The Government's new business support scheme CRSS explained
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A new support scheme for businesses impacted by Covid-19 restrictions was announced in today's budget.
The Covid Restrictions Support Scheme (CRSS) provides support for businesses who have had to prohibit or restrict access to customers due to Level 3 or higher restrictions.
The sectors impacted by the current Level 3 restrictions are accommodation, food and the arts, recreation and entertainment. If the Government decides to move to a higher level of restriction then other sectors may qualify.
"I am very conscious that there are many sectors in our economy that have been particularly impacted by the Government public health restrictions. Indeed some specific sectors have been temporarily closed from the outset of the pandemic, such as the entertainment and arts sector as well as many pubs," Minister for Finance Paschal Donohoe said.
Under CRSS The Government will make a payment, based on the 2019 average weekly turnover. Qualifying businesses can apply to the Revenue Commissioners for a cash payment in respect of an advance credit for trading expenses for the period of the restrictions.
The scheme comes into effect today and will run until 31st March 2021. The first payments will be made to affected businesses by mid-November.
Payments will be calculated on the basis of 10 per cent of the first €1 million in turnover and 5 per cent thereafter, based on average VAT exclusive turnover for 2019. It will be subject to a maximum weekly payment of €5,000.
Once the scheme is operational and a county or region is subject to Government restrictions of Level 3 or above, qualifying businesses can claim in week 1 and valid claims will be repaid for the entire period of the restriction within 2-3 working days. Payments will automatically cease at the end of the Covid restriction period. If restrictions are extended a subsequent claim can be made.
The scheme will operate on a self-assessment basis and qualification will require a business to demonstrate that their turnover has been severely impacted; that is it may not exceed 20 per cent of the turnover for the corresponding period in 2019.