role with my employer to their Dublin office. I took the summer off so am now settling back into work and real Irish life!! Our final step is to buy a house which we hope to do in the next year.  Marie-Claire McDonnell on LinkedIn      

As anticipation for an early general election continues to grow, the Institute’s public policy team has made submissions to all of the main political parties setting out the key policy priorities we would like to see featured in any future Programme for Government. Read our manifesto. Supporting small businesses While the Government has acknowledged the financial pressures SMEs are under, many businesses remain constrained by rising labour costs. In a recent survey of our members, 90 percent of respondents identified labour costs as being the single biggest operating cost facing their business today with over 90 percent saying that these have increased over the past year. With this in mind, we are calling for the next Government to: 1. Reduce Employers’ PRSI on minimum wage workers by 1.5 percent to mitigate the cost of auto-enrolment for employers Currently employers’ PRSI is paid at a rate of 8.8 percent (8.9 percent from October 2024) and a reduction by 1.5 percent would cost the Exchequer an estimated €63 million in a full year. This proposal would compensate employers who will have to introduce pensions auto-enrolment during 2025 at an initial cost of 1.5 percent. The cohort most impacted by the new pensions scheme will be the estimated 164,000 minimum wage workers. 2. Think small first when it comes to introducing new legislation and regulations SMEs have also had to deal with the introduction of an unprecedented number of new legislative requirements over the past 2 years, adding to their cost and administrative burden.  One example is the introduction of enhanced reporting for employers meaning that employers have to report in real-time details of tax-free travel and subsistence and other benefits paid to employees.  Government needs to be cognisant of these challenges when implementing new regulations and have regard to the timing and suitability of same. It is important that small companies do not face any unnecessary or disproportionate regulatory obstacles to start up, establish and grow.  This can be achieved by: Strictly applying the ‘enhanced SME test’ across all government departments when introducing new legislation that will ultimately affect the bottom lines of SMEs. Staggering the roll out of new workplace legislation in a timely manner so as not to overburden employers with additional new costs all at the same time. Facilitating consultation and dialogue with SMEs and other impacted stakeholder groups before introducing new legislation or policy that affects small businesses. Reducing the frequency of reporting the payment of travel and subsistence and other benefits to a monthly or annual basis. 3. Simplify the tax regime for SMEs to encourage enterprise and innovation It is acknowledged that businesses face a complex challenge in accessing tax reliefs and schemes and the Government has shown a desire for all businesses, especially SMEs, to know what they are entitled to claim and can access all appropriate schemes and reliefs.   However, there are several areas where improvements must be made including: (i) Making share-remuneration more attractive by: Maintaining the Employers’ PRSI exemption, which offsets some of the cost of establishing share schemes. Deferring all tax charges for the employee until a sale or liquidity event occurs and allowing CGT treatment on a redemption of employee-owned shares. Enhancing the Key Employee Engagement Programme (KEEP) scheme by relaxing some of the onerous conditions for establishment which drives set-up costs. (ii) Encouraging SMEs to claim the R&D tax credit Larger organisations represent a larger proportion of the amount of R&D tax credit claims in a year. Smaller organisations are disincentivised from claiming an otherwise-available R&D tax credit on the basis of a lack of certainty, fundamental tax risk, and burdensome scrutiny of claims. This can be achieved by: Offering an enhanced rate for small and micro companies of 50 percent. Simplifying the documentation and qualification requirements for SMEs. Introducing a Revenue pre-clearance system for first time claimants. Improving Revenue guidance targeted at SMEs and including a list of common pitfalls encountered by claimants. (iii) Reduce Capital Gains Tax from 33 percent to 25 percent Investment is critical in enabling start-ups to thrive and SMEs to grow and expand.  A lower rate of CGT has been shown to encourage innovation and risk taking. It encourages the sale and purchase of assets, which drives investment activity. This would improve returns for entrepreneurs and in turn the Exchequer.  Improving childcare capacity and affordability for working parents Childcare provision is part of the critical infrastructure necessary for a functioning economy. Access to affordable and good-quality childcare can play a key role in driving more sustainable and inclusive economic growth. In a survey of our members published earlier this year, 97 percent of respondents surveyed said that they had considered adjusting their working patterns as a result of not being able to find a childcare place while almost half of respondents signalled that they have had to reduce their working hours as a result of this. From a cost perspective, one third of members currently pay up to €1,000 a month per child on childcare with one third paying between €1,000 and €2,000 per child per month. This is not a sustainable situation. To address these issues, we are calling on the next Government to: 1. Commit to a whole-of-government strategy which recognises childcare as part of the critical infrastructure necessary for the functioning of the economy. This strategy should: Focus on encouraging the availability of flexible or part-time childcare places to reflect current work patterns. Targeted funding could be directed at facilities to offer more flexible offerings. Ensure adequate capacity in the sector by officially analysing and documenting childcare needs in local areas on a regular basis.  Expand the work of the Access and Inclusion Model (AIM) programme which caters for children with a disability by creating a more inclusive environment in pre-schools through universal and targeted supports. 2. Ensure funding of the existing system reflects the true cost of service provision and encourages growth in the sector. This can be achieved by: Regularly reviewing Core Funding to ensure that the model is suitable for the sector and enables providers to be sustainable, profitable and retain an ability to invest in their own services. Supporting an integrated system of full time and after-school care with both types of care adequately funded. Reflecting the additional cost burden placed on providers by the administrative requirements of Core Funding, the administration of the National Childcare Subsidies as well as the enhanced regulation experienced by childcare providers (and SMEs generally) by the introduction of new labour laws including pensions auto-enrolment, which is expected in 2025.   3. Enhance awareness of support subsidies available to parents under the National Childcare Scheme. This can be achieved by: Ensuring that maternity hospital and Public Health Nurses to provide information on the supports available to new parents in the early years. Requiring childcare providers to highlight available supports to parents as part of the application process to register their child with the childcare facility. Translating the NCS portal into other languages as language barriers have been reported as being a barrier to claiming the subsidy. As part of our pre-election campaign to promote the above advocacy agenda, in recent weeks representatives from the Institute have met with Minister for Enterprise, Trade and Employment Peter Burke and Minister for Finance Jack Chambers. In addition, we have engaged with senior officials at the Department of Children, Equality, Disability, Integration and Youth and have arranged forthcoming meetings with spokespeople from all of the main opposition parties. As we approach the next general election, the Institute’s public policy team will continue to advocate for our members interests across the political spectrum. Should you have any questions on our campaign or wish to bring a specific issue to our attention, please contact the public policy team at publicpolicy@charteredaccountants.ie  

The earning potential for both experienced and newly qualified Chartered Accountants working in Leinster has increased significantly, according to data published today by Chartered Accountants Ireland Leinster Society. The survey results show the average salary package in Leinster now stands at €123,466 (up 4% on 2023), with the average basic salary of newly qualified Chartered Accountants rising to €62,374 (up 5.6% on 2023). The annual survey of over 1,100 Chartered Accountants, launched today by Chartered Accountants Ireland Leinster Society in partnership with Barden, Ireland’s leading accounting and tax talent advisory and recruitment firm, provides the most up-to-date guide to Chartered Accountant salaries and employment prospects in the Leinster region.   Strong growth in remuneration packages The research, conducted by Coyne, shows earning potential across the profession remains strong, with €123,466 the average salary package for Chartered Accountants working across all sectors. This figure includes base salary, car or car allowance, and bonus. The longer-term trends are also strong, with a 10% increase in average salary package between 2019 and 2024. 67% of respondents are satisfied or very satisfied with the salary they receive. 90% of respondents overall say their total remuneration has increased in the past three years, with 33% reporting it had increased by more than 25%. Four in five claim their total remuneration is expected to increase within the next 12 months. As part of the remuneration package, 73% expect to receive a bonus in 2024.  Most common elements in salary package The vast majority (87%) of members have a pension, with employers contributing an average 9% of their salary. After basic salary, this pension contribution is the most valued part of their package for 54% of respondents. The other most common elements in respondents’ salary packages are payment of professional subscriptions (79%); Cycle to Work scheme (59%); health insurance (55%); and sponsored professional development (51%). Artificial intelligence in the profession An increasing enthusiasm about the opportunities represented by artificial intelligence is clear from the 2024 survey findings: Over half (52%) of respondents say it is a significant opportunity for the profession (40% in 2023). 55% say it will allow the profession to move further up the value chain in terms of the work it does (47% in 2023). 57% of respondents feel that artificial intelligence will impact positively on their career (44% in 2023). In terms of the wider impact of technology on the profession, 60% feel that cloud-based accounting solutions will impact positively on their career, with 68% of respondents saying the same about automation. Commenting Damien Carr, Chairperson of Chartered Accountants Ireland Leinster Society, said:   “It is very encouraging to see growing enthusiasm about the potential of AI to move Chartered Accountants’ work further up the value chain. AI will not replace human judgement or strategic decision making however but will sit alongside these critical skills that have made Chartered Accountants among the most trusted advisors to senior business leaders. In addition, 44% of respondents agree that AI should be a regulatory priority, and I am confident that regulations such as the new EU AI Act will guide business and society in achieving this important balance. “The continued increases to newly qualified and average salaries demonstrates the level of demand that continues to exist for our profession and will help us to continue to attract the brightest talent to Chartered Accountants Ireland into the future.” Non-monetary rewards and work-life balance The survey findings identified a range of initiatives across Irish workplaces to facilitate team healthy work-life balance. The most common tools made available were the option for hybrid working (available to 83% of respondents); parental and carers’ leave (available to 49% of respondents); and an employee assistance programme (available to 50% of respondents). Job satisfaction was high amongst those surveyed, with 63% satisfied with the non-monetary aspects of their job (62% in 2023); 76% of members satisfied with their work environment (77% in 2023); and 66% happy with work/life balance (64% in 2023). Elaine Brady, Managing Partner at Barden, said: “Despite the continued backdrop of macro level uncertainty over the past 12 months, the demand for accounting talent seen in 2023 has continued strongly into 2024. Differentiating themselves and creating clear career paths is a key challenge for companies throughout Ireland. Accurate data on intrinsic and extrinsic reward can create competitive advantage for those who choose to use it. The insights gained from this publication can also help businesses and hiring managers to craft competitive reward structures to aid not just talent attraction, but as importantly, talent retention. “It is also extremely interesting to see that 83% of members have some form of hybrid working arrangements, with 3 days a week in the office becoming the average. “Also interesting to note is the change in respondents’ perception of AI, and how it will positively impact their day-to-day work, up to almost 57% this year, a significant increase on last year’s 44%. This in turn has an impact on satisfaction with their work, which has also increased this year to an impressive 76% of Chartered Accountants being either satisfied, or very satisfied with their work environment.” ENDS  Note to editors  The survey was conducted by Coyne Research on behalf of Chartered Accountants Ireland Leinster Society, in partnership with Barden, between 7 June – 24 June 2024. About Chartered Accountants Ireland Leinster Society   Chartered Accountants Ireland Leinster Society is a district society of Chartered Accountants Ireland, representing over 16,000 Chartered Accountants throughout Leinster.   Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing over 38,400 members in over 100 countries and educating 6,600 students. In February 2024, members of Chartered Accountants Ireland and CPA Ireland elected to join together as a single professional body. On 1st September 2024, members and students of CPA Ireland became incorporated into Chartered Accountants to create the largest professional body on the island of Ireland. Chartered Accountants Ireland is one of the top 20 professional accountancy bodies in the world, by size. It is an all-island body established by Royal Charter in 1888, working to create opportunities for members and students as well as advancing the public interest. It is a founding member of Chartered Accountants Worldwide, the international network of over 1.8 million chartered accountants. Chartered Accountants Ireland members also play key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants. Chartered Accountants Ireland’s members provide leadership across both the public and private sector, bringing experience, trusted expertise, and strict standards to all aspects of their work.  Chartered Accountants Ireland engages with a number of stakeholders including governments, policy makers, regulators, and business groups on key issues affecting the profession and the wider economy. Chartered Accountants Ireland supports members at every stage of their career from education to qualification to continuing professional development.   About Barden Barden is a partner led talent advisory and recruitment firm consumed with supporting companies that really know the value of their people. Barden’s expertise covers Accounting & Finance, Business Support, Engineering, Legal, Life Sciences, Projects & Transformation, Supply Chain & Procurement, Technology, and Tax & Treasury, talent advisory and recruitment. Chartered Accountants specifically choose to join Barden in order to use their qualification in a different way. Barden has proudly partnered with the Chartered Accountants Ireland Leinster Society, for the last seven years, to bring you the annual salary survey. Barden also works closely with Chartered Accountants Student Society of Ireland (CASSI) and Young Professionals to make sure their members get access to the right information, at the right time in order to make more informed decisions about their professional future.    

Today, Chartered Accountants Ireland and CPA Ireland commenced operations as one Institute under Chartered Accountants Ireland. CPA Ireland members, students, staff and services have been incorporated into those of Chartered Accountants Ireland creating the largest professional body on the island of Ireland.  Chartered Accountants Ireland President Barry Doyle said:  “Today Chartered Accountants Ireland welcomes new members, students, and staff to the Institute. This is the culmination of close member engagement and strong collaboration between both Institutes towards a shared vision for the future of the profession.   “I want to thank members for their support and feedback which has laid the foundations for a new chapter in our history, and I look forward to working closely with all members in the coming months.”  Together, as one Institute:   Chartered Accountants Ireland is now the largest professional body on the island of Ireland, giving a strong and effective voice on key issues of relevance for the profession like business supports, taxation policy, and childcare to over 38,400 members working in business, practice, and the public sector.    Chartered Accountants Ireland offers an even more powerful qualification with dual designation, combining the recognition and strengths of both qualifications, benefiting members at home and abroad. This means that members can now use ACA or CPA, while those who are Fellows can use FCPA or FCA. As a member of Chartered Accountants Ireland, you may have access to membership of other leading professional accountancy bodies in economies around the world. Learn more.    Chartered Accountants Ireland educates 6,600 students, the next generation of ACAs, as well as now having even wider and deeper relationships with second and third level institutions across the island of Ireland.    Chartered Accountants Ireland is now the only Irish-based accountancy body on the island of Ireland, greatly enhancing our ability to promote the career and the qualification on this island, highlighting the attractiveness of the profession for the next generation.  Chartered Accountants Ireland now has a stronger financial base as a result of an increased membership base, and we look forward to delivering enhanced services and supports for all our members.    Chartered Accountants Ireland will augment our existing range of professional development resources such as events, courses and specialist qualifications. With the addition of the Skillnet training network, members can access an even wider variety of topics in accountancy, law, tax and strategic personal development.    If you are a new member since 1 September 2024, you can access more detailed information on services here.    You can continue to book your events, and when the time comes, pay your subscription, on the CPA Ireland website using your current CPA member number and password. Once the new IT systems are in place in support of the amalgamation, you will receive notification, information, and support in accessing it.    We encourage all members to keep up to date with all Chartered Accountants Ireland activity and news via our website, and our social channels.  

While I’m the youngest President in Chartered Accountants Ireland’s history, it’s still over twenty years since I sat Leaving Cert Accounting. Despite this passage of time, I studied the same syllabus, frozen in time since the 1990s, as the students who received their results today. Juxtapose this stasis with the absolute transformation of the accountancy profession in the last twenty years and you can see the mismatch. Add to this the fact that the Irish accountancy profession made a €19.8 billion contribution to the Irish economy in 2022, supporting over 83,000 jobs in Ireland and generating €1.8 billion in tax revenues, and the mismatch starts to have significant material impact. Back to the 90s Senior cycle is where most young people first interact with accounting as a subject, and the passage of time has not been kind to it. Students effectively need to “unlearn” much of what they learn at senior cycle and learn the subject anew at third level and in their professional training. The need for companies to provide reliable and transparent information beyond financial metrics has increased exponentially in the last decade, and the dated syllabus does not reflect the work that accountants do, and will do, in a modern economy. I want to acknowledge the work teachers around the country do to bring it to life for students, but they are nonetheless bound by the syllabus. We work closely with Leaving Cert students through our online second level accounting programme Boot Camp which now runs in every county in Ireland. Feedback from teachers we speak to indicates that in some cases, students were more attracted to Business at Leaving Cert as they saw Accounting as requiring a particular skillset, i.e. needing to ‘be good at maths’ to perform well in it. In speaking to our ACA students, many pursued accounting at third level despite, not because of, their experience at second level. Perception is critical. Chartered Accountant Ireland research among Gen Z respondents shows a clear gap in terms of how accounting is perceived by school leavers versus those who had commenced their professional training. Terms such as challenging, numbers-based, and boring were used by the former, dropping dramatically among the latter when they engage with a modern curriculum with the latest advances in technology and emerging accounting practices. Impact on the talent pipeline Anecdotally, the talent pipeline problem is clear right across the profession, from practices of all size to industry, resulting in attraction and retention challenges. It is driven by a huge increase in competition for talent from non-accounting roles; but also, this gap in perception of what accountants do. The accountancy profession is fundamental to Ireland’s economic prosperity. Our members support SMEs the length and breadth of the island, as well as playing a critical role in supporting investment from all corners of the world to Ireland. There is continued strong growth in demand for the services of the profession, but this demand can only be met if there is a strong pipeline of talent coming through, and this begins with our Leaving Cert students. I would say to students getting their exam results, employer demand for accountants is extremely strong. Salary levels for qualified accountants reflect this demand and the vitally important roles that accountants perform in all organisations. This demand continues to grow and so too does the range of opportunities. Reform is on the way This Institute has been engaged with the Department of Education for some time on the need to reform the Leaving Cert Accounting syllabus. Earlier this year we took our place on the National Council for Curriculum and Assessment’s Leaving Cert Accounting development group. We are now in the redevelopment process, but this change is so long overdue, and the rate at which the profession is innovating and transforming is in sharp contrast to the lack of agility over the last couple of decades at Department level in keeping pace.   It is envisaged that a revised specification for Leaving Cert Accounting will be introduced in schools from September 2026. It will provide a much-needed opportunity to ensure that the subject is relevant for students beyond second level education. And this is critical, as accountants are found across most business functions now, they are no longer confined to finance teams. There is an increased demand in industry roles, business process transformation, data analytics, regulatory technology, Fintech, compliance, risk management and ESG reporting. Senior cycle accounting of the future will feed a pipeline of students through the many entry routes into the profession, whether as school leavers or graduates, to meet this demand. So, the syllabus needs to reform, and then keep reforming. Remarkably, even with all the flaws of the current syllabus, accounting is the second most popular subject in the business suite for students in senior cycle and between 12-14% of students have been choosing the subject annually. It is exciting to imagine what a reformed syllabus could do to attract the best and brightest of our future business leaders.

“Auto Enrolment has been talked about for decades – now it is finally happening.” The words of Social Protection Minister Heather Humphreys after the Automatic Enrolment Retirement Savings System Bill passed through the Houses of the Oireachtas. Ireland is one step closer to catching up with every other OECD country that already has some form of auto-enrolment. It might be finally happening, but when is less clear. Momentum is needed to avoid the work of the last two decades being squandered. Two-thirds of Chartered Accountants Ireland’s members work in business, many of whom will be required to put such a scheme in place for their employees. The most recent formal communication from government suggests a start date sometime in 2025. And yet, putting in place the infrastructure to facilitate a system of pensions auto-enrolment is a mammoth task, and the list of outstanding deliverables at Department level is concerning before it even comes time for businesses to act. Hurdles to clear The legislative hurdle has now been cleared, but the Department of Social Protection has only in recent weeks appointed a company to build and run the new system. We are encouraged to see they have chosen a company that has a record of success in building the UK equivalent. We urge the Department to now expedite the appointment of a firm to manage the underlying investments. In recent weeks, it was reported that the Department of Finance has raised concerns that the auto enrolment legislation has been framed in a way that will force the regulator to apply a lower standard of oversight than that imposed on firms in the private pensions market. Other details also need to be clarified. In recent months, this Institute has requested such clarity in several areas. Many employers with staff who are likely to come within the remit of auto-enrolment will already have occupational pension schemes in place. To avoid the administrative complexity of setting up and operating a second staff pension scheme under auto enrolment, such employers may instead offer to extend participation in their current pension scheme to currently non-pensionable employees. However, if even just one of these employees refused to join the staff scheme in favour of being automatically enrolled, the employer would still be compelled to undertake the cost of setting up and operating a second scheme. We also sought more information around the meaning of “employee”, defined in the legislation as “a person in receipt of emoluments”. Such a definition would extend to individuals already in full-time pensionable employment who also undertake additional work who will therefore be required to contribute to a second pension scheme. Communication is going to be key The government’s recent SME package put a premium on the importance of consultation and dialogue with SMEs and other groups before introducing new legislation or policy affecting them. Auto enrolment is an opportunity to put this into practice. The government now needs to publish a road map and stick to it. While feedback was invited as part of an initial public consultation in 2018, since then only a very basic four-page guidance note for employers has been issued by government. To gain and maintain momentum, extensive and continuous stakeholder engagement is needed - not least with employers and payroll providers, upon whom the successful operation of the new system will be largely dependent. In a survey of small businesses conducted by Chartered Accountants Ireland, almost 90% felt that businesses had not been adequately informed of the steps needed to be taken by them to comply with pensions auto-enrolment in time for an early 2025 start date. Interestingly, three quarters of those surveyed will be required to introduce the new pension scheme, and for many this will be alongside their existing occupational pensions. Businesses need to see what the journey to implementation will look like. In a high-cost environment, this will give much needed reassurance and help to allay concerns. What is a realistic timeline? In its pre-legislative scrutiny report on the Bill introducing auto-enrolment, the Joint Committee on Social Protection recommended a two-year lead-in period, following the Bill being signed into law, to allow sufficient time for implementation. Payroll providers have been consistent in highlighting the need for an initial pilot phase to facilitate testing of the new system and to allow sufficient time to assimilate auto enrolment with current payroll systems. Neither of these fit into a 2025 implementation timeline. If officials truly want auto-enrolment to be a success, this timeline should be revisited and a 2026 or beyond start date announced. They may wish to avoid yet another postponement to the launch of auto enrolment but what should really matter here is getting it done right and giving businesses a chance to adapt. This additional time needs to be wisely used, by facilitating ongoing dialogue between departments, third party partners in implementation, and the many business groups and stakeholders who have walked this long road to auto enrolment.

Embracing failure as a learning opportunity can drive innovation, turning business setbacks into strengths and fostering growth, writes Joanne Powell One of the challenges of innovation, advancement and continuous improvement is that sometimes getting it wrong is inevitable. No one likes to fail. We’re naturally predisposed to want to achieve and do better. Whether in life or in business, innovation, advancement and achievement are key markers of success. Traditionally, failure is either not an option or it is perceived as a sign of weakness. There is a growing body of thought that challenges traditional perspectives on failure, however. Business leadership author Simon Sinek talks about “falling” rather than “failure” – i.e. because you can get up from a fall and move forward. Amy Edmondson, Professor of Leadership at Harvard Business School, has written extensively on the notion that it “…doesn’t matter if you fail. It matters how you fail”. New York Times bestselling author, John C Maxwell, has noted that, “the difference between average people and achieving people is their perception of and response to failure.” There are any number of articles from Forbes, HBR and other notable journals in a similar vein. The key message is that failure can be a very positive catalyst for success – but only if done well. Doing failure ‘well’ means seeing it as a key part of the process: a chance to learn, to reflect and to move forward. It can also help to see lessons learned from failure as part of the inevitable tapestry of life. One of the ways I practice this myself is through inspiration from Mary Wallace, the Irish artist. Her popular Precious Bowls series is inspired by two Japanese concepts: Kintsugi: using gold or other precious metal to repair broken pottery. Wabi-sabi: seeing beauty in imperfection. For me, ideas around learning from failure really come together with the concept of wabi-sabi and the idea of “beauty in imperfection”. Some sources translate the concept of wabi-sabi as “nothing is perfect”, which is considered to be inherently positive as it suggests that there is always potential for 'more'. Kintsugi is an equally wonderful tradition, as it treats flaws and imperfections as part of the history of an object rather than something to be disguised or hidden. In the context of business, this can provide a constructive lens through which to process “failure” and to see the final product (or latest iteration) as being stronger and even more precious because of the journey it has travelled. I keep one of the Mary Wallace ‘Precious Bowls’ prints over my office desk. Every time I look at it, I’m reminded of three key principles: Every project or strategy has potential – The ethos behind any project or strategy should be one of continuous improvement. You must recognise that nothing is perfect and, instead, optimise the potential available. The ability to innovate and remain agile and open to change is key. Innovation requires us to take calculated risks and be open to the prospect of failure. It is knowing and understanding that sometimes we get it “wrong”, that strategies and innovations don't always produce the desired impacts. Wabi-sabi reminds me to take time to reflect and learn from “failure”, and to produce something better. Create and encourage strong, trust-filled and (psychologically) safe organisations. By creating a culture where stakeholders are encouraged to reflect and to find ways to improve, we are, in a way, creating our own version of kintsugi, where failure is recognised as an inevitable side-effect of any organisation that values innovation and progress. It is how we respond to these “failures” that matters most. Joanne Powell is Head of Advisor Services at QED: The Accreditation Experts