The Government has recently introduced various business supports, of which perhaps the most useful one is the Employment Wage Support. While it is far less generous than its predecessor, the TWSS, it still provided a subsidy per employee of up to €203 per week.

Due to the ongoing effects of the pandemic, the Government has announced further measures to help businesses continue, and hopefully recover.

With Brexit also around the corner the outlook for the Irish and European economies is poor; the effectiveness of this stimulus package remains to be seen.

A summary of the main points is set out below. If you think we can assist by interpreting or helping to implement any of the matters, please contact us.

For example, we have already help our clients to manage their payrolls, including implementation of the TWSS. The TWSS is now being replaced by the Employment Wage Support and we’ll be happy to assist businesses to apply the rules correctly.

Employment Wage Support Scheme

  • Replaces the TWSS as of 1st September 2020;
  • Employers whose turnover has fallen 30% are eligible (25% under TWSS);
  • The maximum subsidy is €203 per week;
  • Seasonal staff and new employees qualify, unlike TWSS;
  • Turnover reduction to be reviewed monthly by each participating business.

Tax measures

  • Tax credit of €125 for taxpayers who spend €625 or more on accommodation, food and non-alcoholic drinks between October 2020 and April 2021;
  • Enhanced support under the Help to Buy incentive scheme until December 2020;
  • Increased tax deduction for businesses that provide eBikes (€1,500 max deduction) or other bikes (€1,000 max deduction) under the Cycle to work scheme;
  • Early carry-back of corporation tax trading losses, leading to immediate refund of corporation tax paid;
  • Income tax relief for self-employed individuals who were profitable in 2019 but who incur losses in 2020 due to the pandemic
  • Reduction in the standard VAT rate from 23% to 21% for six months from September 2020;
  • Warehousing of PAYE and VAT debts to allow businesses affected by Covid-19 to pay over time without interest or penalties;
  • Interest rate on tax debt settlements reached by 30th September 2019 to be reduced to 3%;

Other measures

  • Waiver of commercial rates for the six months ended 30th September 2020;
  • €20m “Brexit Fund” to help export/import SMEs to put systems and staff in place for the new Customs arrangements from 1st January 2021;
  • Restart grant improved, including eligibility and increase to €25,000 max;
  • Separate restart fund for tourism sector;
  • Covid-19 credit guarantee scheme of €2bn with 80% guarantee for credit products from €10,000 to €1m and up to 6 year term;
  • Additional funding for Micro-Finance Ireland and LEO for small and micro companies;
  • Future growth loan scheme expanded to €200m so companies with less than 500 employees can avail of long term funding at competitive interest rates;
  • Online retail scheme to receive additional funding for allocation through LEOs. 

If you would like further advice in relation to these or other accounting and tax matters, please contact David Hayde FCCA.