The Irish Government introduced the Covid Restrictions Support Scheme (CRSS) during the Budget 2021 announcement on the 13th of October 2020. This new scheme will run until 31st March 2021 and is available to Sole Traders and Limited Companies in Ireland.
The Covid Restrictions Support Scheme (CRSS) is for businesses that are affected by public health restrictions under the Government’s Resilience and Recovery 2020-2021: Plan for Living with COVID-19.
If you qualify for this scheme, it may be paid in addition to the Employee Wage Subsidy Scheme (EWSS) and other supports. As a reminder of other Covid supports, check out our blog on the cash flow supports for businesses impacted by Covid-19 here.
This blog will guide you through the conditions of CRSS, how to claim the payment and how it is paid.
Do you qualify for the Covid Restrictions Support Scheme (CRSS)?
1) Your business must carry on a relevant business trade which is chargeable to tax under Case I of Schedule D.
Revenue states that “a relevant business activity is a business activity carried on by a person in business premises located in a geographical region subject to Covid restrictions.”
2) Your business premises must be operating and wholly located in a region that has Government restrictions in place.
Revenue states that “a business premises is the building, or similar fixed physical structure, in which a business activity is ordinarily carried on. Mobile premises, or premises which are not permanently fixed in place, do not meet the definition of business premises. Examples of what would not meet the definition of a business premises for these purposes include vans, trucks or similar vehicles and stalls such as market stalls or trade fair stalls.”
3) You are experiencing a decrease in turnover
As a result of the public health restrictions, your business’ turnover for that period will be no more than 20% of the average weekly turnover for a period equal to the same number of weeks in 2019. In other words, there is at least an 80% decrease in turnover over the restriction period when compared to the same period in 2019.
4) Your business must meet certain other conditions. For instance, you must have an up to date tax clearance certificate and comply with your VAT obligations.
Key features of the scheme
Available for companies, Sole Traders and partnerships
This scheme is for businesses that are temporarily forced to close or the business is required to operate at significantly reduced levels.
Based on where your business is located
The business premises must be in a region that is subject to restrictions introduced in line with the Government’s Living with Covid-19 plan.
Based on turnover
Your business must be able to demonstrate a turnover of no more than 25% of an amount equal to the average weekly turnover in 2019. New businesses will be based on an average weekly turnover for 2020.
The payment will be known as “Advance Credit for Trading Expenses (ACTE)”
The claim is made on ROS and it will be a cash payment equal to 10% of average weekly turnover in 2019 (up to €20,000) and 5% thereafter, up to a weekly payment of €5,000.
How to claim the Covid Restrictions Support Scheme (CRSS)?
- Log in to Revenue Online System (ROS) and register for CRSS.
- Provide details such as the location of the business, average weekly turnover for 2019 and VAT details
- Complete a claim in respect of the claim period(s).
For instance, as of 13th of October 2020, Covid-19 restrictions are in place across Ireland and expected to end on the 28th of October 2020. This means the claim period is the 13th to the 28th of October.
The support can be claimed from the 13th of October 2020 (beginning of restriction/claim period). However, it is important to note that the online CRSS claims system will only become operational on mid-November. You can register for CRSS from the 13th of October.
Supporting documentation will not be required to submit a claim but Revenue may request evidence of your eligibility later.
Books and records
Although it isn’t required to submit documentation to submit a claim, supporting books and records must be available for inspection.
The records must demonstrate that the business is eligible to make a claim under the scheme and fully support any amount claimed.
How is it paid?
The payment is known as an “Advanced Credit for Trading Expenses” and it is claimed as a reduction against deductible trading expenses.
The relief will equal 10% of the average weekly value of the 2019 business’s turnover up to €20,000 and 5% thereafter. It will be subject to a maximum weekly payment of €5,000.
If you have a new business (set up between 26th December 2019 and 12th October 2020), the weekly value will be calculated from when the business commenced, until 12th October 2020.
Need help with the Covid Restrictions Support Scheme (CRSS)?
To qualify for the CRSS, your business must meet certain conditions around business activity, premises, turnover, and tax compliance. You must also maintain relevant books and records to support your Advance Credit for Trading Expenses (ACTE) claim.
The Covid Restrictions Support Scheme (CRSS) will run from the 13th of October until 31st of March 2021, so you can register via ROS now. However, the online CRSS claim system will only become operational in mid-November 2020.
If you have any questions about this scheme, please talk to us about our accounting services. Email email@example.com or call +353 (0)1 905 9364. We’re here to help.