The CRSS provides support to eligible businesses carrying on a business activity that is impacted by Covid-19. The business must have been required to prohibit, or considerably restrict, customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19.
The details of the COVID-19 Restrictions Support Scheme (CRSS) are set out in the Finance Act 2020.
Who qualifies?
The CRSS is available to self-employed individuals (sole traders and partnerships) and companies carrying on a trade or trading activities, the profits of which are chargeable to tax under Case 1 of Schedule D, from a business premises located wholly within a geographical region for which Covid restrictions are in operation.
In order to qualify a business must also be able to demonstrate that, as a result of Covid-19 restrictions, the turnover of the business in the period for which the restrictions are in place, is no more than 25% of the average weekly turnover of the business in 2019 (or average weekly turnover in 2020 for new businesses).
How much can a business claim under the scheme?
Payments under the scheme are treated as an advance credit for trading expenses (ACTE). The ACTE is equal to 10% of the average weekly turnover of the business in 2019 up to €20,000, plus 5% on turnover over €20,000. In the case of new businesses, the turnover is based on the average actual weekly turnover in 2020. The ACTE is subject to a maximum weekly payment of €5,000.
Other conditions?
In addition to the turnover tests a number of other conditions must be satisfied in order to make a claim under the scheme, including
- Having an up to date tax clearance certificate;
- Complying with all VAT obligations;
- Making a declaration that the business satisfies the conditions for making a claim; and
- The intention to resume trade after the Government restrictions are lifted.
How is the payment treated for tax purposes?
The payment is known as an advance credit for trading expenses (ACTE). When computing taxable profits for the period the ACTE is to be to be accounted for by reducing tax deductible expenses by the amount of the ACTE payment.
Submitting a claim?
Claims can be submitted through Revenue’s Online System (ROS). For further information on how to make a claim please click
here.
How long is the scheme to run?
The scheme is expected to operate until to 30 June 2021
Further information
Finance Act 2020
Guidelines on the operation of the Covid Restrictions Support Scheme
Webinar on the Covid Restrictions Support Scheme (CRSS)