TaxAssist Accountants Network meeting May 2013

2. TaxAssist Accountants Network meeting May 2013

3. Agenda • Welcome • Network Update • Technical update Coffee • Auto rec software • Marketing updates Lunch • Best practice sharing

4. Network Update30 May 2013

5. What do you want from these meetings? • 90% of you wanted to talk about how to raise fees • 75% of you wanted more technical updates • 71% of you wanted to hear from additional service providers

6. What do you want from these meetings? • Marketing- learning from each other on what is working • Feedback is that you want more group discussion

9. MIN: when is a client a client? • Documentation signed!! • TAIN • Standing Order • Letter of engagement

10. Standard Operating Manual • Now Irishised and will be emailed this month

11. Issues within your practice • You’ve told us and we’ve seen • Pricing • Cashflow • Staff/ workflow

12. Pricing and fee raising course • 2-3 hours prep beforehand • Practical, hands on look at individual clients • Getting rid of bad clients • Raising fees • Small class numbers • With Sarah Robertson • August

13. Cashflow

14. Cashflow • Monthly payments key part of our model • Improves cashflow • Increases customer loyalty

15. Direct debit • Now available via Bank of Ireland • Account open for 6 months • In good order • Known to branch manager

16. Next steps • Steps are • Contact your Relationship Manager first • He/she ‘sponsors’ your application • Banking online rep: Sandra Dunleavey

17. Direct debit process • Client signs a mandate • Send to bank for approval (14 day cooling off) • Write to client to say you will be taking DD in 14 days • Call for the DD with EFT file via online banking

18. Direct debit process • 6 days for funds to clear • Un-paids • €10.15 on client side • €3 on originator side

19. Direct debit • Easier to vary charge • Easier to increase annual fee • Immediate notification if a DD fails

20. Direct debit • Contact your branch manager

21. UK Update • Simon Dolan • SJD Accountancy Group • Easy Accountancy • Price Agreed • On hold • MBO • Pledges from franchisees • External Investors • Existing Management Team No effect on us.

22. Ireland Developments • First Resale • Waterford • IFAC • Capital Value • Short payment terms • Exit • Dublin Central • Shop remains open

23. Technical • Online ticketing system for support • Frequently asked Questions • Income tax 2012 • Other current issues • Personal insolvency

24. Frequently asked questions • Residency/Foreign income • Non resident • DTA – can only be resident in one country • Centre of vital interests • Rental income • Foreign trade • Permanent establishment • Other foreign income • UK dividends

25. Frequently asked questions • PRSI • Directors/spouses • Residency/foreign income • Unlike income tax you shouldn’t pay social insurance in two different EU countries at the same time.

26. Income tax 2012 • USC exemption threshold increased from €4,004 to €10,036 • Surcharge where local property tax return has not been submitted • 5% USC surcharge on property reliefs – uncertainty as to how this will interact with High Earners Restriction • Pension and other social welfare income – pre-populated Form 11

27. Budget 2013 • It was not about the property tax • Michael Noonan: • “………my emphasis will be on small and medium sized industry…….I am aware that the operating environment in the domestic economy remains difficult, particularly for small and medium enterprises. To give this critical sector a helping hand, I am bringing forward a 10 Point Tax Reform Plan. This Plan includes measures that will make a real difference to SMEs”

28. Budget & Finance Act • 10 point tax plan for small business • Increase in threshold for applying cash receipts basis for VAT from €1 million turnover to €1.25 million turnover • CGT relief for farmer restructurings • Extending enhanced stock relief to farm partnerships • Changes to R&D credit • Amending the Close Company Surcharge by increasing the de minimis level to €2,000 • Extending EIIS relief to 2020 • Improvements to start up reliefs for companies • Extending the Foreign Earnings Deduction for work related travel to Algeria, Democratic Republic of Congo, Egypt, Ghana, Kenya, Nigeria, Senegal & Tanzania • Reviewing the ‘carried interest’ provision • Announcing a joint Revenue and Department of Finance public consultation: ‘Taxation of Micro Enterprises: Reduction in Compliance Costs’

30. Budget & Finance Act • New Property reliefs: • Georgian houses • REITS • Withdrawal from AVC fund • Top slicing relief no longer available on amounts over €200,000

31. Other current issues • Revenue activity • Focus on contractors • Incorporation of medical consultants • E-audits – IDEA software • Accounts extracts queries • Enforcement action • IXBRL

32. Other current issues • Budget date changed • Budget 2014 will be in October rather than December to comply with new EU rules • Likely income tax deadline for 2013 to be brought forward • Discussion about leaving the payment deadline as 31st October

33. Other current issues • FRS 102 • New accounting standard to change accounts formats to match IFRS • Required from 2015 onwards • FRSSE can still be claimed • FRS 102 main changes: • Terminology changed: • Income Statement V P&L • Statement of Affairs V Balance Sheet • Cashflow statement required

34. Anti-Money Laundering • Requirement to identify clients before entering into business transactions • Increased requirements for politically exposed person • Most clients will qualify for simplified identification requirements • Intentionally filing incorrect tax returns is a money laundering offence

35. Company Bill 2012 • Not expected to become law until late 2014 or 2015 • Possible to have only one Director • Memorandum & Articles of Association to be replaced • Term “Limited” changed to “CLS” • Changes to audit requirements for: • Group companies • Limited by guarantee companies • No changes on late filing

36. Personal Insolvency Act 2012 • Signed into law in December • Insolvency Service set up in March • First applications due at end June • Changes to Bankruptcy legislation • Three new arrangements • Debt Relief Notices (DRN) • Debt Settlement Arrangements (DSA) • Personal Insolvency Arrangement (PIA) • Does not apply to taxes or other Government charges

37. Debt Relief Notices • Unsecured Debts less than €20k • Net disposable income of less than €60 per month • Assets < €400 • 75% of debt must be > 6 months • If > 50% of debt paid DRN will cease • Discharged from debt at end of DRN period

38. Debt Settlement Arrangements • Unsecured debts > €20 k (no max) • 5 year period • Personal Insolvency Practitioner must be of opinion Debtor is insolvent with no likelihood of becoming solvent within 5 years • All debts treated on a pro rata basis • Once in a lifetime only

39. Personal Insolvency Arrangement • Similar to DSA but can include secured debt • Max debt €3m unless all creditors agree increase • 6 year period • Arrangement must be supported by at least 65% of creditors and at least 50% of secured and 50% of unsecured • Must have worked with the MARP for at least 6 months (unless insolvency practitioner is of the opinion no reasonable chance of solvency)

40. Personal Insolvency Practitioner • Act is 121 pages long – 1 page on regulation of Personal Insolvency Practitioners • Will be regulated by Insolvency Service • Indemnity bond of €600,000; or • Covered by compensation fund with at least €9m fund • Fees of practitioner to be regulated and will be paid as part of the DSA or PIA • No fee for DRN - MABS

41. Coffee

42. Brendan Woods: Autorec

43. Marketing

44. Agenda • National marketing • New sectors • Training initiatives • Network news roll out • Merchandise

45. National marketing • Newstalk campaign • 6 month campaign • 2 week bursts followed by 1 week in the month • Consistent presence • Mixture of 20 second ads and 5 second stings • Largest investment to date

46. audience recap highly desirableAB25-44audience well educated, well informed opinion leaders career focused, dual income homes high earners willing to spend lower levels of price elasticity high spend propensity on travel and leisure

47. National marketing • Site launch results • 6 weeks to ‘register’ with Google • Boost to SEO rankings • Shows Google we are fresh • Newsletter sign-ups dramatically increased • How it works/ fixed fee pricing page now number 3

48. New markets: High tech start-ups • Eco system for high techs booming • Spin offs from larger companies

50. A flavour of some of the events