Revenue recoups almost €220m in wrongly claimed Covid supports

Two big support schemes were introduced during the pandemic to help struggling businesses

The State's two wage subsidy schemes paid out €9.5 billion during the Covid-19 pandemic. Photograph: iStock
The State's two wage subsidy schemes paid out €9.5 billion during the Covid-19 pandemic. Photograph: iStock

Almost €220 million in Covid-19 support payments had to be repaid to the Revenue Commissioners over the past three years.

Two big support schemes were run by Revenue during the pandemic to help businesses that were struggling due to public health restrictions.

Under the main Employment Wage Subsidy Scheme (EWSS), a total of €211.2 million in money that was wrongly claimed was marked for repayment.

A detailed breakdown of the data shows that €47.4 million of that total was related to companies in the accommodation and food service sector.

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Nearly €50.2 million of the overall settlement bill involved companies in wholesale and retail, as well as the repair of motor vehicles.

Other sectors where there were large repayments included €26.4 million in construction, €22.8 million in manufacturing, and €11.6 million for administrative and support service activities.

More than half of the repaid supports were made in 2022 when €109 million had to be refunded to the Revenue Commissioners.

The totals for 2023 and 2024 have been €79.6 million and €22.6 million respectively with a review of the scheme now fully complete.

A second support, the Temporary Wage Subsidy Scheme (TWSS), was also overseen by Revenue in the earlier part of the Covid-19 pandemic and resulted in repayments totalling €8.4 million.

More than a third of that total – €3.15 million – related to the wholesale and retail trade, as well as motor vehicle repair.

The second largest repayment bill under the TWSS was in residential care and social work activities where €1.48 million was clawed back for the taxpayer.

Around €960,000 was marked for repayment by businesses in accommodation and food services while €1.2 million was wrongly claimed in the transportation and storage sector.

A spokesman for the Revenue Commissioners said access to the schemes had ended midway through 2022 with clear criteria having been in place for qualification for the main EWSS support.

Employers had to have tax clearance and show that their business had suffered a 30 per cent reduction in turnover or customer orders.

He said there was also an onus on firms to show that the business disruption had been “chiefly attributable” to the effects of public health restrictions.

The spokesman added: “The total amount paid out across both wage subsidy schemes was €9.5 billion.”

Revenue said the schemes were enacted in good faith and checked using “risk-based real time compliance checks” along with follow-up compliance operations.

“Revenue also operated a final assurance programme whereby all employers who received [support] were invited to undertake a final self-review utilising an online assessment tool.”

The spokesman said further “reconciliatory checks of eligibility” were made and that Revenue had looked to recoup any money claimed incorrectly.

“Revenue’s informed view is that the vast majority of beneficiary businesses operated the subsidy schemes in good faith and in accordance with the underpinning legislation,” he added.