Tag Archive for: SMEs

Increased Size Thresholds to Assist Irish SMEs with Audit & Reporting Requirements

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Increased Size Thresholds to Assist Irish SMEs with Audit & Reporting Requirements

The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 were signed into law, increasing the balance sheet and turnover thresholds for “micro”, “small”, “medium” and “large” companies and groups under the Companies Act 2014 by 25% to account for inflation.

This change means more Irish companies will move into the micro and small categories and may benefit from abridged reporting and audit exemption. It will also reduce regulatory and administrative burden.

The changes may also result in companies falling outside the scope of reporting obligations imposed under the Corporate Sustainability Reporting Directive (CSRD).

The new thresholds are as follows:

Micro Company thresholds:

  • Balance sheet total not exceeding €450,000 – (previously €350,000)
  • Turnover not exceeding €900,000 – (previously €700,000)
  • Average number of employees does not exceed 10 – (unchanged)

Small Company thresholds:

  • Balance sheet total not exceeding €7.5 million – (previously €6 million)
  • Turnover not exceeding €15 million – (previously €12 million)
  • Average number of employees does not exceed 50 – (unchanged)

Small Group thresholds:

  • Group balance sheet total not exceeding €7.5 million net or €9 million gross – (previously €6 million net or €7.2 million gross)
  • Group turnover not exceeding €15 million net or €18 million gross – (previously €12 million net or €14.4 million gross )
  • Average number of Group employees does not exceed 50 – (unchanged)

Medium Company thresholds:

  • Balance sheet total not exceeding €25 million – (previously €20 million)
  • Turnover not exceeding €50 million – (previously €40 million)
  • Average number of employees does not exceed 250 – (unchanged)

Medium Group thresholds:

  • Group balance sheet total not exceeding €25 million net or €30 million gross – (previously €20 million net or €24 million gross)
  • Group turnover not exceeding €50 million net or €60 million gross – (previously €40 million net or €48 million gross)
  • Average number of Group employees does not exceed 250 – (unchanged)

Large Company and Group thresholds:

  • Exceeds the thresholds for a Medium Company or Group as outlined above.

These new thresholds are effective from 1 July 2024 and will apply for financial years commencing 1 January 2024, enabling companies to benefit immediately. Companies also have the option to elect to apply the new thresholds for any financial year commencing on / after 1 January 2023.

If you have further queries on what this means for your business, please contact us.

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Increased Cost of Business Grant

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Increased Cost of Business Grant

As part of Budget 2024, the government signed off on a package of €257 million for the Increased Cost of Business (ICOB) Grant to support small and medium sized businesses. It is intended to contribute towards the risings costs faced by businesses. However, it is not a Commercial Rates waiver; businesses are still required to pay rates to their local authority.

What is the grant amount?

The grant amount is based on the value of the Commercial Rates bill received by an eligible business in 2023.

  1. For qualifying businesses with a 2023 Commercial Rate bill of less than €10,000, the ICOB grant will be paid at a rate of 50% of the business’s Commercial Rate bill for 2023.
  2. For qualifying businesses with a 2023 Commercial Rate bill of between €10,000 and €30,000, the ICOB grant will be €5,000.
  3. Businesses with a 2023 Commercial Rates bill of greater than €30,000 are not eligible to receive an ICOB grant.

Who is eligible for the ICOB Grant?

The following are the main qualifying criteria:

  • Commercial Rates Bill must be equal to or less than €30,000 in 2023.
  • Business must currently operate from a property that is commercially rateable.
  • Business must have been trading on 1 February 2024, and intend to continue trading for at least three months.
  • Business must be rates compliant, (businesses with approved performing payment plans may be deemed compliant).
  • Business must be tax compliant and possess a valid Tax Registration Number (TRN).
  • Business must provide confirmation of bank details.
  • If your business operated from a property subject to a Property Entry Levy (PEL) in 2023, you are eligible to receive the grant based on the annualised (grossed-up) value of the PEL bill issued for that property.

Who is not eligible for the ICOB Grant?

  • Public institutions and financial institutions (with exceptions for Credit Unions and specific post office services, excluding Company Post Offices).
  • Vacant properties.

How can I apply?

Businesses are encouraged to use the ICOB portal.

The closing date for businesses to confirm eligibility and to upload verification details will be 1 May 2024. Payments will commence in late April 2024.

If you require assistance with your application for this grant, please contact Carol Hartnett from our Accounting & Financial Advisory Department.

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Ukraine Credit Guarantee Scheme provides low-cost loans to Irish businesses

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Ukraine Credit Guarantee Scheme

The Ukraine Credit Guarantee Scheme (UCGS) will provide €1.2 billion in more affordable funding to Irish businesses who have been impacted by the war in Ukraine.

Eligible borrowers will be able to access funds ranging from €10,000 to €1 million, capped at the greater of either 15% of their recent turnover or 50% of their annual energy expenditure. There is no personal guarantee or collateral required for loans up to €250,000.

Financing will be offered through a range of credit facilities, including term loans, working capital loans and overdrafts.

The scheme offers repayment terms of up to six years with discounted interest rates.

Who is eligible?

This funding is available to Irish SMEs, primary producers and small mid-caps (defined as businesses with up to 499 employees) who have been impacted by economic challenges arising from the war in Ukraine.

To be eligible for this scheme, operating costs must have risen by over 10% since 2020.

The scheme will be available up to the 31 December 2024 or until it has been fully subscribed.

How to apply?

Step 1: Apply for an Eligibility Code from the SBCI through their online hub.

Step 2: Provide this eligibility code to a participating finance provider to begin the credit application process.

If you require assistance with your application for this funding, please contact Carol Hartnett from our Accounting & Financial Advisory Department.

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