- VAT reduction from 13.5% to 9% until 31 Dec 2021.
- Temporary Reduction of VAT for Tourism and Hospitality items
from 13.5% to 9%
- Begins 1st November 2020 – 31 December 2021 and applies to Hairdressing Services only.
- Temporary Reduction of VAT for Tourism and Hospitality items
- Employment Wage Subsidy Scheme
- Employment Wage Subsidy Scheme is currently set to continue until 31st March 2021, however the Minister acknowledged that a similar type scheme will be needed to the end of 2021 to provide businesses. However, the Government will decide on its form in the new year when economic conditions are clearer.
- Covid Restrictions Support Scheme (CRSS)
- The new Covid Restrictions Support Scheme (CRSS) is aimed at businesses which have either been prohibited in operating or only been able to trade at significantly reduced levels as a result of restrictions imposed on them in response to Covid-19.
- Qualifying businesses can apply to Revenue for a cash payment, representing an advance credit for trading expenses that are deductible for income and/or corporation tax purposes (“ACTE”) for the period of restrictions resulting in operations being prohibited / reduction in activities effective from 13 October. Payments will be calculated on the basis of 10% of the first €1m in turnover and 5% thereafter, based on average VAT exclusive turnover for 2019, and will be subject to a maximum weekly payment of €5,000.
- The Scheme will generally apply when Level 3 or higher restrictions are imposed in line with the Plan for Living with Covid-19 is. It will run from Budget day until 31 March 2021. It will be brought into effect by Finance Bill 2020.
- Expansion of Warehousing of tax liabilities
- The tax debt warehousing scheme will be expanded to include repayments of Temporary Wage Subsidy Scheme owed by employers and preliminary tax obligations for adversely
affected self-assessed taxpayers.
- The tax debt warehousing scheme will be expanded to include repayments of Temporary Wage Subsidy Scheme owed by employers and preliminary tax obligations for adversely
- Employer’s PRSI
- From 1 January 2021 the weekly income threshold for the
higher rate of employer’s PRSI will increase from €394 to €398.
This follows a recommendation of the Low Pay Commission to
ensure that the increase in the hourly minimum wage to €10.10 in January 2020 does not lead to work disincentives for workers, in particular those seeking to work full-time.
- From 1 January 2021 the weekly income threshold for the
- Commercial Rates Waiver Extended
- Commercial Rates Waiver announced for the final quarter of this year
- Self Employed Income Tax 2019 Balancing Payment & 2020 Preliminary Tax Deferral
- If you’re a self-employed sole trader, the debt warehousing provisions already provided in the July Stimulus package will be extended. This means that your 2019 tax balance and 2020 preliminary tax, are allowed to be deferred for a period of a year with no interest applying. (3 per cent will apply thereafter and will attract no surcharge.) This will provide much-needed cash flow for your business at this time.
- Self Employed Tax Credit Increase
- Increased from €1500 to €1650 in the tax year 2021.
- Occasional Work for PUP recipients.
- For self-employed recipients of the Pandemic Unemployment Payment, an earnings disregard will be introduced to allow them to take up intermittent work without losing their benefit. This means that for example; as a make-up artist, you may not have the demand of regular clients, but you can do the occasional bridal party and not lose your PUP payment.
- State Illness Benefit – Reduction in Waiting Period
- Illness Benefit will now be available after three days out of work, rather than six.
- Extension of the Apprenticeship Incentivisation Scheme
- Apprentice Employer Incentivisation Scheme is to be extended until the end of June 2021. This offers €3000 to an employer who hires a new apprentice.
- Later this year, the Government will also publish an Apprenticeship Action Plan.
