We are still awaiting full details of the Covid-19 Restrictions Support Scheme and with a move to level 5 this scheme will be of great interest to many.
The scheme is intended to be in addition to the supports provided to employers under the Employer Wage Support Scheme (“EWSS”).
Revenue will publish additional guidelines on the registration process and on the operation of the scheme in due course.
The new CRSS is aimed at businesses which have either been forced to close or only been able to trade at significantly reduced levels (i.e. 75% reduction in turnover from 2019 levels) as a result of restrictions imposed on them in response to Covid-19 (bars, hotels, hairdressers, certain retail outlets). The scheme is designed for certain businesses to drop in and out of the scheme based on Government restrictions on opening.
Qualifying businesses can apply to Revenue for a cash payment. Payments will be calculated on the basis of the company’s 2019 turnover and payments of 10% of the first €1m in turnover and 5% thereafter will be made subject to a maximum weekly payment of €5,000.
Qualifying taxpayers will be able to log on to ROS and register for CRSS as soon as possible. The registration process will include providing details such as the location of the business and average weekly turnover for 2019.
The claims process will be available from mid-November. Once they have registered, a taxpayer will be able to make a claim for the period their business is restricted from operating.
The scheme will operate on a self-assessment basis and is conditional on the taxpayer continuing to file all tax returns on time, holding a current tax clearance certificate and on the intention to resume the business when the restrictions are lifted. Details of taxpayers availing of the scheme will be published on the Revenue website at a later time.
The Scheme will run from 13 October 2020 until 31 March 2021.
Where a business that is forced to close due to Level 5 lockdown had a turnover of say €1.5m in 2019, it would be due the following weekly payment:
- First €1m/52 = €19,230 @ 10% = €1,923
- Remaining €500k/52 = €9,615 @ 5% = €481
- Total weekly amount of €2,404