Background of the Covid Restrictions Support Scheme (CRSS)

A new Covid Restrictions Support Scheme (CRSS) was announced by the Minister for Finance, Paschal Donohoe T.D., during his Budget speech on 13 October 2020. The CRSS provided targeted support to businesses forced to close or whose trade had been severely restricted by ongoing public health restrictions. The support took the form of a cash rebate to businesses based on their average VAT-exclusive turnover for 2019 and represented an Advance Credit for Trading Expenses (ACTE) that was deductible for income tax or corporation tax for the period of the restriction or reduction in activity from 13 October 2020.

On 23 February 2021, the Government published the COVID-19 Resilience and Recovery 2021 – The Path Ahead and confirmed that the support schemes for businesses, including the CRSS, would be extended until the end of June. On 1 June 2021, the Government launched the Economic Recovery Plan 2021. The Plan set out a new phase of supports for the next stage of the economic recovery after the COVID-19 pandemic. As part of the measures announced the CRSS was extended from 30 June until 31 December 2021 and provided additional support to businesses upon re-opening.

Eligible businesses that resumed trading activities from 2 June 2021 could claim an enhanced restart payment to assist them with the additional costs of reopening. This allowed such businesses to make a single claim for a payment in respect of a 3-week period, with the weekly entitlement calculated at double the normal weekly CRSS rate. The maximum amount that could be claimed in respect of each of the weeks covered by the enhanced restart payment increased from €5,000 to €10,000, with a total maximum payment of €30,000.

Following the announcement by the Government on 29 June 2021 that indoor dining would not proceed as planned, the Minister for Finance, Paschal Donohoe T.D., confirmed that businesses who remained closed or significantly restricted under the public health restrictions may make a claim for additional CRSS support from 5 July 2021 for two weeks. The Scheme was amended to allow for a double week payment from the week commencing 5 July for a period of two weeks, subject to the statutory cap of €5,000 per week. All businesses benefiting from this additional support could also qualify for the enhanced restart payment under CRSS once they reopened.

The Finance (Covid-19 and Miscellaneous Provisions) Act 2021, which included the amendments to the CRSS, was signed by the President of Ireland, Michael D. Higgins on 19 July 2021.

On 21 December 2021, the Government announced changes to the CRSS to support the hospitality and indoor entertainment sectors, such as bars, restaurants and hotels, as well as indoor entertainment venues, such as cinemas and theatres impacted by the public health restrictions that came into effect from 20 December 2021.

The Government agreed that the CRSS would be made available to these businesses in the hospitality sector that would normally stay open later than 8pm but were required to close at 8pm each night, initially, until 31 January 2022.

A qualifying person who carried on such a business was eligible to make a claim for payment under the CRSS if the weekly turnover from the relevant business activity in the claim period was no more than an amount equal to 40% of the average weekly turnover in a reference period. For most businesses the reference period would be 2019.

However, for businesses established between 26 December 2019 and 26 July 2021, the reference period depended on the date on which the business was established.

A new class of business (Category B new business) was introduced, which allowed businesses established during the period 13 October 2020 to 26 July 2021 to access the CRSS where the eligibility criteria was met.

On 21, January 2022, the government agreed at a Cabinet meeting that with the removal of public health restrictions requiring businesses to significantly restrict how they operate with effect from 22 January 2022, that businesses will cease to qualify for the CRSS from that date.