Support for Sport
The Irish Government announced its Stimulus plan to support businesses and create jobs yesterday July 23rd. It adds to some of the existing business supports that were put in place at the outset of the pandemic and introduces some new initiatives to encourage consumer confidence. The press release is available to read: https://www.chg.gov.ie/government-launches-e7-4bn-jobs-stimulus-to-help-businesses-re-open-get-people-back-to-work-and-promote-confidence/
July Stimulus Package - 23rd July
In total, there is €7bn of spending planned, which breaks down as follows:
- €4bn Direct Expenditure
- €1bn Taxation measures to support businesses
- €2bn Credit guarantees
Previously Sport had been excluded from the Restart Grant for Enterprises support initiative, However, FIS made representation previously to the Department of Transport Tourism and Sport and former Minister of State with responsibility for Sport and Tourism Brendan Griffin on this matter and it is great news that it has been extended to a broader base of businesses such as rateable sports businesses. I appreciate that only a number of our members and their clubs/units will be able to access this grant but it is a necessary addition to the already announced €70million Covid19 Resilience fund for Sport and Physical Activity.
Under the revised Restart Grant, support will also be provided for enterprises that could not access the original grant scheme. Such as rateable sports businesses will be eligible for a grant payment of €4,000.
For more details please GO HERE.
Additional information on the July stimulus package below that is also of relevance and importance
An Employment Wage Support Scheme will replace the current Temporary Wage Subsidy Scheme and run until 2021. Employers whose turnover has fallen 30% will receive a flat-rate subsidy of up to €203 per week per employee, including for seasonal staff and new employees
Standard VAT Rate
The standard VAT rate will be reduced from 23% to 21% for a six-month period from the beginning of September 2020.
Consumer Stay and Spend Initiative
Any taxpayer who spends over €625, on accommodation, food and non-alcoholic drinks, between October 2020 and April 2021, will be able to claim back up to €125 through a tax credit.
With limited exceptions, all businesses will be granted a waiver of commercial rates for the six months to end-September 2020
Cash-Flow Support & Tax
To provide immediate cash-flow support to previously profitable companies, the early carryback of trading losses will be allowed, leading to an immediate refund of some or all of corporation tax paid. The Government will also pass legislation to confirm the previously announced warehousing of tax liabilities. This will allow for businesses affected by Covid-19 to delay payment of their PAYE and VAT debts in part of in full for a set period with no interest or penalties.
Credit Guarantee Scheme
The €2 billion COVID-19 Credit Guarantee Scheme will see Government provide an 80% guarantee for a wide range of credit products from €10,000 to €1 million up to a maximum term of 6 years.
Pandemic Unemployment Payment
The PUP will be extended until April 2021, but will close to new claimants from September 2020. There will be a gradual reduction in the rates, linked to previous incomes and payments will be brought in line with existing social welfare rates.
The July Stimulus package is the latest step in the Government's economic recovery plan. Later this year, to coincide with the Budget in October, the Government will set out a National Economic Plan, to chart a long term, jobs-led recovery.