What you need to know about CRSS (Covid Restriction Support Scheme)and Stay and Spend Credit

The proposed Covid Restrictions Support Scheme “CRSS” was published in the Finance Bill 2020. It is a targeted support for businesses significantly impacted by restrictions introduced by the Government to control to spread of Covid-19.

• CRSS will provide support for businesses carrying on a trade from a business premises located in regions subject to restrictions introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or severely restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4, or 5 of the Living with Covid-19 Plan but certain businesses may qualify for support where a lower level of restriction is in operation.
• Where a business is either forced to temporarily close or operate at a significantly reduced level because of the restrictions the business may qualify for support.
• To qualify for CRSS, businesses must be able to demonstrate that because of the restrictions, the turnover of the business in the period for which the restrictions are in operation will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 multiplied by the number of weeks for which a claim is made.
• A qualifying business can claim for a cash payment known as an Advance Credit for Trading Expenses (ACTE) equal to 10% of their average weekly turnover up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000.
• Other qualifying conditions must also be satisfied including:
o The business must have been issued with a tax clearance certificate and complied with any obligations with regard to registering for and accounting for VAT.
o The business intents to resume trading once restrictions are lifted.
o The business has registered for CRSS on ROS and provided all information required.
o The business applies for ACTE on ROS and makes the necessary declarations.
CRSS is running from 13 October 2020 to 31 March 2021. Claims must be submitted within 8 weeks from the date the claim period commences.
If you feel your business has been affected by restrictions imposed under the Living with Covid-19 plan talk to your accountant without delay.

Stay and Spend
The Stay and Spend Tax Credit is a new tax credit available for the years 2020 and 2021. You can claim the Stay and Spend credit for qualifying expenditure incurred between 1 October 2020 and 30 April 2021. This includes expenditure on either:
• holiday accommodation
• ’eat in’ food and drink.

The minimum spend is €25 per transaction. You must submit a copy of your receipt with the claim. A ‘qualifying service provider’ must provide the service. Qualifying service providers are those who have registered with Revenue to participate in the scheme. The maximum tax credit available under the scheme is €125 per person. The maximum tax credit available for those under joint assessment is €250. The tax credit will used to reduce your IT liability. Any excess credit may then be off set against your liability to USC. You must have an IT or USC liability to offset against the credit to claim same.