Yet another day in the diary of 2020 that we won’t forget fast…. Wed 21st Oct.
Yesterday, Monday 19th Oct the Government confirmed that Level 5 Restrictions for the entire country would come into effect from Midnight Wednesday, October 21st for 6 weeks. This decision was made with the interest of the health and safety of our family and friends in mind. This is not the decision that we, as business owners, wanted to hear, but whether we agree or not, so it is. (You can read the full list of restrictions here)
This action is based on current public health advice, the deteriorating situation with the disease across the country and the government’s objectives to support families by keeping schools and childcare facilities open, maintaining non-COVID health services and protecting the vulnerable.gov.ie
Level 5 Restrictions states that only essential retail and essential services will remain open. Gov.ie sets out what exactly is Essential Retail here. The Hair and Beauty Sector is not listed as an Essential retail service.
As such, Hair & Beauty Service providers must cease service during this 6 week period. While we can not provide any services over the next 6 weeks, many businesses in the Hair and Beauty Sector will continue to sell product online and in the lead up to Christmas – gift sets and vouchers, via their e-commerce website or social media.
What should you do now?
We must now prepare our teams, our clients and our businesses for 6 weeks of no or limited trading.
There are a few urgent items that we recommend you focus on:
- Fill your diary; many outlets will do so right up to midnight Wednesday night. If you have the team in place to provide this service, why not?
- Reach out to your clients and ensure they have the right products to manage their hair/skin care needs over the coming 6 weeks
- Stay in touch with your clients throughout. Most importantly your older clients, be sure to let them know that they are not alone.
- If you haven’t applied for the Restart Grant, it is important that you address this. The grant has been extended from 31st Aug to 31st Oct. Make sure you take the time to check it out and see if you qualify… every penny counts.
Amendments to PUP and EWSS
As a result of the fact that businesses have to close, changes have been made to the PUP and the EWSS.
The new payment structure for the PUP is as follows, with the rate of €350 restored to those who were earning in excess of €400 per week:
|Prior Weekly Earnings (Gross)||PUP Payment|
|less than €200||€203|
|€200 – €299.99||€250|
|€300 – €399.99||€300|
|more than €400||€350|
This change to payment rates will apply for payments issued from Tuesday 27 October (PUP is paid weekly on a Tuesday) in respect of all existing and new applicants.
The EWSS is also being amended to align with the amendment to PUP. This means here will be 5 payment rates/bands as follows:
- 0 – €151 = €0
- >€151 < €203 = €203
- >€203 < €300 = €250
- >€300 < €400 = €300
- >€400< €1,462 = €350
The main aim of this scheme is to ensure where possible employees retain their link with their employer rather than become unemployed. This revised scheme will run to end January 2021.
CRSS – COVID Restrictions Support Scheme
Here’s an overview of the new Covid Restrictions Support Scheme (CRSS) as announced by the Minister for Finance in his Budget Speech last week.
While Revenue has published an initial guide to CRSS, they have not yet released guidelines for the registration process but it does clarify a few points:
- Qualifying taxpayers will be able to log on to ROS and register soon
- Revenue will publish guidelines on the registration process and on the operation of the scheme in due course
- The payment (Advance Credit for Trading Expenses) is taken into account when computing the profits and gains of the business under Case 1 of Schedule D as a reduction against deductible trading expenses. De-coded this means that if you get €10k over a period under CRSS you will be able to claim €10k less in expenses when making your tax return
- The scheme will operate on a self-assessment basis but is conditional on the taxpayer continuing to file all tax returns on time, holding a current tax clearance certificate and intending to re-open when the restrictions are lifted
We will bring you more details of this as they are announced. For now, please note the CRSS payment on your Task List to be addressed over the coming days.
Contact your Accountant
Please also reach out to your Accountant and discuss CASH FLOW. Setting plans in place for the next 6 weeks and what may follow will be essential. #BePrepared
We have been down this road before. This time we will be more prepared. We will walk together, every step. You are not alone. #habictogetherTeam HABIC
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