Written answers

Tuesday, 15 February 2022

Department of Finance

Covid-19 Pandemic Supports

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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270. To ask the Minister for Finance if a business (details supplied) which diversified during the pandemic in an effort to remain solvent can access the employment wage subsidy scheme; and if he will make a statement on the matter. [8262/22]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Employment Wage Subsidy Scheme (EWSS) is an economy-wide support to assist eligible employers meet employee wages where trade is negatively impacted by Covid-19. The EWSS is operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully meet the eligibility criteria for the scheme as set down in the legislation and to self-declare to Revenue that they correctly qualify.

To qualify for the EWSS, a business must have tax clearance and have suffered a minimum 30% reduction in turnover or business orders in the period 1 January 2021 to 31 December 2021, for pay dates on or between 1 July 2021 and 30 April 2022, due to the impact of COVID-19. The ‘reference period’ used to establish the minimum 30% reduction varies depending on when a business commenced trading. For example, where a business was established prior to 1 January 2019, the ‘reference period’ is 1 January 2019 to 31 December 2019. There is no discretion in the legislation to apply a different qualifying criteria other than the 30% reduction in turnover or customer orders in the reference period. This remains the case where a business diversifies into other trades.

I am advised by Revenue that the business in question registered for EWSS in August 2020 and received payments until it deregistered from the scheme in early August 2021. As the business started trading prior to 2019, it is required to compare its turnover or customer orders against 2019 (reference period) to determine if there is a minimum 30% decline in turnover or business orders, for pay dates falling between 1 July 2021 to 30 April 2022. According to the information provided by the business, it is not currently experiencing this level of decline and as such is not entitled to the EWSS. This does not impact on eligibility for certain other COVID-19 support schemes such as the Debt Warehouse Scheme.

Revenue confirmed to me that it has already engaged directly with the business to explain the eligibility criteria required for the EWSS.

As the Deputy may be aware, in response to the additional public health measures announced on 17 December, the Government further announced on 21 December 2021, that the EWSS would reopen for certain businesses who would otherwise not be eligible and that such businesses could continue to be supported until the expiry of the scheme on 30 April 2022.

The new arrangements for EWSS provided employers who had previously availed of EWSS but who were no longer eligible, with the opportunity to re-qualify for the scheme where they met certain conditions. Broadly, to re-qualify the business must experience a 30% reduction in turnover, or customer orders during a particular reference period. For example, for businesses established on or before 30 April 2019, to re-qualify for EWSS, the business must have anticipated that their combined turnover for December 2021 and January 2022 would be down by at least 30% compared with their combined turnover for December 2019 and January 2020. The business must also have a valid tax clearance certificate.

Employers that qualified for re-entry to the scheme received support on a prospective basis from 1 January 2022, and they can remain in the scheme until its expiry date (30 April 2022).

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