Revenue update on claiming support under CRSS and EWSS and availing of the Debt Warehousing Scheme

Revenue update on claiming support under CRSS and EWSS and availing of the Debt Warehousing Scheme

Earlier today (21/12/2021), the Minister for Finance, Paschal Donohoe T.D., announced the expansion of supports for businesses impacted by public health restrictions that came into effect yesterday, 20 December 2021. This evening, Revenue confirmed that it will administer the changes to the relevant support schemes on an administrative basis pending enactment of the necessary legislation. Revenue also provided important information to businesses in relation to the following:

• revised eligibility criteria for the Covid Restrictions Support Scheme (CRSS) and how eligible businesses can make a claim for payment
• re-entry into the Employment Wage Subsidy Scheme (EWSS) for certain employers
• processing of CRSS and EWSS payments over the Christmas and New Year period
• extension of the Debt Warehousing Scheme.

Covid Restriction Support Scheme (CRSS)

Businesses in the hospitality sector such as bars, restaurants and hotels as well as indoor entertainment venues such as cinemas and theatres that are now required to close at 8pm each night until 31 January 2022 will be regarded as being significantly restricted from operating for the purposes of the CRSS.

A qualifying person who carries on such a business will be eligible to make a claim for payment under the scheme if:

• the weekly turnover from the relevant business activity in the claim period will be no more than an amount equal to 40% of the average weekly turnover in a reference period (for most businesses the reference period will be 2019. For businesses established between 26 December 2019 and 26 July 2021, the reference period will depend on the date on which the business was established),
• and 
• the eligible business has tax clearance for the relevant claim period and intends to resume trading after the Covid restrictions are lifted.

Where a qualifying person carries on more than one eligible business activity from separate business premises, a claim in respect of each activity can be made.

Eligible businesses that meet the revised qualifying criteria set out above and that previously received CRSS payments (in respect of a premises operating a business activity in the sectors affected by current public health restrictions)  can make a claim for CRSS via the e-Repayments facility in ROS from tomorrow, Wednesday 22 December 2022. 

New businesses established in the period from 13 October 2020 to 26 July 2021 are now also eligible to apply for support under the scheme. These businesses are required to first register for CRSS via the e-Registration facility in ROS. An eligible business will be able to make a claim when it has an ‘active’ CRSS registration. 

A qualifying person who meets the revised eligibility criteria can make a payment claim to Revenue in respect of each week that the eligible business activity is affected by Covid restrictions. Claims can be made in blocks of up to 3 weeks at a time, with the respective amount due being paid by Revenue in a single payment generally within 3 days of submitting the claim. For example, an eligible business affected by public health restrictions that came into effect yesterday can make a claim for a payment for an initial 3-week period from 20 December 2021 to 9 January 2022.

The manner in which the weekly payment is calculated remains unchanged and is as follows

• 10% of average weekly turnover* up to €20,000,
• 5% of average weekly turnover* in excess of €20,000 and
• subject to a maximum of €5,000 per week.

*average weekly turnover

• in 2019, in the case of a business established before 26 December 2019,

• in the period 26 December 2019 to 12 October 2020 in the case of a business established during that period, or
• in the period 13 October 2020 to 26 July 2021 in the case of a business established during that period.

Updated detailed guidance on the CRSS will available tomorrow morning on the Revenue website.

Employment Wage Subsidy Scheme (EWSS)

As confirmed on 9 December last, the enhanced EWSS rates are currently in place for employers who are currently registered and eligible for the scheme. The enhanced rates will be paid in respect of payroll submissions with pay dates in December 2021 and January 2022. 

Earlier today, Minister Donohoe also announced the inclusion of certain employers who became ineligible for and may have deregistered from the EWSS earlier in 2021.

Employers can re-join the scheme from January 2022 provided they:

• previously correctly claimed support under EWSS, and
• anticipate that their accumulated turnover for December 2021 and January 2022 will be down by at least 30% compared with the combined turnover for December 2019 and January 2020 (or for businesses established between 1 May 2019 and 31 December 2021 the average monthly turnover for December 2021 and January 2022 is down by at least 30% when compared to the average monthly turnover across the period August 2021 to November 2021).

Further information will be available on the EWSS hub on Revenue’s website in the coming days. Qualifying employers who re-join the scheme will receive EWSS payments prospectively from 1 January 2022.

Processing of CRSS and EWSS payments over the Christmas and New Year period

Revenue will process both CRSS and EWSS payment claims over the Christmas and New Year period as normal. However, Revenue advise businesses that as there are both Single Euro Payment Area (SEPA) and domestic non-banking days over the period some payments may take a little longer than usual to reach nominated bank accounts.

Debt Warehousing Scheme

Revenue confirmed that November/December VAT liabilities and December PAYE (Employer) liabilities will be automatically warehoused for those businesses already availing of the scheme. 

Further information on the extension of the scheme announced today, for businesses impacted by the public health restrictions that came into effect yesterday, will be provided in January by way of update to the Information Booklet on Debt Warehousing guidance.

{Ends 21/12/2021}