Tax Measures subject to enactment of the Finance Bill 2022 7 December 2021

RMcH states: updates on EWSS extension, warehousing of revenue debt & WFH

1. Measures to support Enterprise/ SMEs/Agri-sector Employment Wage Subsidy Scheme The Employment Wage Subsidy Scheme will be extended until 30 April 2022, in a graduated form.

 The following are the broad parameters of this extension:

• no change to EWSS for the months of October and November,
• businesses availing of the EWSS on the 31st of December 2021 will continue to be supported until the 30th of April 2022,
• across December, January and February, the original two-rate structure of €151.50 and €203 will apply,
• for March and April 2022, a flat rate subsidy of €100 will be put in place. In addition, the reduced rate of Employers’ PRSI will no longer apply for these two months; and
• the scheme will close to new employers from 1 January 2022.

 The estimated cost of extending the EWSS from November 2021 to 30 April 2022 is in the region of €1.26 billion, which is funded by the Vote for the Department of Social Protection.

2. Expansion of Warehousing of tax liabilities The tax debt warehousing scheme will be expanded to allow self-assessed income taxpayers with employment income who have a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income from that employer company.

CPA Ireland have made extensive representations via CCAB-I and to Revenue at TALC on the interaction of the Debt Warehousing Scheme for PAYE (Employer) liabilities with Section 997A of the TCA 1997, as credit for PAYE deducted from remuneration paid to certain directors/employees is not permitted unless the PAYE has been remitted to the Collector-General.

 The financial implications for affected taxpayers who do not qualify for income tax debt warehousing were represented.

 https://www.revenue.ie/en/taxprofessionals/tdm/income-tax-capitalgains-tax-corporation-tax/part-38/38-01- 04E.pdf

3. Work from Home Measures

The current tax arrangements for working from home will be enhanced and formalised so that an income tax deduction amounting to 30% of the cost of vouched expenses for heat, electricity and broadband in respect of those days spent working from home can be claimed by taxpayers.