• The government’s general information page for employers and employees is at
  https://www.gov.ie/en/campaigns/4cf0e2-covid-19-coronavirus-information-for-employers-and-employees-test/.
• Employees of businesses that need to reduce hours or days worked can avail of the Department of Employment Affairs and Social Protection Short-time Work Support: https://www.gov.ie/en/service/c20e1b-short-time-work-support/.

• COVID-19 Wage Subsidy Scheme: 
  
  • This scheme allows employers to pay their employees during the current pandemic.
  • In phase 1 of the scheme, which is to run from 26 March up until 20 April at the latest, employers will be refunded up to 70% of an employee's net weekly wages – up to a maximum of €410 for employees earning less than or equal to €586 per week net or a maximum of €350 or 70% of the employee’s net weekly wages for those earning between €586 per week net and €960 per week net.
  • Phase 2 of the scheme is expected to be in operation by 20 April and further details are expected over the coming days/weeks.
  • Employers must self-declare to Revenue that they have experienced significant negative economic disruption due to COVID-19, with a minimum of 25% decline in turnover and an inability to pay normal wages and other outgoings.
  • Revenue has published additional guidance in respect of the operation of the scheme by employers and eligibility criteria. For further details please see:
    • https://www.revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-subsidy-scheme.aspx
    • https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf
    • https://www.revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf
  • For more information visit https://www.gov.ie/en/service/578596-covid-19-wage-subsidy/. 
• COVID-19 Pandemic Unemployment Payment: Employees and the self-employed – For those workers who have been laid off without pay, there is no need to visit an Intreo Centre. The DEASP has introduced a new support payment for the self-employed who have lost business and to employees who have lost employment as a result of the COVID-19 pandemic, the COVID-19 Pandemic Unemployment Payment. This support pays a flat rate of €350 per week and will be in place for twelve weeks (previously announced as €203 per week for a six-week period). For more information visit https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/.
• COVID-19 Illness Benefit: Employees that have contracted the COVID-19 virus, or who are required medically to self-isolate, can claim an illness benefit €350 per week (increased from €305 announced previously). It will be paid for up to twelve weeks for those required to self-isolate, or for the duration of the person’s absence from work if they have been diagnosed with COVID-19. For more information visit https://www.gov.ie/en/service/df55ae-how-to-apply-for-illness-benefit-for-covid-19-absences/.

• Employers must be vigilant in their understanding of the legal concerns under the Redundancy Payments Acts 1967 to 2014 and may need to seek professional legal advice in certain circumstances.

All banks have announced that they will offer flexibility to their customers, and they may be able to provide payment holidays or emergency working capital facilities where required.

In addition, the following government facilities have been recommended as supports for working capital constraints:

Credit Guarantee Scheme

This scheme supports loans from €10,000 up to €1m for periods up to 7 years. The Scheme is operated on behalf of the Department by the Strategic Banking Corporation of Ireland (SBCI) and applications can be made to participating lenders

• AIB https://business.aib.ie/products/finance-and-loans/credit-guarantee-scheme
• Bank of Ireland https://businessbanking.bankofireland.com/credit/credit-guarantee-scheme/
• Ulster Bank https://digital.ulsterbank.ie/business/loans-and-finance/sbci-loan.html

Strategic Banking Corporation Ireland (“SBCI”) Working Capital

The €200m SBCI COVID-19 Working Capital Scheme for eligible businesses will be available within the next week. Maximum loan size will be €1.5 million (first €500,000 unsecured) and the maximum interest rate will be 4%. The SCBI is currently working towards bringing this scheme to market as soon as possible. The SBCI website at https://sbci.gov.ie/ will be updated on a regular basis to update on scheme launch.

Enterprise Ireland Business Support Loans

A €200m Package for Enterprise Supports including a Rescue and Restructuring Scheme is available through Enterprise Ireland for vulnerable but viable firms that need to restructure or transform their business. Details of this support is being finalised and further updates will be available in the coming days.

Enterprise Ireland Finance in Focus Grant

Grants of €7,200 will be available to Enterprise Ireland and Údarás na Gaeltachta clients that want to access consultancy support to undertake immediate finance reviews. Application forms are available on the Enterprise Ireland website at https://www.enterprise-ireland.com/en/Process/Companies/Finance-in-Focus-Grant-Claim.html.

Microfinance Ireland

Microenterprises (turnover less than €2m) can access COVID-19 loans of up to €50,000 from MicroFinance Ireland. Loans are available at an interest rate of between 6.8% and 7.8% and businesses can apply through their Local Enterprise Office or directly at https://microfinanceireland.ie/.

Revenue has provided the following updated advice which will further assist businesses that are experiencing trading difficulties caused by the impacts of COVID-19.

Information for SMEs

• Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
• Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
• Debt Enforcement: All debt enforcement activity is suspended until further notice.
• Tax Clearance: current tax clearance status will remain in place for all businesses over the coming months.

Information for Subcontractors

• RCT (Relevant Contract Tax): the RCT rate review scheduled to take place in March 2020 is suspended. This process assesses the current compliance position of each subcontractor in the eRCT system and determines their correct RCT deduction rate, i.e. 0%, 20% or 35%. As this process may result in a subcontractor’s RCT rate increasing due to changes in their compliance position, the review is suspended.
• Subcontractors and agents are reminded that RCT rate reviews can be self-managed in ROS. Subcontractors can check if their rate should be lower and can then ‘self-review’ to get that lower deduction rate.

Information on importing goods

• Customs: critical pharmaceutical products and medicines will be given a Customs ‘green routing’ to facilitate uninterrupted importation and supply.

Businesses, other than SMEs, who are experiencing temporary cash flow or trading difficulties should contact the Collector-General’s office on (01) 7383663. Alternatively, these businesses can engage directly with their branch contacts in Revenue’s Large Corporates Division or Medium Enterprises Division.

Communication is vitally important during this crisis. It is important to stay connected to employees, customers, and suppliers. In the early stages, make use of the various social media platforms to inform your contacts about major changes such as temporary closures and alternative arrangements. Consider using Twitter, LinkedIn, Facebook or Instagram in order to deliver messages quickly and to a wide audience.

As the days and weeks progress, make sure to contact key stakeholders directly by phone, letter or email as you judge best. We should all be aware that this time is likely to be stressful for many of those we work with. Many people will be impacted in ways we could not have expected.

Clients should make sure to check their insurance policies for coverage related to Business Interruption Cover, or Credit Insurance.

It is important to consider the implications of any exclusions for force majeure which may or may not apply to the current pandemic and responses from governments.

Preparation for the eventual recovery is very important. We are confident that this will come soon, and we should all be ready for it. Evidence from China and Singapore is showing us that business activity will pick up as quickly as it fell away. Business confidence has proven to be quite resilient in these countries. Supply chains have been interrupted to a considerable extent, and may take some time to be re-established, which emphasises the need for regular communications with key stakeholders.