Confused about eligibility to claim from the CRSS scheme? Would like to apply for payments? Not sure what to do?
Despite the fact there is a mountain of detailed material to read online about the scheme and Revenue have published the most comprehensive explanations, a lot of business owners are still uncertain about qualifying, worried about missing out, confused about how to apply and not sure about the criteria that applies to the scheme. All understandable as there is a lot to take in and understand, which is where we step in to clarify and explain.
We can do this because in order to advise our clients about the scheme we have to learn the rules in great detail. This enables us to talk about CRSS, offer professional advice and then back it with help and practical support, for example, we help business owners submit fully completed applications.
During meetings with clients, we hear the same questions repeated which made us think it might be helpful to see these most common questions in one place with the answers. Therefore we are happy to present below the answers we have given most in a Q & A format. Hopefully some of them will add some value to your thinking and if you have any queries or would like to add a question we have missed, please don’t hesitate to let us know.
Covid Restrictions Support Scheme (CRSS) Q. & A.
|1||What is CRSS?||It is a Government scheme set up to provide financial support for businesses forced to temporarily close or to operate at significantly reduced levels because of COVID-19 restrictions that either prohibit, or significantly restrict, customers of the business from accessing the premises in which the business is carried on.|
|2||Do level of Covid-19 restrictions affect payments?||Yes. |
Normally restrictions must be at 3,4,5. Certain businesses may apply and qualify at lower levels. Important to check this relevant to your business.
|3||What type of businesses can apply?||Companies. Self-Employed. Partnerships.|
|4||My business is operating in multiple locations?||A separate claim to be submitted for each location.|
|5||Key criteria I must be able to state in my claim?||You must be able to state that the government restrictions directly prohibit or restrict access to your premises by customers.|
|6||Can I continue to claim if restrictions are extended in my geographical area beyond the date they were due to expire.||Yes. |
A new claim is required for each extension period.
|7||What is the duration of the scheme?||The scheme will operate from 13 October 2020 to 31 March 2021. There is provision for the Minister for Finance to vary aspects of the scheme.|
|8||When can I make a claim?||A claim must be made no later than eight weeks after the 13th October 2020.|
|9||How much can I claim?||Your payment will be equal to 10% of your 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 your business is affected by the COVID-19 restrictions.|
|10||Can I apply if I am a new business?||Yes.|
If you started your business between December 26th 2016 and 12th October 2020 your claim will be based on your actual weekly average turnover in the period between the date of commencement and 12 October 2020
(subject to the weekly cap of €5,000).
|11||Are there any other turnover requirements?||Yes.|
You must be able to demonstrate that, because of the COVID-19 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.
|12||Are there Revenue rules and requirements?||Yes. |
As you would expect Revenue have strict rules and requirements with regard to qualifying for scheme payment which include all of the above, the list below and but are not limited to the following. 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 make a declaration that you satisfy the conditions to make a claim. See comprehensive rules and information on the scheme provided by Revenue at COVID Restrictions Support Scheme (CRSS)
|13||How are payments taxed?||Your payments will be treated as an Advance Credit for Trading Expenses (ACTE). and so will be deducted from expenses (wages & salaries, rent & rates, light & heat etc.) that are deductible when calculating profits taxable under Schedule D, Case I. Ultimately the payments may be subject to either income tax or corporation tax, but such liability will only become payable when the business is profitable again.|
|14||Are there penalties for a making a false claim||Yes.|
Revenue have severe penalties for fraudulent claims therefore it is advisable to check that you qualify before signing a declaration and receiving payments.
|15||Do I need to know more?||Yes|
Read the answers, get expert professional advice and make sure to check your qualification for the benefit before making a declaration and submitting a claim.
|15||What do I do next?||As a first step, check that you meet all of the criteria above and if you need more information, click on the link above and read the Revenue rules. |
If your need professional advice and assistance. Call our helpline at 01 612 0429 or email email@example.com
We are experts in all aspect of taxation and know how to help our clients avail of Covid-19 Grants.
The Latest Covid – 19 Government Support News.
Once again we would like to recognise the positive and pro-active support being given to businesses by the Government, ably led by Minister for Finance, Pascal O’ Donoghue, who has demonstrated a high level of capability and empathy.
Evidence of that Government support is as of the 4th November last, 2,200 firms have signed up for the Government’s Covid Restrictions Support Scheme (CRSS), 40,800 employers had registered for the Employment Wage Subsidy Scheme and 330,000 individuals were in receipt of the Pandemic Unemployment Payments, while at the end of September, 70,000 businesses had availed of the Revenue’s tax debt warehousing scheme which is equal to €2.1 billion warehoused.
Source: Will Goodbody RTE News
It is not an exaggeration to say that all of this support has delivered a lifeline to businesses, families and individuals. The Minister’s view is the health of the country and the economy are interdependent. He has since repeated what he said on budget day: “We need to continue to strike that balance for now between jobs, income and enterprise on one hand and keeping our people healthy and safe on the other.”