July Jobs Stimulus Plan – Employer Focus
Newly appointed Taoiseach Micheál Martin announced the July Stimulus package worth €5.2 billion which included 50 new measures to help businesses and in turn help with the recovery of our economy. The major measures introduced in this package are as follows:
- From September 1st the current Temporary Wage Subsidy Scheme (TWSS), which is due to end on 31st August, will be replaced by the Employment Wage Subsidy Scheme (EWSS). This new scheme will run for 6 months until 31st March 2021. Under this scheme, employers and new firms in sectors impacted by Covid-19 whose turnover has fallen 30% will receive a flat-rate subsidy of up to €203 per week for each employee, including seasonal staff and new employees.
- Employers will receive an incentive of €2,000 to take on apprentices in 2020 under the Apprenticeship Incentivisation Scheme.
- If an employer hires an employee under the age of 30 who is on the Live Register or the Pandemic Unemployment Payment, a recruitment subsidy of up to €7,500 over two years will be available under the JobsPlus Scheme.
- Legislation will be passed to confirm that businesses affected by Covid-19 can delay payment of their PAYE and VAT debts in part or in full for a particular period without collecting interest or penalties.
- The standard rate of VAT will be cut by 2% for a 6 month period commencing September 2020, reducing the rate to 21%.
- A new Stay and Spend Incentive has been introduced, any taxpayer spending over €625 on accommodation and meals including non-alcoholic beverages between October 2020 and April 2021 can claim back up to €125 through a tax credit.
- Changes have been made to the existing Cycle to Work scheme. The new allowance of €1,250 has increased by €250 from the old rate of €1,000 to promote expenditure on cycling. The allowance has increased by €500 to €1,500 for electric bikes. The existing period to avail of the scheme of five years is being reduced to four years.