• Paula Travers

Employment Wage Subsidy Scheme (EWSS) - Important Update re Proprietary Directors

โœณ One of the most ๐™˜๐™ค๐™ฃ๐™ฉ๐™ง๐™ค๐™ซ๐™š๐™ง๐™จ๐™ž๐™–๐™ก aspects of the Employment Wage Subsidy Scheme (๐™€๐™’๐™Ž๐™Ž) was the fact that originally the intention was to ๐™š๐™ญ๐™˜๐™ก๐™ช๐™™๐™š ๐™ฅ๐™ง๐™ค๐™ฅ๐™ง๐™ž๐™š๐™ฉ๐™–๐™ง๐™ฎ ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ค๐™ง๐™จ from the scheme.


โœณ The definition of a proprietary director is a '๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ค๐™ง ๐™ค๐™› ๐™– ๐™˜๐™ค๐™ข๐™ฅ๐™–๐™ฃ๐™ฎ ๐™ฌ๐™๐™ค ๐™ž๐™จ ๐™ฉ๐™๐™š ๐™—๐™š๐™ฃ๐™š๐™›๐™ž๐™˜๐™ž๐™–๐™ก ๐™ค๐™ฌ๐™ฃ๐™š๐™ง ๐™ค๐™› ๐™ค๐™ง ๐™ž๐™จ ๐™–๐™—๐™ก๐™š ๐™š๐™ž๐™ฉ๐™๐™š๐™ง ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ก๐™ฎ ๐™ค๐™ง ๐™ž๐™ฃ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ก๐™ฎ, ๐™ฉ๐™ค ๐™˜๐™ค๐™ฃ๐™ฉ๐™ง๐™ค๐™ก ๐™ข๐™ค๐™ง๐™š ๐™ฉ๐™๐™–๐™ฃ 15% ๐™ค๐™› ๐™ฉ๐™๐™š ๐™ค๐™ง๐™™๐™ž๐™ฃ๐™–๐™ง๐™ฎ ๐™จ๐™๐™–๐™ง๐™š ๐™˜๐™–๐™ฅ๐™ž๐™ฉ๐™–๐™ก ๐™ค๐™› ๐™ฉ๐™๐™š ๐™˜๐™ค๐™ข๐™ฅ๐™–๐™ฃ๐™ฎ.'


โœณ Fortunately the Minister for Finance, Paschal Donohoe, had the ๐™œ๐™ค๐™ค๐™™ ๐™จ๐™š๐™ฃ๐™จ๐™š to see how unfair that would have been, and he intervened to ๐™ง๐™š๐™ซ๐™š๐™ง๐™จ๐™š ๐™ฉ๐™๐™–๐™ฉ aspect of the scheme before it was publicly announced.


โœณ The guidance at the time stated that '๐™˜๐™š๐™ง๐™ฉ๐™–๐™ž๐™ฃ' ๐™ฅ๐™ง๐™ค๐™ฅ๐™ง๐™ž๐™š๐™ฉ๐™–๐™ง๐™ฎ ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ค๐™ง๐™จ 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 ๐™˜๐™ค๐™ฃ๐™™๐™ž๐™ฉ๐™ž๐™ค๐™ฃ๐™จ these 'certain' proprietary directors would have to meet.


โœณ Fortunately today (31st August 2020), ๐™๐™š๐™ซ๐™š๐™ฃ๐™ช๐™š ๐™๐™–๐™ซ๐™š ๐™˜๐™ค๐™ฃ๐™›๐™ž๐™ง๐™ข๐™š๐™™ ๐™ฉ๐™๐™š ๐™˜๐™ค๐™ฃ๐™™๐™ž๐™ฉ๐™ž๐™ค๐™ฃ๐™จ under which proprietary directors can claim the EWSS from 1st September 2020, as follows:


โœ… The employer meets the eligibility for the EWSS (turnover requirements etc.),

โœ… The proprietary director is on the payroll of the eligible employer, and

โœ… ๐™๐™๐™š ๐™ฅ๐™ง๐™ค๐™ฅ๐™ง๐™ž๐™š๐™ฉ๐™–๐™ง๐™ฎ ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ค๐™ง ๐™๐™–๐™จ ๐™—๐™š๐™š๐™ฃ ๐™ฅ๐™–๐™ž๐™™ ๐™ฌ๐™–๐™œ๐™š๐™จ ๐™ฌ๐™๐™ž๐™˜๐™ ๐™ฌ๐™š๐™ง๐™š ๐™ง๐™š๐™ฅ๐™ค๐™ง๐™ฉ๐™š๐™™ ๐™ฉ๐™ค ๐™๐™š๐™ซ๐™š๐™ฃ๐™ช๐™š ๐™ค๐™ฃ ๐™ฉ๐™๐™š ๐™ฅ๐™–๐™ฎ๐™ง๐™ค๐™ก๐™ก ๐™ค๐™› ๐™ฉ๐™๐™š ๐™š๐™ก๐™ž๐™œ๐™ž๐™—๐™ก๐™š ๐™š๐™ข๐™ฅ๐™ก๐™ค๐™ฎ๐™š๐™ง ๐™–๐™ฉ ๐™–๐™ฃ๐™ฎ ๐™จ๐™ฉ๐™–๐™œ๐™š ๐™—๐™š๐™ฉ๐™ฌ๐™š๐™š๐™ฃ 1๐™จ๐™ฉ ๐™…๐™ช๐™ก๐™ฎ 2019 ๐™–๐™ฃ๐™™ 30๐™ฉ๐™ ๐™…๐™ช๐™ฃ๐™š 2020.


โœณ ๐™๐™๐™š ๐™ ๐™š๐™ฎ ๐™˜๐™ค๐™ฃ๐™™๐™ž๐™ฉ๐™ž๐™ค๐™ฃ ๐™ž๐™จ ๐™ฉ๐™๐™š ๐™ก๐™–๐™จ๐™ฉ ๐™ค๐™ฃ๐™š, ๐™ฌ๐™๐™ž๐™˜๐™ ๐™„ ๐™—๐™š๐™ก๐™ž๐™š๐™ซ๐™š ๐™ฌ๐™ž๐™ก๐™ก ๐™˜๐™–๐™ช๐™จ๐™š ๐™ฉ๐™๐™š ๐™ข๐™ค๐™จ๐™ฉ ๐™˜๐™๐™–๐™ก๐™ก๐™š๐™ฃ๐™œ๐™š๐™จ, ๐™–๐™จ ๐™–๐™จ ๐™ฃ๐™ค๐™ฉ ๐™–๐™ก๐™ก ๐™ฅ๐™ง๐™ค๐™ฅ๐™ง๐™ž๐™š๐™ฉ๐™–๐™ง๐™ฎ ๐™™๐™ž๐™ง๐™š๐™˜๐™ฉ๐™ค๐™ง๐™จ ๐™–๐™ง๐™š ๐™ค๐™ฃ ๐™ฅ๐™–๐™ฎ๐™ง๐™ค๐™ก๐™ก, ๐™ค๐™ง ๐™–๐™ง๐™š ๐™ฅ๐™–๐™ž๐™™ ๐™ž๐™ฃ ๐™– ๐™ง๐™š๐™œ๐™ช๐™ก๐™–๐™ง ๐™›๐™–๐™จ๐™๐™ž๐™ค๐™ฃ.


โœณ 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 

โœณ Where you plan to apply for the EWSS, please do not delay. Do the following two things today:

  1. Apply for Tax Clearance, and

  2. Register for the EWSS via ROS

โœณ 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:


๐™๐™š๐™ก๐™ก๐™ค@๐™ฉ๐™ง๐™–๐™ซ๐™š๐™ง๐™จ๐™–๐™˜๐™˜๐™ค๐™ช๐™ฃ๐™ฉ๐™ž๐™ฃ๐™œ.๐™ž๐™š




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