Today the government announced the long-awaited July Stimulus Package with the aim of boosting the State’s economic recovery from the COVID-19 pandemic.
Here we look at what you might be able to avail of and we break down the top 10 things you need to know;
The standard rate of VAT will be cut from 23% to 21% from September 2020 to February 2021.
2. Temporary Wage Subsidy Scheme
The COVID-19 Temporary Wage Subsidy Scheme has been renamed the Employment Wage Support Scheme and extended out until March 2021. For the next period i.e. from August 31st to March 31st 2021, you need to assess that your turnover or customer orders will reduce by 30% (this was previously 25%). First of all, before continuing on the scheme, you need to be sure your business qualifies. Read our advice about how to do this here.
Assuming that you do qualify here is what you need to know;
- The staff you currently have on this scheme can stay on it
- To encourage hiring, you can now add new staff to the scheme
- You will receive a flat rate subsidy of up to €203 per week per employee
*Also the PUP will be extended until April 2021.
3. Bigger Restart Grant
You may be able to avail of a new, improved Restart Grant of up to €25,000. If you have received a payment already you may be able to claim additional monies. Today’s announcement also confirmed that businesses that were previously shut out from these restart grants would now be included.
Read more about applying for the Restart Grant Plus here.
If your company was profitable last year but is set to make a loss this year, an early carry back of trading losses will now be allowed leading to an immediate refund - naturally, this will assist with cashflow issues.
Likewise, the same relief will exist for self-employed individuals who were profitable in 2019 but as a result of COVID-19 will incur losses in 2020.
5. Commercial Rates
Commercial rates have been waived until the end of September.
6. Apprentice Incentive
If you are considering taking on an apprentice you can avail of a €3,000 incentive, €2000 of which will be payable in 2020. This scheme will be run by the Department of Higher Education. Check back on our website as soon when full details are announced on how to apply for this funding.
7. Recruitment Subsidy
If you take someone on who is on the live register or the PUP, you may be able to claim a recruitment subsidy of up €7,500. There will be 8,000 of these subsidies available under the JobsPlus Scheme.
8. Stay & Spend Scheme
If you operate in the hospitality sector, your customers will be able to claim back tax on spend between €25 and €625 under a new Stay & Spend Scheme for the post summer season. Initial signs are that customers will do this themselves via an app.
9. Credit Guarantee Scheme
If you are considering borrowing to get through the COVID-19 crisis, be aware that the Credit Guarantee Scheme, whereby the government provides an 80% guarantee, has been expanded to a wider range of products. This will mean that low cost loans with interest free periods will be more easily accessible.
10. Help to Buy Scheme
If you are considering buying a house the Help to Buy Scheme has been increased from €20,000 to €30,000.
Over the coming days we will have more information on how you can avail of these supports so check back to our COVID-19 Knowledge Hub for further details.
Last updated: 11th August 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.