Give PRSI rebate to small firms, says SFA

It says the rebate could be based on each worker earning below an agreed threshold. The SFA proposes that the system be operated through Revenue’s PAYE Modernisation in much the same way as the employment wage subsidy scheme.

As well as a PRSI rebate, it proposes the introduction of an enterprise support scheme to assist small businesses make the transition to paying the Living Wage. “Such a scheme, based on the proportion of low-wage workers in a firm’s wages bill, could provide a temporary subsidy to qualifying employers,” the SFA says.

The proposals are included in a list of policy priorities the lobby group has published in advance of the upcoming local and European elections. It claims there now needs to be “decisive action” by the Government due to rising business costs.

Among its other suggestions is a reduction in Capital Gains Tax from 33pc to 20pc, and the introduction of a national training voucher scheme, which would be designed to boost in-company training schemes and get more workers to sign up for re-skilling and up-skilling programmes. The idea is that firms could claim back money spent on the cost of training provided by an accredited education provider.

David Broderick, director of the SFA, said: “Many small and viable businesses are struggling to manage costs arising from high energy costs, supply chain challenges and fluctuating commodity prices. The most challenging issue is that the new national minimum wage rate, coupled with incoming Living Wage rates, are lowering the shutters to businesses across the country. Retail and hospitality businesses are particularly vulnerable at this time, but that is just the tip of the iceberg.” Mr Broderick said he was encouraged by recent statements from Taoiseach Simon Harris about his government’s new focus on helping small businesses. “I hope his administration will follow through on its commitment as a matter of urgency,” he added.

Among the SFA’s other proposals are to increase the life-time limit for the entrepreneur relief on Capital Gains Tax to €5m. It wants a “more rigorous” stress test by Government on regulations.

The SFA says simplification is required in order to make the ‘angel investor’ relief available to all trading and professional service businesses. The lobby group also wants the rate of income tax reduced on dividends to 25pc on the first €30,000 per annum per person.

Among the other proposed measures are:

• No increase in commercial rates for businesses;
• Improved access for small businesses and for start-ups to bank and non-bank finance, via the Strategic Banking Corporation of Ireland and Micro Finance Ireland schemes;
• in relation to tax administration, a review of fixed penalties for businesses;
• advice and financial support offered to firm to support repayment of warehoused tax debt;
• A simplification of the administration procedure for the R&D tax credit, and more guidance and supports introduced to facilitate greater uptake by small firms;
• The introduction of a “workable” share scheme for small businesses