{"id":6922,"date":"2020-10-23T11:02:15","date_gmt":"2020-10-23T10:02:15","guid":{"rendered":"https:\/\/www.sage.com\/en-ie\/blog\/?p=6922"},"modified":"2026-01-09T14:56:38","modified_gmt":"2026-01-09T14:56:38","slug":"budget-announcements-for-business","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ie\/blog\/budget-announcements-for-business\/","title":{"rendered":"Budget 2021: What the announcements mean for your business"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tBudget 2021: What the announcements mean for your business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tRuth Doris<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

With Ireland’s economy facing significant challenges due to the ongoing coronavirus (COVID-19) pandemic, and the final preparations for Brexit and a potential no trade deal scenario, Budget 2021 was set to be a big one.<\/p>\n\n\n\n

The measures announced by the newly formed coalition government build on supports put in place under the July Stimulus<\/a> and include a new scheme to support the sectors that have been worst hit by restrictions imposed during the pandemic.<\/p>\n\n\n\n

These unprecedented times called for ambitious measures, and the \u20ac17.75bn Budget was historic in its scope and scale.<\/p>\n\n\n\n

This article focuses on the measures introduced to support owners of small and medium-sized businesses and covers the following:<\/p>\n\n\n\n

Covid Restrictions Support Scheme<\/a><\/p>\n\n\n\n

VAT rate reduction for the hospitality sector<\/a><\/p>\n\n\n\n

Employment Wages Subsidy Scheme updates<\/a><\/p>\n\n\n\n

Further commercial rates waiver<\/a><\/p>\n\n\n\n

Tax relief for remote workers<\/a><\/p>\n\n\n\n

Self-employed and the Pandemic Unemployment Payment<\/a><\/p>\n\n\n\n

Carbon tax increases and the impact on transport costs<\/a><\/p>\n\n\n\n

Additional measures<\/a><\/p>\n\n\n\n

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Download your free Managing Uncertainty guide to help you create business continuity plans that keep your company moving during uncertain times<\/a><\/div>\n<\/div>\n\n\n\n

Covid Restrictions Support Scheme<\/h2>\n\n\n\n

The Covid Restrictions Support Scheme<\/a> (CRSS) is a new support for companies forced to close or trade at significantly reduced levels due to the restrictions imposed because of the pandemic.<\/p>\n\n\n\n

The scheme comes into operation when restrictions are at Level 3 or higher<\/a> and targets businesses in the accommodation, retail, arts, recreation and entertainment sectors, and non-essential retail, hair and beauty services.<\/p>\n\n\n\n

Businesses will receive a weekly payment of up to \u20ac5,000 assessed on their 2019 average weekly turnover.<\/p>\n\n\n\n

Under amendments announced on 19 October 2020, if your business can continue to trade, you may qualify for the CRSS if your turnover is less than 25% of the turnover<\/a> for the corresponding period in 2019.
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The scheme, under the Plan for Living with Covid<\/a>, came into force on 13 October 2020 and runs until 31 March 2021, with the claims process for payments beginning in mid-November 2020.<\/p>\n\n\n\n

If your business qualifies, you can apply to Revenue for a payment in the form of an advanced credit for tax-deductible trading expenses.<\/p>\n\n\n\n

Payments are self-assessed and will continue while the restrictions are in place.<\/p>\n\n\n\n

In the event of extended or subsequent restrictions, you can submit another claim.<\/p>\n\n\n\n

VAT rate reduction for the hospitality sector<\/h2>\n\n\n\n

A reduced rate of VAT of 9% instead of 13.5% for the hospitality and tourism sectors comes into force from 1 November 2020 and will continue until December 2021.<\/p>\n\n\n\n

This measure is aimed at helping hotels, pubs, restaurants and other businesses in the tourism and hospitality sectors.<\/p>\n\n\n\n

If your business operates in the sector, you’ll need to prepare your business for the VAT change now.<\/p>\n\n\n\n

This may involve updating your accounting system (if you’re using accounting software<\/a>, it’s likely this update will happen f9 automatically \u2013 check with your vendor), amending invoices, and contacting suppliers and customers.<\/p>\n\n\n\n

The reduced 21% standard rate of VAT introduced in the July Stimulus was extended until 28 February 2021.<\/p>\n\n\n\n

Employment Wage Subsidy Scheme updates<\/h2>\n\n\n\n

The Employment Wage Subsidy Scheme<\/a> (EWSS) will continue until 31 March 2021.<\/p>\n\n\n\n

Finance minister Paschal Donohoe said it was likely that there would be a need for a similar scheme for the remainder of 2021 and the details of a follow-on scheme would be worked out at a later date when the economic situation is clearer.<\/p>\n\n\n\n

The scheme<\/a>, which replaced the Temporary Wage Subsidy Scheme, supports employers whose businesses have been adversely affected by pandemic restrictions.<\/p>\n\n\n\n

In an amendment to the Budget, on 19 October the government outlined a change to the EWSS rates to align with the rates of payment under the Pandemic Unemployment Payment scheme.<\/p>\n\n\n\n

Previously, there were two flat-rate subsidies per qualifying employee.<\/p>\n\n\n\n

The revised four-tier rates are based on employee’s previous earnings as follows:<\/p>\n\n\n\n