Government supports overview

A. Latest support scheme updates

1. Employment Wage Subsidy Scheme (EWSS)

It was announced in Budget 2022 that the scheme will be extended in a graduated form to April 2022. The following are the broad parameters of this extension:

  • no change to EWSS for the months of October and November
  • businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022
  • across December, January and February, a two-rate structure of €151.50 and €203 will apply
  • for March and April 2022, the final two months of the scheme, a flat rate subsidy of €100 will be put in place. The reduced rate of Employers’ PRSI will no longer apply for these two months
  • the scheme will close to new employers from the 1st of January 2022

2. Covid Restrictions Support Scheme (CRSS)

CRSS was introduced to support businesses significantly affected by restrictions introduced to combat the COVID-19 pandemic. The CRSS is expected to continue until 31 December 2021.

As firms are able to re-open and exit the scheme, there will be an enhanced restart payment of three weeks at double rate of payment to support businesses in meeting the costs of re-opening as they exit the scheme.

The maximum re-start payment will be increased to €10,000 per week, allowing businesses to receive up to a maximum of €30,000.

See the latest guidelines on the scheme here

3. Pandemic Unemployment Payment (PUP)

PUP closed to new applicants on 8 July 2021. From 7 September 2021, there is to be a gradual reduction in payment rates.

The weekly rate of PUP will reduce by €50 on the following dates:

  • 7 September 2021
  • 16 November 2021
  • 8 February 20

4. Enhanced Illness Benefit

The enhanced Covid-19 illness payment will remain available to all those diagnosed with Covid-19 or asked to remain away from work as a close contact.

5. Business Resumption Support Scheme

A new business support scheme, the Business Resumption Support Scheme, will be introduced in September 2021 for businesses with significantly reduced turnover as a result of public health restrictions.

It is designed for 'vulnerable but viable' businesses, particularly in sectors that were significantly impacted throughout the pandemic, even during periods when restrictions were eased.

Businesses whose turnover is reduced by 75% between 1 September 2020 and 31 August 2021, compared with 2019 will be eligible.

The scheme will not be restricted by location, rate paying or physical premises.

The BRSS will be administered by Revenue and will operate in a similar way to CRSS.

Details to follow.

B. Tax considerations

1. VAT

The lower tourism VAT rate of 9% will be extended until end of August 2022.

2. Tax Warehousing

The Tax Debt Warehousing Scheme, available to support businesses that are experiencing tax payment difficulties arising from the COVID-19 pandemic, will be extended to the end of 2021 for all eligible taxpayers with an interest free period during 2022.

COVID related liabilities will then fall to be paid from 1 January 2023. The scheme allows businesses to warehouse liabilities relating to VAT, PAYE (Employer) liabilities, certain self-assessed income tax liabilities and overpayments of Temporary Wage Subsidy Scheme (TWSS).

Overpayments of Employment Wage Subsidy Scheme (EWSS) will now be included in the scheme.

C. Commercial Rates Waiver

Commercial Rates Waiver

The Commercial Rates Waiver will be extended to the end of the year, targeted at the hospitality, arts and certain tourism related sectors.

Businesses should contact their Local Authority directly with any queries relating to the scheme.