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€500 Small Benefit Exemption

Employers can issue one voucher/gift card per year to an employee up to the value of €500, tax free, subject to certain conditions. This benefit cannot be redeemed for cash.

During Covid-19, the limit of one voucher has been waived, therefore if an employer wishes to reward staff working through the pandemic they can do so, tax free.

The maximum value still remains at €500 but can be issued in separate vouchers.

Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.

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Credit Guarantee Scheme for SME’s

A new Covid-19 Credit Guarantee Scheme for 2020 will be released this Autumn, with over €2 billion in credit available.

This will enable small to medium sized businesses to access overdrafts, term loans and working capital with payment free periods from six months to a year and terms of up to 7 years.

The aim is to provide low-cost loans to businesses severely affected by Covid-19 and to help the economy re-open, with the government offering a partial guarantee of 80% to the banks against losses on those qualifying loans.

Minister Leo Vradkar said;

“We want to help viable businesses to get through the difficult phase of reopening and deal with the new realities and challenges posed by COVID-19. The Credit Guarantee Scheme will provide low cost loans to businesses and will in turn help more people to get back to work, We want to give confidence to SMEs in particular, by providing the liquidity needed to get through the economic upheaval caused by the pandemic.

The July Stimulus Package will be the next step in our recovery plan as we seek to get businesses back on their feet and our people back to work.”

It will be operated through participating lenders, which are Ulster Bank, AIB and Bank of Ireland.

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

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New Enterprise Support Grant

The Department of Employment Affairs and Social Protection has announced a new Enterprise Support Grant will be made available to all self-employed who ceased the Pandemic Unemployment Payment after 25th June 2020.

A grant of up to €1,000 will be available to help re-open their businesses, subject to the following conditions.

  • Must be Tax and PRSI compliant
  • Was in receipt of the Covid-19 Pandemic Unemployment Payment and ceased same after 25th June 2020
  • Must employ less than 10 employees
  • Have an annual turnover of less than €1million
  • Not eligible to Covid-19 Business Restart Grant or other re-opening grants

The grant is 80% of the cost to a maximum of €1,000 towards reopening of your business, which can include;

  • Safety measures
  • Business advice or mentoring
  • Repairs
  • Fuel
  • Wages

Further details on how to apply will be made available in the coming weeks

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