Pro SME measures will support recovery and employment
October 12th 2021 CPA Ireland, one of the country’s leading accountancy bodies, has broadly welcomed measures announced in Budget 2022 which it says “will boost the confidence of SMEs and support their recovery and renewal after a harrowing two years.”
Commenting on the budget announcement CPA Ireland President Áine Collins said: “SMEs are the backbone of the Irish economy and have been the worst hit by both the pandemic and Brexit. They needed and received a clear message from government that the support underpinning the sector will not be whipped away as the crisis recedes. Some businesses will need more time and we welcome the commitments to provide this.
“The extension and enhancement of the Employment Investment Incentive (EII) scheme is a very welcome initiative. This scheme offers a significant support to startups these changes should make easier to access and increase the number of new businesses who benefit. Meanwhile the extension by five years of corporate tax relief for many startups will provide great confidence and comfort to this sector.”
“We welcome the announcement of an income tax deduction for the costs associated with working from home. This recognises that remote and hybrid working is here to stay and will improve the sustainability of many businesses. However, the SME sector would also have benefitted from direct funding to support their sustainability efforts.
“The certainty provided around the maintenance of the EWSS scheme is a positive announcement. This will allow businesses and impacted employees to continue to plan with confidence. However, government must consider how to best protect those businesses after [date EWSS due to expire].”
Áine Collins concluded by calling on government to explore the complex network of tax schemes in place to support entrepreneurs to make them clearer and easier to access. “Over the years there has been the introduction of a number of schemes, exemptions and deferrals in the interest of supporting entrepreneurship.
“Each of these is well intentioned but not all are functioning as they should, for example the KEEP Scheme which continues to include complicated and needless red tape. Over the course of 2022 we would like the relevant government departments to commit to reviewing these, so that Budget ’23 can become the SME budget we had hoped for this year.”