A new scheme called the Business Resumption Support Scheme (BRSS) is open for registrations. This is a scheme to support businesses who were significantly impacted by the COVID-19 pandemic even when restrictions were eased. The BRSS is for businesses who are carrying on a trade through self employment (sole traders), partnerships, companies, certain charities and certain sporting bodies.
To be eligible for the BRSS, your business must:
- Be able to show a significant reduction in trade from 1 September 2020 to 31 August 2021
- Be carrying on a trade which is chargeable to tax under Case 1, Schedule D (this is business income arising from a trade)
- Possess a tax clearance cert and maintain tax clearance for the duration of the application
- Have complied with all VAT obligations
- Be actively trading
- Is not eligible to make a CRSS claim in the application period
To qualify for the Business Resumption Support Scheme, a business must be able to demonstrate that their turnover has reduced by 75% during the period 1st Sept 2020 and 31st Aug 2021 compared with the reference turnover period.
The reference turnover amount will be the Average Weekly Turnover (AWT) multiplied by 52. To calculate the AWT, the reference turnover amount period will depend on when the business was established.
- For businesses established before 26 Dec 2019, the reference turnover amount period is 1 Jan – 31 Dec 2019.
- For businesses established from 26 Dec 2019 – 9 Mar 2020, the reference turnover amount period is 26 Dec 2019 (or date of commencement) – 15 Mar 2020.
- For businesses established from 10 Mar 2020 – 26 Aug 2020, the reference turnover amount period is 10 Mar 2020 (or date of commencement) – 31 Aug 2020.
How does it work?
Similar to the way the Covid Restrictions Support Scheme (CRSS) worked, eligible businesses will need to register for the BRSS using the e-Registration facility on ROS. Businesses will then make a claim to Revenue for a payment called an Advance Credit for Trading Expenses (ACTE). Applications can be made between now and the end of November.
Rates of payment
The ACTE payment will be calculated as 3 times the sum of:
10% of the weekly average turnover of the reference period (up to €20,000)
5% of the weekly average turnover of the reference period that exceeds €20,000.
Maximum payment under this scheme is €15,000.
Revenue will publish a list of businesses who availed of this scheme. Further information can be found here.
Disclaimer: This post does not constitute financial advice and is for information and educational purposes only. This blog does not constitute an accountant/client relationship.