As Covid restrictions are eased and the country begins to re-open, there are a number of changes to financial supports available to businesses and amendments to certain deadlines. The Government announced a new Economic Recovery Plan, to ensure rapid economic recovery, return to full employment and to avoid any tax rises or spending cuts.
Changes are due to the following financial supports;
- The Covid-19 Restrictions Support Scheme (CRSS) will remain in place for businesses that have to stay closed. For businesses re-opening in June and July, they will receive a double payment for the first three weeks upon reopening up to a maximum of €30,000.
- The Employment Wage Subsidy Scheme (EWSS) is being extended until the end of 2021. Some adjustments are being made to how it is calculated – it will now be based on your business’ earnings for a full 12-month period relative to 2019, rather than for 6 months.
- The commercial rates waiver will continue in its current form during the third quarter of this year for those availing of it.
- The 9% VAT rate will be extended until the 1st of September 2022.
- Tax warehousing is being extended until the end of the year and will be interest free in 2022.
- The Pandemic Unemployment Payment (PUP) will be closed for new entrants from July 1st of this year and will be gradually phased out from the 7th of September, so that by early 2022 it will be back in line with the Jobseekers’ Allowance.
Further to this, a new business support scheme will be introduced;
- The Business Resumption Support Scheme (BRSS) will be introduced in September 2021 for businesses with very significantly reduced turnover as a result of Covid-19. This will be open to business with and without a rateable premise and will be administered by Revenue in a similar way to the CRSS. Businesses who previously availed of other schemes such as the Small Business Assistance Scheme for COVID (SBASC) and the Tourism Business Continuity Scheme for example, as well as CRSS will be eligible to apply provided they meet the qualifying criteria. Details on this scheme will be announced closer to the time.
The Tánaiste also confirmed details of the Fair Deal Scheme, where the cap on contributions is bring extended based on family-owned and family-operated farm and business assets at three years, where a family successor commits within the first three years of the person’s time in care to working the farm or business for a period of six years. This means, regardless of the length of a person’s stay in long-term residential care, the maximum contribution based on the capital value of a business will be 7.5% per year for three years only, where all the conditions of the scheme are complied with.
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