A compensation scheme called the COVID Restrictions Support Scheme (CRSS) will provide support for businesses whose trade has been significantly impacted or temporarily closed as a result of public health restrictions. The scheme will be available when Level 3 or higher restrictions are in place. Given the current restrictions; the scheme is effective from today until 31 March 2021. Payments will be based on the business's 2019 average weekly turnover, subject to a maximum weekly payment of €5,000 and will be administered by Revenue.
The support scheme is estimated to cost €40 million for every week that Level 3 restrictions are in place.
Who will qualify?
Accommodation, food and the arts, recreation and entertainment sectors currently impacted by Level 3 restrictions qualify. Where the Government decides to move to a higher level of restriction, other sectors may qualify. The scheme will apply to business premises where the Government restrictions directly prohibit or restrict access by customers. The scheme will operate on a self-assessment basis and qualification will require a business to demonstrate that their turnover has been severely impacted; it may not exceed 20 percent of the turnover for the corresponding period in 2019. Payments will automatically cease at the end of the COVID-19 restriction period. If restrictions are extended, a subsequent claim can be made.
How is it calculated?
The support represents a cash payment in respect of an advance credit for trading expenses for the period of the restrictions.
Payments will be calculated on the basis of 10 percent of the first €1 million in turnover and 5 percent, thereafter, based on average VAT exclusive turnover for 2019. The maximum weekly payment available under the scheme is €5,000.
How do you apply?
The support will be administered through the Revenue Commissioners.
Revenue have informed Chartered Accountants Ireland that more information on the scheme will be included in the Finance Bill, which will publish next Thursday 22 October.
When will it be paid?
Qualifying businesses can claim in week 1 of the imposition of Level 3 restrictions and valid claims will be repaid for the entire period of the restriction within two to three working days.