- Paula Travers
Employment Wage Subsidy Scheme (EWSS) - Important Update re Proprietary Directors
โณ One of the most ๐๐ค๐ฃ๐ฉ๐ง๐ค๐ซ๐๐ง๐จ๐๐๐ก aspects of the Employment Wage Subsidy Scheme (๐๐๐๐) was the fact that originally the intention was to ๐๐ญ๐๐ก๐ช๐๐ ๐ฅ๐ง๐ค๐ฅ๐ง๐๐๐ฉ๐๐ง๐ฎ ๐๐๐ง๐๐๐ฉ๐ค๐ง๐จ from the scheme.
โณ The definition of a proprietary director is a '๐๐๐ง๐๐๐ฉ๐ค๐ง ๐ค๐ ๐ ๐๐ค๐ข๐ฅ๐๐ฃ๐ฎ ๐ฌ๐๐ค ๐๐จ ๐ฉ๐๐ ๐๐๐ฃ๐๐๐๐๐๐๐ก ๐ค๐ฌ๐ฃ๐๐ง ๐ค๐ ๐ค๐ง ๐๐จ ๐๐๐ก๐ ๐๐๐ฉ๐๐๐ง ๐๐๐ง๐๐๐ฉ๐ก๐ฎ ๐ค๐ง ๐๐ฃ๐๐๐ง๐๐๐ฉ๐ก๐ฎ, ๐ฉ๐ค ๐๐ค๐ฃ๐ฉ๐ง๐ค๐ก ๐ข๐ค๐ง๐ ๐ฉ๐๐๐ฃ 15% ๐ค๐ ๐ฉ๐๐ ๐ค๐ง๐๐๐ฃ๐๐ง๐ฎ ๐จ๐๐๐ง๐ ๐๐๐ฅ๐๐ฉ๐๐ก ๐ค๐ ๐ฉ๐๐ ๐๐ค๐ข๐ฅ๐๐ฃ๐ฎ.'
โณ Fortunately the Minister for Finance, Paschal Donohoe, had the ๐๐ค๐ค๐ ๐จ๐๐ฃ๐จ๐ to see how unfair that would have been, and he intervened to ๐ง๐๐ซ๐๐ง๐จ๐ ๐ฉ๐๐๐ฉ aspect of the scheme before it was publicly announced.
โณ The guidance at the time stated that '๐๐๐ง๐ฉ๐๐๐ฃ' ๐ฅ๐ง๐ค๐ฅ๐ง๐๐๐ฉ๐๐ง๐ฎ ๐๐๐ง๐๐๐ฉ๐ค๐ง๐จ would be able to access the scheme, but, since then there has been very little in the way of specific advice from Revenue regarding what ๐๐ค๐ฃ๐๐๐ฉ๐๐ค๐ฃ๐จ these 'certain' proprietary directors would have to meet.
โณ Fortunately today (31st August 2020), ๐๐๐ซ๐๐ฃ๐ช๐ ๐๐๐ซ๐ ๐๐ค๐ฃ๐๐๐ง๐ข๐๐ ๐ฉ๐๐ ๐๐ค๐ฃ๐๐๐ฉ๐๐ค๐ฃ๐จ under which proprietary directors can claim the EWSS from 1st September 2020, as follows:
โ The employer meets the eligibility for the EWSS (turnover requirements etc.),
โ The proprietary director is on the payroll of the eligible employer, and
โ ๐๐๐ ๐ฅ๐ง๐ค๐ฅ๐ง๐๐๐ฉ๐๐ง๐ฎ ๐๐๐ง๐๐๐ฉ๐ค๐ง ๐๐๐จ ๐๐๐๐ฃ ๐ฅ๐๐๐ ๐ฌ๐๐๐๐จ ๐ฌ๐๐๐๐ ๐ฌ๐๐ง๐ ๐ง๐๐ฅ๐ค๐ง๐ฉ๐๐ ๐ฉ๐ค ๐๐๐ซ๐๐ฃ๐ช๐ ๐ค๐ฃ ๐ฉ๐๐ ๐ฅ๐๐ฎ๐ง๐ค๐ก๐ก ๐ค๐ ๐ฉ๐๐ ๐๐ก๐๐๐๐๐ก๐ ๐๐ข๐ฅ๐ก๐ค๐ฎ๐๐ง ๐๐ฉ ๐๐ฃ๐ฎ ๐จ๐ฉ๐๐๐ ๐๐๐ฉ๐ฌ๐๐๐ฃ 1๐จ๐ฉ ๐ ๐ช๐ก๐ฎ 2019 ๐๐ฃ๐ 30๐ฉ๐ ๐ ๐ช๐ฃ๐ 2020.
โณ ๐๐๐ ๐ ๐๐ฎ ๐๐ค๐ฃ๐๐๐ฉ๐๐ค๐ฃ ๐๐จ ๐ฉ๐๐ ๐ก๐๐จ๐ฉ ๐ค๐ฃ๐, ๐ฌ๐๐๐๐ ๐ ๐๐๐ก๐๐๐ซ๐ ๐ฌ๐๐ก๐ก ๐๐๐ช๐จ๐ ๐ฉ๐๐ ๐ข๐ค๐จ๐ฉ ๐๐๐๐ก๐ก๐๐ฃ๐๐๐จ, ๐๐จ ๐๐จ ๐ฃ๐ค๐ฉ ๐๐ก๐ก ๐ฅ๐ง๐ค๐ฅ๐ง๐๐๐ฉ๐๐ง๐ฎ ๐๐๐ง๐๐๐ฉ๐ค๐ง๐จ ๐๐ง๐ ๐ค๐ฃ ๐ฅ๐๐ฎ๐ง๐ค๐ก๐ก, ๐ค๐ง ๐๐ง๐ ๐ฅ๐๐๐ ๐๐ฃ ๐ ๐ง๐๐๐ช๐ก๐๐ง ๐๐๐จ๐๐๐ค๐ฃ.
โณ Where a person is a proprietary director of two or more eligible companies, a claim for EWSS can only be submitted in respect of a single company. In this situation the following will apply:
the proprietary director will be required to elect one company for the purposes of making EWSS claims for the period of the scheme. The election will be deemed to be made on the first submission of an EWSS claim in respect of the proprietary director,ย ย
once an election is made it cannot be changed during the term of the scheme,ย
no claims for EWSS in respect of the same proprietary director should be submitted by the other companies.ย
โณ Where you plan to apply for the EWSS, please do not delay. Do the following two things today:
Apply for Tax Clearance, and
Register for the EWSS via ROS
โณ To find out how we can help you with this and/or find out about our other services please free to contact us by email at:
๐๐๐ก๐ก๐ค@๐ฉ๐ง๐๐ซ๐๐ง๐จ๐๐๐๐ค๐ช๐ฃ๐ฉ๐๐ฃ๐.๐๐
