Covid-19 Summary of important information
- Loans can be used for Future working capital requirements or to fund innovation, change or adaptation of the business to mitigate the impact of Covid-19
- Loan amounts of between €25,000 to €1.5m, maximum interest rate of 4%, loan terms ranging from 1 year to 3 years and optional interest-only repayments may be available at the start of the loans.
- The business must be impacted by the Covid-19 virus resulting in business turnover/profitability being negatively impacted by a minimum of 15%.
- Loans will be available through AIB, Bank of Ireland and Ulster Bank.
- Businesses cannot complete a loan application until they have received their eligibility letter from the SBCI.
Microfinance – COVID-19 Business Loan
- For any business (Sole Trader, Partnership or Limited Company) with less than 10 employees and annual turnover of up to €2m
- Available if your business is impacted or may be impacted by COVID-19 resulting in a reduction of 15% or more in actual or projected turnover or profit AND you are having difficulty in accessing finance from commercial lending providers.
- Loans from €5,000 – €50,000
- Loan terms typically up to 3 years
- First 6 months – Interest & Repayment free
- Effective from 26 March 2020
- Employers must register
- Payment up to €410 as non-taxable addition to take home pay
- Payment of €350 per week.
- It is available to all employees and the self-employed who have been laid off or lost their job due to the COVID-19 (Coronavirus) pandemic.
- The quickest and easiest way to apply for the emergency Covid-19 payment is by applying online at mywelfare.ie.
- All workers who cannot go to their place of work are eligible for the Pandemic Payment if they cannot work from home.
- When a worker is told to self-isolate by a doctor or has been diagnosed with COVID-19 (Coronavirus) by a doctor, they can apply for an enhanced Illness Benefit payment of €350 per week.
- To be eligible for this payment a person must be confined to their home or a medical facility.
- It will be paid for a maximum of 2 weeks where a person is self-isolating and for a maximum of 10 weeks if a person has been diagnosed with COVID-19 (Coronavirus).
- Workers in receipt of the enhanced illness benefit payment who still face financial distress because their employer fails to pay sick pay beyond the level paid by the State, can apply for additional emergency income support, in the form of Supplementary Welfare Allowance which is based on a means test.
- If you need to take time off work to care for somebody with COVID-19 (Coronavirus), you can apply for Illness Benefit for COVID-19 absences.
- Short Time Work Support is a form of Jobseeker’s Benefit and is an income support payment if you have been temporarily placed on a shorter working week.
- The payment is made in respect of your regular salary for the days that you are no longer working.
- Employees must work 3 days per week or less to qualify, having previously been employed on a full time basis.
- Your rate of payment will depend on your average weekly earnings in the governing contribution year and the change in your work pattern.
Filing Tax Returns
- Taxpayers should continue to file their tax returns as normal
- interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities
- Employers should continue to report their payroll details each month to ensure that the filed/deemed return is accurate.
- Where a variable direct debit fails due to insufficient funds, Revenue has suspended the process of issuing a further request for the payments until further notice.
Benefit in Kind (BIK)
- Reimbursements by an employer to an employee regarding holiday/flight cancellations or in relation to costs of assisting employees returning to the State – a BIK will not arise, provided the employee is integral to the business and the costs incurred are reasonable and the employee is not otherwise compensated.
- A BIK will not arise where employers provide equipment such as laptops, printers, scanners and office furniture in order for employees to set up a working space in their homes.
- Where an employer pays for a taxi to transport an employee to or from work due to health and safety concerns, BIK will not apply for the duration of the COVID-19 period only.
Please don’t hesitate to contact us if you require any advice or assistance.