Businesses on the Employment Wage Subsidy Scheme (EWSS) will have to provide Revenue with a six-month sales projection within 10 days or will lose their eligibility for the scheme.
Employers claiming a subsidy under the scheme must now show a 30% reduction in turnover will occur for the period January 1 to June 30 2021. Companies must make the calculation by December 31 and compare it to the corresponding period in 2019, to ensure their business will still qualify for the scheme.
Furthermore, businesses will now have to review their eligibility monthly, based on their actual incremental revenue figures.
Employers who no longer qualify based on amended projections will have to deregister from the scheme. Incorrect submissions will be clawed back by Revenue or offset against future payments under the scheme.
On July 23, the Government announced the Employment Wage Subsidy Scheme (EWSS). This scheme provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll.
EWSS will replace the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020 and is expected to continue until 21 March 2021.
Qualifying Criteria for Employers
In order to be eligible for the EWSS, employers must demonstrate that:
their business will experience a 30% reduction in turnover or customer orders between 1 July and 31 December 2020;
the disruption is caused by COVID-19; and
must maintain tax clearance for the duration of the scheme.
The reduction in turnover or customer orders is relative to:
the same period in 2019 where the business was in existence prior to 1 July 2019;
the date of commencement of a business to 31 December 2019; or
where a business commenced after 1 November 2019, the projected turnover or customer orders had COVID-19 disruption not arisen.
Employers are required to conduct a monthly review to ensure they continue to meet the eligibility criteria under the EWSS. The EWSS will be administered by Revenue on a ‘self-assessment’ basis. The normal requirement to operate PAYE on all payments will be re-established under the EWSS however, a 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy.
From 31 July:
TWSS employers can claim for non-TWSS employees (new hires) under the new EWSS.
Non-TWSS employers, who have not previously availed of TWSS, will only be eligible to apply for the EWSS.
As of 20 October 2020, the EWSS is being amended to align with the amendment to PUP, with the rate bands as follows:
Employee gross weekly wages
Less than €151.50
From €151.50 to €202.99
From €203 to €299.99
From €300 to €399.99
From €400 to €1,462
This revised scheme will run to end January 2021 when it will revert back to the below rates:
Employee gross weekly wages
Less than €151.50
From €151.50 to €202.99
More than €203 and less than €1,462
More than €1,462
If you have any queries or need assistance registering for the scheme, please contact our COVID-19 Client Response Team at email@example.com or on +353 1 679 0800/+353 21 427 2900.
Edward Murphy, Partner and Head of Tax Services, gives his analysis of Budget 2021.
When Minister Donohue delivered his Budget 12 months ago, he told us that we had to be safe and cautious due the possibility of a no-deal Brexit. One year on, Brexit uncertainty is ever more present, but we now also have the monumental pressure of a pandemic. Budget 2021 is a €17.75bn package, the largest in the history of the State. Minister Donohue has attempted to strike a balance between the country’s longer-term financial position and supporting those out of work and those businesses who are struggling to stay alive.
We will dip into our emergency rainy day fund this year for €1.5bn as the Government expects to have to borrow almost €20bn in 2021 to deal with the shortfall in tax receipts and the required significant spending on various Covid-19/Brexit supports and on our health system and infrastructure costs. EU financial supports expected in 2021 on both the Covid-19 and Brexit fronts will be welcomed.
The Minister took the opportunity to again re-affirm Ireland’s commitment to its 12.5% Corporate Tax rate and to acknowledge Corporate Ireland’s significant contribution to the Country’s national tax purse.
The large spending amounts announced on housing, infrastructure, defence, health and education would in any other Budget be seen as stand-out, but in Budget 2021 they are in the shadow of the even larger Covid-19 crisis supports that the government is committing to support businesses. Targeted sector supports to tourism, hospitality, arts/entertainment and other businesses affected by Covid-19 are aimed at preserving existing jobs or keeping some of the businesses in these sectors on life-support. Employment is the key to survival and recovery. Indeed the ‘green’ initiatives of increasing Carbon Tax to help to fund making homes more energy efficient, appear incidental.
The sheer scale of the challenges facing Ireland may have in one sense helped the Government Partners to agree to Budget 2021’s size and approach. However, this ‘’borrow now, pay later’’ Budget has moved the relatively recent promise of tax decreases to more now the question of who will pay for this in the longer term?
Budget 2021 was delivered by Finance Minister Paschal Donohoe today. Below we highlight the main changes that could affect you.
Small change to the second rate-band of Universal Social Charge which will increase from €20,484 to €20,687.
Income tax bands and rates remain unchanged.
The Dependent Relative Credit will increase from €70 to €245.
The Earned Income Credit will increase from €1,500 to €1,650.
Help to Buy Scheme July Stimulus measures to be extended to the end of 2021.
Re-introduction of the 9% VAT rate for the hospitality and tourism sector from 1st November 2020 and will remain in place for all of 2021.
Confirmation of the 12.5% rate of tax, but challenges lie ahead in the area of tax digitalisation.
All Intangible assets acquired from 14th October 2020 will be within the scope of balancing charge rules.
As part of the EU ATAD, 2021 will see the introduction of interest limitation and anti-reverse-hybrid rules.
Technical adjustment to Exit Tax rules in respect of the operation of interest on instalment payments.
Knowledge Development Box relief extended until end of 2022.
Digital Gaming Tax Credit to encourage growth in this sector is likely to be introduced in 2022.
Section 481 Film relief amended to provide for an additional year at its peak rate of 5% until 31 December 2023.
Climate Change Measures
A Carbon tax increase of €7.50 per tonne will be applied to auto fuels from midnight tonight and all other fuels from 1st May 2021. This will bring Carbon tax to €33.50 per tonne/CO2 with the goal to achieve €100 per tonne by 2030.
VRT – transition from CO2 based system to new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions test system from 1st January 2021. Used imports will have CO2 values adjusted to WLTP equivalent.
Motor Tax – rates will remain unchanged for all cars in the engine size regime and all but the most pollutant cars in the post 2008 regime. Third table based on WLTP system from 1st January 2021.
VRT Relief for Plug-in Hybrid Electric Vehicles and hybrids will expire.
NOx surcharge bands to be adjusted so higher NOx emitting vehicles pay more.
Accelerated Capital Allowances scheme for Energy Efficient Equipment extended for further 3 years. Categories of equipment to be updated.
Consanguinity relief of 1% Stamp Duty rate on the transfer of Agricultural Land between family members is extended until 31 December 2023.
The 1% Stamp Duty rate on farm consolidations is extended until end of 2022.
Farmers’ flat VAT rate increase from 5.4% to 5.6% from 1 January 2021.
Capital Gains Tax and Capital Acquisitions Tax
Capital Acquisitions Tax and Capital Gains Tax remain at 33%.
No change in Capital Acquisitions Tax thresholds.
CGT – Entrepreneur Relief ownership test slightly changed so that the shares must be held for a continuous period of any three years prior to disposal. Previously it was 3-year continuous period in the 5 years immediately prior to disposal.
COVID-19 Support Measures
Covid Restrictions Support Scheme (CWSS)for businesses significantly impacted (at least 20% reduction on corresponding period in 2019) or temporarily closed and where Level 3 or above restrictions prohibit or restrict access by customers. Cash payment from Revenue Commissioners as an advance credit for trading expenses for the period of restrictions. Payments will be calculated based on 10% of the first €1m of turnover and 5% thereafter, based on the average ex VAT Turnover for 2019. The maximum weekly payment will be €5,000. Scheme will run until 31 March 2021.
Self Employed may avail of the Debt Warehousing provisions to defer payment of their 2019 Income Tax balance and preliminary tax for 2020. Payments are deferred for a year without interest applying and at a rate of 3% interest thereafter and will attract no surcharge.
EWSS, or similar type scheme, likely to continue beyond March 2021.
Commercial rates waived.
New European investment fund to be established to invest in domestic, high innovation enterprises.
In addition to the change in USC rate band, the weekly threshold for the higher rate of employers’ PRSI is to increase from €394 to €398.
Excise duty on Tobacco products to increase by 50 cents.
The Stay and Spend Scheme begins today, 1 October 2020 and runs until 30 April 2021. This new tax credit can be used against Income Tax or USC liabilities for the years 2020 and 2021.
To qualify for the Stay and Spend credit a minimum spend of €25 is required per transaction. Qualifying expenditure includes holiday accommodation and “eat in” food and non-alcoholic drink from a “registered service provider” only. A list of all registered service providers can be found on Stay and Spend Scheme.
The Stay and Spend Tax Credit is equal to up to 20% of qualifying expenditure incurred. A €625 expenditure limit has been introduced for individuals and €1,250 for jointly assessed spouses and civil partners. The maximum tax credit that can be claimed under this scheme in respect of the 2020 and 2021 year of assessment is either €125 per person or €250 per couple for jointly assessed spouses and civil partners.
To claim the Stay and Spend Tax Credit, you must submit an income tax return and submit a copy of your receipt to Revenue. Tax returns can be submitted via MyAccount for PAYE workers or via ROS for the self-employed. The easiest way to submit a copy of your receipt to Revenue is to use the new Revenue Receipts Tracker App, which is available to download for free from the Apple App Store and the Google Play Store.
The introduction of this scheme should provide a welcome boost to the tourism and hospitality sector.
Please contact us if you have any queries on how to avail of this tax credit.
As part of the July 2020 Jobs Stimulus Package, the Government announced a reduced interest rate of 3% per annum to apply to non Covid-19 related tax debts. This reduced rate is available to all taxpayers that have declared but unpaid tax liabilities for any period. The reduced 3% rate is also available to any undeclared liabilities that predate Covid-19 provided the liabilities are declared and a Phased Payment Arrangement agreed with Revenue by 31 October 2020.
This scheme is available across all tax types including VAT, income tax, corporation tax, CGT, RCT and PAYE (Employer) taxes and was introduced to provide vital liquidity support to struggling businesses and sole traders that have historic unpaid tax debts. By applying the lower interest rate of 3% per annum, the cost of paying unpaid tax debts is significantly reduced.
In addition, any individual or business with non Covid-19 unpaid tax liabilities will not qualify for a tax clearance certificate unless there is a Phased Payment Arrangement in place. Businesses cannot avail of the Employment Wage Subsidy Scheme, the Stay and Spend Scheme, accelerated loss relief and other measures without a tax clearance certificate.
Any existing Phased Payment Arrangements with Revenue will be reviewed automatically, and the reduced rate will be available for any tax debts that remain outstanding from 1 August 2020.
To avail of this reduced rate of interest, taxpayers must agree a phased payment Arrangement with Revenue before 31 October 2020. The first step is to apply online via ROS for a Phased Payment Arrangement (PPA).
Please contact us if you have any queries on how to avail of this reduced rate of interest.
One of the key measures from the Government’s July Stimulus Package is the temporary reduction in the standard rate of Irish VAT for a six-month period. Between 1 September 2020 and 28 February 2021, the standard rate of VAT will change from 23% to 21%.
The standard rate of VAT applies to a wide range of goods and services e.g. the sale of motor vehicles, adult clothing, alcohol, electrical goods, most household goods, non-basic foods stuffs, many e-services, professional services and telecommunications.
The VAT rate change will not impact the VAT treatment of supplies which qualify for the reduced rate of VAT which remains at 13.5%. This includes tourism-related activities including restaurants, hotels, cinemas, and hairdressing as well as cleaning and maintenance services.
Businesses will need to consider the impact on their business and updates to their systems to account for the new rate of VAT.
Systems will have to be updated and tested for the new VAT rate change. Depending on the particular systems, this may either be a simple task or may involve some work.
Many businesses may already have had a 21% VAT code on their systems from prior years – however, they will need to check whether this code continues to function correctly and can the changes be easily reversed when the rate reverts back again?
Businesses need to consider whether they should amend the pricing of goods and services as a result of the temporary VAT rate change.
This is particularly relevant for businesses who set their prices on a VAT-inclusive basis such as retailers or suppliers to businesses with limited VAT recovery.
They should also consider how this will impact budgets heading into the last quarter of 2020.
Businesses should review existing contracts and consider whether the price is VAT-exclusive or VAT-inclusive. Do you need to engage with any of your suppliers or customers in respect of the VAT rate change?
On or after 1 September 2020, VAT invoices issued by a VAT registered person who isnot onthe cash receipts basisto a VAT registered person, a public body or, a business carrying on a VAT exempt activity should show VAT at the new 21% rate. This is so even if the goods or services were supplied before this date.
A VAT registered personon the cash receipts basis should who is required to issue a VAT invoice to another VAT registered person, should show the VAT rate which applies on the date of the supply, not on the date of receipt of payment.
If the date of supply is prior to 1 September 2020, then the VAT rate is 23%.
Reverse Charge VAT:
For businesses with partial VAT recovery entitlement, VAT at 23% must be accounted for on the reverse charge basis on taxable foreign purchase invoices dated on or before 31 August, even if those invoices are not received until September 2020.
Credit or Debit Notes:
Any credit notes or debit notes issued on or after 1 September 2020 in respect of supplies of goods or services made to a VAT-registered person, a public body or a business carrying on a VAT exempt activity prior to this date must show the VAT rate in force at the time the original invoice was issued, i.e., 23%.
If the goods or services are supplied on or after 1 September 2020 businesses who account for VAT on an invoice basis: the appropriate VAT rate is the rate in force at the time the invoice relating to the advance payment is issued, or ought to have been issued, whichever is the earlier.
Businesses who account for VAT on a cash receipts basis: the appropriate VAT rate is the rate in force at the time of the advance payment.
An advance payment received from an unregistered person is subject to VAT by reference to the rate in force at the time of the advance payment.
Crowleys DFK are here to help you in these unprecedented times. We are at the other end of telephone (+353 1 679 0800/+353 21 427 2900) or on our dedicated COVID-19 Client Response Team email: firstname.lastname@example.org when you need us.
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Applications are now open for the Restart Grant Plus Scheme, which gives grants of between €4,000 and €25,000 to businesses to help them to re-open.
The Restart Grant Plus Scheme was part of the Government’s July Stimulus package, a €7.4bn package of measures and it replaces and supersedes the existing restart grant schemes.
The scheme is open to those with less than 250 employees that have reopened or planned to reopen and have seen a 25% reduction in turnover between 1 April and 30 June 2020.
Key changes to the Restart Grant Plus Scheme:
€300m additional funding in addition to €250m previously committed
Grant amount has increased substantially. Minimum grant is now €4,000 and maximum is €25,000. Previous grant amounts were €2,000 and €10,000 respectively
Medium sized companies now eligible Companies with up to 250 employees can now apply (previously the grant was for companies with less than 50 employees)
Increased eligibility Non-rateable B&Bs, sports clubs with commercial activities and trading charity shops are now eligible
Businesses that received a grant under the first scheme can re-apply to local authorities to receive additional funding. For first-time applicants under Restart Plus, the minimum grant is €4,000 and the maximum is €25,000.
Interested businesses can apply through their local authority.
To qualify for a grant, the important criteria are:
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On 23 July, the Government announced a €7.4bn Jobs Stimulus Package which aims to help businesses get back on their feet, get people back to work and build economic confidence.
Outlined below are some of the measures covered by the stimulus.
The Restart Grant for Enterprises is being extended to a broader base of SMEs and expanded by €300 million. The maximum payment level is being increased to €25,000. Further top ups may be available to firms who have already received payments under the existing restart grant.
Under the €2 billion COVID-19 Credit Guarantee Scheme, the Government will provide an 80% guarantee for a wide range of credit products from €10,000 to €1 million up to a maximum term of 6 years.
All businesses (with limited exceptions) will be granted a waiver of commercial rates for the six months to end-September 2020, at a total cost of €600 million. This has been extended to the end of 2020, as announced in the Budget.
The Future Growth Loan Scheme is being expanded from €200 million to €500 million. This will enable businesses with up to 499 employees to invest for the longer-term at competitive rates.
A €55 million Package of Liquidity and Enterprise Investment measures will be put in place to support small and micro companies through additional resources for MicroFinance Ireland and the Local Enterprise Offices. This includes measures to reduce interest rates on lending for micro and small businesses, including grants equivalent to 0% interest on the first year of SBCI and MFI loans.
There will be a further funding call of the Online Retail Scheme of €5.5 million through Enterprise Ireland. This will support businesses with more than 10 employees in developing their online presence. The Scheme opens for applications on Monday, 31 August 2020 and closes at 3pm on Monday, 28 September 2020.
There will be an expansion of the Online Trading Voucher Scheme from the Local Enterprise Offices of €20 million, which will support small businesses with less than 10 employees in developing their online presence.
A €26 million Covid-19 Adaptation Fund to help tourism and hospitality businesses offset some of the costs incurred in adapting their premises or operations for re-opening. The Fund is being administered by Fáilte Ireland and eligible businesses can apply for these grants from now until 31 October 2020.
Employer and Employee Supports
A new Employment Wage Support Scheme will succeed the Temporary Wage Subsidy Scheme at the end of August and will run until April 2021. Employers whose turnover has fallen 30% from 2019 figures will receive a flat-rate subsidy of up to €203 per week per employee, including for seasonal staff and new employees.
A new income tax relief for self-employed individuals will be made available to those who were profitable in 2019 but, as a result of the COVID-19 pandemic, incur losses in 2020.
A 6-month reduction in the standard rate of VAT from 23% to 21%, effective from the beginning of September, at a cost of €440 million.
The government will pass legislation to confirm the previously announced Warehousing of Tax Liabilities. This will allow for businesses affected by COVID-19 to delay payment of their PAYE and VAT debts in part of in full for a set period with no interest or penalties.
A Reduced Interest Rate of 3% will be applied to agreed repayments of all tax debt (where agreement has been reached prior to 31 October 2020), in order to provide support to taxpayers experiencing difficulty with tax liabilities.
The Apprenticeship Incentivisation Scheme will provide a €2,000 payment to support employers to take on new apprenticeships in 2020.
Crowleys DFK are here to help you in these truly unprecedented times. We are at the other end of telephone (+353 1 679 0800/+353 21 427 2900) or on our dedicated email (email@example.com) when you need us.
As of 13 July 2020, we have re-opened our offices. While remote working will continue for many of our employees and we will be restricting visitors to our offices, our return-to-work taskforce and COVID-19 Employee Representatives have our COVID-19 systems and controls in place to ensure the safety of employees and visitors.
This includes the installation of sanitisation stations, screens at the reception areas and in meeting rooms, staggered seating arrangements/desk screens and signage to keep everyone at a safe distance.
This is an unprecedented and evolving situation and we are closely monitoring events as they unfold. We will keep you informed of any future changes should they arise.
While the health and safety of our staff members remain our top priority, please rest assured that we are committed to continuing to provide the same high level of service at this time.
https://www.crowleysdfk.ie/wp-content/uploads/Covid-19-Firm-Update.png5121024Alison Bourkehttps://www.crowleysdfk.ie/wp-content/uploads/crowleysdf-chartered-accountants-1.pngAlison Bourke2020-07-13 08:39:142020-08-06 09:27:39COVID-19 Update: Continuing to Protect the Health of our Employees and Visitors
Our COVID-19 Client Response Team is continuing to closely monitor developments relating to COVID-19 as they emerge and is ready to provide you with quick and up to date advice on all your Banking, Working Capital, Cashflow, Tax, Employee and Insurance queries and concerns.
We have outlined below details on the current supports available to businesses, useful Government guidelines and other areas of consideration.
On May 15, the Government approved details of the Restart Grant. The Scheme offers grants worth between €2,000 and €10,000 to qualifying firms.
Direct grant aid of between €2,000 minimum and €10,000 based on commercial rates bill from 2019.
Scheme applies to small businesses with a turnover of under €5m and employing 50 people or less.
Grants are now open for application through Local Authorities.
On May 02, the Government announced additional measures to support business which include waiver on commercial rates, warehousing of tax liabilities and grant schemes – click here.
This follows the range of supports previously put in place by the Department of Business, Enterprise and Innovation:
A €200m Strategic Banking Corporation of Ireland (SBCI) Working Capital Scheme for eligible businesses impacted by COVID-19, which has subsequently been increased by €250m to €450m. Loans of up to €1.5m will be available at reduced rates, with up to the first €500,000 unsecured. Applications can be made through the SBCI website.
A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business.
The maximum loan available from MicroFinance Ireland will be increased from €25,000 to €50,000 as an immediate measure to specifically deal with exceptional circumstances that micro-enterprises – (sole traders and firms with up to 9 employees) – are facing. Applications can be made through the MFI website or through your local LEO.
The Credit Guarantee Scheme will be available to COVID-19 impacted firms through the Pillar Banks. Loans of up to €1m will be available at terms of up to 7 years. The scheme provides an 80% guarantee to participating banks which are AIB, Bank of Ireland and Ulster Bank.
Other Enterprise Ireland/Local Enterprise Office supports include:
Strategic consultancy grant for SME’s to assist the company development of a strategic response plan.
Act On Initiative, providing access to 2 days consultancy engagement at no extra cost to assess Financial Management, Strategic sourcing and transport and logistics advice.
Key Manager Support to provide partial funding towards the recruiting of a Full or Part Time Manager with critical skills for future growth.
Agile Innovation Fund and Operational Excellence Offer.
Be Prepared Grant for contingency planning.
Additional financial supports are available locally through the 31 Local Enterprise Offices (localenterprise.ie).
Employer and Employee Supports
On March 24, the Government announced a National COVID-19 Income Support Scheme to provide financial support to Irish workers and companies affected by the crisis.
A COVID-19 Temporary Wage Subsidy Scheme to enable employers to continue to pay their employees during the COVID-19 pandemic. It aims to keep employees registered with their employers, so that they will be able to get back to work quickly after the pandemic.
Workers who have lost their jobs due to the crisis will receive an enhanced emergency COVID-19 Pandemic Unemployment Payment of €350 per week (an increase from €203).
The COVID-19 illness payment will also be increased to €350 per week.
Self-Employed will be eligible for the COVID-19 Pandemic Unemployment Payment of €350 directly from the Department of Employment Affairs and Social Protection (rather than the Revenue scheme).
COVID-19 Wage Subsidy Scheme
If you are an employer who can demonstrate that the negative disruption is leading to a minimum of 25% decline in actual or predicted turnover and an inability to pay normal wages and outgoings – you will be able to claim the COVID-19 Wage Subsidy Scheme.
The temporary wage subsidy of 70% of take home pay up to a maximum weekly tax free amount of €410 per week is aimed to help affected companies keep paying their employees.
On April 15, further changes were announced to the scheme:
For those employees with previous average net pay up to €412 per week (equivalent to almost €24,400) the subsidy will be increased from 70% to 85% of their previous net weekly pay.
For those employees with previous average net pay between €412 and €500 per week (equivalent to €24,400-€31,000), the subsidy will be up to €350 per week.
The wage subsidy is now also available to support employees where the average pre-COVID-19 salary was greater than €76,000, and their gross post-COVID-19 salary has fallen below €76,000.
The new rates apply from 4 May 2020 and will not be backdated. More details can be found here.
Income tax, USC, LPT, if applicable, and PRSI are not deducted from the Temporary Wage Subsidy. However, the subsidy will be liable to Income Tax and USC on review at the end of the year.
Employers have to sign up to the scheme through Revenue.
Employers should note that the names and addresses of all employers operating this scheme will be published on Revenue’s website in due course, after the scheme has expired. Penalties will apply to any abuse of the Wage Subsidy Scheme by self-declaring incorrectly, by not providing funds to employees or non-adherence to Revenue and any other relevant guidelines.
The recently published Emergency Measures in the Public Interest (Covid-19) Bill 2020, which is expected to be passed this week, contains amendments to the Redundancy Payments Act 1967 to extend the time-periods under which a person who has been laid off or kept on short-time due to COVID-19 can claim a redundancy payment from their employer.
In normal circumstances, an employee can serve notice on the employer of their intention to claim a redundancy payment if they have been placed on lay-off or short time for a period exceeding four consecutive weeks or six weeks in any thirteen-week period.
The Bill provides that, for the duration of a designated “emergency period”, employees on lay off or short time will not be in a position to claim a redundancy payment if the lay-off or short time is due to due to COVID-19.
The “emergency period” as currently defined begins on 13 March 2020 and ends on 31 May 2020.
Cashflow and Projections
Cashflow will inevitably be an issue for all businesses in the coming weeks. It is vital that you monitor cashflow, plan and are prepared for reductions in cash inflows. Make sure that you have a cash flow projection that can be tested for various scenarios.
If you make loan repayments on bank debt you may be able to get a moratorium on repayments.
The Revenue have stated that businesses experiencing cashflow issues should still submit their tax returns on time, but that applications of interest on late payments will be suspended for VAT and PAYE liabilities. All debt enforcement activity will be suspended and tax clearance status will remain in place for businesses over the coming months.
If you need our help with cash flow reviews and projections or with your Bank or Revenue, please let us know as soon as you are aware that you have a problem.
Loss of Income
Does your insurance include cover for business interruption? Check your insurance policy and speak with your insurance broker to determine if there are any potential impacts on your business for which cover is provided in your policy. There may be little cover on common policies but some businesses may have specific Business Interruption Cover. If you have cover this can be a valuable means of recuperating loss in income.
Even if you don’t have insurance cover it will be important that you quantify the effects of the coronavirus on your bottom line. This will help you later in discussions with finance providers, suppliers, tendering etc.
Examine all aspects of your operations to identify potential areas of impact.
Track time spent managing issues related to the crisis.
Keep detailed records of direct costs associated with any affected business process.
Segregate unusual or potentially claim-related costs from normal operating expenses.
Maintain customer correspondence regarding cancelled orders and sales.
Retain copies of your pre-crisis projections, forecasts, budgets, meeting notes, etc. that detail expected operations.
Ensuring your business and employees are operational during these unprecedented times requires careful planning and having a response team who is ready to make quick and sometimes difficult decisions. We would encourage you to look at The Department of Business, Enterprise and Innovation’s user-friendly Business Continuity Planning Checklist. This can be downloaded here.
In line with our own Business Continuity Plan and taking guidance from the Checklist, on 11 March 2020 we initiated protocols to maintain continuity on service delivery to our clients while safeguarding the health and safety of our staff. Our employees are now carrying out their work from home locations. If you need advice with your contingency planning, please contact us.
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