The Irish Government has announced an ambitious plan to restart the economy following the shutdown brought about by the Covid-19 pandemic. The July stimulus was unveiled yesterday, July 23rd, and it is a suite of supports for all business sectors.
Below, we are highlighting the main issues in the July Stimulus that will impact on businesses:
Wage Support Scheme
- A new scheme, entitled the Employment Wage Support Scheme will replace the Temporary Wage Subsidy Scheme. This will run until April 2021.
- Businesses that have experienced a reduction of 30% or more in turnover will receive a payment of €203 per employee per week.
- Seasonal employees, previously not covered by the scheme, will now be eligible to join the scheme.
- Businesses that have recently established in sectors adversely impacted by Covid-19 will also be able to avail of the scheme.
Changes to the VAT Rate
The higher VAT rate of 23% will be reduced to 21% for six months, beginning on the 1st of September, 2020.
Income Tax & Tax Reliefs
- Self-employed individuals will be able to avail of income tax relief for 2020 if they have incurred losses in 2020 but were profitable in 2019.
- Interest on all tax debts will be reduced to 3% from the 1st of September, subject to negotiation with the Revenue Commissioners.
Other Business Elements
- Companies availing of Microfinance and SBCI loans will be able to avail of 0% interest for the first year of the loan.
- All businesses will be granted a waiver on their commercial rates for 6 months up to the end of September 2020.
- The Future Growth Loan Scheme has been extended from €200 million to €500m.
- The range of businesses that can avail of the Restart Grant has been widened to include sectors such as rateable sports businesses, charity shops, and B&Bs.
- The minimum grant available has been increased to €4,000.
- The maximum grant available has increased to €25,000.
- Companies that recruit an individual under the age of 30 from the live register will be able to avail of a grant of €7,500 for 2 years similar to previous schemes that were first introduced in 2011.
- A further €20million has been made available to assist SME’s to prepare for Brexit.
We Can Help
The July Stimulus is a complex package of measures, some of which are listed above. We can advise you on how your business might qualify for supports or on managing the changes in schemes such as the Temporary Wage Subsidy Scheme. Call us on 052 61 37775 or email: [email protected]
Read More About Covid-19 and It’s Impact on Business:
So, you have made adjustments to the business to deal with Covid-19 shutdowns. Now, the focus has to be on stabilisation and looking to build a prosperous 2021 which is only 6 months from now. Most business owners are adopting quickly to get back to some form of normality. The question is: what is normal? Here, we look at life after Covid for businesses and what you can do to be ready. Read the full article here.
We have been assisting businesses with issues relating to Government supports throughout the crisis. The latest set of supports for businesses, known, as The Restart Grant, were announced in recent days. The Restart Grant is a €250 million fund to assist small businesses to get back up and running. Read the full article here.
The crisis continues, and as it does businesses need to be aware of what business supports are available. It will have been easy to miss some of the most important aspects of what is available to help businesses as we have been inundated with news from all angles. Here, we detail the expansion of the business supports available in order to help your business work through this crisis and build your business into the future. Read the full article here.