As some businesses face into their third week of lockdown, revenue have just released details on the operation of the Covid Restrictions Support Scheme (we'll call it CRSS from here on!) CRSS has been introduced to assist businesses that have been significantly impacted by localised and national lockdowns Successful applicants will receive cash payments from Revenue known as an Advance Credit for Trading Expenses (“ACTE”).
The scheme will operate from 13 October 2020 to 31 March 2021.
Covid Restriction Period - A claim period will commence on the day the Covid restrictions are applied and will end when the Covid restrictions are due to end (based at the time the restrictions are introduced).
Covid Restriction Extended Period - If the restriction is extended this will constitute a new claim period from the date the restriction was due to end initially and will end on the date the extended period is due to end (based at the time the period is extended).
On 13th October Level 3 restriction in Dublin was set until 28th October. Therefore 13th – 28th October is a Covid Restriction Period.
On 22nd October further restrictions were implemented until which are due to end 1st December. Therefore 29th – 1stDecember is a Covid Restriction Extended Period i.e. this is a new claim period.
ACTE will be determined by the business’s prior turnover with a maximum weekly payment available capped at €5,000.
ACTE will be based on the turnover from 1 January 2019 to 31 December 2019:
* For new businesses established between 26 December 2019 to October 2020, ACTE will be based on turnover from date business commenced to 12 October 2020.
Joe Bloggs turnover from his business in 2019 was €663,000 (exclusive of VAT). Assuming claim period is for 7 weeks.
The ACTE payments receivable from Revenue must be reported in the tax return when preparing the taxable profit by reducing the amount of deductible expenditure.
How to Claim
The claim process is available on Revenue Online Services under the eRepayments. This will be a 2 step process:
First register for CRSS on ROS, and
Complete a claim in respect of a claim period/s.
If you have a tax agent, they can access this using their agent ROS account.
For more information on this topic contact us at email@example.com or on 01-8084191
Cristina Rogojina CTA