Business Resumption Support Scheme (BRSS)

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Business Resumption Support Scheme (BRSS)

Business Resumption Support Scheme (BRSS)

The Irish Government in a bid to help businesses recover in the wake of economic restrictions that arose due to the pandemic has launched the Business Resumption Support Scheme (BRSS).

The BRSS

Announced in the Government’s Economic Recovery Plan for Ireland, the BRSS will support businesses that were impacted significantly throughout the pandemic. This also covers periods when restrictions were eased. Support is subject to certain qualifying criteria which include the ability to demonstrate a significant drop in trade in the year from 1st Sept 2020 – 31st August 2021.

Under the BRSS, applicants who are successful will be able to make a claim to Revenue for a payment known as an Advance Credit for Trading Expenses (ACTE).

Qualifying Criteria

To claim an ACTE payment, a business must be able to show that its turnover between the dates above was no more than 25% of turnover during a comparable period. This period under the scheme is known as the ‘reference period’. The comparable period will be prescribed period in 2019/2020 depending on when the business was established.

The BRSS is available to businesses that carry on a trade or trading activities. This includes companies, self-employed individuals and partnerships and sole traders, provided their business profits are subject to tax under Case 1 of the Schedule D of the Taxes Consolidation Act of 1997.

Certain charities and sporting bodies may avail of the scheme if they carry a trade and the profits from which would be chargeable to tax but for available income and corporation tax exemptions.

Furthermore, a business must hold a valid tax clearance certificate confirming their tax affairs are in order. They must be actively trading, or intend to be, and not be eligible to make a claim for the Covid 19 Restrictions Support Scheme for any week that includes September 1st, 2021.

Rates

The ACTE payment will be calculated as three times the sum of;

  • 10% of the average weekly turnover of the reference period up to €20,000 and,
  • 5% of the average weekly turnover of the reference period over €20,000.

ACTE payments will be capped at €15,000.

Considerations

Businesses can apply for an ACTE payment even when they may have claimed under the Government’s various other pandemic support schemes. It’s worth noting however that Revenue will publish a list of businesses who claimed an ACTE when the scheme ends. Furthermore, where a profitable business receives an ACTE payment, it could lead to an increased corporation tax liability for that year as the amount of tax-deductible expenditure for that year will be reduced by the amount received via the ACTE.