A new scheme has been set up to support businesses impacted by COVID restrictions. This is for specifically for businesses operating from a premises.
Qualifying businesses can apply to Revenue for a weekly cash payment. The payment will be a % of turnover as detailed below, subject to a maximum of €5,000 per week. The scheme is running from 13th October 2020 to 31st March 2021.
Conditions for the CRSS:
- A business can claim this payment when Level 3 or higher restrictions are in place in their geographical region
- Government restrictions must prohibit or restrict customer access to the premises of the business
- The business must have experienced a 75% disruption in turnover
- The business must intend to reopen once the restrictions are lifted
- The business must hold a tax clearance certificate
How to calculate the amount of the claim:
The business must calculate the average weekly turnover of the business in 2019 (or average weekly turnover from the date the business commenced to trade to 12 October 2020, if the business commenced in 2020). This is based on the VAT exclusive turnover for 2019. Payments are calculated on the basis of 10% of the first €1 million in turnover and 5% thereafter, based on average VAT exclusive turnover for 2019.
How to make a claim under CRSS:
Step 1– Register on Revenue for the CRSS
You will need to register on Revenue, provide certain information about their business and make a declaration that the satisfy the conditions. Where COVID restrictions for an area are extended beyond the date on which they were due to expire, a new claim may be made. The scheme will operate on a self assessment basis. Supporting evidence must be retained by the business in case of a verification check by Revenue in the future.
Step 2 – Use the claim portal to claim your ACTE
A claim portal in respect of CRSS will be available via the eRepayments system on ROS from mid-November. This option will only be available to taxpayers who have registered before making a claim The taxpayer will be claiming an “Advance Credit for Trading Expenses” and will be providing detail on the business premises, the start date of the claim period and the end of the claim period.
There is a lot more detail in the Revenue guidelines on the COVID Restrictions Support Scheme including some good examples of where businesses do and don’t qualify for the scheme if you want to check them out here.