A COVID-19 Government financial support briefing for PGA Members (Ireland)

Government financial support provided since the start of the pandemic has evolved, with some elements no longer being available and others having changed from early last year.

Details in this briefing paper reflect the support currently available or which may become available in the near future.

This information is for information only. It is not intended to be prescriptive and necessary professional advice should be sought where appropriate.

Employment Wage Subsidy Scheme

• Available to employers who may not otherwise be able to maintain employees on the payroll
• Current rate of subsidy extended to 31 March 2021 in light of expanded restrictions in Ireland (announced 6 January 2021)
• Strong incentive for employers and workers to maintain their relationship through the current challenging period
• Suited to Members who either employ staff or are employees of their own company
• These measures have been put in place to help otherwise viable businesses who continue to be adversely impacted by COVID-19
• Irish Govt encourages all eligible firms to apply for the scheme
• The rates of subsidy that will continue to apply until 31 March 2021 are as follows:

CLICK HERE to find out more about the Employment Wage Subsidy Scheme.

Covid Restrictions Support Scheme (CRSS)

• Available when Level 3 restrictions or higher are in place
• Runs until 31 March 2021
• Qualifying businesses can apply to Revenue for a cash payment of up to €5,000
• Double rate of CRSS will be paid for 2 weeks to businesses required to close as a direct result of govt restrictions on 26 December
• Available to companies, self-employed and partnerships who carry on a taxable trade
• Premises closed due to Covid restrictions and intend to reopen once restrictions lifted
• Turnover restricted by >75% compared to 2019 levels
• Possess tax clearance certificate
• Claim to Revenue under the CRSS for a cash payment known as an Advance Credit for Trading Expenses (ACTE)
• Payment will be equal to 10% of average weekly turnover in 2019 up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000. See table below

• Businesses can claim for an additional one week payment to help them reopen after a period of COVID-19 restrictions lasting 3 weeks or more
• Register and make claims for CRSS via Revenues on-line service (ROS)
• Claims to be made within 8 weeks of the date restrictions started

CLICK HERE to find out more about the Covid Restrictions Support Scheme (CRSS).

Deferrals, reliefs and loans – Ireland

Commercial rates

• With limited exceptions, all businesses were granted a waiver of commercial rates for the period between 27 March to 31 December 2020. Further commercial rates relief will apply for affected sectors for the first three months of 2021
• Implemented by each local authority in its own area

VAT reduction

• A six-month reduction in the standard rate of Value-Added Tax (VAT) from 23% to 21% applies effective from 1 September 2020

https://www.revenue.ie/en/vat/vat-rates/what-are-vat-rates/reduced-rate-of-value-added-tax-vat.aspx

• It is anticipated that the rate will increase to the normal level from 1 April 2021

UK employment support

Self Employed Income Support Scheme (SEISS) – extended 5 November 2020

• Two grants provided to eligible self-employed individuals during 2020
• Members likely to be affected include club pros, coaches etc
• Now extended to 30 April 2021
• 3^rd and 4^th grants to cover Nov-Jan; Feb-April
• Third grant - 80% of a self-employed individual’s average monthly trading profits, computed in line with the scheme’s details, up to a maximum of £2,500 per month
• Maximum 3^rd grant therefore £7,500
• Even if Members did not apply for the first and second grants last year, they can still apply for the third grant if they meet the eligibility criteria
• Must have traded in a self-employed capacity in both the tax years ended 5 April 2019 and 5 April 2020, and they must have submitted their 2019 tax return by no later than 23 April 2020.
• For Members who are eligible for support through the SEISS third grant, the deadline for applications for the funding via the government portal is 29 January 2021.
• Fourth grant is expected to be made available early in the year covering the period from February to April. The details of the fourth grant are not yet available
• Eligibility details available on PGA COVID-19 Resource Hub (from 7 Jan)

CLICK HERE to find out more about the Self Employed Income Support Scheme.

• Note for self-employed Members – 2020 Tax Returns due to be submitted to HMRC by 31 January 2021

Coronavirus Job Retention (Furlough) Scheme

• Also extended until the end of April 2021
• Of particular relevance to those Members who have employees or who are themselves employees of their own limited company business
• Currently excludes directors who are remunerated via dividends
• In parallel with the SEISS, the government will fund up to 80% of a furloughed employee’s wages, up to a maximum of £2,500 per month.
• Flexible furlough applies so employee can work part time and be paid by employer, with non-working hours supported through the scheme
• Eligibility details available on PGA Covid Hub (from 7 Jan)
• Claims for furlough days in December must be made by 14 January 2021;
• Claims can no longer be submitted for claim periods ending on or before 31 October 2020

CLICK HERE to find out more about the Coronavirus Job Retention (Furlough) Scheme.

Localised Restrictions Support Scheme

• Grants to eligible businesses
• Businesses required to close or severely limit operations at their premises
• Property based grants taking rateable value into consideration

Covid Restrictions Business Support Scheme

• Applications now closed

Newly Self Employed Support Scheme

• Aimed at newly self-employed individuals (sole traders and those in partnerships) whose business is adversely impacted by COVID-19 and who have not been able to access support from the UK government’s SEISS
• A one-off taxable grant of £3,500
• Commenced trading between 6 April 2019 and 5 April 2020
• Must have still been trading at 1 March 2020
• Trading impacted by COVID restrictions
• Unique taxpayer reference with HMRC
• Some other eligibility criteria
• Closes to applications on 5 February 2021

CLICK HERE to find out more about the Newly Self Employed Support Scheme.