Responding to COVID-19
Budget Highlights 2021
HIghlights from the Budget 2021 announced by Finance Minister Pascal O’Donoghue on 13 October 2020.
VAT Rate Change
From 1 September 2020, the standard rate of VAT will change from 23% to 21%. The rate is due to revert to 23% with effect from 1 March 2021.
Employment Wage Subsidy Scheme (EWSS)
Revenue have recently released additional guidance on the Employment Wage Subsidy Scheme (EWSS) which will replace the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020. Eligible employers can backdate a claim to the 1 July 2020 for EWSS payments for new hires and seasonal workers.
Restart Grant for Small Businesses
Applications for the Government’s recently announced Restart Grant can be made online to local authorities from Friday 22 May.
The Restart Grant will give direct grant aid to micro and small businesses to help them with the costs associated with reopening and re-employing workers following COVID-19 closures. The grants are equivalent to the rates bill of the business in 2019, with a minimum payment of €2,000 and a maximum payment of €10,000.
New ‘warehousing’ of deferred tax debts and interest suspension arrangements
Revenue suspended debt collection and the charging of interest on late payment for the January/February and March/April VAT periods and February, March and April PAYE (Employer) liabilities. These arrangements are further extended to include May/June VAT and May and June PAYE (Employer) liabilities. For the purposes of clarity, PAYE (Employer) liabilities include income tax, universal social charge and employees’ and employer’s PRSI due to be remitted by employers to Revenue under the PAYE system in respect of the payment of wages, salary, etc., to their employees.
‘Warehousing’ of COVID-19 Related Tax Debt and additional Government supports for Business
The Government has announced a further suite of measures to support small, medium and larger business that are negatively impacted by COVID-19. Legislation is to be introduced to permit Revenue to ‘warehouse’ VAT and Payroll tax debt that arose on foot of the COVID-19 related restrictions.
Covid-19 – Government Supported Grants and Loans available for Businesses
The Covid-19 pandemic has presented unprecedented challenges for businesses in Ireland and across the globe. A range of financial supports have been made available by the Government to assist businesses trying to manage their way through this situation. The main grant and loan supports available are summarised on the following web page.
Wage Subsidy Scheme – Revenue Guidance on Additional Pay
We wish to highlight that the Revenue Commissioners have published new guidance on the Wage Subsidy Scheme which now advises employers that the sum of:
(a) the wage subsidy payment; and
(b) the gross amount of any additional pay
should not exceed an employee’s previous Average Net Weekly Pay (‘ANWP’). If such an excess arises then the wage subsidy scheme refund due to employers will be reduced by an equivalent amount.
Wage Subsidy Scheme – Frequently Asked Questions
An updated Frequently Asked Questions document on The Temporary Wage Subsidy Scheme has been issued by Revenue which can be accessed here:
<< READ ABOUT WAGE SUBSIDY SCHEME – FREQUENTLY ASKED QUESTIONS >>
Wage Subsidy Scheme – Employer Eligibility and Supporting Proofs
Revenue’s administration of the COVID-19 Temporary Wage Subsidy Scheme will operate largely on a self-assessment basis and a declaration by the employer concerned. In this article, you can read Revenue guidelines regarding their approach to employer’s eligibility for the scheme and the examination of supporting proofs.
<< READ ABOUT EMPLOYER ELIGIBILITY AND SUPPORTING PROOFS >>
Wage Subsidy Scheme
The Temporary Wage Subsidy Scheme will be available to employers who keep employees on the payroll throughout the COVID-19 pandemic, meaning employers can retain links with employees for when business picks up after the crisis. You can read about eligibility, key features and the registration process in detail here.
<< READ ABOUT WAGE SUBSIDY SCHEME >>
Benefit in Kind on Motor Vehicles
Revenue have issued an e-Brief setting out the tax treatment of employer-provided vehicles during the period of the COVID-19 restrictions.
<< READ ABOUT BENEFIT IN KIND ON MOTOR VEHICLES >>
Benefit in Kind Excluding Motor Vehicles
Tax treatment of reimbursements by an employer to an employee regarding holiday/flight cancellations or in relation to costs of assisting employees returning to the State.
<< READ ABOUT BENEFIT IN KIND EXCLUDING MOTOR VEHICLES >>
Initial Tax Relief Measures
This article details the measures Irish Revenue have taken to help support small and medium size businesses (SME’s) experiencing cash flow and trading difficulties as a result of the COVID-19 epidemic.
<< READ ABOUT INITIAL TAX RELIEF MEASURES >>