The Government has launched it’s plan to support the economy as the country reopens. Following are the key changes to supports available for businesses under the plan:
- 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. This will help firms with cashflow and to restock and re-engage with staff.
- 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 six months to ensure businesses and workers are supported through the earlier part of the recovery.
- 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 1 September, 2022.
- Tax warehousing is being extended until the end of the year and will be interest free in 2022.
- The Pandemic Unemployment Payment will be closed for new entrants from 1 July of this year and will be gradually phased out from 7 September, so that by early 2022 it will be back in line with the Jobseekers’ Allowance. You can find further information on each of these changes on the gov.ie website.
- €950m in EU Recovery grants to fund additional investment in higher and further education, skills, research, the digital transformation and climate action, like retrofitting homes and commuter rail. There will be a special fund of €85m to help enterprises decarbonise and €55m to help businesses to go digital.
- Furthermore, a new additional, more streamlined business support scheme, the Business Resumption Support Scheme (BRSS) will be introduced in September 2021 for businesses with very significantly reduced turnover as a result of public health restrictions. This will be open to business with and without a rateable premises 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, but the Government will continue to help those businesses that are particularly challenged through to the end of the year and beyond if needed.
- The suspension of section 12A of the Redundancy Payments Act 1967 has been extended one last time until the 30 September, at which point employees can trigger a redundancy claim if not taken back on. Companies genuinely unable to pay will be able to get an interest free loan from the Social Insurance Fund.