Call for business support efficiency

Chambers Ireland has called for a tightening of supports for SMEs and entrepreneurs via tax reliefs, the implementation of a cash accounting system and better promotion of initiatives such as the Seed Capital Programme and recently launched schemes such as the Credit Guarantee Scheme and the Micro-finance Fund.

Appearing before the Joint Oireachtas Committee on Jobs, Enterprise, and Innovation yesterday, on the subject of creating a sustainable environment for job creation, Chambers chief executive Ian Talbot said businesses must be encouraged to use the services on offer from the Microfinance Fund and Credit Guarantee Scheme.

“A perception persists that many businesses will be rejected when they apply for credit,” said Mr Talbot. “This perception must be challenged. Businesses must be encouraged to apply to the banks, appeal through the Credit Review Office, and use the credit schemes as a final resort.”

Chambers also wants entrepreneurs rewarded for their risk-taking via the introduction of an Entrepreneurs’ Relief programme. This, it claims, would reduce the effective capital gains tax rate from 30% to 10% for “qualifying disposals”. This, the body added, should apply to gains made on the disposal of entrepreneurial businesses by individuals following the sale of all or part of a company.

Chambers also told yesterday’s committee that the existing Seed Capital Scheme should be “simplified and promoted” in order to encourage more people to start their own businesses and grow job opportunities in the future.

Mr Talbot also argued that SME cash flows can be improved by implementing the EU directive to allow them to utilise a cash accounting system. Noting that the Revenue Commissioners has implemented such a scheme — allowing companies to account for Vat on sale on the basis of payments received, rather than tax invoices issued — he said that the current threshold (qualifying businesses must have a turnover of no more than €1m) is too low and should be extended to businesses with a turnover of up to €2.5m.