Covid 19 and your Business
Support for Businesses
The aim of the Employment Wage Subsidy Scheme (EWSS) was to encourage firms to retain staff, and it has been revised to align it more closely to the Pandemic Unemployment Payment (PUP) rates.
The EWSS is also available to employers who have had to temporarily close their business due to level five public health restrictions. This applies for eligible workers that are kept on the payroll while the businesses are closed.
Businesses who previously did not qualify for EWSS may now be able to show the necessary 30% reduction in turnover or customer orders between 1 July and 31 December 2020.
Benefits in Kind
Due to the public health restrictions, many businesses have had to shut their doors and staff have been required to work from home.
As a result, employees have had to set up temporary home offices and employers have assisted with same by providing laptops, office furniture, printers etc.
Revenue have advised that no benefit in kind charge will arise in relation to same during the Covid 19 pandemic.
It is important that tax returns are filed even if payment of the liabilities is not possible.
If there is difficulty in having Tax Returns completed due to the relevant staff being unavailable, the advice is that the Tax Return be submitted on a best estimate basis and amendments can be made thereafter on a ‘self-correction’ basis.
Tax audits and compliance inspections on business premises have been suspended.
Revenue have advised that ongoing investigations will be completed by phone or online.
CAT & CGT
While on the topic of tax it may be worth mentioning CGT and CAT.
There have been no changes to CAT & CGT in light of Covid 19. However, as valuations may be lower due to the pandemic, it may be a good time to gift property if it was something you had wanted to do.
With regard to CAT, if the property is sold at a later date it could give rise to CGT if the selling price was considerably higher than the initial valuation and this is something that needs to be considered when properties are being sold.
If you have any queries or require any advice on any of the matters referred to in this article do not hesitate to contact Lorna McArdle on 01 2960666