Minister Donohoe announces additional ‘restart week’ under Covid Restrictions Support Scheme to assist businesses in reopening 

The Minister for Finance, Paschal Donohoe TD, has today (Wednesday) annouced an enhancement to the Covid Restrictions Support Scheme (CRSS) whereby businesses can claim for an additional one week payment to assist them in reopening after a period of Covid restrictions. The extra week which will be provided for by way of an amendment to Section 11 of the Finance Bill, will be paid to businesses the week after the restrictions are lifted as a further support to businesses on reopening. This is designed to take account of the fact that businesses may take some time and incur additional cost as they re-open once the restrictions are lifted.

The additional week is payable if the restrictions are in place for 3 weeks or more and can be claimed at the end of the restriction period. 

The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.

A two-step process is necessary to make a claim under the CRSS. The qualifying person must first register for CRSS on Revenue Online Service’ (ROS) and then complete a claim in respect of a claim period or claim periods. Revenue have been accepting registrations for the scheme since 1 November, and the claims process is open since 17^th November with over €45.5million in payments already issued.

The details of the scheme have been published in Finance Bill 2020 and the key features of the scheme are:

• CRSS is designed to assist those businesses, who as a  direct result of the restrictions as set out in the Government’s ‘Living with Covid-19’ Plan, have been forced to temporarily close or been significantly impacted in operating from their premises;
• The scheme will generally operate when Level 3 or higher is in place and will cease when restrictions are lifted;
• The scheme will apply to businesses where Government restrictions prohibit or reduce access by customers to their business premises;
• Qualifying businesses can apply to the Revenue Commissioners for a cash payment in respect of an advance credit for trading expenses for the period of the restrictions;
• To qualify under the scheme, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made;
• The scheme will operate from 13 October 2020 to 31 March 2021 and there is provision for the Minister for Finance to vary aspects of the scheme by Ministerial Order.

Revenue have published an overview of the scheme with some detailed examples, together with guidance on the operation of the scheme on www.Revenue.ie.

The Minister for Finance, Paschal Donohoe said: ’I am confident that the Covid Restrictions Support Scheme will provide much needed support to businesses that have had to close as a result of the restrictions necessary to address the spread of the Covid 19 virus. As we anticipate changes to the restrictions in the coming period, there will be an extra payment available to those businesses who can reopen to help with these expected and associated costs.  This may be claimed through the Revenue Online System as was the case with the CRSS claims’.

“The additional week is payable if the restrictions are in place for three weeks or more and can be claimed at the end of the restriction period.   We understand the difficulties businesses and individuals are facing and the Government remains committed to timely and targeted supports.  The CRSS is just one part of the Government’s supports, which also include the wage subsidy schemes and temporary reduction in the VAT rate.  Specific sectoral schemes are also being rolled out which will support many businesses who may not qualify for CRSS.

“The scheme came into effect from Budget day 13th October and the scheme will be implemented by the Revenue Commissioners.  Revenue has been accepting registrations for the scheme since 1 November, and the claims process has been open since 17th November with over €45.5million in payments already issued.  Claims can still be submitted to cover the period covering the current period of restrictions (to 1 December) until December 8th.

“I’m encouraging all eligible businesses to register with Revenue on ROS for the scheme so that they can participate in the scheme with payments issuing in 2-3 days following receipt of a valid claim. This will provide much needed funds to assist businesses in getting the doors back open so that they can do what they do best and begin trading again.”

ENDS

 Outline of the CRSS

• The CRSS provides support for businesses that are forced to temporarily close or to operate at significantly reduced levels because of Covid restrictions that either prohibit, or significantly restrict, customers of the business from accessing the premises in which the business is carried on. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

• The scheme will be open to companies and the self-employed carrying on a trade in a business premises where the Government restrictions directly prohibit or restrict access to the premises by customers. Where a business has multiple geographical trading locations it is proposed that the business will be in a position to claim for each trading premises separately. It is also available to persons who carry on a trade in partnership.

• To qualify under the scheme, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 in the case of a new business) multiplied by the number of weeks in the period for which a claim is made.

• A qualifying person will be able to make a claim to Revenue under the CRSS for a cash payment to be known as an “Advance Credit for Trading Expenses”. This payment will be equal to 10% of their average weekly turnover in 2019 up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for each week that their business is affected by the Covid restrictions.

• For businesses established between 26 December 2019 and 12 October 2020, the claim will be based on their actual weekly average turnover in the period between the date of commencement and 12 October 2020 (subject to the weekly cap of €5,000). Payments made under the scheme will be treated as an advance credit for trading expenses.

• To make a claim under the scheme, a number of other conditions must be satisfied including that the person has an up to date tax clearance certificate and complied with their Value-Added Tax obligations. The person must register to claim on the ‘Revenue Online Service’ and make a declaration that they satisfy the conditions to make a claim under this section.  Where Covid restrictions for a geographical region are extended beyond the date on which they were due to expire, a new claim is required for each extension period.

• Specific anti abuse provisions are included to deter the potential for fraudulent claims.

• Provision is made for the publication of the name of claimants of CRSS on Revenue’s website.

Duration

The scheme will operate from 13 October 2020 to 31 March 2021 and there is provision for the Minister for Finance to vary aspects of the scheme by Ministerial Order.

Purpose of the scheme

The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.

Qualification criteria  (please see Revenue.ie for full details )

In order to qualify for participation in the scheme, businesses will need to:

• Be a self-employed individual or companies who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D. It is also available to persons who carry on a trade in partnership;
• Operate from a business premises located wholly within a geographical region for which Covid restrictions are in operation, and that premises has, due to the significant Covid-19 restrictions, has either temporarily closed to customers or is substantially restricted in operating;
• As a result of these significant restrictions, is operating at less than 25% of turnover in 2019;
• Have an up to date tax clearance certificate;
• Have complied with their Value-Added Tax obligations;
• Intend resuming trading when restrictions are lifted;
• Register for the scheme on the ‘Revenue Online Service’ and make a declaration that they satisfy the conditions to make a claim.

Operation of the scheme

Qualifying businesses will be able to make a claim to Revenue under the CRSS for a cash payment, which will be known as an “Advance Credit for Trading Expenses” (“ACTE”). The ACTE will provide an immediate cash support to businesses. The amount of the ACTE will be based on an amount equal to 10% of the average weekly turnover of the business in 2019 (or in the case of new businesses, the average weekly turnover in 2020) up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000.

All eligible businesses can claim the support irrespective of their turnover levels, but the amount of the ACTE cannot exceed the lower of the amount based on 10%/5% of the relevant weekly turnover or €5,000 per week. 

Where Covid restrictions for a geographical region are extended beyond the date on which they were due to expire, a new claim is required for each extension period

Other Business Supports

The key supports and resources available to help businesses impacted by COVID-19 are outlined on https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/