Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

184. To ask the Minister for Finance if a business which is only open to the public for a fixed period of time each year can claim the Covid restrictions support scheme during any other part of the year in cases in which there is ongoing storage, maintenance and preparations involved that can be proven; if not, the reason for the refusal to cover these ongoing overheads while operational but not open to the public; and if he will make a statement on the matter. [41839/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Covid Restrictions Support Scheme (CRSS) is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic. The support is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.

Details of CRSS were published in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website.

A relevant business activity which is seasonal in nature is not restricted from qualifying under CRSS where they are subject to Covid restrictions and as a result, are prohibited or significantly restricted from allowing customers access their business premises, and they meet all other qualifying criteria.

Where a business is no longer subject to COVID restrictions which require them to prohibit or restrict customers from accessing their business premises, that business will not be eligible for CRSS for the periods where they choose not to open because of the seasonal nature of the business.

It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19.  The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or significantly restrict access to its business premises. 

As non-essential retail businesses were permitted to open from 17 May 2021, they are no longer subject to Covid restrictions which would require them to prohibit or significantly restrict customers from accessing their business premises.  Therefore, from that date, they ceased to qualify for support under the CRSS. However, subject to meeting the relevant criteria, a business reopening after a period of restrictions, may claim a “restart week payment” under the CRSS scheme to assist it with the costs of reopening.

For businesses reopening between 29 April 2021 and 1 June 2021, an “enhanced restart week payment” may be claimed, which is computed at double the normal weekly CRSS rate, for two weeks, subject to a maximum weekly amount payable of €5,000.

Businesses who qualified for CRSS and who, from 2 June 2021, become eligible to claim a “restart week” payment, can submit a single claim for a “restart week” payment, that will cover a period of three weeks at double the normal rate, to assist them with the additional costs of reopening. he amount that may be claimed in respect of each “restart week” is subject to a maximum weekly amount payable under the scheme which has been increased to €10,000 per week specifically in relation to the triple restart week payments.

On 1 June, I announced that an additional business support scheme, the Business Resumption Support Scheme (BRSS), would be available for businesses whose turnover in the period from 1 September 2020 to 31 August 2021 is reduced by 75% compared with their 2019 turnover.  To qualify under the scheme, a business must carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D.  The BRSS is now open for applications via the Revenue Commissioners website.  Under the scheme, a qualifying business will be able to claim a cash payment calculated as three times the sum of 10% of their average weekly turnover up to €20,000 and 5% on any excess of average weekly turnover above €20,000, subject to a maximum payment under the scheme of €15,000.

Companies and self-employed individuals may be entitled to support under other measures put in place by Government, including the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

The Deputy will be aware that the Employment Wage Subsidy Scheme has been extended to the end of 2021 and it is expected that CRSS will be continued to the end of 2021 for those businesses that are still directly affected by public health restrictions that may remain in place.

The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with my Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.