“Coalition Considers Delaying ‘Living Wage'”

Sunday’s newspapers have spotlighted corporate expenses, with the Business Post revealing possible governmental delays to the rollout of this year’s living wage. The coalition government has pledged to implement a national living wage – set to be 60% of the median hourly wage – via a series of gradual minimum wage raises by January 2026, following proposals by the Low Pay Commission. However, the size of these wage hikes is considered concerning by the government due to escalating operating costs for smaller and medium-sized businesses. At present, the baseline wage is €12.70, with a possible rise of around €2.15 in the next two years. The Enterprise Minister, Peter Burke, argued against any annual increase over €1.

A succession of visible small business shutdowns, like celebrity chef Dylan McGrath’s two Dublin eateries last week, may force the coalition to contemplate deferring the policy’s enforcement, the report says.

The Business Post has revealed a surprise for Irish Uber drivers today, concerning their VAT commitments. Although passenger transport generally dodges VAT, other related services – for instance, booking via an app – do not enjoy this exemption. While ride-share companies like FreeNow and Bolt handle VAT payments due from drivers, Uber does not. Being registered in the Netherlands, Uber isn’t subject to Irish VAT, pushing the tax responsibility back to the driver.

The news has left members of the National Private Hire and Taxi Association (NPHTA) stunned, who believed their services were not subject to VAT, according to the NPHTA’s Jim Waldron. Platforms offering taxi services have now alerted the Revenue to drivers using their services and their respective payments for access. This information aids in “verifying taxpayer declarations,” as a tax authority spokesperson has said.

Legal disputes involving Paddy McKillen and a Qatari sheikh were addressed in the Sunday Independent.

As previously communicated, the partnership between the Belfast-born property tycoon and ex-Qatari Prime Minister Sheikh Hamad bin Jassim bin Jaber al-Thani turned sour in 2022 following the dismissal of Mr McKillen from the Maybourne Hotel Group’s board. Prior to this event, the builder had undertaken several projects under the Qatari leadership, which led to him seeking remuneration in court. According to recent US court documents, Mr McKillen asserts that his firm worked on a novel high-end hotel project in Paris in the absence of a proper contract. This was standard practice based on the past collaborations between Mr McKillen and Jassim, as indicated by the official reports.

In 2022, renewable energy businesses saw a significant boost in profits due to the energy crisis that escalated when Russia invaded Ukraine. Earnings of wind and solar corporations rose fourfold – from €125 million to €509 million – in response to the increased demand for alternative electricity sources, as per the Sunday Times. The Single Electricity Market’s publication presents these data and reveals that the sector generated €8.2 billion in revenues that year.

Chartered Accountants Ireland has recently questioned the feasibility of the government’s new mandatory workplace pensions scheme, auto-enrolment, set to launch next year. The accountancy group recommended in a Sunday Times report that the implementation should be postponed until 2026. The group also stressed the need for a clear start date, which is yet to be confirmed by the government, and a trial period to familiarise both employers and employees before the full roll-out. According to Crona Clohisey, director of public affairs at the CAI, businesses are not currently prioritising preparations for auto-enrolment and won’t do so until a definitive launch date is announced.

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