Covid Restrictions Support Scheme 'may be too complex' to understand in full       

The concerns come as finance minister Paschal Donohoe tourism minister Catherine Martin officially launched the scheme administered through the Revenue

Minister for Finance, Paschal Donohoe TD, and the Minister for Tourism, Culture, Arts, Gaeltacht, Sport, and Media, Catherine Martin TD give an update on the Covid Restrictions Support Scheme. File picture: Julien Behal Photography

Businesses and their advisers are struggling to understand in full the complicated criteria for firms to tap a key relief to help them survive Level 5 shutdowns under the Covid Restrictions Support Scheme (CRSS), a central part of last month's budget, it has emerged. 

The concerns come as finance minister Paschal Donohoe and tourism minister Catherine Martin officially launched the scheme administered through the Revenue which is designed to help businesses to look after their business premises that could deteriorate under lockdown restriction during the winter.    

The scheme was introduced following calls by business and professional business advisers that vacated business premises could be vulnerable in ways during the harsh winter months that was not the case during the first State-wide lockdown in the spring. 

Over 3,850 firms have applied for the relief for around 4,160 business premises since the scheme opened this week.    

Businesses can apply through the Revenue's online system Ros for a scheme that is due to run through the end of March, although "there is provision for the Minister for Finance to vary aspects of the scheme by ministerial order", the Finance Department said. 

As part of the initial application process, businesses have to include location and their weekly turnover for 2019.    

Firms may also apply to Revenue for an advance cash payment to cover trading expenses for as long as the restrictions last. 

"To qualify under the scheme, a business must be able to demonstrate that, because of the Covid restrictions, the turnover of the business in the period for which the restrictions are in operation, and for which a claim is made, will be no more than 25% of an amount equal to the average weekly turnover of the business in 2019 or average weekly turnover in 2020 in the case of a new business multiplied by the number of weeks in the period for which a claim is made," the Department of Finance said.

Brian Keegan, director of public affairs at Chartered Accountants Ireland, welcomed the CRSS as a key measure to help businesses through the health restrictions but said the process may be too complicated. 

It is difficult for businesses to understand fully what type of businesses can apply for the relief, Mr Keegan said. 

In last month's Finance Bill, the department said that to qualify for the CRSS businesses must meet a number of criteria, including the applicant having an up-to-date tax clearance and has complied with Vat payments.        

"The scheme is available to affected self-employed individuals and companies 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 wholly within a geographical region from which Covid restrictions are in operation," according to the bill.

The Finance Bill also provided for the publication of the names of claimants on the Revenue's website.