The Covid Restrictions Support Scheme (CRSS)

The Covid Restrictions Support Scheme (CRSS) was introduced by the Government in the last budget to assist businesses that have had to prohibit or considerably restrict customers from accessing their business premises (Level 4/5 restrictions).

Your turnover in the period for which the restrictions are in operation must be no more than 25% of an amount based on the average turnover of the business in 2019 (or in the case of a new business, an amount based on the average turnover of the business in 2020).

The support, which is called Advance Credit for Trading Expenses (ACTE), amounts to 10% of your average weekly turnover in 2019 up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for each week that their business is affected by the Covid restrictions. An important point to note is that there is an 8 week time limit to make a claim.

An up-to-date tax clearance certificate is required and all current VAT returns have to be submitted. (Note: There is no requirement to pay the liability – only file it for the TCC to be issued).

You must register for the scheme on ROS – Guardian can do this for you. The payment is a weekly payment which we will apply for each week on your behalf.

Loans & Grants

There continues to be multiple low interest loans, and some grants available to assist businesses in these tough times. The grants we have come across are as follows:

Through your Local Enterprise Offices

(a) Feasibility Study grant – ideal for start ups. A grant may be received of up to €15,000 (i.e. 50% of the total expenditure) to broadly cover 3rd party fees – professional, market research, hiring costs, etc – salaries are not covered.

(b) Priming Grant – ideal for a business already trading but less than 18 months old. The grant may be up to €80,000 – this is based on expenditure of €160,000. The grant may cover qualifying salary costs and 50% of non-qualifying salary costs.

(c) Business expansion funding – For business’s trading more than 18 months. Again the grant may be up to €80,000, but is part repayable at 0% interest. Salary costs, capital equipment and consultancy fees may qualify.

Confirmation of extension of Capital Allowance Scheme on electric cars to 2023

The Revenue Commissioners have confirmed this incentive shall remain in place until 2023. This allows a business to claim up to €24,000 of the capital cost of qualifying Energy Efficient Equipment (most commonly cars, but also equipment and lighting) in the first year of purchase. This can significantly reduce a company’s Corporation Tax.

Benefit in kind for drivers of electric cars

The current scheme allows for zero BIK on drivers of electric cars costing €50,000 or less before grants. It is in place until December 2022. It is expected that this exemption will be extended beyond 2022.
However, Minister for The Environment, Eamonn Ryan has recently muted that he may reduce the €50,000 ceiling, as he wishes it to incentivise ordinary car owners, rather than “expensive cars” that the buyer can already afford, and therefore should not be subsidised.
This may act as an incentive to go out and buy your more expensive electric models now, before these changes are introduced, as it is likely the €50,000 limit will remain on any car already purchased – this occurred where Tesla owners who had bought between 10th October 2017 and 9th October 2018 were able to avail of zero BIK on the full purchase cost.

TWSS reconciliation – log on to Revenue/upload payroll report

During the last month any business which availed of the TWSS scheme, will have received a request from Revenue to upload a reconciliation report to ROS. If you fail to do so, you may be asked to refund the TWSS received. For clients that GMA prepare the payroll, we have completed this on your behalf, but if you prepare your own payroll, please ensure you have complied with this requirement.

Revenue issued the first requests on 22nd March asking employers to log on to check for any overpayment and to then refund it.

EORI number – how to get it

Since the UK left the EU, any company trading with the UK, will need to have an EORI number. This is a derivative of your VAT number. It is quite simple to apply for and receive. We recommend if you envisage any trading with the UK that you apply for this number now. Here’s how to do it:

1. Go on ROS
2. Select Manage Tax Registrations
3. Customs & Excise
4. Add and link to a new registration
5. And then follow the instructions
6. If you do not have access to ROS, please just ring or mail your contact in GMA and we will do it for you.

VAT increase – 23%

As we advised at the start of the month the temporary 21% rate of VAT ceased on 28th February, and the rate now reverts to 23%.

Extension of CRO filing deadline

Due to the problems caused by the introduction of fully electronic filing of Accounts, the CRO have granted an extension until May of all accounts that were due to be filed during the period 30th September 2020 to 31st March 2021.