Financial support is available for contractors impacted by COVID-19?
Peak recently discussed this in an article called “Financial Support for Contractors during COVID-19 in Ireland” which you can view here
In summary, support is included in 4 scenarios:
What Expenses Can I claim when working from home?
Where do you work mainly? This is the question we ask our clients – now that they are working from home, any expense which is required for you to work remotely can be allocated to offset your tax. We will be putting together an expense guide in our next blog, however, examples of this we have seen our clients claiming are:
- Office furniture
- Computer equipment
- Telephone and broadband costs
- Bills allowance
If my hours get reduced during my contract will I be entitled to financial support?
There is a Support that the government has rolled out called “Short Time Work Support” which can be applied to individuals who work 3 days or less having previously been full time. The full details can be found here
What happens if my contract gets terminated due to COVID-19?
You can apply through the COVID19 Pandemic Unemployment payment, this is where you get €350 weekly payments through mywelfare.ie account. We discussed this in our other article.
What if I am an umbrella employee, will I be entitled to the Pandemic payment support?
Yes, any contractor operating through an umbrella company can personally apply for the pandemic unemployment payment.
What is the wage subsidy scheme?
The “temporary COVID-19 Wage Subsidy Scheme” is where the government pays the salary capped at 70% of the previous average weekly take-home pay of an employee/director of that company, to a maximum payment of €410 per week. Currently, the scheme is expected to last till the end of June and can be applied for COVID-19 has disrupted your ability to work during the pandemic.
What if I am a director of my limited company, can I qualify for wage subsidy payments?
The simple answer is YES. The government has put together criteria. Which can be found here. If you qualify then you can apply.
I Operate Through An Umbrella Company; Can The Umbrella Company Apply For The Wage Subsidy Scheme On My Behalf?
No; unfortunately, an Umbrella Company cannot process Wage Subsidy payments. Due to the nature of how Umbrella Companies are set up with multiple contractors working on various projects, they will not satisfy the criteria set out by Revenue to qualify for the scheme. The reason being, although a contractor may be impacted the other contractors in the company may not, which makes the umbrella company unable to apply for the scheme. For umbrella company contractors whose contract was terminated or paused as a result of COVID-19, we recommend they apply for the COVID-19 Unemployment Weekly Payment of €350.
My Client Has Terminated My Contract, Will I Receive Notice Period Payment?
Yes, the length of notice periods is dictated by the contract in place. Payment will be calculated in line with the termination clause.
Will I Receive Payment For Invoices Already Raised?
Yes, you should receive payment as normal for work already completed.
If you have further questions, please get in touch with us at email@example.com or visit us at www.peakaccountingsolutions.ie