Businesses receive further support for re-opening, Minister Donohoe announces
After a Government meeting on 1 June, it has been announced that new measures will be implemented to provide support to businesses as they re-open and start to revert to normal trading. These measures include the following:
Employment Wage Subsidy Scheme (EWSS)
The EWSS will be extended to 31 December 2021.
This scheme was applied by the Government in response to the Covid-19 pandemic to support businesses and encourage employment.
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 to Employers’ PRSI forgone.
Covid Restrictions Support Scheme (CRSS)
There will be an extension and enhancement of the CRSS to provide additional support to businesses and give certainty to those still directly affected by public health restrictions.
This has had extreme success in providing support to businesses where customers are prevented from accessing their premises due to the pandemic’s restrictions.
The scheme in its current form will be continued to the end of 2021 for the reducing number of businesses that still need this support. Not only this, but the qualification criteria will remain the same.
Also, to provide additional help in restocking and preparing to welcome back customers safely, an enhanced restart week payment will be provided by the Government.
This will be a single payment of three double weeks to businesses upon re-opening – to a maximum of €30,000.
Business Resumption Support Scheme (BRSS)
This is a new, additional business support scheme for businesses with reduced turnover as a result of restrictions and it will be implemented in September 2021.
Those whose turnover is reduced by 75 per cent in the period of, 1 September 2020 to 31 August 2-21, in comparison with 2019 will be eligible.
There will be no restrictions to location, rate paying or physical premises as it is expected that there will be a limited number of businesses applicable.
Please note that businesses that previously benefitted from other schemes, such as the Tourism Business Continuity Scheme or the CRSS, will be eligible to apply provided they meet the criteria.
Tax debt warehousing
The tax debt warehousing scheme that allows the period where liabilities can be “warehoused” is to be extended to the end of 2021 for all eligible taxpayers; with an interest-free period during 2022.
Previously, the tax debt warehousing scheme has provided around €2.3 billion of liquidity to Irish businesses at a time they have needed it most.
Reduced rate VAT extension
The introduction of the reduced rate of VAT to nine per cent for Hospitality and Tourism related goods and services has been extended to 1 September 2022.
Recognising the challenges that this sector faces, the extensions aim to continue within the summer season to allow for a longer period of recovery.
McMahon & Co.’s aim is to provide clients with comprehensive and professional services addressing all aspects of their business. For more help or advice on business support schemes, please contact us today.