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Week 1 basis for Temporary Wage Subsidy Scheme or Pandemic Unemployment Payment

Employees that have received payments under TWSS or Pandemic Unemployment Payment are to be moved to a Week 1 basis.

The Week 1 basis is also known as ‘non-cumulative basis’ or month 1 for employees paid monthly. This basically means you pay tax each day you are paid, separate from previous weeks before that. Therefore, pay and tax credits are not accumulated to the previous 1st January and do not factor in anything else that has happened up to that point.

Employers have been notified to operate on a Week 1 basis since 21st June 2020.

This may mean that if you have not fully utilised all your tax credits and allowances in 2020, you could be overpaying tax. It is important that you review 2020 and submit a tax return to ensure you receive a refund of any overpayment of tax. 

While you are here, Read more of our Covid-19 update blogs here

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Update to Temporary Wage Subsidy Scheme

Following the announcement by the Minister for Finance, Revenue have now put in place a change to the Temporary Wage Subsidy Scheme to include employee’s returning to work following a period of leave.

Previously, where an employee was returning to work after maternity, adoptive, paternity or parental leave or having received benefits from DEASP, they were not included on payroll on the 29th February or paid in January or February 2020 and therefore did not qualify for the Temporary Wage Subsidy Scheme or only qualified for a reduced subsidy.

Employee’s now returning to work after the below leave can now be included in the scheme;

  • Maternity leave, adoptive leave, paternity leave, parental leave or related unpaid leave or
  • Being in receipt of health and safety or Parent’s benefit paid by the DEASP for February 2020 or
  • Being in receipt of illness benefit paid by the DEASP for February 2020

An employer can now request for Revenue to treat the employee as an eligible employee for the purposes of the scheme and the subsidy will be backdated to the date of recommencement of employment, or from 26th March, whichever is latest.

While you are here, Read more of our Covid-19 update blogs here

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Childcare Services Relief

What is Childcare Services Relief?

The Childcare Services Relief provides an exemption from income tax to taxpayers who provide childminding services in their own home.

Covid-19 Temporary Measure Introduced

Due to Covid-19, this has now been temporary amended due to the stay at home measures. Childminding should now only take place in the child’s home and therefore an individual minding children in the children’s own home will still qualify for the Childcare Service Relief. The childcare must be provided in accordance with official guidance, specifically, childcare is allowed in the home of the child for the children of essential workers.  This temporary measure will be reviewed once further guidance is available from the HSE.

Nature of Services that qualify

To qualify for the relief, an individual provides any form of childminding services to children under 18 years of age, on a full or part time basis and are provided to 3 children or less.

Exemption Limit

Childminding activity must not exceed €15,000 within the tax year in order for the exemption to apply for Income Tax and USC. However, PRSI is chargeable on this income.

How do I claim?

Tax relief must be claimed through your tax return for the relevant tax year before the tax return deadline.

While you are here, Read more of our Covid-19 updates here

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CRO Update – Filing Date for Annual Returns

The Company Registration Office has confirmed a further extension to the filing of annual returns for all companies.

In March, it was announced all annual returns would be deemed to be filed on time if all elements of the annual return was filed by 30th June.

The Registrar of Companies as now extended this date to 31st October 2020. An extension for all entities that are required to file with the Registry of Friendly Societies has also been extended until 31st December 2020.

While you are here, Read more of our Covid-19 updates here

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