News & Events
Following a recent government meeting the Minister for Finance Paschal Donohoe announced a set of additional / enhanced measures to support businesses as they re-open and resume trading this Summer. Here is a round-up of the updates:
· The employee wage subsidy scheme will now be extended until the 31st of December 2021.
· There will simultaneously be an enhancement and extension of the Covid Restrictions Support Scheme to provide additional support to businesses upon re-opening in order to give businesses certainty who are still affected by public health restrictions.
· A new business support scheme entitled Business Resumption Support Scheme will be implemented for businesses with reduced turnover as a result of the pandemic and public health restrictions.
· There will be now be an extension of the tax debt warehousing scheme to allow for the period where liabilities arising can be warehoused until the end of 2021 for all eligible taxpayers with an interest free period during 2022 and to include overpayments of the EWSS in the scheme.
· The extension of the reduced rate of VAT of 9% applying on a temporary basis to Hospitality and Tourism related goods and services until 1 September 2022.
· The Government agreed to the drafting of legislation to provide for these measures.
The above measures are likely to provide a degree of certainty to businesses as public health restrictions are lifted. They will also allow businesses to plan for the future as they open their doors and resume trading this Summer.
The EWSS (Employment Wage Subsidy Scheme) continues to act as a key element of the Government’s response to the pandemic. This scheme supports businesses and encourages employment and provides for a solid link between employers and employees.
As of the 27th of May a total of €3.835 billion has been spent under the scheme of which €3.293 billion relates to direct subsidies and €0.542 billion relates to Employers’ PRSI foregone.
For Q3, the Government has decided to broadly maintain the status for the EWSS, including the enhanced rates of support and the reduced rate of the employers’ PRSI with a slight modification to widen the birth of eligibility.
For Q4 the Government has approved the extension of the EWSS, it is important to note however that it is still too early to yet identify the precise operational parameter of the scheme that should apply for that quarter and decisions in that regard will be taken closer to the time circa August/September.
The Covid Restriction Support Scheme (CRSS) has been an extremely effective intervention by the Government to provide support to businesses whose customers are prevented from accessing their premises because of Covid-19 restrictions.
The CRSS in its current form will be continued to the end of 2021 for the reducing number of businesses that are still directly affected by public health restrictions. The qualification criteria and payment rates will remain unchanged.
The Government will also provide for an enhanced restart week payment – a single payment of three double week to businesses upon re-opening (subject to a maximum of €30,000). This will provide additional support to the businesses in restocking and making the necessary preparations to welcome their customers back in a safe manner.
This enhanced restart payment is intended to incentivise them to exit the scheme and return to trading as early as possible.
Business Resumption Support Scheme:
As the country re-opens, an additional scheme is being introduced for vulnerable but viable businesses, particularly in sectors that were significantly impacted throughout the pandemic, even during periods when restrictions were eased.
Businesses whose turnover is reduced by 75% in the reference period (1 September 2020 to 31 August 2021) compared with 2019 will be eligible. The scheme will not be restricted by location, rate paying or physical premises. It is expected that there will be a limited number of such businesses and recognised that it is important that such businesses are supported.
Businesses who previously availed of other schemes such as SBASC and the Tourism Business Continuity Scheme for example as well as CRSS will be eligible to apply provided they meet the eligibility criteria.
The BRSS will be administered by Revenue and will operate in a similar manner to the CRSS.
Extension of the reduced rate of VAT for Hospitality and Tourism
The Government recognises the continuing challenges facing the Hospitality and Tourism sector, and have agreed that the reduced VAT rate of 9% applying to the sector on a temporary basis will be extended to 1 September 2022. The extension of the reduced rate until the end of the 2022 summer season allows for a longer period of recovery for the sector. This will be extremely helpful for the large multitude of businesses operating in these sectors in the coming year.
How can Cronin and Co help?
At Cronin and Co we are happy to advise organisations on how any of these schemes can benefit their business. We can discuss eligibility criteria and enable businesses to save time on the admin and red tape.
If you have any questions regarding these supports or schemes, please contact [email protected]