Factsheet for measure
IE-2020-45/1421
–
Updated
– measures in Ireland
Supports for self-employed individuals introduced in the budget
Background information
Budget 2021 introduced a number of measures to support self-employed individuals in the pandemic. This included the extension of the debt warehousing scheme - which allows self-employed taxpayers to defer payment with no interest applying - introduced as part of the July stimulus plan. Self-employed people will also be entitled to earn some income without impacting their claim for Pandemic Unemployment Payment (PUP). Read more on the (PUP) on the
COVID-19 data base website
Content of measure
As part of Budget 2021, there was an extension of the tax debt warehousing scheme to include repayments of Temporary Wage Subsidy Scheme funds owed by employers and preliminary tax obligations for the adversely affected self-employed. Debts that are warehoused are subject to 0% interest for 12 months. After this 12-month period, a reduced interest rate of 3% per annum will apply. If income for 2021 is also at least 25% lower than income for 2019, the balance of 2020 IT and Preliminary Tax for 2021 can also be warehoused.
In addition, self-employed recipients of the Pandemic Unemployment Payment will be able to earn up to €480 per month without losing their payment.
Updates
The following updates to this measure have been made after it came into effect.
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20 December 2021
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The Debt Warehousing Scheme was extended by three months until 31 March 2022 (instead of 31 December 2021).
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Use of measure
No information.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
|
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Role
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No involvement
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No involvement
|
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
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Main level of involvement: N/A
Involvement
Not applicable.
Views and reactions
The Small Firms Association (SFA), part of Ibec said "Self-employed business owners will welcome the reliefs announced today, which show the Government’s commitment to indigenous entrepreneurs."
Sources
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16 October 2020: Revenue eBrief No. 190/20
(www.revenue.ie)
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01 November 2020: Self-employed debt warehousing to the extended
(www.rte.ie)
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21 December 2021: Revenue update on claiming support under CRSS and EWSS and availing of the Debt Warehousing Scheme
(www.revenue.ie)
