Revenue softens approach to companies who missed 12-week wage subsidy deadline
Revenue is softening its approach to companies that missed a March 15 payroll deadline which excluded them from qualifying for a 12-week wage subsidy lifeline.
In the Dáil, The move comes as Finance Minister Paschal Donohue came under pressure on Thursday to address the “strict” rules on the government scheme rolled out in March as a lifeline for businesses.
More than 48,000 companies have registered with the Revenue Commissioners for the scheme, which has paid out over €430m in subsidies to support employers to keep staff on their payrolls.
A March 15 deadline to file payroll returns with the Revenue Commissioners, however, left many firms excluded from the scheme and facing an uncertain future. Speaking in the Dáil on Thursday,
Co-leader of the Social Democrats, Róisín Shorthall, said the “overly strict” rules and lack of flexibility is hitting small businesses.
Fianna Fáil TD Michael McGrath, also told the Dáil many firms are “falling foul” of the March 15 deadline.
Green Party TD Steven Matthews, said the strict deadline could have forced “businesses to lay off staff and in worst-case scenarios, close their doors permanently”.
One chartered accountant told the Irish Examiner that some companies are on the brink of collapse if they cannot avail of the lifeline being offered by the scheme.
Ben Lewis of Lewis Chartered Accounting said Revenue has up until now taken “a very hard line” on the PAYE filing deadline but he welcomes the flexibility being offered: “One of our clients was relying on the scheme to keep going and was considering liquidation if it could not avail of the scheme but this is a welcome move that will safeguard jobs.”
Revenue has now announced that it will now allow certain employers who had not fulfilled their PAYE reporting obligations by March 15 to access the scheme.
It said: “Revenue has considered representations from and on behalf of employers who have not met the reporting conditions and are therefore unable to access the scheme.”
Revenue has softened the eligibility criteria to include employers who filed February payroll returns by April 1 and on condition that payroll submissions for all previous months were submitted before March 15.
Revenue could not confirm to the Irish Examiner how many businesses were excluded from the scheme.
A spokesperson said Revenue compiles statistics in relation to business needs and that “the statistics requested are not compiled in the normal course of Revenue activities”.
Isme, which represents more than 10,000 small and medium businesses, said the wage subsidy scheme is proving “burdensome” for businesses and a challenge for payroll providers.
Isme chief executive, Neil McDonnell, said while businesses are happy that the Government is prioritising the need to keep staff on the payroll, there are issues with the scheme.
