Joe Flaherty
Question:114. Deputy Joe Flaherty asked the Minister for Finance the details of the business resumption support scheme; and if he will make a statement on the matter. [31768/21]
View answerTuesday, 15 June 2021
Questions (114, 348)
Jennifer Carroll MacNeill
Question:348. Deputy Jennifer Carroll MacNeill asked the Minister for Finance the exact criteria of the business resumption support scheme; and if he will make a statement on the matter. [30991/21]
View answerWritten answers
I propose to take Questions Nos. 114 and 348 together.
The Government have provided for a range of sectorial support grant schemes aimed at assisting businesses in financing their fixed costs and focussed on those that have seen a significant decrease in turnover (75%) or are closed by restrictions.
As the economy re-opens, it is intended that these direct grants will be replaced with a more targeted measure for vulnerable but viable businesses, particularly in sectors that were significantly impacted throughout the pandemic, even during periods when restrictions were eased. It is expected that there will be a limited number of such businesses and it is important that support is provided to these businesses. This Business Resumption Support Scheme (BRSS) will be implemented in September 2021.
Businesses whose turnover is reduced by 75% in the reference period (1 September 2020 to 31 August 2021) compared with 2019 will be eligible. The scheme will not be restricted by location, rate paying or physical premises. Businesses who previously availed of other schemes such as SBASC and the Tourism Business Continuity Scheme for example as well as CRSS will be eligible to apply provided they meet the qualifying criteria.
The BRSS will be administered by Revenue and will operate in a similar way to CRSS.
It will apply to businesses registered with Revenue, whose profits are chargeable to tax under Case I of Schedule D, and their turnover is reduced by 75% in the reference period.
The reference period will be 1 September 2020 to 31 August 2021 compared with turnover in 2019. This reference period should better target those businesses whose trade is still impacted even when restrictions are easing.
Qualifying businesses will be able to apply to Revenue for a once-off cash payment, representing an advance credit for trading expenses that is deductible for income and/or corporation tax purposes, similar to CRSS.
Payments will be calculated on the basis of 3 weeks at 10% of the first €1m in turnover and 5% thereafter, based on average turnover for 2019, and will be subject to a maximum weekly payment of €5,000.
This means that the maximum payment under the scheme will be €15,000.
Similar conditionality to CRSS and EWSS will apply including tax clearance, and payment will be conditional on the business trading or where the business cannot trade the business has the intention to trade. I hope to bring legislative proposals into the Dáil before the summer recess to give effect to this scheme.