News Archives - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

Mortgage switching activity picks up again as rates fall

Mortgage switching activity is growing again as customers try to take advantage of falling European Central Bank rates, according to online broker Doddl.ie.

The volume mortgage customers switching lender spiked in 2022, just as the European Central Bank was poised to start raising interest rates.

However, as ECB rates rose – and good fixed rate deals disappeared – that activity plummeted.

However Doddle’s latest Mortgage Switching Index has identified a 45% rise in switching activity in 2024.

Figures from Banking and Payments Federation Ireland show that, in the last quarter of the year, €331m was drawn down by switchers – compared to €228m in the same period of 2023.

Switching activity was also 14% higher than in the third quarter.

“Rates have decreased but not across all lenders, so there’s a huge gap between the highest and the lowest rates in the market,” said Martina Hennessy, CEO of Doddl.ie. “This creates a vacuum in the middle where many mortgage holders can save by switching.”

The broker says that the gap between the highest and lowest rates on the market now represents a €7,000 a year difference for customers – meaning some could make significant savings by switching.

At the same time rising property prices – and the investments some have made in making their homes more energy efficient – may unlock better loan offers from banks.

Meanwhile the rates market here has gotten more competitive in recent months, particularly because of the arrival of two new entrants to the Irish mortgage market.

“Quite recently both MoCo and Núa have reduced their rates,” she said. “So as these brokers become more competitive on pricing, they’ve got really innovative products and by far the strongest digital mortgage origination on the market, so they are offering much-needed choice to Irish consumers.

“Once their pricing starts to really become a force they’ll definitely become more competitive in the market and really put it up to the incumbents.”

The switching process has also been streamlined, she said, meaning customers are able to make the move far easier than was possible just a few years ago.

However with ECB rates expected to fall further this year, some may be waiting before they lock in a fresh fixed rate with any lender.

Ms Hennessy says that in many cases banks have already priced future rate cuts in, meaning their current offers may not change dramatically regardless of the ECB’s next move.

“Lenders at the top of the scale may drop their rates, but lenders who are currently at or close to 3% may have very little room to cut further,” she said. “It’s probably more competitive forces rather than pricing that will drive competition in the market now.

“If you’re hoping that rates will continue to drop in unison with the ECB rate drops over the next few months, that’s unlikely to happen to the same extent.”

Article Source – Mortgage switching activity picks up again as rates fall – RTE

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Oil prices climb as investors weigh new US tariffs

Oil prices moved higher today even as investors weighed US President Donald Trump’s latest tariff threat, this time on all steel and aluminium imports, which could dampen global economic growth and energy demand.

Brent crude futures climbed 51 cents, or 0.7%, to $75.17 a barrel in early trade, while US West Texas Intermediate crude was at $71.45 a barrel, up 45 cents, or 0.6%.

The market posted its third consecutive weekly decline last week on concerns about a global trade war.

Trump said today he will announce 25% tariffs on all steel and aluminium imports into the US, in another major escalation of his trade policy overhaul.

Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for the neighbouring countries the next day.

In light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminium tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.

“The market has realised tariff headlines are likely to continue in the weeks and months ahead,” he said, adding that there was an equal chance they could be walked back or even increased at some point in the near future.

“So perhaps investors are coming to the conclusion it’s not the best course of action to react to every headline negatively.”

China’s retaliatory tariffs on some US exports are due to take effect today, with no sign as yet of progress between Beijing and Washington.

Oil and gas traders are seeking waivers from Beijing for US crude and liquefied natural gas imports.

Trump said on Sunday that the US is making progress with Russia to end the Ukraine war, but declined to provide details about any communications he had with Russian President Vladimir Putin.

Sanctions imposed on Russian oil trade on January 10 disrupted Moscow’s supplies to its top clients China and India.

Washington also stepped up pressure on Iran last week, with the US Treasury imposing new sanctions on a few individuals and tankers that help to ship millions of barrels of Iranian crude oil per year to China.

Sanctions on Iran and failure to reach a nuclear deal are upside risks to oil prices even though Trump’s policies are aimed at driving energy prices lower, Citi analysts said in a note.

“We see oil likely trading sideways to down over the next month or so, with the fundamental downward pressure building on crude in our base case throughout the year,” they said.

Brent is forecast to average $60 to $65 a barrel in the second half of 2025 as Trump will be persistent in his desire to lower energy prices, and he will ultimately prove to be a bearish influence on the oil market, Citi said.

Article Source – Oil prices climb as investors weigh new US tariffs – RTE

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New registry to clamp down on scam text messages

The Commission for Communications Regulation (ComReg) is setting up an SMS Sender ID Registry to identify legitimate organisations in order to help cut down on text message scams.

The SMS Sender ID Registry is designed to help protect the Short Message Service (SMS) as a reliable and trustworthy communications channel.

Business names and brands that are not on the registry will have their text messages to customers labelled as ‘Likely Scam’ and will be blocked later this year.

Research from consultants Europe Economics estimates that scam calls and texts cost Irish businesses and consumers over €300 million per year, of which around €115 million annually is attributed to scam texts.

Many organisations rely on SMS/text messages to communicate with customers and clients for services such as financial transactions, delivery updates, and appointments.

This type of messaging is called Application-to-Person (A2P) messaging.

A2P text messages often include an alphanumeric identifier, or SMS Sender ID, that may be the name of the company or brand that sent the message (e.g., 234BANK).

ComReg has set a deadline of 25 February for businesses and service providers who handle bulk SMS traffic on their behalf to register.

Organisations using SMS Sender IDs in their messages to customers are urged to instruct their SMS provider to pre-register those SMS Sender IDs with ComReg now.

From 3 July any organisations that fail to register will have any text messages they send labelled ‘Likely Scam’ to alert the recipient that it may not be legitimate.

Then from 3 October text messages from unregistered SMS Sender IDs will be blocked.

It is hoped organisations such as banks and utilities – which are regularly impersonated by scammers – will sign up to the registry.

“Text message scams are undermining the SMS communications channel, with consumers and organisations losing trust in SMS,” ComReg said.

“Europe Economics estimates the annual level of harm to Irish consumers and businesses from scam calls and texts at over €300 million per annum, of which approximately €115 million per annum is attributed to scam texts,” it added.

Bank of Ireland has welcomed the ComReg announcement.

The lender’s Head of Fraud Nicola Sadlier said: “Tackling spam texts is one part of Bank of Ireland’s four-point plan to enhance consumer and business protection from fraud.

“Building on this development, the Bank is hopeful that there will be further progress to implement the Programme commitment to examine a broader SMS spam filter to further prevent fraud attempts on Irish consumers.

“The Bank’s plan also includes the need to take clear action to ensure that online advertising for financial products and services is only permitted by entities regulated to offer them, and the introduction of a Shared Fraud Database in Ireland. We all need to work together to tackle the serious problem of fraud, and these latest steps from ComReg are extremely positive.”

Article Source – New registry to clamp down on scam text messages – RTE

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Significant rise in car and home improvement loans – BPFI

There has been a significant jump in the number of people borrowing money to buy cars and make home improvements, according to latest figures from the Banking & Payments Federation Ireland (BPFI).

It said that during the third quarter of last year more than 17,000 car loans were drawn down – nearly 14% higher than the same period in 2023 – while the value of those loans rose by more than a fifth to €229 million.

The average car loan for the period (July-September 2024) was €13,434, which was up by €835 year on year.

The BPFI said this likely reflects the continued shift towards electric and plug-in hybrid electric vehicles.

Borrowing for home improvements also saw a surge, with a 12.3% increase to 16,194 loans valued at €204 million.

The average home-improvement loan during Q3 of 2024 was €12,606.

The BPFI figures come from its members, which include the so-called pillar banks – AIB, Bank of Ireland, and PTSB.

They indicate that personal loan values across all categories reaches record levels in the period, reaching €670 million.

Meanwhile, the average green loan reached its highest point to date at just over €24,000.

BPFI Chief Executive Brian Hayes said it is “encouraging to see positive momentum in green personal loans”.

“These loans comprise green car and green home improvement loans. While the SEAI has reported that 54,000 retrofits were completed to a total value of €420 million in 2024, of which 22,000 were for upgrades to B2, the rollout of the Home Energy Upgrade Loan Scheme by Government last year, could support further growth in the market going forward,” he added.

Article Source – Significant rise in car and home improvement loans – BPFI – RTE

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Tax take rises in January

There was a further payment of €1.7 billion from Apple’s tax money into the Government’s coffers last month, according to the Department of Finance’s Exchequer Returns.

The funds relate to a tax judgement that the US multinational lost at the Court of Justice of the European Union when it argued it was not liable to pay Ireland €14bn in taxes.

Excluding the money from Apple, taxes collected last month were up 7.2% at €8.4bn.

However, the figures show there was a significant increase in spending of 22.7% last month at €9.2bn compared to January of last year.

It is understood this is due to a timing issue regarding payroll where there were three paydays last month for public servants and social welfare recipients, instead of the usual two days.

A series of Budget spending increases also took effect.

January is a month when VAT is due to be paid and includes trading for the Christmas period.

VAT of €4.1bn was collected which was a 5.8% increase on the previous year which indicates strong consumer spending.

Income tax, which is a key barometer of the jobs market, was up 2.8% to €2.9bn.

Corporation tax, including the latest money from Apple, was up 59% at €1.8bn.

Excise tax was up 5.2% at €542m.

“Today’s figures show that tax revenues continued to demonstrate steady growth at the start of the year,” Minister for Finance Paschal Donohoe said.

“In particular, the ongoing expansion of income tax and VAT receipts are a positive indicator of the fundamental strength of our economy,” he added.

However, he said there are clear risks ahead.

“As a small open economy, Ireland is particularly vulnerable to changes in the global economic environment. This underlines the importance of continuing to pursue a balanced and sustainable fiscal policy.

“That is why Government has committed to using the once-off proceeds from the CJEU decision to improve our stock of infrastructure, as well as investing windfall tax revenues in the Future Ireland Fund to prepare for future challenges,” he added.

Minister for Public Expenditure, Infrastructure, Public Service Reform & Digitalisation Jack Chambers said the January expenditure figures reflect the introduction of measures introduced as part of Budget 2025 – such as the increases to Social Protection weekly rates, the expansion of the school meals scheme and the increased health sector investment are among the areas where Budget 2025 funding is supporting improvements in living standards and public services.

“At end-January 2025, capital expenditure was 51.5% higher than the same period last year,” Minister Chambers said.

“This continues the ramp up of the National Development Plan as well as the Government’s commitment to investing in long-term public infrastructure projects that will address infrastructural deficits, enhance the competitiveness of our economy improve the quality of life for those living and working in Ireland,” he added.

Article Source – Tax take rises in January, €1.7bn of Apple tax money rolls in – RTE

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Highest earnings for workers in non-EU multinationals – CSO

Workers in non-EU multinational companies accounted for the highest average earnings in 2023, according to a new report from the Central Statistics Office.

The research shows that median weekly earnings were highest among jobs in businesses owned by non-EU multinationals. The figure stood at €906.74 a week.

This was followed by enterprises owned by EU multinationals, which had earnings of €789.07 a week.

The lowest median weekly earnings were recorded among jobs in Irish-owned enterprises at €654.41 a week.

The CSO said that similar trends were recorded for median weekly and annual earnings across the years analysed, 2020–2023.

In 2023, median weekly earnings were highest among Indian nationals employed in both Irish-owned enterprises, where the figure was €792.59 a week, and foreign-owned enterprises, where the figure stood at €1,096.05 a week.

Among Irish-owned enterprises, Ukrainian, Brazilian and Lithuanian nationals had the lowest median weekly earnings in 2023.

Overall, jobs in Irish-owned enterprises accounted for almost three-quarters of all employments in 2023, while jobs in non-EU multinationals accounted for a further one-fifth.

Despite greater annual percentage increases in weekly earnings among female workers, males had higher median weekly earnings in each nationality of enterprise ownership category, compared with their female counterparts.

The number of employees whose primary employment was with Irish-owned enterprises rose by 0.4% in the month to November 2024, which was an annual increase of 2.9%.

This compares with a monthly increase of 0.1% and annual increase of 0.5% for foreign-owned enterprises.

In 2023, Irish nationals accounted for 76.6% of employments in Irish owned-enterprises and 65.5% of employments in all foreign-owned enterprises, the CSO figures show.

“Median weekly earnings among Irish nationals tended to be higher than non-Irish nationals across all nationality of enterprise ownership categories in 2023,” said Dr Eimear Heffernan, CSO Statistician.

“However, the range in earnings by individual nationality was considerable,” she noted.

“Median weekly earnings were highest among Indian nationals in employment in both Irish-owned enterprises and foreign-owned enterprises in 2023,” Dr Heffernan said.

“In contrast, median weekly earnings of €425.75 and €538.26 were recorded among Ukrainian nationals employed in Irish-owned and foreign-owned enterprises, respectively,” she added.

Article Source – Highest earnings for workers in non-EU multinationals – CSO – RTE

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Positive outlook for tourism in 2025 – Fáilte Ireland

Fáilte Ireland drove over 1.2 million referrals from its website and social media channels to the booking engines and websites of Irish tourism businesses last year.

The tourism body hopes to grow that number this year, as it unveils plans to drive sustainable tourism development across the country.

The chief executive of Fáilte Ireland, Paul Kelly, said “influencer marketing is one of the most cost effective returns on investment” after it was revealed that the agency paid €165,000 to 11 influencers to promote domestic tourism.

“Along with all the other great marketing that we do, including our fantastic sponsorship of the RTÉ Weather, (influencers are) part of a holistic package of marketing that is designed to support businesses.”

Mr Kelly said it is appropriate that influencers label their content appropriately as advertisements when posting on behalf of Fáilte Ireland.

This year, Fáilte Ireland is working alongside Tourism Ireland to promote Ireland as the authentic home of Halloween nationally and internationally, as part of the programme of festivals that it is supporting.

It will also support the continued development of “exceptional visitor experiences and attractions”. Key openings in 2025 include Dublin Castle Records Tower, The Little Museum of Dublin, Dún Aonghasa on Inis Mór, off Co Galway, New Farm Trail in Connemara National Park in Co Galway and Bray Head Signature Discovery Point in Co Kerry.

The tourism body is competing with international destinations and foreign climes to attract Irish tourists who are currently seeing ads from airlines and tour operators encouraging them to book a sun holiday.

Mr Kelly said there was a significant increase in Irish people holidaying in Ireland during the pandemic, and those numbers are holding up. “It is really important that we continue to invest and develop that,” he said.

Fáilte Ireland’s tourism barometer revealed 46% of businesses increased their revenue in 2024, while 18% had the same, and 36% saw a decrease. The strongest performing sectors were inbound tour operators and destination management companies.

It showed that price increases helped to cover rising costs, but not fully – 68% of businesses increased their prices last year due to rising costs.

In spite of significant cost challenges, 56% of businesses made a profit in 2024, and a further 24% broke even.

“Businesses haven’t been able to put their prices up by as much as the input costs have come in,” Mr Kelly said, “so we have seen that the profit margins have been squeezed so that’s a real challenge that businesses face.”

He said labour, energy and insurance costs dominate concerns, but if costs come down, prices for customers will moderate. “I think the industry really welcomes the announcement in the Programme for Government around the VAT rate, around employer PRSI reduction, and they certainly will help moderate pricing when they come into play.”

Article Source – Positive outlook for tourism in 2025 – Fáilte Ireland – RTE

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Ireland will need to build 93,000 homes a year up to 2031 – Davy

Ireland will need to build 93,000 homes a year meet demand between now and 2031, according to a report by stockbroker Davy.

The estimate is significantly higher than housebuilding targets included in the Coalition’s Programme for Government, which envisages 300,000 new homes being built between 2025 and 2030.

Last year there were only 30,000 homes built in Ireland, which fell short of the Government’s official target of 33,000 and far below projections by then minister for housing Darragh O’Brien.

Davy’s forecast is based on its estimate that the population will reach six million by 2031.

The report says the housing shortfall is now 230,000 homes.

It also says the lack of housing is impacting on household formation for younger age groups as it affects that cohort of the population having families.

“Urgent reforms are needed. These include an overhaul of strict rent caps, a number of measures targeted at reducing housing construction costs, and further streamlining of the planning system for critical infrastructure, including housing development,” the report says.

It also says it will take “considerably longer than seven years” to reach the Housing Commission’s recommendation that the share of the social housing stock be increased to 20%.

Davy says the need for housing has been continuously “systematically underestimated due to an unexpectedly strong economic and population backdrop.”

Davy’s Chief Economist said that, at best, Ireland can build up to 75,000 houses a year by 2031 despite demand by this time requiring more.

Kevin Timoney said this would “be a stabilisation basically of the situation” as it will “still leave the country short of what’s needed”.

Speaking on RTÉ’s News at One, Mr Timoney said for the forecast figure to be achievable “some reforms are necessary”, including apartment delivery.

This, he said, “is going to be a big part of any scale up” as this is the ” main source” of why housing targets have been missed.

He said the difference between what is fundamentally needed for the rest of the decade and what was delivered “is huge”.

Pent up demand “is really significant”, he said, adding that “it does not go away”.

Article Source – Ireland will need to build 93,000 homes a year up to 2031 – Davy – RTE

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Services growth slows abruptly in January, PMI shows

The country’s services sector grew at its slowest pace in nine months in January as new export business contracted for the first time in six months and employment fell marginally, a survey showed today.

The AIB Global S&P Purchasing Managers’ Index (PMI) fell to 53.4 in January from 57.1 in December, slipping below the long-run trend level of 55.1.

New business rose at its slowest pace since September 2024 and new export business was the weakest since last August, AIB said in a statement.

The index did, however, remain above the 50 level that signals growth and was stronger than similar surveys from the euro zone and UK.

The January expansion was driven by an increase in new and outstanding business, while the future activity index rose to its highest level since February 2024, AIB said.

AIB said that all four sub-sectors registered varying paces of expansion last month.

Transport, Tourism & Leisure registered the fastest growth once again, having been a laggard throughout much of 2024, with more modest gains in Technology, Media & Telecoms, Business Services, and Financial Services.

It noted that hiring activity was mixed across the sectors, with a contraction in the Financial Services sector, and weak growth in the remaining three sectors.

“On the inflation front, the input cost index was higher once again, implying continued rising cost pressures in the sector,” AIB’s chief economist David McNamara said.

“Wages and utilities were cited as key drivers of higher costs. The rate of increase in prices charged also accelerated, as firms protected margins, despite a softer demand environment,” he said.

“In terms of the outlook, firms remain optimistic for business activity in 2025. The future activity index rose to its highest level since February 2024, linked to new projects and business
opportunities domestically and abroad,” he added.

Article Source – Services growth slows abruptly in January, PMI shows – RTE

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Over 500,000 people missing out on tax refunds – Revenue

More than half a million people are missing out on tax refunds, according to estimates from the Revenue Commissioners.

It said that around €389m in tax may have been overpaid in 2024 and it is appealing to taxpayers to claim back what they are due.

So far this year, more than 440,000 people discovered that they overpaid tax in 2024, according to statistics from Revenue.

This resulted in refunds of over €400m during the month of January. The average refund issued was €900.

It also said that around 66,000 people underpaid tax in last year.

“We are working with those taxpayers to collect the underpayment by reducing their future tax credit, over a period of four years,” Aisling Ní Mhaoileoin, Revenue’s National PAYE Manager, said.

Revenue has launched an information campaign highlighting the benefits of its myAccount services to file their Income Tax Return.

Taxpayers have four years to claim any additional refund they may be due.

“If Revenue owes you money, you’ll get a refund into your bank account within days,” said Dan Oosthuizen from Revenue’s PAYE Services.

There are a wide range of tax credits and relief available including on health expenses, mortgage fees, rent and remote working.

Article Source – Over 500,000 people missing out on tax refunds – Revenue – RTE

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