Simon Bell, the commercial manager with Sage Ireland, commenting on the proposal this week by the European Commission to allow a 6 month grace period for SEPA implementation, said the proposed extension, while welcome, is ‘a precautionary measure intended to give more time for companies to become compliant’.

“The situation is still crystalising and it remains to be seen how this proposal will be implemented at a national level. As such, Sage would advise that businesses continue to work towards the 1st February deadline to avoid the risk of a shutdown of payments in and out of their companies after this date.”

Mr Bell said that in early December, ISME reported that 73% of SMEs have started the implementation process and he understands there have been significant strides in the market since then.

“Sage have been at the forefront in preparing for SEPA for the last year and urges businesses to not be complacent in completing their migration and to continue working to the legal migration deadline of 1st February 2014.”

Minister for Small Business, John Perry TD, said SEPA is only one of five initiatives in the National Payments Plan.

“Businesses need to ensure they are also ready for the e-Day deadline on 19th September 2014. e-Day aims to reduce cheque usage in the economy and from the 19th September all central government, local authorities and State agencies will no longer issue or accept cheques. SMEs are either issuers or receivers of 60% of all cheques in Ireland so it is crucial that they are prepared for this change.”