EWSS Guidelines on Eligibility from 1st July 2021
As we have outlined in previous circulars, you will know that EWSS can continue to be claimed for Q3 and Q4, 2021, so long as (broadly speaking) turnover for 2021 is at least 30% down from turnover in 2019.
Revenue have just issued guidelines for employers as regards the period from July to December 2021. A summary of these guidelines is outlined below.
A link to Revenue’s Guidance Notes is here.
- Eligibility Period
Up until now, the eligibility period was for a 6-month period. For example, for the period January to June 2021, the employer compared turnover to the period January to June 2019.
For Q3, 2021, the eligibility period is now for the full 12 months of 2021. In other words, from 1st July 2021 the employer must compare this turnover to the period January to December 2019.
The test is still by reference to a 30% reduction in turnover.
The following table illustrates the figures, both actual and projected, to be used for the period 30th June 2021 to 30th November 2021.
|Paydates in July to December 2021|
|Date review is
|Total of Column A & B equals 2021 figure||2019 Comparative
|Actual results (A)||Projections (B)|
|30th June 2021||January to June 2021||July to Dec. 2021||
Actual results for period January to December 2019
|31st July 2021||January to July 2021||August to Dec. 2021|
|31st August 2021||January to August 2021||September to Dec. 2021|
|30th September 2021||January to Sept. 2021||October to Dec. 2021|
|31st October 2021||January to Oct. 2021||November to Dec. 2021|
|30th November 2021||January to Nov. 2021||December 2021|
While the Revenue Guidance Notes refer to both Q3 and Q4, 2021, we have been told that different eligibility criteria may apply for Q4, 2021. It is expected that any further guidelines will issue in September 2021 in respect of Q4.
Where the business commenced after 1st January 2019, different rules apply, and these are outlined in Appendix I below.
- Review of Employer Eligibility Required
Employers must continue to undertake a review of its eligibility on the last day of each month. Arising from that review, the employer will either:
- Continue to claim.
- Decide they are no longer eligible.
- Decide, having previously decided that they were no longer eligible, to re-commence claiming.
- Eligibility Review Form
While an employer was always required to review eligibility on a monthly basis, what is now different is that employers must complete and submit a monthly online EWSS “Eligibility Review Form” through ROS. Between 21st – 30th July, employers will need to provide details of actual monthly VAT exclusive turnover for each month in 2019, together with the same detail for the first 6 months of 2021. They will also need to provide details of monthly projections for turnover for the remainder of 2021, i.e., July to December 2021.
On 15th of every subsequent month during the scheme operation, employers will need to provide details of the actual results for the previous month, together with reviewing the original projections provided to ensure they remain valid. This can be summarised as follows:
|Submission Due Date||Actual monthly figured to be returned||Projected monthly figures to be returned|
|31st July 2021||January to December 2019
January to June 2021
|July to December 2021|
|15th August 2021||July 2021||August to December 2021|
|15th September 2021||August 2021||September to December 2021|
|15th October 2021||September 2021||October to December 2021|
|15th November 2021||October 2021||November to December 2021|
|15th December 2021||November 2021||December 2021|
Each employer must sign a declaration with each “Eligibility Review Form”, to the effect that they continue to be eligible for EWSS.
Childcare businesses (which can claim EWSS regardless of turnover) and businesses which commenced trade after 1st November 2019 must sign a different form of Declaration.
Revenue are increasingly emphasising that compliance with the scheme will be taken very seriously, with the possibility of clawback, suspension, interest, penalties and possible criminal prosecutions all being highlighted.
Employer Eligibility Criteria for Businesses Commencing after 1st January 2019
The reduction in turnover or customer orders is relative to:
- The period 1st January to 31st December 2019 where the business was in existence prior to 1st January 2019.
- Where the business commenced trading between 1st January and 31st October 2019, from the date of commencement to 31st December 2019; or
- Where a business commenced on or after 1st November 2019, the projected turnover or orders for 1st January 2021 (or date of commencement if later) to 31st December 2021 as if the pandemic had not occurred.
From 1st July 2021, examples of how this would work are as follows:
|Eligibility Review Test – Paydates 1st July to 31st December 2021|
|Date Trade Started||2021 Results||Eligibility Review Comparison||Explanation|
|15th March 2019||15th March to 31st Dec 2021||15th March to 31st Dec 2019||Trade commenced between 1st Jan and 31st Oct 2019, so 2019 turnover compared with turnover of same period in 2021|
|1st February 2020||1st January to 31st December 2021||
2021 Projections as if pandemic had not occurred
|Trade commenced after 1st November 2019, so no 2019 turnover exists for comparison purposes. Comparison to be against projections prepared as if the pandemic had not occurred e.g., for banking /grant application purposes.|
|1 August 2021||1 August to 31st Dec 2021|