Revenue and Tax


Covid Restrictions Support Scheme (CRSS)

This scheme is aimed at businesses which are impacted by COVID-19 restrictions.

The scheme is designed to assist those businesses whose trade has been significantly impacted or temporarily closed as a result of the restrictions as set out in the Government’s ‘Living with Covid-19’ Plan. The scheme will generally operate when Level 3 or higher is in place and will cease when restrictions are lifted. The sectors impacted by the current Level 3 nationwide restrictions are accommodation, food and the arts, recreation and entertainment. If the Government decides to move to a higher level of restriction then other sectors may qualify.

For these businesses, the Government will make a payment, based on their 2019 average weekly turnover, to provide support at a difficult time. The scheme will apply to business premises where the Government restrictions directly prohibit or restrict access by customers. Qualifying businesses can apply to the Revenue Commissioners for a cash payment in respect of an advance credit for trading expenses for the period of the restrictions.

The scheme will be effective from 13th October 2020, until 31st March 2021, and the first payments will be made to affected businesses by mid-November. Payments will be calculated on the basis of 10 per cent of the first €1 million in turnover and 5 per cent thereafter, based on average VAT exclusive turnover for 2019. It will be subject to a maximum weekly payment of €5,000. Once the scheme is operational and a county or region is subject to Government restrictions of Level 3 or above, qualifying businesses can claim in week 1 and valid claims will be repaid for the entire period of the restriction within 2-3 working days. Payments will automatically cease at the end of the Covid restriction period. If restrictions are extended a subsequent claim can be made.

The scheme will operate on a self-assessment basis and qualification will require a business to demonstrate that their turnover has been severely impacted; that is it may not exceed 20 per cent of the turnover for the corresponding period in 2019.

Qualifying businesses can apply to Revenue for a cash payment, representing an Advance Credit for Trading Expenses (ACTE) that are deductible for IT or CT purposes. Payments will be calculated on the basis of 10% of the first €1m in turnover and 5% thereafter, based on average VAT-exclusive turnover for 2019. This will be subject to a maximum weekly payment of €5,000. The scheme will generally apply when Level 3 or higher restrictions are imposed in line with the Plan for Living with COVID-19. It will run from 13 October 2020 until 31 March 2021.

  • See here for an overview of the CRSS and case studies

  • Will Revenue still expect all PAYE/VAT to be paid on the due dates?

    Revenue has advice for businesses experiencing trading difficulties as a result of COVID-19. This includes information on tax returns, late payment interest, debt enforcement, tax clearance and customs.

    Revenue will Warehouse Deferred Tax Liabilities associated with the COVID-19 crisis. This will represent a direct support for affected businesses where a commitment to a phased payment arrangement is not possible.

    Arrangements will be put in place to allow debt that cannot be paid during the COVID-related period, to be warehoused interest-free for a year from recommencement of trading, during which time there will be no debt enforcement action taken by Revenue in respect of the debt. Moreover, there will be no interest charge accruing in respect of the warehoused debt (no capital or interest payments). Prior to the expiry of the warehousing period, the business will be expected to engage with Revenue to reach an agreement on an exit strategy more suited to the specific business needs and the need for continued viability. Businesses will qualify for a significantly reduced rate of interest of 3% on outstanding debts on agreement of such arrangements, to be set out in legislation. For continued qualification by businesses for these arrangements, it will be a prerequisite that the businesses remain compliant with all their return filing and tax payment obligations in respect of tax periods that postdate the periods covered by the warehoused debt. The operational details are being finalised and the necessary legislative amendments will be brought forward in Finance Bill 2020.

    The scheme will apply to businesses in all sectors of the economy who have been negatively impacted by COVID-19, and further underlines the Government’s commitment to supporting business and positioning the economy for return to a new normal when the time comes.

    Further details are available on the Revenue website.

    • Tax Returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
    • Application of Interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
    • Debt Enforcement: All debt enforcement activity is suspended until further notice.
    • Tax Clearance: current tax clearance status will remain in place for all businesses over the coming months.

    Early engagement with Revenue is strongly recommend if you are running into difficulty. Businesses can apply for a Phased Payment Arrangement using Revenue’s Online Phased Payment Facility which is available 24/7.


    Employment Wage Subsidy Scheme (EWSS)

    EWSS is an economy-wide enterprise support that focuses primarily on business eligibility. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll and gross pay to employees. The EWSS replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020. It is expected to continue until 31 March 2021.

    Guidelines on the operation of the EWSS are available at https://www.revenue.ie/en/employing-people/documents/ewss/ewss-guidelines.pdf

    Filing returns, paying taxes, loss relief, debt management and debt warehousing, ROS - Pay & File extension

    Revenue has announced a further extension to the 2020 Pay & File deadline date for ROS customers due to the impact of Covid-19. The deadline for paying and filing taxes is now 10 December 2020. Full details are outlined in Revenue eBrief No. 174/20

    Related Supports