Most employers and employees alike are aware of the importance of the contract of employment. This is the document which sets out the rights, entitlements, obligations and responsibilities of both the employer and the employee in relation to the employment relationship. For the most part this contract is fairly straight forward and deals with everyday issues such as the place of work, job title, commencement dates, remuneration, annual leave and hours of work to name a few. However, far to often employers can find themselves in an insidious position by having a poorly drafted employment contract or even worse still no contract at all! Under the Terms of Employment (Information) Act, 1994 as amended by S.44 of the National Minimum Wages Act 2000 and S.18 of the Industrial Relations (Amendment) Act 2012 every employer is obliged to provide their employees with a written statement setting out the minimum terms of the employment. While the Act states the item’s which must be included in the “statement” it falls far short of addressing all of the issues surrounding the employment relationship. This is why every prudent employer should go one step further and have a robust and detailed contract of employment for every employee. Far to often it is only when the employer/employee relationship breaks down that the employer will truly realise the importance of the employment contract. While a properly drafted employment contract can be the saving grace for an employer against a disgruntled employee a poorly drafted one can be the noose with which the employer is later hanged if there is a dispute.

Perhaps one of the most important aspects of any employment contract are the notice periods, probationary period, grievance and disciplinary procedures. These tend to be the ones that are of the most importance when an employment relationship breaks down and these are the ones that I will briefly address in this article. Under the Minimum Notice and Terms of Employment Acts 1973 to 2005 all employees are entitled to a minimum period of notice. However, a prudent employer should ensure that he has a detailed notice period section provided for in the contract of employment. At a minimum he should ensure that the notice period complies with these Acts. However, a prudent employer will ensure that the notice clause in the contract also deals with other aspects such as payment in lieu of notice, garden leave etcetera. This will ensure that there will be no ambiguity in relation to the notice period and it will hopefully prevent an employee from later taking a claim in relation to inadequate/unreasonable notice of termination.

Another important aspect of the employment contract is the treatment of new employees who are under a probationary period. There appears to be a common misconception amongst most employers that because an employee is on a probationary period that the same rules do not apply to them. This is a fallacy which can unfortunately entrap unsuspecting employers. The probationary period is integral to every employment relationship. It’s the “bedding in period” and it is the time when the employer and employee get to familiarise and assess their new surroundings and their suitability to one another. The probationary period should be no more than 1 year. However, generally it would last for 6 months. While an employee who is still on probation may not be able to take a claim for unfair dismissals as they would generally not have the required service under the Unfair Dismissals Act 1977, they are still entitled to fair procedures. This appears to be a situation that most employers are unaware of and one which tends to catch out some employers. In order to prevent any potential claims an employer should ensure that they have a clear and detailed probationary period clause in their contract of employment. This clause should clearly set out that while on the probationary period the general terms of the substantive contract, including the grievance and disciplinary procedures do not apply to the employee who is on probation. It should also set out clearly what notice and procedures should be followed when terminating the employment of an employee who is still on probation. The most important thing to remember in this situation is that fair procedures are afforded to the employee. This will help prevent the employee from later taking a claim.

The final aspect of the employment contract that is to be discussed in this article is the grievance and disciplinary procedures. A grievance and disciplinary procedure should at a minimum be included in the employment contract. However, it may be more prudent to have a far more detailed one in a separate policy which is referred to in the contract. The grievance procedure is extremely important as it gives the employee a way to resolve matters of concern to them which affect their employment. If there is no grievance procedure in place then the disgruntled employee could claim that they had no options open to them to resolve their issues. If followed correctly and adhered to by the employer it should also help prevent a claim for unfair dismissals if the employment relationship breaks down.

The above is a guide to the main aspects of an employment contract which employers and employees alike should review carefully in every employment contract. Please note that the information provided above is for information purposes only and should not be regarded or relied upon as legal advice.

Where workers are required as part of their job to use industrial machinery, the employer is obliged by law under the Safety, Health and Welfare at Work Act, 2005 to provide workers with safe and properly maintained machinery. Where the machinery is dangerous there is an onus on the employer to provide training for the workers using it. For the employer, proper records of maintenance of the machinery are particularly important especially where there is an injury and or claim. When a court is deciding on claims for injuries arising from faulty machinery, foreseeable accidents will usually work against employers. In this instance, the court could find that an accident might well have been avoided if the employer took particular safety steps. Accordingly, there is a high duty of care placed on employers where accidents are caused by faulty machinery. Employers should adhere strictly to maintenance of machinery and not cut any corners to save on costs.

A court will expect the employer to have acted sensibly and to have taken all reasonable steps to avoid accidents. Any signs of faults on equipment should be brought to the employer’s attention immediately. If an employee notices a machine not working properly, he/she should immediately report this to the supervisor otherwise he/she, potentially, may not secure any damages in the event of injury.

If you have been involved in any workplace accident and would like to discuss same please do not hesitate to contact us.

** In contentious business, a Solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.

 

Connellan Solicitors LLP would like to share the following tips on how to speed up your house sale. Please note that the below guide was prepared by the Law Society of Ireland.

TO SPEED UP YOUR HOUSE SALE

Contact your solicitor as soon as possible. Your solicitor will need to get your title deeds immediately in order to prepare a contract for the sale of your house and will also need to take full instructions from you on the details of the sale. There are several pieces of information and documentation that your solicitor will need and you should start getting them together now.

YOU WILL NEED TO GET THE FOLLOWING:

1. Details of where your title documents are (if your title deeds are with a bank, provide the name of the bank and the account number).
2. Local Property Tax printout showing local property tax paid to current year end (www.revenue.ie).
3. Receipt or Certificate of Discharge showing that the Household Charge has been discharged (www.householdcharge.ie).
4. Certificate of Exemption or Discharge for NPPR (applied from 2009 to 2013) (www.nppr.ie).
5. Details of your water and drainage supply.
6. If you have a septic tank on the property, evidence of its registration (www.protectourwater.ie).
7. If you are or ever have been married, a copy of your state marriage or civil partnership certificate (and copy of separation agreement or divorce, if applicable).
8. BER Certificate showing the energy rating on you home.
9. Details of any building work you have done with copies of any planning permissions and architects’ certificates of compliance.
10. If your property is in a managed development, contact details for the management company/managing agents, and receipts for service charges.
11. If the property is let, copy letting agreement.
12. Details of any contents included in sale.
13. PPS Number(s) – needed for proof of identity.
14. Photographic identification such as passport(s).
15. Utility bill / bank statement (within the last 3 months) to prove your address.

If you would like to get a free no obligation quote regarding the sale or purchase of any property please contact brendan@connellansolicitors.ie or contact us on 043-3346440

 

Most people do not want to think about making a will. This can be due to a number of factors. However, for most people it is because they can be superstitious or simply do not want to think about their death and what will happen thereafter. These are completely understandable and if you are putting off making a will because you simply do not want to think about the issues surrounding it then you are not alone.

The good news is that making a will is a relatively straight forward process and your solicitor will be there to assist you with any worries or queries that you have. The main disadvantage of not making a will is that your assets may not go to the person or persons whom you want. If you do not make a will then you will be deemed to have died intestate. The consequence of this is that rather than your estate going to the person you want it to go to, it will instead go to your next of kin. The other issue is that a family member will need to be appointed as the administrator of your estate, again this may not be the person that you would have wanted.

If you make a will then you can be assured that all of your assets will go to whomever you want. You can set out in your will whom you want your assets to go to and how you want your estate dealt with after your death. The advantages of a will are that you can also make sure that this is done in the most tax efficient way for the beneficiaries. You can also appoint someone whom you trust to make sure that your estate is administered in accordance with your will and your wishes. This person is known as the executor and they will engage with your solicitor after your death to make sure that your estate is administered as you wished. A valid will becomes all the more important in circumstances where you have a minor child. A valid will permits you to direct whom you would like to be a guardian for your minor child or children in the event that you passed away before they reached adulthood. In addition to these main issues, you can also stipulate in your will how you want your funeral to be carried out and if you wish to be buried or cremated.

If you would like to attend with us to discuss making a new will or indeed updating an old one please do not hesitate to contact us on 043-3346440 or at communications@connellansolicitors.ie

 

One of the biggest issues for any person currently attempting to build a new house is acquiring the actual land or site upon which the house will be built. We have seen the price of sites increase significantly in certain areas over the past number of years. This is why in most cases people in rural Ireland will try to build on the “family land”.

In theory, transferring a site from a parent to a child should be a simple process. However, there are a number of issues that both the parent and the child need to be aware of. We have attempted to highlight some of these issues in this article.

The vast majority of site transfers between a parent and a child will be voluntary transfers. This means that the parent will not look for any money for the site and will give it to their child as a gift to assist them in building their future home. The child will then construct their house on the property. However, the following are the main issues and items that both the parent and the child should examine prior to formalising the transfer:

1. PLANNING AND ENGINEERING ISSUES – The child will need to have their engineer examine the proposed site to make sure that it has access to the road, utilities and will be a suitable area to construct a house. Their engineer will also take them through the planning process and it may be worth postponing the formal legal transfer of the site until the child’s planning permission has been approved as there will be no point transferring the site if the planning is rejected.
2. MAPPING – The child’s engineer will need to carefully examine the boundaries of the site and prepare a detailed land registry compliant map outlining the site that is to be transferred. This map will be very important as it will highlight the exact boundary of the site that is being transferred to the child.
3. TAXATION – Benjamin Franklin famously stated that “In this world nothing can be said to be certain, except death and taxes”. Unfortunately, this is very true and tax also plays a significant part in voluntary transfers. Tax is probably one of the biggest items that both parties need to be aware of when entering into a voluntary transfer of a site. There are three main taxes to be aware of:

A. STAMP DUTY – Under the tax acts a site is defined as a non-residential property. Accordingly, the child will have to pay Stamp Duty to Revenue at 7.5% of the open market value of the site. As the transfer will be a voluntary one between the parent and the child the child will need to get an auctioneer to prepare a certificate stating what the open market value of the site is. The Stamp Duty payable will be 7.5% of this valuation.
B. CAPITAL ACQUISITIONS TAX (CAT) – A child receiving a gift or inheritance from their parent will have to pay CAT at 33% of the value of the transfer. However, each child has a CAT allowance and can receive a gift/inheritance of up to €335,000.00 from the parent. Accordingly, in most cases a child should not have to pay any CAT on the voluntary transfer of a site.
C. CAPITAL GAINS TAX (CGT) – This is a charge that could potentially impact on the parent. CGT is a tax charged on the “gain” or “profit” that is made on the disposal of an asset. However, no CGT is payable by the parent provided the following criteria are met:
I. The child constructs their principal private residence on the site.
II. The open market value of the site does not exceed €500,000.
III. The overall area of the site cannot exceed 1 acre.

Once all of the above matters are dealt with the parent and the child can then arrange to have the legal documentation executed with their solicitor. As the Law Society of Ireland prohibit the same solicitor from acting for both the parent and the child, each party will need to retain separate solicitors. There are a number of documents that the parent will need to execute to ensure that the transfer is completed. Their solicitor will be able to take them through these documents and explain any questions they have.
Once all of the transfer documentation is executed by the parent, their solicitor will then send all of these documents to the child’s solicitor. The child’s solicitor will then stamp the deed of transfer with Revenue and apply to the Land Registry to have the transfer registered and a new folio opened. This new folio will be the child’s legal “deed” to the property and will be required by the child’s bank if they are getting a mortgage.

Connellan Solicitors LLP have significant experience in dealing with these types of transfers and can assist you with all aspects of the process. If you have any queries regarding this or any other property related matter, please do not hesitate to contact us.

• Please note that this article is prepared for general information purposes only. It is not legal advice and should not be taken as such.

Lotteries

At this stage we are all familiar with the Club/Society draw which has become a mainstay for Clubs and Societies in their fundraising activities. The Gaming and Lotteries (Amendment) Act 2019 (“the 2019 Act”) came into effect on the 1st December 2020 and has introduced a new regime for lotteries, which are currently allowed only in limited circumstances. Whether promoters will be able to operate on the basis of a “permit”, or will require a “licence”, will depend on the value of the prizes.

Lottery Permits

Where a promoter intends to run a lottery (or several in a week) and the total value of all prizes is no more than €5,000, the promoter must apply to their local Garda Superintendent for a permit and the application must be made at least 60 days in advance of promoting the lottery. Tickets for lotteries under a permit cannot cost more than €10, and if the lottery is held for the benefit of a charity, the permit holder cannot keep any more than 5% of the total proceeds.
In deciding whether or not to grant the permit the Garda Superintendent will not be required to consider the “kind” of lottery, but they must consider the applicant’s character, the number of lottery permits issued in the locality and the suitability of the premises (if any). A register of all lottery permits that have been granted by each Garda Superintendent is required to be maintained.

Lottery Licences

For more ambitious lotteries (those where the total value of all prizes in a week is no more than €30,000, or no more than €360,000 for a once-per-year lottery), the promoter is required to obtain a lottery licence. To obtain a licence,

• the promoter cannot derive any personal profit from the lottery,
• each ticket (or the relevant premises) must display the value of each prize and the name of the intended beneficiary, and,
• of the total proceeds, a maximum of 75% may be allocated to prizes, a minimum of 25% must be allocated to charitable or philanthropic purposes and a maximum of 25% may be retained by the licence-holder for promotional expenses.
Any application for a lottery licences must be made to the District Court in which the lottery will be promoted at least 60 days in advance of the Court hearing date. In deciding whether to grant a licence, the District Court will have regard to
• the applicant’s character,
• the number of periodical lotteries operating in the locality, and
• the lottery’s purpose.

The District Court Clerk will be required to keep a register of all lottery licences that have been granted.

Marketing Promotions

The 2019 Act has introduced a change for brands and marketing agencies who run prize draws as part of marketing campaigns. Such promotions will not need a licence or permit, provided that the total value of the prizes is €2,500 or less and there is no charge for taking part in the lottery or redeeming the prize (aside from the purchase price of the product).

Charitable Lotteries

Lotteries that are conducted for charitable/philanthropic purposes will be exempt from the requirement to obtain a permit/licence, provided that
• the total value of the prizes is €1,000 or less,
• the price of each ticket is €5 or less,
• the maximum number of tickets sold is 1,500, and
• the promoter does not receive a personal profit and has not conducted such a charitable lottery during the previous 3 months.

Private Lotteries

Heretofore, societies and workplaces that enjoyed “private lotteries” were exempt from the requirement to obtain a licence. The exemption for such lotteries has been repealed, meaning that they can only proceed subject to obtaining a permit or licence.

Enforcement

The 2019 Act has introduced more severe penalties for offences, which include the promotion of gaming and lotteries that are not subject to a licence or permit. A summary conviction will result in a fine of up to €5,000, and/or imprisonment for up to 6 months, while a conviction on indictment will result in a fine of up to €50,000 and/or imprisonment for up to 2 years. Reduced penalties will apply to individuals who obstruct Gardaí in carrying out their responsibilities under the legislation, and to those who make false statements in applications for licences/permits.

For further advice please do not hesitate to contact Connellan Solicitors LLP on 043-3346440 or at info@connellansolicitors.ie

Please note that the information provided in this article is for general information purposes only and should not be taken as legal advice.

Connellan Solicitors LLP would like to share the following tips on how to speed up your house sale. Please note that the below guide was prepared by the Law Society of Ireland.

TO SPEED UP YOUR HOUSE SALE

Contact your solicitor as soon as possible. Your solicitor will need to get your title deeds immediately in order to prepare a contract for the sale of your house and will also need to take full instructions from you on the details of the sale. There are several pieces of information and documentation that your solicitor will need and you should start getting them together now.

YOU WILL NEED TO GET THE FOLLOWING

1. Details of where your title documents are (if your title deeds are with a bank, provide the name of the bank and the account number).
2. Local Property Tax printout showing local property tax paid to current year end (www.revenue.ie).
3. Receipt or Certificate of Discharge showing that the Household Charge has been discharged (www.householdcharge.ie).
4. Certificate of Exemption or Discharge for NPPR (applied from 2009 to 2013) (www.nppr.ie).
5. Details of your water and drainage supply.
6. If you have a septic tank on the property, evidence of its registration (www.protectourwater.ie).
7. If you are or ever have been married, a copy of your state marriage or civil partnership certificate (and copy of separation agreement or divorce, if applicable).
8. BER Certificate showing the energy rating on you home.
9. Details of any building work you have done with copies of any planning permissions and architects’ certificates of compliance.
10. If your property is in a managed development, contact details for the management company/managing agents, and receipts for service charges.
11. If the property is let, copy letting agreement.
12. Details of any contents included in sale.
13. PPS Number(s) – needed for proof of identity.
14. Photographic identification such as passport(s).
15. Utility bill / bank statement (within the last 3 months) to prove your address.

If you would like to get a free no obligation quote regarding the sale or purchase of any property please contact brendan@connellansolicitors.ie or contact us on 043-3346440

Please click on the below link to see our December 2020 Newsletter

Connellan Solicitors LLP – December Newsletter 2020

Dear reader,

Please find below this month’s newsletter from Connellan Solicitors LLP.

Covid-19 and Level 5 Restrictions- Accessing Our Services:
Due to level-5 restrictions which were implemented by the Government until the end of November, Longford firms, including Connellan Solicitors LLP, have agreed to close our doors to the public, save for urgent and essential face to face appointments. Our state-of-the-art case management system and network will enable our staff to work remotely, abide by health and safety precautions and continue to support our clients through online platforms and remote working technology.
Our case management system allows us to conduct legal services for clients in any County or Country. The system allows a seamless and secure working environment during the uncertainty of Covid-19, allowing for accessibility to case files through a secure remote network. This system will allow us to continue to provide legal assistance to our clients regardless of what level of lockdown we are in. We wish to encourage our current and prospective clients to reach out to us via phone or email.

Budget 2021
Earlier this month, Brendan Noone, a Partner at Connellan Solicitors LLP analysed what Budget 2021 means for business owners. The Government’s decision to increase lockdown restrictions to level-5 means that sectors such as hospitality, retail, public transport and the food and drinks industry are now facing further limitations and risks. Non-essential retail and services closed but sectors such as construction and manufacturing remain open. Updates were made by the Government to assist businesses and SMEs by introducing fiscal stimuli to supply support to businesses particularly through the Strategic Banking Corporation, Ireland’s Covid-19 Credit Guarantee Scheme and the Ireland Strategic Investment Fund’s Pandemic Stabilisation and Recovery Fund. €100 million was set aside in Budget 2021 to support businesses affected by Covid-19 and its subsequent restrictions. VAT remains at a reduced rate from 13.5% to 9% for hospitality and tourism sectors from 1st November onwards.

Covid Restriction Support Scheme (CRSS): This scheme which was outlined in Budget 2021 is aimed at businesses impacted by Covid-19 restrictions. The CRSS was intended by Government to be in addition to the supports provided to employers under the Employer Wage Support Scheme (EWSS). During level-3 lockdowns, the CRSS applied solely to sectors such as accommodation, food and the arts, recreation, and entertainment. As restrictions have increased, other sectors which have been impacted now qualify for the scheme and will cease to qualify when restrictions are lifted. Businesses can apply to Revenue for a cash payment of maximum €5,000 and the scheme runs from 13th October 2020 until 31st March 2021. Payments are officially calculated on the basis of 10% for the first €1million in turnover and 5% thereafter, based on average VAT exclusive turnover for 2019.
Employment Wage Subsidy Scheme (EWSS): The aim of the EWSS is to ensure that employees retain their link with their employer to avoid rising unemployment rates. As a result of the increased lockdown measures, updates were made to Budget 2021 and will remain in place until the end of January 2021. The Employment Wage Subsidy Scheme which has been amended to align with the updates made to the Pandemic Unemployment Payment. The new five payment rates/bands are as follows:
0 – €151 = €0
>€151 < €203 = €203
>€203 < €300 = €250
>€300 < €400 = €300
>€400 < €1,462 = €350

Pandemic Unemployment Payment: The PUP which faced no original changes in Budget 2021 has now been amended so that the rate of €350 has been restored to those who earned over €400 per week. This change was made from the 27th October 2020:
Prior Weekly Earnings (Gross) PUP Payment
< €200 €203
€200 – €299.99 €250
€300 – €399.99 €300
> €400 €350

Commercial Leasing: On Friday 27th March 2020 the Government introduced emergency legislation in response to Covid-19 entitled The Emergency Measures in the Public Interest (Covid-19) Act. This Emergency Act introduced a number of measures which prevent residential landlords from serving a termination notice and increasing rent during this time. The Government has urged commercial landlords to make concessions to struggling businesses as lockdown measures continue and increase. The legislation was not originally intended to include commercial leases. However, the Government are encouraging all landlords to follow the legislation despite the official rights and obligations of landlord and tenant being governed by the terms of the lease.
Unless the lease contains a ‘keep open’ provision, tenants must temporarily close their premises. A ‘keep open’ obligation would, however, need to be balanced against a tenant’s obligation to comply with government guidance and applicable laws or restrictions. Communication between landlords and tenants is imperative during this time and we advise both parties come to an agreement which respects Government advice and both parties involved. Parties may decide to reduce or waiver in rent while Level 5 restrictions continue in return for another break option at a later stage.

Upskilling and Work from Home: Budget 2021 invested a total of €118.5 million to upskill and reskill those who have been affected by the Covid-19 Pandemic and train in the skills of the future particularly in relation to the Climate agenda. The investment was aimed at those seeking employment or upskilling in current roles. The budget measures included a €50 million fund to provide financial assistance to full time third level students, €120 million to reskill and upskill those affected by the pandemic and 50,000 further education and training places in 2020/21.
Remote working/Working from home has been essential in the response to the pandemic. The Budget states that in cases where the employer makes payments towards the expenses of working from home, up to €3.20 can be paid to employees without a Benefit-in Kind arising. In addition to this, where an employer does not make a contribution, employees are entitled to a tax deduction for utility expenses such as heat, light, and broadband. Claims may also be made for any other expenses which were undertaken exclusively and necessarily in the performance of the duties of employment.

Connellan Solicitors LLP welcomes a new partner – Brendan Noone
In July 2020, Brendan Noone was appointed as a partner in Connellan Solicitors LLP and now serves alongside Mark Connellan and Gerard Carthy. Brendan joined Connellan Solicitors LLP in October 2017 after spending a number of years working in Dublin. Brendan is experienced in all areas of general practice and has a particular focus in the areas of Litigation, Personal Injuries, Employment Law, Property Law and Administration of Estates. Brendan is also qualified to act as a solicitor in England and Wales and earned a specialised certificate in conveyancing from the Law Society of Ireland. Brendan is originally from Creggs, Co. Galway and currently resides in Westmeath. In addition to his professional role, Brendan is currently the secretary of the Longford Solicitors Bar Association. Connellan Solicitors LLP is delighted to have Brendan as a partner, and we wish him the best of luck with his new position.

Connellan Solicitors LLP supporting local clubs
Connellan Solicitors LLP has a long history of supporting local sport and clubs in our area. We understand that Covid-19 has had an overwhelming impact on sport, physical activity, and well-being. Connellan Solicitors LLP is a proud supporter of local clubs such as County Longford Golf Club, Ballynacargy GAA and Longford Rugby Football Club.

The forthcoming National Economic Plan

The National Economic Plan which is due to be published in mid-November of this year, will outline Ireland’s longer-term priorities and objectives to allow movement towards a resilient, balanced, sustainable economy. The areas of primary focus at the moment appear to be construction, SMEs and aviation. The capital expenditure included as part of the July Stimulus Package and Budget 2021 will prioritise delivering increased resources for the capital investment set out in the National Development Plan. There is set to be over €9bn in public capital investment and public investment in construction in 2020 and 2021, among the highest per capita in the EU.
The Taoiseach maintains that the construction industry is an important key in getting and keeping the economy on track. Although current lockdown restrictions allow for the industry to remain open, increased resources and agendas will need to be targeted towards the sector to fuel the economy.
The SME Growth Plan is also set to form part of the National Economic Plan which will be published in November. The SME Growth Taskforce is a commitment outlined in the Programme for Government which was formed in order to design a National SME Growth Plan, mapping out an ambitious long-term strategic blueprint for SMEs and entrepreneurs. The Taskforce is composed of a broad range of businesspeople from a range of sectors in addition to SME representative groups and has already met twice during October.
The joint Chambers of Limerick, Ennis, Shannon, and Galway have also requested further grants to offset operational losses and further operational supports for Shannon and Cork Airports in the National Economic Plan. The Chambers ask that focus is given to resetting air access to Ireland and to engage with airlines to devise plans for strategic route development and to align national aviation policy with the goals of Project Ireland 2040. If airports are appropriately resourced, the Chambers maintain that regional economies will be more poised towards a speedy and significant recovery.

Connellan Solicitors LLP supports Fermoyle National School with donation of a Numicon Package
Connellan Solicitors LLP has partnered with Fermoyle National School to provide a Numicon Package which supports the teaching of Maths. This new equipment will allow students to achieve their full potential, particularly in the area of mathematics.
Students and their families across the island of Ireland have had to face insurmountable difficulties during the Covid-19 pandemic and we at Connellan Solicitors LLP wanted to support Fermoyle N.S.’s efforts in ensuring the school has access to appropriate resources.
Connellan Solicitors LLP appreciates the importance of educational resources and the challenges faced by pupils, teachers, and families. We acknowledge and value the role Fermoyle N.S. plays in bringing people together and want to play our role in supporting our community and further enhancing a renewed positivity during these challenging times.
Please keep an eye out for more news on our partnership with Fermoyle N.S.

By Brendan Noone, Partner, Connellan Solicitors
Budget 2021 prioritises crisis management in meeting the challenges posed by Covid-19 and Brexit while preserving existing levels of state services. The total budget package for 2021 amounts to €17.5billion with €17billion in expenditure and €270million in taxation. €8.5billion will be set aside for public services including €2.1billion on contingency funding. Capital spending is to increase by €1.6 billion. €3.4 billion euro has also been announced for a Recovery Fund which will be aimed at increasing employment. The main sectors which the budget focuses on are the hospitality, tourism and healthcare sectors. The budget is also focused on supplying resources to businesses and the self-employed who have been heavily impacted by Covid-19 and to assist those who have lost or closed their business as a result of restrictions and lockdown measures. The budget includes a multibillion euro stimulus package of between €4 – €5 billion to combat the twin threats of Covid-19 and a no-deal Brexit. With the Government facing a deficit of €21.5 billion this year, the budget also addresses reaching into Ireland’s €1.5 billion ‘Rainy Day’ Fund in an effort to combat the major economic impact of Covid-19.
Below we have examined the key points to takeaway for householders and businesses as we navigate the current financial climate;
5 key points for householders
1. Tax
Income Tax: There has been no increase in Income Tax credits of bands. The ceiling for the second USC rate, however, has been adjusted up to €20,687 and the weekly threshold for higher rate of employers PRSI will go from €394 to €398. Self-employed income tax credit is to rise by €150 to €1,650.
Working from home: There are additional tax measures which have been put in place through the budget to support those working from home, including rates which are cost deductible. Measures have also been put in place to upgrade houses to provide office space. In addition to this, throughout Covid-19, many employees have incurred increased costs by working from home such as utilities and broadband. The budget upholds the predetermined 10% relief, yet removes the requirement to have a formal arrangement in place to encourage fluidity. Employees working from home can now also claim for broadband and other vouched expenses in the performance of duties of employment.
The Earned Income Tax Credit (Self-Employed): For the self-employed, the budget implements a Programme for Government commitment to equalise the Earned Income Credit with the PAYE credit by raising it by €150 to €1,650.
Dependent Relative Tax Credit: To support families with caring responsibilities, the budget announced an increase in the Dependent Relative Tax Credit from €70 to €245. It is possible to claim the Dependent Relative Tax Credit if you are married or in a civil partnership, and you care for one or more dependent persons

2. Welfare Benefits:

The Pandemic Employment Payment: which was slashed in July from €350 to €203-€300, was not increased and remains at the reduced rate. The budget does allow for those self-employed to earn up to €480 per month and still collect the PUP. Those claiming jobseekers allowance and the PUP will also qualify for a Christmas Bonus for double payment on the 27th of December. Ordinarily, social welfare Christmas bonuses are only paid to those who have been receiving the payment for 15 months, however the budget states that recipients are now liable if they have been getting it for a minimum of four months.

3. Motor Tax and Vehicle Registration Tax:
Motor tax: for diesel and petrol cars has been increased primarily because of the Government’s focus on reducing carbon emissions and the take up of electric vehicles. This initiative was also outlined in the Programme for Government. Motor Tax has also been adjusted to account for the new WLTP emission testing mechanism from 2021.
VRT: changes have also been made to raise VRT in an effort to reduce the number of cars sold with higher emissions. Weaker emissions tests on imports will also be changed to bring them up. Meanwhile, Current VRT reliefs for hybrids will be allowed to expire in light of the new rates system.

4. Stamp Duty:
The Stamp Duty Scheme, which refunds a portion of stamp duty paid on acquisition of non-residential land where it is then developed is extended by the budget until end of December 2022. Section 46 of the Finance Bill 2018 provided for the extension of the young, trained farmer stamp duty relief up until the end of 2021 and the budget has outlined that the Government will continue to provide for a full exemption on stamp duty on transfers of farmland to certain young, trained farmers. This exemption is designed to continue to encourage transfers of farmland to new generation farmers with the relevant qualifications by gift or sale. The budget also widened consanguinity relief, meaning most inter-family land transfers can avail of a reduced rate of 1%.

The Help to Buy scheme: has also been extended until 2021 to avoid any house buyers who were impacted by Covid-related delays being hit with larger costs. The rate of the scheme remains intact and offers first-time buyers a tax rebate of up to €30,000. The budget has outlined that this rate will continue until the end of December 2021 to ensure that the sales of homes currently being constructed can go ahead.

5. Carbon Tax
The carbon tax will increase by €7.50 every year out to 2029 and then by €6.50 in 2030 to achieve €100 per tonne. This increases the cost of petrol and diesel as well as home heating oil. This measure is set to ensure the acceleration in the reduction of Ireland’s carbon emissions as outlined in the Programme for Government. The Green Party also set aside €300 million for major investment in a nationwide retrofitting project. This is aimed at reducing home heating costs and to aid in the battle against climate change. The budget also includes an increase on tobacco such that a packet of 20 cigarettes will increase by 50c as well as a pro-rata increase on other tobacco products. It will now cost €14 for the most popular pack of cigarettes.

5 Key points for businesses
1. Employer PRSI and Self-Employed Tax Credit:
The budget also made changes to the weekly threshold for the higher rate of employer’s PRSI from €394 to €398 to ensure that there is no incentive to reduce working hours for a full-time minimum wage worker.
Self-employed can also benefit from tax warehousing and their income tax credit is to rise by €150 to €1650.

2. Business recovery fund
The budget also includes business support and a fund of up to €3.4bn was announced to help businesses large and small who are in financial difficulty as a result of the Covid-19 pandemic and a possible no-trade deal Brexit. A compensation scheme is also present to provide compensation to sectors which have had to shut down completely due to restrictions through weekly or monthly payments. This scheme will operate when level three or higher is in place and payments will be based on the business’s 2019 weekly turnover. It will be effective from today until March 31st with the first payments expected in mid-November. The budget also focuses on the entertainment and arts sectors in the range of €10-€20 million. Venues will also receive a grant of €10,000 to subsidise ticket costs as they manage reduced attendance due to social distancing.
Employment agencies such as the IDA and Enterprise Ireland are also set to receive extra funding and commercial rates for some businesses are set to continue to be waived for the last quarter of the year to give relief to struggling firms. Finally, there is also an increase of 15,000 retraining places in further and higher education, particularly targeted at young people, where the unemployment rate has been significantly high and increasing.

3. Capital Gains and Corporation Tax:
An individual who has owned at least 5% of the shares for a continuous period of any three years qualifies for Capital Gains Tax relief. This is to encourage individuals to expand their business without worrying about losing the relief. It notes that certain sectors of the economy have been more impacted than others and hence a rate reduction is necessary.
There were no changes to corporation tax which remains at 12.5%. The budget states that over the course of this year, just under €7.5 billion in corporation tax receipts were generated.

4. Tax Relief and the Covid Restrictions Support Scheme (CRSS):
The budget has introduced a further reduction in VAT rates from 13.5 % to 9% for those in the hospitality sector. Due to the various challenges facing businesses, the focused indirect tax relief measures adopted in the budget are welcomed by the hospitality sector which has been particularly badly hit by the impact of Covid-19. This development has been made to compliment the ‘Stay and Spend Scheme’ which enables people to claim back 20% from their bill, up to a maximum of €125 per person (or €250 for a married couple) in an income tax rebate to those who spend up to €625 (or €1,250 for married couples) in restaurants, pubs, hotels, B&Bs and other qualifying businesses.
The CRSS scheme will assist businesses whose trade has been significantly impacted or temporarily closed as a result of lockdown restrictions. The scheme will operate when Level 3 or higher is in place and will cease when restrictions are lifted. Sectors impacted include accommodation, food and the arts, recreation and entertainment. If lockdown restrictions are increased, other sectors may qualify. These businesses will receive a payment based on their 2019 average weekly turnover and will be effective from today until 31st March 2021. First payments will be made by mid-November and are to be calculated on the basis of 10% of the first €1 million in turnover and 5 % thereafter, based on average VAT exclusive turnover for 2019. It is subject to a maximum weekly payment of €5,000. To apply, the business’ turnover during Covid may not exceed 20% of the turnover for the corresponding period in 2019

5. Direct spending for infrastructure:
According to the budget, the Government is also investing €1 million in developing cycling and walking infrastructure as well as greenways. There will also be a focus on road, rail and other infrastructure.
The housing sector has also received an unprecedented €3.3 billion package which is the biggest ever investment in housing. 12,750 new homes are to be added to the stock of social housing of which 9,500 will be built. The remainder will be added through targeted acquisition and long-term leasing. Measures aimed at making homes affordable for first time buyers and renters will also be included in the budget. The health sector is also set to receive a €4billion package in order to support Irish people through the heavy impact of Covid-19. € 2billion of the money going towards healthcare will be directed towards covid-19 and the remaining €2 billion is to be directed toward healthcare systems, hospitals and Sláinte care.
Other investments in infrastructure include a €44million investment in Irish Water infrastructure and improvements, €80 million to the Department of Education and €20million of current year funding to go towards the Transforming Lives Programme. Voluntary Hospices are also to receive €10million for a Covid stability fund.