The group representing Irish accountancy bodies has called on the government to introduce emergency measures for the SME sector in Budget 2021 to help them withstand the impact of Covid-19.

The pre-Budget submission cover tax supports for self-employed individuals, measures to support SME recovery and tax rule reforms to reflect modern work practices.

The Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) believes that concessions in terms of how the government will tax Temporary Wage Subsidy Scheme payments and the Pandemic Unemployment Payment are urgently required.

Anticipating that many self-employed individuals will not be in a position to pay their income tax liability due in November this year, the CCAB-I submission proposes the write-down of the first €10,000 of the balance of the 2019 tax liability on a targeted basis for those in financial difficulty.

• Download CCAB-I Tax Concession Proposals

In Association with

The submission also proposes
•  the implementation of the recommendations of the Indecon Report on the Revised Entrepreneur Relief
•  the tailoring of R&D tax credits to facilitate the economic recovery of the SME sector
•  the introduction of a digital tax credit for SMEs
•  refining the Employment Incentive and Investment Scheme rules to generate much needed equity funding for SMEs.

CCAB-I comprises Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland, and the Chartered Institute of Management Accountants which combine to represent over 50,000 professional regulated accountants in Ireland.

Norah Collender, Professional Tax Lead at Chartered Accountants Ireland, commented: “When we talk about small businesses, we mean local retailers, manufacturers, hospitality, and service providers. They are reeling from the economic impact of Covid-19 and face liquidity pressures which could result in business closures without government support.

"The tax system is a powerful means of getting supports to SMEs, which in turn always respond positively with increased economic activity.  Small businesses need to know where they stand so a practical way of doing this is for Revenue to confirm that its emergency tax measures will remain in place for the rest of 2020.

“SMEs account for over 1 million employees, or two-thirds of total employment in the Irish business economy, and economic recovery is simply impossible if these businesses don’t get the tax supports they need,” Collender added.