Revenue published an overview of the new CRSS. The scheme was announced by the Minister for Finance on Budget Day, as an additional support for businesses who are affected by significant public health restrictions.

The CRSS is available to companies and self-employed individuals operating a business, the profit from which is chargeable to tax under Case I of Schedule D. In order to qualify:

1. The business must be operating from a premises wholly located in a region subject to restrictions under the Government’s plan for living with Covid-19 “Resilience and Recovery 2020–2021:Plan for Living with Covid-19”, with the result that the business is required to prohibit or considerably restrict members of the public from accessing their business premises. Generally, the restrictions apply at Level 3, 4 or 5 of the Plan for Living with Covid-19 but, in the case of certain businesses, could apply at lower levels of restrictions; and
2. Where, as a result of the restrictions, the business’ turnover for that period will be no more than 20 percent of the average weekly turnover for a period equal to the same number of weeks in 2019.

The relief will operate as a cash payment equal to 10 percent of the average weekly value of the 2019 business’s turnover up to €20,000 and 5 percent thereafter, subject to a maximum weekly payment of €5,000, for the same number of weeks as the restricted period.

The payment is known as an “Advance Credit for Trading Expenses” and is taken into account when computing the profits and gains of the business under Case I of Schedule D as a reduction against deductible trading expenses. The receipt of the payment will only result in additional tax where the business is in a profitable position for the chargeable period.

The scheme will run from 13 October 2020 until 31 March 2021. More information is included in the CRSS guidelines.