Dáil Éireann Debate, Wednesday - 21 April 2021
478. Deputy Anne Rabbitte asked the Minister for Finance if there is a way for a person (details supplied) to be supported on a scheme; if not, the alternative supports in such cases; and if he will make a statement on the matter. [18515/21]
Amharc ar fhreagraA number of supports are available to businesses and individuals whose income continue to be impacted by the restrictions that are in place to deal with the public health emergency brought on by Covid-19.
Employment Wage Subsidy Scheme
The Employment Wage Subsidy Scheme (EWSS) was legislated for under the Financial Provisions (Covid-19) (No. 2) Act 2020 and provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll.
For every qualifying employee paid a weekly gross amount between:
- €151.50 and €202.99, the subsidy is €203,
- €203 and €299.99, the subsidy is €250,
- €300 and €399.99, the subsidy is €300, or
- €400 and €1,462, the subsidy is €350.
No subsidy is available for employees paid a weekly gross amount less than €151.50 or more than €1,462.
The EWSS is administered by Revenue on a 'self-assessment' basis. The eligibility criteria for EWSS requires that in addition to having tax clearance for the duration of the scheme, an employer must be able to demonstrate that their business is expected to experience a 30% reduction in turnover or orders between 1 January to 30 June 2021 for 2021 paydates, looking at the period as a whole rather than on a monthly basis; and this disruption is caused by COVID-19.
Proprietary directors are defined as directors who can control, either directly or indirectly, more than 15% of the share capital of a company. Revenue issued a press release on 31 August 2020 confirming that the EWSS can be claimed in respect of proprietary directors from 1 September 2020, subject to the following conditions:
- the employer meets the eligibility criteria for the EWSS,
- the proprietary director is on the payroll of the eligible employer, and
- the proprietary director has been paid wages which were reported to Revenue on the payroll of the eligible employer at any stage between 1 July 2019 and 30 June 2020.
The eligibility criteria for proprietary directors were legislated for in the Finance Act 2020 and unless these criteria apply to the person concerned, Revenue has no discretion regarding the rules and must apply the legislation as enacted.
Covid Restrictions Support Scheme (CRSS)
The CRSS was provided for in section 11 Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website.
To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. The trade must be carried on from a business premises that is located in a region subject to restrictions introduced in line with the Government’s ‘Living with Covid-19 Plan’, with the result that the business is required to prohibit or considerably restrict customers from accessing its business premises.
To make a claim under the CRSS, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.
The CRSS is being extended to 30 June 2021 and a business which is subject to Covid restrictions and meets the other eligibility criteria will be able to claim support under the scheme. A claim for the CRSS is required to be made no later than eight weeks from the date on which the claim period, to which the claim relates, begins.
Other supports
Following consultations with the Department of Social Protection, I am informed that this person may be eligible for the Covid-19 Pandemic Unemployment Payment (PUP) subject to satisfying the relevant criteria. Criteria for the Covid-PUP in the circumstances of this case are that he/she must be aged between 18 and 66 years old, currently living in the Republic of Ireland, was in insurable (i.e. paid PRSI) employment or insurable self-employment and if in insurable self-employment his/her trading income has ceased or reduced to €960 over a rolling 8 week period due to the public health crisis caused by COVID-19. If these criteria are met, he/she should apply for PUP on www.mywelfare.ie.
Finally, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 which may be relevant to this business - the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme. Comprehensive information regarding the range of supports available to help businesses impacted by the Covid-19 pandemic is available at https://enterprise.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
The Government remains fully committed to supporting businesses and employers insofar as is possible at this time.
