Through boom and bust, BK has continued to help keep us profitable and they are a great source of positive encouragement. Nothing is too much trouble. I would recommend BK without hesitation to anyone in business or thinking of starting a business – BK is a firm of accountants who are professional, knowledgeable, experienced and who will go the extra mile.
Is your business ready for any Brexit outcome?
Is your business ready for any Brexit outcome?
Dramatic political developments in Westminster in recent weeks has brought the prospect of a hard Brexit into sharp relief. Unless the UK government finds a viable alternative to the current deal agreed with the EU, and as of today they seem no closer to achieving that, the UK may crash out of the EU on 29th March with potentially devastating consequences for Ireland – and that’s just 57 days away!
Despite a vote this week in the House of Commons against leaving the EU without a deal, there is still considerable appetite in the UK for this option, both with MPs and with the general public.
Up to now both Government and Irish businesses have had a tough decision to make about investing substantial resources in something that might never happen, and hopefully still won’t. There is no escaping the fact that a no deal Brexit is now a real possibility and if it happens it will have serious consequences for Ireland and Irish businesses.
The countdown has begun, if you haven’t already done so, the time is now to invest in a No Deal Brexit Plan.
Impact of a No Deal Brexit on the Dairy and Retail & Wholesale Sectors
This week we’re focusing on potential consequences for the Dairy and Retail & Wholesale sectors. A recent survey identified the main concerns in this sector as;
According to Bord Bia, Dairy products account for approximately 37% of total Irish food and drink exports. In 2016, 34% of Ireland’s dairy exports went to the UK, representing 53% of cheese exports, 29% of butter and 12% of SMP (skim milk powder). The UK is Ireland’s largest export market for cheese. Exports of cheddar cheese were 78,000 tonnes, representing 82% of all cheddar imported by the UK in 2016. Ireland is the only significant exporter of cheddar to the UK market and the UK market is the only market of significance for Irish cheddar – it’s simply not a popular choice anywhere else. The figures speak for themselves.
A recent survey carried out by the Department of Business, Enterprise and Innovation provides some insights into the concerns of the Dairy and Retail & Wholesale Sectors of the Irish Economy.
Dairy Sector Brexit Concerns
- Imposition of trade tariffs. 75% of firms deem this to be a critical factor. “EU import tariffs on dairy products are very high…and will have a market distorting effect if replicated by the UK on dairy imports from Ireland”. Assuming any EU tariffs on products such as milk and cheese in a WTO rules context imposed by the UK would be reciprocal, it would significantly reduce competitiveness of Irish dairy exports in the UK market.
- Absence of custom union and other common areas. 67% of firms deem this to be a critical factor. Removal of Northern Ireland from the Common Agricultural Policy could have a detrimental impact on milk production in Northern Ireland and knock-on consequences for the all-island milk market, as well as divergent product and operational standards, in addition to the segregation of Northern Ireland milk producers from the Irish manufacturing pool.
- Re-establishment of physical UK border. 58% of firms deem this to be a critical factor. Concerns have been expressed about the administrative and logistical cost implications on the cross-border movement of dairy products in raw and final product forms. The prospect of supply chain inefficiencies and higher risk of product perishability has also been raised.
- Imposition of rules of Origin. 50% of firms deem this to be a critical factor. In the case of an imposition of a rules of origin regime, such as under the WTO, it is feared we will face increased competition from cheaper non-EU imports to the UK or perhaps campaigns to support indigenous UK production. Another concern is that Northern Irish milk may no longer be competitive for import to the Republic of Ireland if unable to do so under ‘EU origin’ terms and the knock-on consequences in the supply chain.
- No mutual recognition of specifications or agreed technical specifications. 25% of firms deem this to be a critical factor and the remaining 75% identified it as being of moderate concern. A number of firms identified that divergent SPS (Sanitary and Phytosanitary) standards in the UK would be costly for Irish exporters, other firms considered that there may be different packaging and labelling requirements in different jurisdictions, increasing costs.
Retail & Wholesale Sector Brexit Concerns
- Imposition of trade tariffs. 100% of firms deem this to be a critical factor. A high level of concern was expressed for the cost increases businesses may face from any new tariff regime. Currently Ireland and the UK are one integrated market for wholesale and retail. Tariffs/admin and rules of origin limitations could increase cost of goods sold and reduce operating margins. Where there is a lack of alternative supply, firms may have little choice but to absorb increased costs.
- Imposition of rules of origin. 100% of firms deem this to be a critical factor. Concern was expressed that defaulting to World Trade Organisation ‘rules of origin’ would impose tariffs on both the import and export of products, and in particular food products.
- Re-establishment of a physical border with the UK. 100% of firms deem this to be a critical factor. Concerns exist about logistical arrangements and delays as a result of border controls between Ireland and Northern Ireland. The border will impact on any ‘next day delivery promise’ made to customers across all channels including online.
- Absence of a customs union and other common areas (including fisheries). 100% of firms deem this to be a critical factor. Additional costs and constraints on operations as a result of having to operate outside a free-trade area in the UK have been identified. Additionally in the event of a ‘hard’ Brexit, differing customs arrangements historically generate distortions which typically increase smuggling activity, with consequent damage to legitimate retail businesses.
- Removal or change in reciprocal Ireland/UK work, living, social and tax entitlements. 33% of firms deem this to be a critical factor, with the remaining 67% considering it to be a factor for moderate concern. Concern was expressed about the ability to move Irish staff to UK operations, or about our ability to attract talent and skills from the UK that we don’t always have readily available here.
Buckley Kiely can help you prepare your business for any Brexit outcome
Download our Brexit Business Support information here.
Brexit Business Support
T: 021 4350777
Sinead’s Amazing Athletic Achievements
Many of you will know Sinead O’Regan well as she has worked for Buckley Kiely for over 10 years – initially in Administrative Reception, and more recently in Accounts Receivable.
But did you know about her recent athletics achievements?
Sinead has always loved running – as a child she was very involved in her local athletics club in Co. Mayo. Having sustained a few injuries and due to other interests at the time, at the age of 15, she stopped going. “I’m not really sure why I stopped,” she explains, “but I always regretted it a little.”
Katie Follows in her Mom’s Footsteps
In recent years, Sinead’s daughter Katie, sharing her mom’s love for running, has achieved national success in sprint, hurdle and long jump events with their local athletics club in Kinsale.
So through her kids, Sinead has been delighted to be back involved in athletic circles in Cork.
Never Too Late to Start Again
“Last year, the opportunity came up for me to train for the Munster championships in the over 35’s category and I decided to go for it,” Sinead explains, “I love training anyway and it was good to have the challenge of getting back into it again after so long. Buckley Kiely has been very supportive also, allowing me to work flexible hours to facilitate a strict training schedule.”
Sinead Wins at Munster and All Ireland Events
Just last October (2017), Sinead began training for the 60m and 200m sprint events, with Sprint Coach Ger Moynihan. Within such a very short time, she has achieved amazing results, coming first in both (60m & 200m) events at the Munster Championship in January.
She then went on to win both events again at the All Ireland Championship this March!Heading to Europe
Before she knew what was happening, Sinead was heading for Madrid to compete in the European Masters Athletics Indoor Championship on March 19-24, where she was placed 5th in her semi-final 200m race.
So What’s Next…
Having taken a month off training following Madrid, Sinead is now building up her training regime again, going from 4-5 days to 6-days per week. The plan is to compete at various Irish events during the summer with the ultimate goal of competing in the World Championship in Malaga in September.
Now you know – she’s determined, tenacious… and fast!
(So pay your bills folks or she will catch up with you :))
Sinead is living proof that there is no limit to what can be achieved when you put your mind to something. We are very proud of her here at Buckley Kiely and wish her every success for the World Championships – go girl!
Revenue updates mileage rates
The Department of Public Expenditure and Reform has issued a new schedule of Civil Service Mileage Rates which apply with effect from 1st April 2017.
Some of the key changes are as follows:
1. An increase in the number of distance bands from two to four.
2. A lower mileage rate for the first 1,500km.
3. An increased mileage rate for the 1,501km to 5,500km band.
4. More favourable compensation rates for cars with lower engine sizes and emissions.
Mileage claims for the period 1st January 2017 to 31st March 2017 must be based on the previous rates but mileage incurred during this period will count towards total mileage for the year under the new rates.
Revenue’s Website and Manuals will be updated shortly to reflect these changes.
Brexit Implications & Proposed Strategies for the Irish Food Industry
Buckley Kiely & Co, Cork-based accountants and business advisors, in association with Afex Solutions, are pleased to announce details of a conference to discuss required strategies for coping with and surviving the effects of Brexit for the Irish food sector.
“Brexit Implications & Proposed Strategies for the Irish Food Sector”
Thursday 6th April, 2017
18:30 – 20:30
Clayton Silversprings Hotel, Cork
Guest speakers, Tara McCarthy, CEO of Bord Bia and John Finn, MD of Treasury Solutions will offer their insights into the critical issues facing the Irish food industry due to Brexit while discussing strategies proposed to address them.
Leading food industry experts will later join the guest speakers in a panel discussion, which will include an outline of some of the measures already being taken by firms in the food sector.
Chaired by Michael Cronin, Agrifood Business Partners, the panel includes: Tara McCarthy, CEO Bord Bia; John Finn, MD Treasury Solutions; Prof. Thia Hennessey, Dept. of Food Business UCC Business School; Alan Jagoe, President CEJA European Council of Young Farmers; Mary Daly Murphy, CEO The Food Safety Company; and Trevor Charsley, Senior Markets Advisor Afex Solutions.
“We firmly believe the time is now to take action to ensure the survival of one of our most important industry sectors”, said John Flynn, Partner at Buckley Kiely & Co. “Making up a sizable portion of our own client base, the food and agri sectors are critical to our own business and to many others. Taking the initiative is important to support businesses and protect jobs and much can be achieved especially if companies work together to meet the challenges ahead.”
Refreshments will be available from 18:30, with kick-off at 19:00 sharp. We’re expecting a full house so early reservation of free admission is advised at www.buckleykiely.ie/brexit-conference. Note: admission on the evening will be strictly for reserved guests only.
Business Innovation Hub to Create 100 Jobs in Cork
Buckley Kiely client Republic of Workhas recently announced they will open a new business innovation hub in Cork City next month which they hope will support the creation of up to 100 jobs over the next 18 months.
The Entreprenuers Behind the Venture
Chief Executive, DC Cahalane is delighted to be bringing an initiative, the largest of it’s kind in the region, to his beloved Cork. Cahalan, founder of BuiltInCork, former vice president for growth and marketing atTeamwork.com and former chief marketing officer at Trustev, has long been promoting and supporting businesses in the Cork region. Cahalane is joined by Dave Ronayne, chief executive of Irish Mainport Holdings and IBEC‘s regional president for Cork.
At the Heart of the City
The Bank of Ireland backed business hub will be based in the heart of the city at 12 South Mall.
The 15,000 sq ft hub will feature an ‘airport lounge style’ business lounge for casual meetings and networking, a meetings and event space, and three WorkHub co-working areas with 160 desks available on a 30-day, no contract basis. The hub comes with three board rooms, a meeting space for 100 people, two classrooms and a dedicated innovation centre for corporate off-site meetings and brainstorming sessions.
Who Will Use It?
The building is intended for use by businesses of all scales – from solopreneurs, start-ups, SMEs, and multinationals – across all sectors.
It will operate on a monthly membership model with various membership plans on offer. Members will enjoy free access to business software, special events and exclusive access to industry experts through workshops, office hours, and business coaching sessions.
So Much More Than Just a Building
Going far beyond just putting a roof over members’ heads, Cahalane explains they are “committed to [members’] success through a unique blend of community networking, innovation training and providing access to the latest technology and work practices. We want to expose our members to global best practice and help them take their businesses to the next level.”
Support from Industry Leading Muscle
Pat Phelan, who founded Trustev and oversaw its sale to TransUnion for €44m in 2015 is the chairman of the new hub’s advisory board which also includes Dan and Linda Kiely, founders of Cork-based global outsourcing giant VoxPro.
To Friendship & Success
Both Cahalane and Phelan remain close friends with many of us at Buckley Kiely since they opened the initial Trustev office in our building some years ago. We are delighted to continue to work with them as they start out on another exciting venture and we wish them every success!
Look what’s making a comeback!
Those of you in business some time may recall when Supplier Finance products like Earlypay or Supplyline were widely available from banks to businesses.
These products disappeared overnight, probably due to little requirement or uptake.
But now they’re making a comeback.
Supplier Finance could be described as reverse factoring or supply chain finance, in which the financial institute pays the supplier upfront, providing the business with extended credit or the option to avail of early payment discounts.
Flexible, Top-up Finance
Best suited to financially strong companies, this flexible finance is ideal for companies that want to free up cash flow to pay key suppliers. It offers ideal “top-up” finance for companies that have hit their bank limit. Moreover, it can be used in conjunction with Invoice Finance and doesn’t impact on any other existing funding arrangements. Importantly, it is made available without the need for personal guarantees or debentures.
Ideal for Construction or Retail Sectors
A flexible finance option which can be put in place quickly, Supplier Finance can be an ideal solution for companies that are not suitable for Invoice Finance due to the nature of their business, such as the construction or retail sectors.
If you are interested in availing of Supplier Finance and need assistance, or would just like to know more, please contact Niall Dennehy for further details.
Don’t miss these important tax deadlines!
Capital Gains Tax Payments
For gains arising between 1/1/16 to 30/11/16, the capital gains tax is due to be paid by 15/12/2016
For gains arising between 1/12/16 to 31/12/16, the capital gains tax is due to be paid by 31/1/2017
Act Now to Reduce Tax Liability!
Steps to Reducing Tax Liability
As many businesses and companies are now approaching their financial year-end, now is the time to consider steps that could or should be taken before year end to potentially reduce tax liabilities for the current year.
While it’s not possible to complete a fully accurate set of financial statements for the year before year end, a quick review by your accountant at this stage should provide you with a good indication of expected profits and therefore any potential taxable income for the company.
What are the options?
Armed with this information, your tax adviser can outline potential options applicable to you.
Click on the links below for a list of some of the tax saving measures available:
In addition to those listed here, there are many other options available depending upon an individual or company’s sources of income and structure.
Timing is Key
Remember, timing is key to making these tax savings, as all need to be acted upon prior to the year end. So act now!
Complete a Tax Review
Take 30 minutes out to visit your tax adviser/accountant – the savings can be very worthwhile.
Contact Buckley Kiely Tax for a consultation.
Note: This content is for general information purposes only and should not be used as a substitute for consultation with professional advisers.
Income Tax Deadline is now!
Income Tax Deadline: 31 October 2016 – i.e. next Monday!
Thankfully the majority of you have already submitted the information required to complete your Income Tax return for 2015 and this is well in hand. There are, however, a few we are still waiting on – you know who you are! Please send in your information as soon as possible and we will make every effort to complete your return before the deadline.
Late Filing Fees
The deadline is extended to the 10 November, if you file and pay online, however, if for any reason you are unable to pay the full liability by that date, you will be deemed to have filed late and may incur late filing fees in addition to interest on late payment.
Please note that if your Local Property Tax (LPT) is not paid in full, up to date, your Income Tax Return will be deemed to be filed/paid late, even if filed before the deadline and late filing fees may be charged automatically. Therefore, please check and ensure that LPT is paid in full prior to the Income Tax deadline.
Pension top-ups for 2015 (which may be used to reduce your Income Tax liability for 2015) must be paid prior to the Income Tax deadline. If you wish to avail of this, you need to submit your IT information asap, to allow time for consultation with your Buckley Kiely manager and pension adviser, prior to making a final decision about the amount of potential pension top-up and then ensuring it is paid out prior to the deadline. Don’t leave this any later – act today!