As we emerge from the Covid-19 pandemic, the Government has eased public health restrictions and has reopened all sectors of our economy. There have therefore been amendments made to some supports provided and these are detailed below:
This was a support scheme that the Government put in place to help support businesses that were significantly restricted from operating due to public health restrictions. The Government agreed a removal of public health restrictions from 22 January 2022, therefore businesses will no longer qualify for the CRSS from that date.
As part of Budget 2022, the government set out the future direction of EWSS including its graduated exit strategy. These arrangements were subsequently enhanced in response to the public health situation, namely the extension of the enhanced rates of subsidy for a further two months (across December 2021 and January 2022) and the reopening of the scheme for certain businesses as announced on 9 and 21 December 2021 respectively.
The government agreed on 21 January 2022 that businesses availing of EWSS that were directly impacted by the public health regulations introduced in December 2021, would receive additional support under the scheme for February 2022 to assist these businesses as they fully reopen and emerge from the restrictions.
Such businesses will continue to receive the enhanced rates of subsidy for the month of February and the graduated step-down in subsidy rates, as previously announced, will be delayed by one month with such firms continuing to receive support under the scheme until 31 May 2022.
From 1 February 2022, most businesses, apart from those that were directly impacted by the public health restrictions of last December, moved to the reduced rate of support of €203 per employee, followed by the flat rate subsidy of €100 per employee for the final two months the scheme of March and April 2022.
It should be noted that the full rate of Employers’ PRSI will be reinstated with effect from 1 March 2022 for all businesses, as announced in Budget 2022 and legislated for in the Social Welfare Act 2021.
The COVID-19 pandemic impacted on those in the live entertainment sector and as part of a suite of measures to support those in the sector, the Music and Entertainment Business Assistance Scheme was launched as a targeted support for businesses operating solely in the live entertainment sector that did not qualify for other business supports such as CRSS and were significantly impacted by restrictions introduced by the government under public health regulations to combat the effects of the COVID-19 pandemic.
This scheme closed at 1pm on 17 February 2022
Tax Debt Warehousing Scheme
In relation to the Tax Debt Warehousing Scheme, and the decision by Government last month, to extend the period where tax liabilities arising can be warehoused to the end of Q1 2022, for all taxpayers eligible for COVID-19 support schemes, it has now been agreed that this date will be extended to 30 April 2022 to facilitate the two monthly VAT return for March/April. On1 May 2023, taxpayers must agree a Phased Payment Arrangement with Revenue for the warehoused debt. Interest will be applied from the start of Period 3 until the final payment date at a rate of 3%.
For more information, contact Naill Donnelly, Tax Director: NiallDonnelly@fdw.ie
or Jane Jackson, Head of Payroll and Tax Compliance: JaneJackson@fdw.ie