July Stimulus Package: All You Need to Know
We have already heard about the latest announcements made by the government about the much-awaited July stimulus package. The main objective of this package is to implement various schemes to enhance the country’s economy and support those who severely affected during the Covid19 pandemic.
Let’s check out the major points outlined in the announcement.
COVID-19 Temporary Wage Subsidy Scheme extended until March 2021
COVID-19 Temporary Wage Subsidy Scheme has been extended with the effect from September 2020 till March 2021. The employees who are eligible will receive a flat rate subsidy up to €203 per employee per week. Employers are supposed to show their 30% decline in their annual turnover to become eligible for this scheme. Seasonal and newly hired employees can also get benefited from this scheme. Contact us if you want professional advice on this.
Update: New Employment Wage Subsidy Scheme (EWSS) has been introduced by the Irish government on 23 July 2020 will replace the Temporary Wage Subsidy Scheme (TWSS)
VAT tax cuts to 21%
From September 2020 to February 2021, the standard rate of VAT will only be 21% instead of the existing 23%.
Pandemic unemployment payment
The pandemic unemployment payment has been extended to April 01, 2021. This benefit is currently payable either €203 or €350 per week.
Retraining and upskilling grants
The package provides a commitment of €200 million into different schemes to help those employees who have lost their jobs. The welcome extension of the back to work enterprise allowance and the back to education allowance are some of the measures included.
Bigger restart grant
An improved Restart Grant of up to €25,000 is one the cards. The businesses that were already shut out from these restart grants also be included in this grant.
An early carry back of trading losses will now be permitted leading to an immediate refund for those companies who have a profitable track record last year but suffered a considerable loss this year. This is also applicable for self-employed individuals who gained their profit last year but suffered severe losses during the Covid crisis.
Commercial rates waived off
All commercial rates have been waived until the end of September 2020.
€3,000 incentive for apprenticeship
This scheme will be managed by the Department of Higher Education. A €3,000 incentive can be availed for those who are considering taking an apprenticeship. €2000 of which will be payable in 2020.
Recruitment subsidy up €7,500
If you can pick someone from the live register or the PUP, a €7,500 recruitment subsidy is waiting for you. Apart from that, there will be around 8,000 of these subsidies offered under the JobsPlus Scheme.
€25 and €625 claim back under Stay and Spend Scheme
A new Stay & Spend Scheme for the post-summer season offers claim back tax spend between €25 and €625, if you operate in the hospitality sector.
Low-cost loans under Credit Guarantee Scheme
The government provides an 80% guarantee for a wider range of products via the Credit Guarantee Scheme and makes low-cost loans more easily accessible with interest-free periods. So if are about to borrow during this Covid crisis, better consider this scheme.
Help to Buy Scheme increased to €30,000
The government has increased the limit from €20,000 to €30,000 for those who are considering buying houses via Help to Buy Scheme.
If you have any other queries related to the stimulus package, don’t hesitate to contact us for expert advice. We have a panel of specialists in taxation services to help our clients in their tax planning, consulting and giving effective tax related advices.
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