Economic Recovery Plan

The Government announced their Economic Recovery Plan (ERP) on Tuesday, 1^st June. It was a far-reaching plan with 4 Pillars identified and a €3.6billion package of spending supports and measures to support the economy as we emerge from the pandemic.

There was a lot covered in the plan, but for this blog we are going to focus on what affects us most as business owners/ managers within the personal care industry.

You can view the Economic Recovery Plan here

And a full overview of the plan here

Extension of Existing Supports

EWSS

It has been a year of acumens with EWSS becoming one familiar to most of us. It is the Employment Wage Subsidy Scheme. This scheme was introduced to support employers by providing a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll and gross pay to employees.

Initially it was expected to continue until 30 June 2021. This scheme has now been extended to 31 Dec 2021. The current rates will remain unchanged until the end of Sept at which stage they will be reviewed.

PUP

Possibly the better known of all the COVID-19 acumens, the PUP (pandemic unemployment payment) payment will continue however it will be closed to new entrants from July while a reduction in rates is due to begin at the start of September.

VAT

The 9% VAT Rate has been extended to September 1 2022, this applies to the Hairdressing industry.

SBASC

The Small Business Assistance Scheme for COVID-19 (SBASC), was introduced to help businesses not eligible for COVID-19 Restrictions Support Scheme (CRSS), by providing grant aid to assist with fixed costs. As per the ERP, eligibility for the SBASC for Q2 2021 applications has been broadened in two ways.

Where businesses have a minimum turnover of €50,000 they can benefit from a €4,000 grant. This now includes businesses in non-rated premises, thereby benefitting self-employed people working from home, who meet all other eligibility criteria. It also provides for a grant of €1,000 for businesses with a minimum turnover of €20,000 and a maximum turnover of €49,999, with all other SBASC eligibility criteria applying.

CRSS

The COVID-19 Restrictions Support Scheme will be extended beyond 30 June until the end of the year. As firms are able to reopen and exit the scheme, there will be an enhanced restart payment of three weeks at double rate of payment to support businesses in meeting the costs of reopening as they exit the scheme. The maximum restart payment will be increased to €10,000 per week, allowing businesses to receive up to a maximum of €30,000.

Commercial Rates Waiver

The commercial rates waiver in its current form, has been extended until the end of September 2021.

Debt Warehousing Scheme

The Tax Debt Warehousing Scheme will be extended to the end of 2021 for all eligible taxpayers with an interest free period during 2022. COVID related liabilities will then fall to be paid from 1 January 2023. Overpayments of Employment Wage Subsidy Scheme will now also be included in the scheme.

Business Resumption Support Scheme

A new more streamlined business support scheme, the Business Resumption Support Scheme, will be introduced in September 2021, for businesses with significantly reduced turnover as a result of public health restrictions.

Staying Informed

These are uncertain times for us all and staying informed is the best way to stay in control and to manage your own business.

There is a lot of information available as you navigate this time of recovery and re-emergence. We would advise you to be as informed as you can and liaise with your accountants to ensure you avail of all applicable supports.

HABIC will continue to keep you informed as best we can. We will continue to lobby for support and resources for the Personal Care Sector including an extension of the 9% VAT Rate to our Beauty Sector colleagues. We wish you every continued success.

#stayinformed #beprepard

Useful Resources

Gov.ie: Pillar 3: Re-building Sustainable Enterprises

Citizen Information: COVID-19 business supports