For businesses who continued to qualify up until 31 December there is nothing additional that they are required to do, apart from completing one last ERF form for December 2021 (to be submitted by 15 January 2022) . They will continue to claim the EWSS up until 30 April 2022. The rates will decrease as per current guidance:
|
Subsidy rates payable per day rate |
|||
|
Employee gross weekly wage |
1 to 31 January 2022 |
From 1 to 28 February 2022 |
From 1 March to 30 April 2022 |
|
Less than €151.50 |
Nil |
Nil |
Nil |
|
From €151.50 to € 202.99 |
€203 |
€151.50 |
€100 |
|
From €203 to €299.99 |
€250 |
€203 |
€100 |
|
From €300 to €399.99 |
€300 |
€203 |
€100 |
|
From €400 to €1,462 |
€350 |
€203 |
€100 |
|
More than €1,462 |
Nil |
Nil |
Nil |
Please note that the reduced rate of employers PRSI of 0.5% will return to normal from 1 March onwards.
Re-entry into the EWSS
Changes were made to the scheme just before Christmas. Businesses who were previously on the scheme at some point between 1 September 2020 and 31 December 2021 but had to come off the scheme because they no longer qualified can now re-enter the scheme if certain conditions are met. The re-entry requirements are as follows:
- The business must have claimed EWSS at some point between 1 September 2020 and 31 December 2021 – i.e. this doesn’t apply to new applicants
- Their business is expected to experience a 30% reduction in turnover or customer orders in the period from 1 December 2021 to 31 January 2022
- The reduction in turnover/customer orders is due to Covid
- The reduction is based on comparing the turnover/customer orders for December 2021 (actual) /Jan 2022 (projected) against the period from 1 December 2019 to 31 January 2020. This is for business who began to trade prior to 1 May 2019
- For businesses who commenced to trade after 1 May 2019 it’s a little more complicated to calculate whether they can re – enter the scheme. They must compare their monthly average turnover from August to November 2021 compared to the average monthly turnover from December 21 and January 22.
- The application to re-enter the scheme must be completed by 15 January 2022 through MyEnquiries
- The business will then be eligible for the scheme from 1 January 2022 to 30 April 2022 based on the rates mentioned above
- A review will need to be completed on 31 January to determine if the business is 30% down for those 2 months and if it is not then the business needs to come off the scheme straight away.
As ever if you have any questions on this scheme please contact me or your usual contact within Quintas.
Kind Regards,
Dave O'Brien
Tax Partner Quintas
