Here at ECOVIS DCA we would like to wish all our clients a very Happy Christmas, and wish you and your business a prosperous 2022!
We will be closing for business on Thursday the 23rd of December and reopening on Tuesday the 4th of January 2022.
On December 9th 2021 the Minister for Finance, Paschal Donohoe, announced that the enhanced rates of subsidy provided for under the Employment Wage Subsidy Scheme (EWSS) will be reinstated for December 2021 and January 2022.
The revised rates are as follows:
| Weekly Pay | 1st Dec – 31st Jan (Enhanced rates) |
1st Feb – 28th Feb (Reduced Rates) |
1st Mar – 30th April (Flat Rate) |
| Less than €151.50 | €0 | €0 | €0 |
| €151.50 – €202.99 | €203 | €151.50 | €100 |
| €203 – €299.99 | €250 | €203 | €100 |
| €300 – €399.99 | €300 | €203 | €100 |
| €400 – €1,462 | €350 | €203 | €100 |
| Over €1,462 | €0 | €0 | €0 |
| Employer’s PRSI | 0.5% | 0.5% | TBC |
Employers who have already submitted eligible EWSS payroll submissions in respect of December 2021, some of whom may have already received a subsidy payment calculated at a lower subsidy rate, do not need to take any action or make any amendments.
Revenue confirmed that, during the course of next week, it will identify the relevant payroll submissions, revise the calculation of subsidy due having regard to the enhanced rates outlined above, and process additional subsidy payments to the relevant employers shortly thereafter.
However, Revenue reminded employers that there is still a requirement to submit a timely monthly EWSS Eligibility Review Form (ERF) to ensure continued access to support under the scheme.
November’s EWSS ERF is due by 15 December 2021 and December’s EWSS ERF is due by 15 January 2022.
We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help.
As this year draws to a close, we find ourselves looking ahead to the year ahead. During the Christmas festivities, there looms a deadline which could easily slip down the list of priorities during this time, so we would advise getting organised in advance so that it doesn’t interfere with your work-life balance during this important season.
Any and all clients availing of debt warehousing will be required to have all their returns filed by January 19th, 2022. This includes any and all tax return matters. If this is not completed on time, there is the possibility that Revenue may deem you non-compliant with the scheme and decide to charge 8 – 10% interest rather than 0%.
The Debt Warehousing Scheme was set up as a method of helping businesses at the beginning of the pandemic by covering tax liabilities until the end of this year, with the added benefit of any repaid debt not facing any interest for the delay in payment during this time. The key condition of the warehousing scheme has been the necessity of filing returns on time, in this case by January 19th.
Recently, Revenue were questioned about plans to phase out the debt warehousing scheme with Social Democrats TD Catherine Murphy querying the plans and stating, “we don’t want to see a loss of viable businesses.” This ties in with recent pleas for the extension of the EWSS due to the current fragility of the Covid-19 pandemic and the increase in restrictions.
We hope that this information is of benefit to you and your business and that you all have a wonderful festive period.
As always, should you have any concerns or queries on any business or accounts issues, we here at EcovisDCA will be happy to assist.
Revenue recently announced some extensions to their Technical Helpdesk which is aimed at providing support to customers facing difficulties in accessing the Revenue Online Service (ROS).
This extension is to facilitate the increased demand for helpdesk support which will naturally occur during the 2021 Income Tax period.
The new hours will be as follows:
| Date | Opening Hours |
| Monday, 15 November 2021 | 09.00 – 20.00 |
| Tuesday, 16 November 2021 | 09.00 – 20.00 |
| Wednesday, 17 November 2021 | 09.00 – 24.00 (ROS Technical) 09.00 – 20.00 (Collector General’s) |
Standard opening hours apply outside of these times.
Enquiries can be made to the Revenue Technical Helpdesk via the following avenues:
MyEnquiries:
Add a new enquiry under the ROS Technical Support from the dropdown menu.
Email:
roshelp@revenue.ie
Telephone:
(01) 738 3699 (for callers from abroad: +353 1 738 3699).
It is important to note that the helpdesk is solely for technical difficulties with the ROS system, helpdesk can not assist with any tax related issues. For these issues, it is important to contact Revenue directly via their Contact Us page.
In addition, for those who have seen at least a 21% income reduction as a result of Covid-19. customers may also opt to warehouse their 2020 balancing payment as well as their 2021 preliminary tax amount. Further information on the Covid-19 support measures available can be found on the Revenue Website.
So there was a little of something for everyone but it was by no means a giveaway budget and with inflation expected to hit 3.7% for September, according to the Minister, the highest level since June 2008, rising prices, as well as increases to the carbon tax, could eat into many of the measures announced.Below is a summary of the main tax changes that will impact businesses & their employees.
Revenue to withhold EWSS from firms who fail to file on time.
As we are all aware, the emergency funds set up by the Government at the beginning of the Covid-19 emergency have seen many changes and adaptations over the last 18 months, both the Pandemic Unemployment Payment (PUP) and the Employee Wage Subsidy Scheme (EWSS) have continued to change and adapt to suit the current needs of the pandemic. Following on from the recent announcement of a move for Ireland from a period of continued restrictions to an easing into personal accountability and no further requirement to work remotely after late October, there are certain to be more changes and the likely phasing out of these schemes ahead.
We have often discussed in recent years, the many ways in which Revenue have automated their processes and functions to facilitate increasingly efficient compliance reviews, and in line with this, they have begun to increase checks on these schemes to ensure continued eligibility. As Covid restrictions begin to be lifted, new measures are required to ensure the smooth and fair operation of the scheme.
Revenue’s latest figures have shown that almost 41,000 employers were registered for the EWSS at the end of August 2021 and eligibility review forms have been issued to all. With only 70% of businesses having returned these forms, it is important to ensure that all business and financial information is up to date and presented to Revenue on time as Revenue will withhold all support payments from employers who fail to file their forms on time.
These previous deadlines had been amended on two occasions. Access to the EWSS will be effectively paused until forms are submitted. This system of pausing is in place from Sept 1st, once eligibility is confirmed, payments will resume. Revenue have clarified this by saying;
“Where such businesses subsequently complete and submit the outstanding EWSS eligibility review forms, and thereby confirm they continue to meet the eligibility criteria of the scheme, they can resume claiming EWSS support […] Any subsidies claimed but not paid while EWSS eligibility review forms were outstanding will then also be processed for payment.”
We would advise getting eligibility forms submitted before the deadline each month for the previous month to avoid any delays or disruptions to your payments, which could financially damage your business. Should you have any concerns or queries on any business or financial matters please do not hesitate to contact us here at EcovisDCA where we will be happy to help.
As we are all aware, the Employee Wage Subsidy Scheme (EWSS) has been an integral part of protecting Irish businesses during the Covid-19 pandemic emergency. The scheme has seen many changes and taken on new forms over the course of the past year, having been set up on an emergency basis but requiring updates and extensions as the pandemic continues. The latest extension to the EWSS states that The Finance (Covid-19 Miscellaneous Provisions) Act 2021 has allowed for the scheme to be extended through to December 31st, 2021.
With this extension come two major changes to how the scheme will operate going forward. As our country slowly continues the reopening process, these changes will be important to ensure that the scheme is allocated appropriately.
The two new key changes to the EWSS are as follows:
Change to Assessment Period.
The assessment period for eligibility to this scheme has now changed. It is now a requirement to show that your business will incur a 30% reduction in turnover* or orders for the 2021 calendar year as a direct result of Covid-19.
This can be assessed by:
Comparison to the 2019 calendar year if the business was in operation for the full year.
Comparison to the date of commencement to December 31st, 2019, if business commenced between January 1st and October 31st, 2019.
Comparison to projections for the 2021 calendar year, based on the assumption that the Covid-19 emergency had not occurred, if business commenced on or after November 1st, 2019.
*It is important to note that childcare businesses remain exempt from the 30% calculation criteria.
Mandatory Monthly Reviews to be Submitted Online.
A new key criterion to maintaining eligibility for the EWSS is the undertaking of monthly performance reviews for your business to ensure that your business continues to meet the eligibility criteria for this scheme.
A new form (EWSS Eligibility Review Form) has been created for this purpose, which must be submitted online on a monthly basis.
This form must be submitted by August 15th for June’s reviews and following on from this, will be expected by the 15th of each month.
We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.
For more information visit Revenue.ie
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Revenue recently reminded businesses that were to resume trading, once lockdown ended, that their Debt Warehousing Scheme was still in operation. The process of debt warehousing essentially allows businesses to “park” their debts for a period of time in order to support cash flow when the company resumes trading. This will have been an invaluable asset to many companies, who may otherwise have struggled to reopen their doors following the Covid-19 lockdowns, however, this has naturally not come without drawbacks.
One issue for businesses to be aware of this scheme is if the company were availing of Debt Warehousing for PAYE employer liabilities, any directors or employees with a material interest in the company cannot claim for taxes deducted if these have been warehoused and not paid over to Revenue. This may mean that individuals could find themselves personally liable for PAYE deducted but not paid. While this is unlikely to become a major stumbling block, this is one issue that has not been widely spoken about but you very much need to be aware of it.
The system was put in place to ensure that cash flow would remain available to businesses at a time of need, with some 86,000 businesses availing of the scheme. The scheme has provided approximately €2.3 billion of cash flow to businesses and is now being extended to the end of 2021, with no interest during 2022 and a rate of 3% applying thereafter.
Revenue has assured businesses that payment terms will be flexible at the end of the term. This will also be determined by the company’s capacity to pay these arrears at the same time as paying their current liabilities. Collector General Joe Howley has stated that:
“This initiative gives viable businesses the opportunity to survive the economic shock of the pandemic and to hopefully thrive as the economy recovers. We will be in contact with each business that is availing with the Debt Warehousing Scheme to explain how the arrangements will operate for their business. The flexibility around debt that is warehoused will allow businesses additional time to get back on their feet after re-opening”.
It is important to remember that even businesses availing of this scheme must file all tax returns as soon as they are due.
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We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.
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As we have discussed recently, the Revenue system has been undergoing massive amounts of welcome changes in recent years. As Revenue continues to invest in the future of their systems, how we do business daily is likely to shift along the way.
Revenue have become increasingly advanced and sophisticated in their systems over the past couple of years and their systems will continue to evolve. Where tax administration was once a long and protracted process, Revenue have managed to create a game-changing and more sophisticated system to catch non-compliance by investing in their IT and data analytics in a much more streamlined fashion.
“A system is only as good as the information it runs on – Revenue’s ability to collect vast and detailed information, as well as its ability to sort and collate this into useful data means their vigilance and efficiency is increasing year on year,” says Cian Rowlands, a tax manager in Ecovis DCA.
Revenue’s recent focus on the area of data analytics allows them to follow a more risk-assessment-based approach to tax issues with one leading tax commentator noting:
“Revenue have become much more advanced and sophisticated in its use of analytics and e-audits in recent years. Taxpayers can see it for themselves when they are filing returns and paying their tax online.
Revenue is now better positioned to tackle non-compliance. It is using data to determine which returns are higher risk and realigned its operating structure in 2018 to complement that. Revenue is focusing its resources on those cases which it believes will most likely deliver a yield on an audit.”
Revenue now utilises a risk-evaluation tool called the Risk Evaluation Analysis and Profiling (REAP), which is a highly sophisticated system that takes data from numerous sources and cross-checks this data against tax returns filed in order to attribute a risk ranking to the individual. Higher risk individuals are more at risk of being selected for audit.
This system continues to advance, and Revenue continues to refine the process. This increased sophistication means that Revenue can now carry out digital audits on an individual if an issue is flagged. As well as this, Revenue’s appeals system has been streamlined recently to begin to clear the backlog caused by the pandemic.
We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.
At Ecovis DCA we want to assure you that our professional legal team remains fully available to serve our clients by way of telephone calls, emails and video conferencing.
All our usual channels of communication are open and you can contact us by way of email at info@ecovisdca.ie or by telephone +353 1 8230000 at any time.
