• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Mock exams
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE Elective Information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Reasonable accommodation and extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Main examination past papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Learning Hub data privacy policy
        Online Payment FAQs
        Audit qualification
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2021
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Training firms update details
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • Overseas members
        Working abroad
        Working in Australia
        Overseas members news
        Tax for returning Irish members
      • In business
        Networking and special interest groups
        Articles
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        CHARIOT/Institute Technical content
        TaxSource Total
        Audit Qualification requirements
        Pocket diaries
        Thrive Hub
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

News

  • Home/
  • News
☰
  • News
  • News archive
    • 2020
    • 2019
  • Press releases
    • 2022
    • 2021
    • 2020
  • Newsletters
  • Press contacts
  • Media downloads
  • Podcasts Chartered Accountants Ireland
  • Budget day news

July Stimulus (section specific analysis)

Jul 30, 2020

Take a look at our section by section analysis of the July Jobs Stimulus package.

Employment Wage Support Scheme to succeed the TWSS (Section 2)

A new Employment Wage Support Scheme (EWSS) has been included in the Government’s July Jobs Stimulus Package. The EWSS will run in parallel to the Temporary Wage Subsidy Scheme (TWSS) from 31 July. The EWSS is set to succeed the TWSS from 1 September and continue to the end of March 2021. While the concepts behind the two schemes align, there are a number of differences between them.  

The EWSS will require employers to reassess their eligibility for wage support. Employers who can demonstrate to the satisfaction of Revenue that turnover or customer orders are estimated to have fallen by 30 per cent for the period July to December 2020, compared to the same period last year, will be eligible for the EWSS. While eligibility for the TWSS has been assessed on a 25 per cent reduction in quarter two turnover or customer orders.

Under the EWSS employers will receive a flat-rate subsidy of up to €203 or €151.50 per employee, per week, depending on the employee’s gross weekly pay. A subsidy will not be available for employee’s whose gross weekly earnings are less than €151.50 or greater than €1,462. The TWSS provides for a maximum subsidy amount of €410 depending on an employee’s ARNWP.

Under the EWSS a subsidy will be available for new and seasonal employees, in addition to existing employees. The EWSS is also open to newly commenced businesses. The eligibility criteria for new businesses will be assessed against projected turnover or customer orders had there been no COVID-19 disruption. The EWSS is available to employer’s registered under Section 58C of the Child Care Act 1991.

The EWSS is expected to support 350,000 jobs at an estimated cost of €1.9 billion. Over €2 billion has been paid out through the TWSS as of mid-July. An estimated 415,000 employees continue to be supported by the TWSS.

Chartered Accountants Ireland will host a wage subsidy scheme webinar with Revenue on 26 August. The webinar will be open for registration through the webinar webpage shortly. 

Special warehousing and interest provisions (Section 3, 4 and 5)

Debt warehousing legislation is set out in the Bill to support the scheme announced in May. The measures deal with VAT and PAYE debt incurred by businesses, who, due to Covid-19 related restrictions, are unable to pay their liabilities and who have filed all required PAYE, VAT and employment contributions returns. No interest will be charged on PAYE and VAT debts for the initial “Covid-19 restricted trading period” (period 1) or twelve months thereafter (period 2, the “zero-interest period”). Period 2 may be extended by Ministerial Order up to 31 December 2022. Interest will be charged at a reduced rate of 3 per cent per annum in Period 3 until the debt is paid in full.

Reduced interest on overdue tax (Section 6)

A new Section 1080A TCA 1997 provides for a reduced interest rate of approximately 3 per cent per annum to apply from 1 August 2020 to taxes declared under agreements reached with Revenue by 30 September 2020.  This measure does not apply where legal proceedings to recover the tax debt has been initiated by Revenue or where the sheriff or country register has initiated proceedings to recover the tax debt. 

Stay and Spend tax credit (Section 7)

The Stay and Spend tax credit is an income tax credit, equal to the lesser of 20 per cent of the expenditure on accommodation, food, and non-alcoholic drink and €125 or €250 in the case of a jointly assessed couple. This is the maximum tax credit that may be claimed cumulatively over 2020 and 2021. The period during which qualifying expenditure may be incurred runs from 1 October 2020 to 30 April 2021, although the Minister for Finance may extend the qualifying period up to 31 December 2021. The tax credit may be set against a claimant’s USC liability if he/she can’t fully absorb the tax credit against income tax. The service provider must register with Revenue by electronic means and the claimant must claim the credit by electronic means also. 

Enhanced tax relief under the Help to Buy Scheme (Section 8)

Tax relief under the Help to Buy Scheme is enhanced to the lesser of (i) €30,000 (up from €20,000) or (ii) 10 per cent (up from 5 per cent) of the purchase price of the new home or of the completion value of a self-build or (iii) income tax and DIRT paid by the claimant over four years. This enhanced relief is only available from 23 July 2020 to 31 December 2020. From 1 January 2021, the Help to Buy Scheme reverts to the pre 23 July 2020 position.

Enhanced Cycle To Work Scheme (Section 9)

The limit on allowable expenditure under the Cycle to Work Scheme as per Section 118 (5G) TCA 1997 increases from €1,000 to €1,500 for ‘ebikes’ and related safety equipment and to €1,250 for other bicycles and related safety equipment. The scheme currently allows the purchase of a new bicycle once in any 5 years and this will be amended to once in any 4 years.

Loss relief for self-employed (Section 10)

Self-employed individuals carrying on a trade or profession who were profitable in 2019 but, because of the COVID-19 pandemic, incur losses in 2020 can claim to have losses of up to €25,000 carried back for offset against their 2019 profits.  The relief can also be claimed on an interim basis during 2020. Farmers who incur a loss in 2020 may opt to step out of income averaging for the tax year 2020. 

Accelerated loss relief for companies (Section 11)

A temporary acceleration of corporation tax losses is available to profitable companies which have become lossmaking during the COVID-19 period. Such companies may project trading losses for the current accounting period and make an early claim to carry-back up to 50 per cent of those losses for offset against taxable profits of the preceding accounting period.  Companies must be tax compliant and must have incurred or expect to incur a trading loss in an accounting period which includes some or all of the period from 1 March 2020 to 31 December 2020. A company will be able to revise its interim claim as the current accounting period progresses, including increasing the claim where the company estimates that its loss is greater than previously expected. 

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.