Tax Updates
In light of the implications that the Coronavirus has had and is continuing to have on individuals and companies Revenue introduced a July Jobs stimulus package.
Some of the recent changes of note here are:
- Stay and Spend Tax Credit Incentive 1 October 2020. Under the scheme, you are entitled to a tax credit equal to 20% of “qualifying expenditure” incurred from 1 October 2020 to 30 April 2021. This is subject to certain limits and conditions. Qualifying expenditure includes expenditure on accommodation and food and non-alcoholic drink provided by a qualifying service provider. You must spend at least €25 on qualifying expenditure in a single transaction. You must submit proof of expenditure with your claim.
- A number of temporary income tax measures to assist self-employed individuals who have been adversely impacted by the Covid-19 restrictions, for example Under the first measure, self-employed individuals can claim to have their 2020 losses and certain unused capital allowances carried back and deducted from their profits for the year of assessment 2019, thus reducing the amount of income tax payable on those profits. A €25,000 limit on the total amount that may be carried back will apply.
- A six-month reduction in the standard rate of Value-Added Tax (VAT) from 23% to 21% will apply, effective from 1 September 2020.
- Temporary acceleration of Corporation Tax loss relief & Employment Wage Subsidy Scheme (EWSS).
Our team are in a position to advise further in respect to the above stimulus package.
Please note the annual budget takes place in October & a number of changes should be expected to restart the economy which has been on hold for much of 2020 because of Coronavirus.