Revenue

COVID-19 Income Support Scheme (replaces previous Refund Scheme)

An eligible employer will be supported up to 70% of an employee’s take-home income up to a maximum weekly tax-free payment of €410 However no more than the normal take-home pay. And it will run from 26th March for 12 weeks.

The employer is expected to make the best efforts to maintain as close to 100% of normal income as possible for the subsidized period.

There will be severe penalties for any abuse of the scheme.

Eligibility for the Income Support Scheme:

Employers must self-declare to Revenue that they have experienced significant negative economic disruption due to COVID-19, with a minimum of 25% decline in turnover, and an inability to pay normal wages and other outgoings, in accordance with guidance to be issued by Revenue.

This scheme is open to impacted employers in all sectors. This recognizes the impact that COVID-19 is having across all parts of the economy.

The employee must have been on the payroll in February 2020.

Please contact us if you’d like to apply for the scheme before paying the staff.

https://www.revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-   subsidy-scheme.aspx

 

E-Working and Tax

For companies that are able to facilitate staff from working from home full time or part-time, can receive €3.20 per day allowance without deducting tax.

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf

 

Measures to assist SMEs experiencing cashflow Difficulties arising from Covid-19

Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.

Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.

Debt Enforcement: All debt enforcement activity is suspended until further notice.

Tax Clearance: current tax clearance status will remain in place for all businesses over the coming months.

CRO:

  • The Registrar of Companies has decided that all annual returns due to be filed by any Company now and up to 30th June 2020 will be deemed to have been filed on time if all elements of the annual return are completed and filed by that date
  • All Annual Return signature pages due to be delivered to the CRO up to the 30th June 2020 will be treated as received on time if they are received by close of business on 30th June 2020.

https://www.cro.ie/About-CRO/Contact-Us/Whats-New

 

Social Welfare:

COVID-19 Pandemic Unemployment Payment

This payment is available to all employees and the self-employed who have lost their employment due to a downturn in economic activity caused by the Covid-19 pandemic.

The payment has a simple one-page application form and will be paid for a period of 6 weeks at a flat rate payment of €350 per week for jobseekers. It is designed to quickly deliver a social welfare payment to the unemployed and provide income security during the pandemic.

https://www.gov.ie/en/service/c20e1b-short-time-work-support/

Note to Staff short-term layoffs:

If the company decided to lay-off some staff due to the virus there’s no limited notice period needed to inform the staff. However, the notice period will apply if the short-term lay off turns into Redundancy after 6 weeks.

We are expecting more information on the incentives in the coming days for SMEs. We will keep you updated on future information. We are also advising our clients not to take any drastic measures just yet, ie make staff redundant or taking on a loan. Take a step back and assess the company’s financial situation and have a feel as to how sustainable the business is during the crisis.

Please don’t hesitate to get in touch if I can be of any help.

 

 

 

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