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The teams at More Group work hard to stay at the forefront of their specialists areas and want to share their expertise with you. Whether you are looking for general personal tax advice, a complex offshore structure or some marketing tips, More Group blogs will give you a taster of what we can offer in way of support.

We will also notify you of any internal changes which may be of interest such as office locations, new services and client care developments via the news page. We use the blog platform as a way to ensure all clients and people interested in More Group have a free resource available to learn about us and our specialist areas.


The 2018 Irish Budget

More Group Ireland Country Head gives a handy summary

The 2018 Irish Budget was put forward by the Irish government for the 2018 fiscal year on the 10th of October 2017. It affects every taxpayer living in Ireland, and while some of these changes will be implemented immediately, some are set to take effect over the next year.

Impact of Brexit

Brexit will no doubt have a significant impact on UK’s economic system, and while it is unclear how this will affect businesses, in this year’s budget, the government has raised awareness of the challenges following Brexit and has laid out its plan to safeguard the sectors that are most vulnerable to its impact. A new loan scheme with funds of up to €300 million has been introduced to provide funding for SMEs (including food businesses) at competitive rates. This budget has been allocated to help with short-term working capital needs for a company that are most at risk after the Brexit fallout. In addition to the new loan scheme, the government will hire around 40 new employees whose primary focus will be on Brexit and the challenges and opportunities it will bring.

KEEP – A new scheme for SMEs

A new KEEP (Key Employee Engagement Program) incentive-based scheme has also been introduced to help SMEs attract and retain key staff. This will allow SMEs low on cash to provide options to employees in a manner that is tax efficient which is unlike the current system. Gains arising on the exercise of KEEP options will be exempt from income tax but will be liable to Capital Gains Tax. If an employee sees growth potential in a small firm, share options can be used to increase the value of the job without the added burden of being liable to income tax. Applies to share options will be granted from 1st January 2018 to 31st December 2023.

The budget referred to the Coffey report which was published on 12th September 2017. The report specified that all rules related to TP (Transfer Pricing) had to be updated and applied to non-trading transactions, capital transactions as well as transactions of SMEs.

Earned Income Tax Credit

The earned income tax credit for the self-employed will increase by €200, going from €950 to €1,150. However, there is still a disparity between the self-employed who receive a PAYE tax credit of €1,650. This indicates an overall benefit of €500 per year for PAYE employees.

Keeping track of the new changes brought about by the 2018 Irish budget can be a difficult task, which is why More Group has a number of tax specialists that can help you maintain an optimal tax position while ensuring your business grows amidst all the confusion surrounding the 2018 Irish Budget.

For further information, please contact Lee Fox (More Group Ireland) on +353 (0)21 422 2220 or email ireland@moregroup.com


Article by:

Lee Fox

Head of Corporate Services


Note: The information should not be construed as legal or other advice as it designed as an information source only © More Group 2017. All rights reserved.

Posted October 2017

Does the Finance Industry go hand in hand with Technology?

Learn how Technology advancements have affected the economy, businesses as well as individuals.

Changes in the finance industry have drastically evolved; long gone are the days of waiting in shopping queues where folks pulled out chequebooks and filled in numerous ID forms that were required to do so as a formality at the local shop. Nowadays, businesses and personal transactions rarely need a signature, let alone a valid proof of ID.

Moreover, with the arrival of artificial intelligence, it is easier for shops to charge the customers as soon as they walk out the exit door, as seen at AmazonGo in the US. The use of financial services technology has implications for the entire financial service industry, and for all those associated with any form of money.

Why the need for a physical form of currency?

The way AI allows us to pay for small transactions via our smartphone has grown in popularity amongst the majority of its users. We are coming to the point we can even use a currency that has no backing from governments, such as cryptocurrencies.

Hello, Blockchain!

Blockchain technology, which many companies and people are becoming increasingly wary of, holds much more than a promise of an alternate to currencies. It allows businesses and individuals to manage anything that has monetary value. In favour of most alternative currency users, payment in blockchain methods ensures all transactions are done virtually, with limited security risk while mostly eliminating intermediaries formerly required to facilitate operations.

Bye-Bye Banks?

Well not entirely, but there’s a good chance that it might get increasingly difficult to find a physical representation of banks around every corner. With so many service users going online to do their banking, banks no longer need to pay for physical space. Banks are rapidly getting replaced by other companies and online platforms that provide the same services.

New Experiences

Many financial service providers aren’t bound by general federal regulations and boundaries. Some have the freedom to create user experiences for their customers to innovate friendly and appealing ways for their clients to benefit from their services. Companies investing their efforts in encouraging individuals and businesses to use financial service technology are aiming to cater for all financial needs via technologically advanced platforms.

The financial experts at More Group are specialists when it comes to securing your financial assets, managing them, and reducing liabilities. Our tax accountants are experienced and ensure that clients are kept well informed about the on-going changes in the financial services industry.

 

Blog by More Group Treasury Team



Note: The information should not be construed as legal or other advice as it designed as an information source only © More Group 2017. All rights reserved.

Posted October 2017

What are Cryptocurrencies?

Lean about the pros and cons of this developing payment method

Cryptocurrencies have achieved the status of a global phenomenon and while many people do not fully understand the rising prominence, major financial institutions have highlighted the importance and criticisms of cryptocurrencies.

Cryptocurrency emerged as a side product of another invention by the anonymous person(s) known by the name Satoshi Nakamoto. Satoshi Nakamoto developed a ‘Peer to Peer Electronic Cash System’ intended at prevent double spending and managed to create the first cryptocurrency known as Bitcoin. Cryptocurrency however is more than just the well-known Bitcoin, and as a concept has achieved both admiration and trepidation all over the globe.

What is Cryptocurrency?

  • Cryptocurrencies are alternate currencies that do not have a physical form, and are traced by their information or transactional details that have been coded from untraceable cryptography codes. Usually, this kind of currency is not controlled by a government, so its value is only determined by the market price.
  • A cryptocurrency only has value in its exchange (it has no inherent value) much the same as a ‘conventional’ currency. Cryptocurrency is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable.
  • A unit of cryptocurrency such as Bitcoin, is nothing but network of peers where every peer has a complete history of all transactions and thus balance of that Bitcoin. This record of all transactions is what is known as a ‘blockchain’.
  • All transactions are confirmed only by ‘miners’ whose only job is to take transactions, stamp them as legit and spread the network for which they are rewarded with a token of the cryptocurrency.
  • Cryptocurrency transactions are fast, global and irreversible. Which means that since they are internet based transactions, cryptocurrency is present in all over the globe except Iceland. All transactions are irreversible, and there is less scope of revert once a transaction is made.
  • Cryptocurrency funds are locked in public key cryptography system and permission is not required to download and use the software that cryptocurrency trades on

What are the advantages of Cryptocurrency?

Fraud and Identity Theft – Individual cryptocurrencies are digitally coded using cryptography and cannot be counterfeited. Moreover, neither transactions nor accounts are connected to real world identities.

Lower Fees – There are almost no fees in the transaction as the miner is compensated by the network. However, it is interesting to note that some of the third-party platforms that hold cryptocurrencies may charge transactional fees.

Greater Access and Universal Recognition – Platforms for trading cryptocurrencies are widely available with anyone having at the least an internet connection and a compatible device. Also, cryptocurrency is not bound my market exchange rates, interest rates or any transactional charges and therefore can be used at an international level.

Decentralization – A global network of computers use blockchain technology to jointly manage the database that records Bitcoin transactions. That is, Bitcoin is managed by its network, and not any one central authority. Decentralization means the network operates on a user-to-user (or peer-to-peer) basis.

What are the disadvantages of Cryptocurrency?

Lack of widespread adoption – Due to less awareness of cryptocurrency, it’s not a majorly accepted entity, which causes thin markets and volatility.

Capacity Limits – Supply of cryptocurrencies are generally limited by protocol. For example, there are only 21 million Bitcoins that can be mined in total. Once miners have unlocked this many Bitcoins, the planet’s supply of such currency will drought out unless the protocol is altered to allow a larger supply.

The change in market trends is already happening; cryptocurrencies are said to already be a step in changing the world manages their finances. Nearly every day new cryptocurrencies emerge, old die, early adopters get wealthy and investors lose money. Every cryptocurrency comes with a promise, mostly a big story to turn the world around. Few survive the first months, and most are propelled and dumped by speculators.

Blog by More Group Treasury Team



Note: The information should not be construed as legal or other advice as it designed as an information source only © More Group 2017. All rights reserved.

Posted September 2017

President Trump on Tax

A look at the percentages associated with the US tax reform

There is great opportunity for the US economy to improve its traditional legacy tax structure, which is why President Trump has decided to make tax reform one of his key campaign goals, but the intransigent difficulty has been how the country will pay for it.

According to a Deloitte Tax LLP survey released earlier this month, only a small number of finance US tax, and business professionals expect President Donald Trump’s 15 percent corporate tax rate to come into play as part of this year’s tax reform.

Over 3,000 people engaged in a poll that offered a glimpse of private-sector expectations about tax reform that are less optimistic than public statements from Trump administration officials and lawmakers.

Trump and his fellow Republicans are striving to get the corporate income tax rate down from 35 percent to 15-20 percent. The implementation of this would drive US economic growth and competitiveness in the years to come.

Just under half of the poll’s participants viewed a lower corporate rate as being the primary financial driver of tax reform, however due to the political and budgetary challenges facing tax reform, nearly 40 percent predicted the rate would end up at 25 percent.

31 percent of those were involved in a survey, all of whom were representatives of a professional services firm during a July 18 Deloitte webcast expected a corporate tax rate of 20 percent. With less than 5.5 percent believing Trump’s 15 percent tax rate would become a national law.

Still, about 74 percent of those surveyed were doubtful or not at all confident that a comprehensive tax reform bill would be enacted in 2017. Less than 19 percent were confident or somewhat confident that it would happen this year.

More than 63 percent believed compromise to be the necessary ingredient for Congress to succeed at tax reform, a quality that has proved elusive for Republican lawmakers so far this year.

Trump’s public support, leadership and sense of economic crisis were seen as essential by less than 10 percent of participants respectively.

In terms of growth, about 16 percent identified tax code simplification as the feature most likely to boost the economy.

International tax reform and accelerated expensing of manufacturing equipment each drew support in the single digits.

Republicans have pledged to enact the most sweeping tax overhaul since the Reagan era before year-end. An ambitious White House timeline calls for legislation to be unveiled in September and voted on in the House of Representatives and Senate before the end of November.

The decrease in corporate tax percentages has already been introduced globally with the UK’s reduced to 17 percent, Canada’s down to 15 percent, and Ireland’s at 12.5 percent. These reductions in corporate tax have been implemented with an aim to benefit economic growth.


Article by:

Mike Conroy

Group Managing Director


Note: The information should not be construed as legal or other advice as it designed as an information source only © More Group 2017. All rights reserved.

Posted August 2017