The document outlines ways for businesses to reduce their tax compliance burden and improve cash flow during times of reduced economic activity. It recommends that businesses consider filing VAT and PAYE returns less frequently, canceling VAT registration if turnover decreases below thresholds, switching to the cash receipts basis for VAT accounting if turnover drops, and applying redundancy refunds from the Department of Trade and Enterprise against tax liabilities. Contact details are provided for any additional information needs.

1. Managing your Cash Flow Reduce your tax compliance administration

2. Introduction Reduced economic activity, may result in a silver lining in the form of a reduction in your tax compliance burden. This in turn can lead to significant cash flow advantages. On the following slides we outline some of the ways in which business may achieve a reduction in their tax compliance burden and an improvement in Cash Flow.

3. VAT RETURNS For most businesses VAT returns are due on a bimonthly basis. Businesses with an annual VAT liability of between €3,000 and €14,400 are eligible to file and PAY their VAT returns every 4 months. By paying VAT every 4 months rather than every 2 months results in a cash flow advantage in that the business will in effect get 2 months extra credit on its vat liability throughout the year.

4. VAT RETURNS Business with an annual VAT liability of less than €3,000 are eligible to file their VAT returns every 6 months. By paying VAT every 6 months rather than every 2 months results in a cash flow advantage in that the business will in effect get 4 months extra credit on its vat liability throughout the year.

5. VAT Continued Businesses where turnover has decreased to below €37,500 if supplying services could consider canceling their VAT registration. Businesses where turnover has decreased to below €75,000 if supplying goods could consider canceling their VAT registration. In both situations a competitive advantage may be achieved as the business will supply its services/goods at a price that no longer includes VAT.

6. PAYE For most businesses Paye returns (P30) are due on a monthly basis. Businesses with an annual PAYE/PRSI liability of less than €28,000 can opt to file their P30s on a quarterly basis Again this results in a cash flow advantage in that the business now has between 2 to 1 months extra credit.

7. VAT BASIS If turnover is dropping then your business should consider if it can opt for the cash receipts basis of accounting for VAT. The cash receipts basis applies if annual turnover does not exceed €1M. The cash flow advantage which arises is that VAT on sales is only payable to the revenue once it has been received.

8. OFFSETS If a business has made redundancies and is still awaiting its refund from the Department of Trade and Enterprise, it can now apply to have this refund applied to its tax liabilities.

9. CONTACT US If you would like any further information on any of the issues raised in this slide show please contact us. [email_address]