Month: October 2020

Financial Supports

Income supports

The COVID-19 Income Support Scheme provides financial support to Irish workers and businesses affected by the crisis.

• Employment Wage Subsidy Scheme: The new Employment Wage Subsidy Scheme (EWSS), provides a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll. The EWSS, operated by Revenue, has replaced the Temporary Wage Subsidy Scheme and will run until 31 March 2021.
• COVID-19 Pandemic Unemployment Payment: The Pandemic Unemployment Payment is available to all employees and the self-employed who have lost their job due to the COVID-19 pandemic.MyWelfare.ie is the quickest and easiest way to apply for payments.On MyWelfare.ie all customers can
  • apply for the COVID-19 Pandemic Unemployment Payment
  • apply for Enhanced Illness Benefit for COVID-19 including for self-isolation cases
  • apply for a jobseeker’s payment
  • request to close their COVID-19 Pandemic Unemployment Payment.
• Short-time Work Support: Employees of businesses that need to reduce hours or days worked can avail of the Department of Employment Affairs and Social Protection Short-time Work Support.

Loans, grants, vouchers and schemes

• COVID-19 Credit Guarantee Scheme: The COVID-19 Credit Guarantee Scheme facilitates up to €2 billion in lending to eligible businesses. Loans under the Scheme range from €10,000 to €1 million, for terms of up to five and a half years. Financing will be offered through a range of products, including term loans, working capital loans and overdrafts. Loans of up to €250,000 under the Scheme are available unsecured (except where this is a requirement of the product feature, as in the case of asset finance, invoice discount facilities, etc). The Scheme is operated by the Strategic Banking Corporation of Ireland (SBCI) through participating finance providers.
  • COVID-19 Credit Guarantee Scheme FAQs
  • COVID-19 Business Loans: COVID-19 Business Loans up to €25,000 are available through Microfinance Ireland with zero repayments and zero interest for the first 6 months and the equivalent of an additional 6 months interest-free subject to certain terms and conditions. The loans can range from €5,000 to €25,000. Repayments will commence in month 7 for the remaining period of your loan. The Government will rebate to you the interest paid in the following 6 months (months 7-12 of your loan). The interest rate after the first 6 months will be a reduced interest rate 4.5% APR if submitted through the Local Enterprise Office Network (or other referral partners) or 5.5% APR if you apply directly to Microfinance Ireland. The loan terms are typically up to 3 years and there are no fees or charges.
• • Microfinance Ireland COVID-19 Business Loan FAQs
• COVID-19 Working Capital Scheme: The SBCI COVID-19 Working Capital Scheme for eligible businesses supports loans from €25,000 up to €1.5 million (first €500,000 unsecured) with a maximum interest rate of 4%. Applications can be made through the SBCI website at sbci.gov.ie. Eligibility criteria apply.
  • SBCI COVID-19 Working Capital Scheme FAQs
  • Future Growth Loan Scheme: The enhanced Future Growth Loan Scheme makes up to €800m of loans available for terms of 7-10 years. This scheme is available to eligible businesses in Ireland, including those in the primary agriculture (farmers) and seafood sectors, to support strategic long-term investment.
• Sustaining Enterprise Fund: The Sustaining Enterprise Fund of up to €180 million is specifically aimed at firms operating in the manufacturing and internationally traded services sectors, with 10 or more employees, that are vulnerable but viable. The fund is operated by Enterprise Ireland with amounts between €100,000 and €800,000 available to eligible companies who have been negatively impacted by COVID-19. The fund includes a 50% non-repayable grant element, up to a limit of €200,000.
• Sustaining Enterprise Fund for Small Enterprise: As part of the Sustaining Enterprise Fund, Enterprise Ireland operates a specific Sustaining Enterprise Fund for Small Enterprise. This fund provides a short term working capital injection of up to €50,000 to eligible smaller companies to support business continuity and strengthen their ability to return to growth.
• Pandemic Stabilisation and Recovery Fund: The Ireland Strategic Investment Fund will focus on investment in medium and large scale enterprises in Ireland through a Pandemic Stabilisation and Recovery Fund. The fund, worth up to €2 billion, will make capital available to medium and large enterprises on commercial terms.
• General grant supports: The full range of Enterprise Ireland, IDA Ireland, Local Enterprise Office and Údarás na Gaeltachta grant supports continue to be available to eligible firms to help with strategies to access finance, commence or ramp-up online trading activity, reconfigure business models, cut costs, innovate, diversify markets and supply chains and to improve competitiveness.
• COVID Restrictions Support Scheme: A new COVID Restrictions Support Scheme (CRSS), will offer a targeted, timely and temporary sector-specific support to businesses forced to close or trade at significantly reduced levels as a result of restrictions imposed on them in response to COVID-19. The relief will operate as a cash payment equal to 10% of the average weekly value of the 2019 business’s turnover up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000, for the same number of weeks as the restricted period. Qualifying businesses can access the scheme through Revenue.
• Restart Grant Plus: The Restart Grant Plus provides direct grant aid to businesses with up to 250 employees to help them with the costs associated with reopening and reemploying workers following COVID-19 closures. The minimum grant is €4,000 and the maximum grant is €25,000 with top-up payments available in certain circumstances. Businesses that accessed funding through the previous round of the scheme are eligible for a top-up payment to a total combined value of the revised maximum grant level.
• Enterprise Support Grant: The Enterprise Support Grant for businesses impacted by COVID-19 is available for eligible self-employed people who close their COVID-19 Pandemic Unemployment Payment on or 18 May 2020. This will provide business owners with a once-off grant of up to €1,000 to restart their business which was closed due to the COVID-19 pandemic.
• Micro-Enterprise Assistance Fund: The new Micro-Enterprise Assistance Fund will help businesses with fewer than 10 employees, which are ineligible for existing grants, with a grant of up to €1,000 to help them adapt and invest to rebuild their business. The fund is administered by the Local Enterprise Offices.
• Trading Online Voucher: The Local Enterprise Office Trading Online Voucher is a government grant scheme, designed to assist small businesses with up to 10 employees. It offers financial assistance of up to €2,500 along with training and advice to help your business trade online. Businesses that have already received a Trading Online Voucher can apply for a second voucher, where upgrades are required.
• LEAN for Micro: LEAN for Micro is available to Local Enterprise Office clients to help build resilience within small companies. Businesses can avail of consultancy support with a LEAN Expert or help to implement new remote working and physical distancing guidelines. Contact your Local Enterprise Office for further details.
• COVID-19 Business Financial Planning Grant: The COVID-19 Business Financial Planning Grant, worth up to €5,000, is designed to help companies to develop a robust financial plan, including the preparation of documentation required to support applications for external finance from banks and/or other finance providers. The grant is a new support for Enterprise Ireland clients and those manufacturing or internationally traded services companies that employ 10 or more full time employees.
• Lean Business Continuity Voucher: The Lean Business Continuity Voucher is available to eligible companies to access up to €2,500 in training or advisory services support related to the continued operation of their businesses during the current pandemic. It is open to small, medium or large client companies of Enterprise Ireland or Údarás na Gaeltachta (including High Potential Start-ups). The voucher may be used to obtain services from approved providers.
• Cross-border companies: InterTradeIreland’s Emergency Business Solutions offers professional advice, to the value of €2,250, to address key business challenges related to COVID-19. The E-Merge programme provides €2,800 consultancy support to help cross-border businesses develop online sales and eCommerce solutions.
• COVID Products Scheme: The COVID Products Scheme will allow for up to €200m in targeted State support to facilitate the research and development of COVID products, to enable the construction or upgrading of testing and upscaling infrastructures that contribute to the development COVID-19 relevant products, as well as to support the production of products needed to respond to the outbreak. The scheme will be delivered through IDA Ireland's COVID-19 supports and Enterprise Ireland's COVID-19 Business Response.
• Apprenticeship Incentivisation Scheme: The Apprenticeship Incentivisation Scheme, delivered by SOLAS, provides financial support for apprenticeship employers who take on apprentices on national apprenticeship programmes. Apprenticeship employers are eligible for a €3,000 payment for each new apprentice.
• Irish Business Design Challenge: The Irish Business Design Challenge is a competition with a prize fund of €50,000, inviting micro, small and medium Irish businesses to share the challenges they are experiencing as a result of COVID-19 and the solutions they have designed to resolve them.
• Code of Conduct for commercial rents: A voluntary Code of Conduct between landlords and tenants for commercial rents has been developed based on examples from other jurisdictions and with input from other Departments, State agencies and key stakeholders. The aim of the Code is to facilitate discussions between landlords and tenants impacted by COVID-19.

Rates waiver and tax measures

• Commercial rates waiver: With limited exceptions, all businesses will be granted a waiver to 31 December 2020. Updates will be available on housing.gov.ie and from local authorities.
• 'Warehousing' of deferred tax debts: The scheme, administered by Revenue, will ‘warehouse’ VAT and PAYE (Employer) debts associated with the COVID-19 crisis.
• Reduction in the standard rate of VAT: A six-month reduction in the standard rate of Value-Added Tax (VAT) from 23% to 21% will apply, effective from 1 September 2020.
• VAT rate reduction from 13.5% to 9%: A VAT rate reduction from 13.5% to 9% will apply from 1 November 2020, in recognition of the unprecedented challenges facing the hospitality and tourism sector.
• Advice for taxpayers and agents: Revenue's COVID-19 information and advice for taxpayers and agents provides information on Revenue services and tax and customs measures in place during the COVID-19 pandemic including information on tax returns and interest suspension arrangements.

Sector-specific supports and guidance

• Food, drink and horticulture sector: Bord Bia's 'Navigating Change' COVID-19 Response programme offers a suite of supports for food, drink and horticulture businesses affected by COVID-19.
• Seafood sector: Bord Iascaigh Mhara is providing COVID-19 business support to the seafood sector.
• Farm businesses: Teagasc is available to provide support on issues facing farm businesses in light of COVID-19.
• Tourism sector: The Fáilte Ireland COVID-19 Business Support Hub is targeting its supports to respond to the challenges tourism businesses are now facing. Their supports include specific reopening guidelines for every sector and a €26m COVID-19 Adaptation Fund to support tourism and hospitality businesses who have incurred related adaptation costs.
• Culture sector: The Department of Culture, Heritage and the Gaeltacht has provided guidance on the latest COVID-19 protocols for the cultural sector. New supports to aid employment in the creative industries include the Live Performance Support Scheme and the Music Stimulus Package.
• Design sector: The Design & Craft Council Ireland delivers a range of support and development programmes, including webinars and FAQs in response to COVID-19. The new Irish Business Design Challenge is a competition with a prize fund of €50,000, inviting micro, small and medium Irish businesses to share the challenges they are experiencing as a result of COVID-19 and the solutions they have designed to resolve them.
• Childcare providers: The Department of Children and Youth Affairs funding package of €75 million for reopening early learning and childcare services helps with additional costs associated with reopening after COVID-19.
• Supply chain workers: The Department of Transport, Tourism and Sport and the Department of Health have prepared COVID-19 guidance for supply chain workers.
• Restaurants to operate as takeaways: Amendments to Planning and Development Regulations temporarily allow restaurants to operate as takeaways without being required to obtain change of use planning permission.
• Standards for medical supplies made freely available: NSAI and SAI Global have developed the COVID-19 Response Package which provides free access to Standards for medical devices and PPE.
• Guidance on the manufacture and distribution of medical devices, PPE and barrier masks:
  • Placing PPE on the EU market–new conformity procedures (HSA): COVID–19 Conformity Assessment and Market Surveillance procedures for PPE
  • Manufacturing and importing PPE and medical devices (NSAI): Guidance on manufacturing and importing PPE and Medical Devices to ensure compliance
  • Guidance on barrier masks (CCPC): Guidance for business on producing or distributing barrier masks
  • Specification on barrier masks (NSAI): SWiFT 19:2020 barrier masks for consumers - Requirements
• Online COVID-19 platform to help firms collaborate: Companies aiming to help healthcare responses to the COVID-19 crisis can collaborate via a new online COVID-19 platform.

The Victorian quarter committee are delighted that Cork City Councillors have voted in favour of the part 8 planning for the MacCurtain Street public transport improvement scheme.

The committee has worked closely  over the past eight years with Cork City council to bring this to fruition.

70% of the through traffic will be taken out of the street allowing customers to have a more relaxed experience.

MacCurtain Street has become the number one night time area for socializing and these public realm improvements  will enhance this in the years ahead.

While the short term trading environment is very challenging due to the pandemic the future is bright and we look forward to embracing the changes.

CORK City Councillors have approved Part 8 planning for the MacCurtain Street Public Transport Improvement Scheme.

The plans, which also incorporate some of the surrounding area, aim to transform the busy street for the first time in over 50 years, making it more suitable for pedestrians, cyclists, and public transport.

The National Transport Authority funded scheme will see the transformation of the street from a one-way to a two-way traffic system, as well as wider footpaths, bus priority measures, street resurfacing, additional street furniture, the planting of new trees and the renewal of street lighting and traffic signals.

The scheme also encompasses streets, quays and bridges close to MacCurtain Street which will see new segregated bike lanes and bus lanes established.

Public realm upgrades are planned for Leitrim St, Coburg St, Bridge St, the lower section of St Patrick’s Hill, St Patrick’s Quay, Brian Boru Street, Merchant’s Quay, Anderson’s Quay, as well as Cathedral Walk and part of Mulgrave Road.

The scheme went to public consultation in July and 69 submissions were received, a report issued to city councillors stated.

These submissions were “duly considered” and as a result, some amendments have been made.

These include the provision of an additional bus shelter at Anderson’s Quay for patrons of the new coach set down area, a new disabled parking bay which will be added to Pine Street and the number of bike parking spaces will be increased to circa 120 across the scheme area - up almost 50% from the original proposal of 70 spaces.

The public realm design also includes opportunities to provide the possibility of providing a commemoration to Tomás MacCurtain which will be assessed and further developed before construction begins.

Detailed design will now get underway and it is proposed that works will be carried out in a phased basis with the works along the quays carried out first.

The public realm and new traffic arrangements in the MacCurtain Street area will only be commenced when all other works on the quays have been completed.

Covid Restrictions Business Support Scheme

by Dave O'Brien

What is it?

A new support mechanism for businesses who have suffered significant Covid 19 restrictions. The scheme is in addition to the Employer Wage Subsidy Scheme. It is available for all businesses who have suffered restrictions due to the country moving to level 3, 4 or 5 of the Plan for Living with Covid 19. It could also apply to other businesses at lower levels of restrictions however details of this are vague. The relief will operate as a weekly cash payment to the business.

Who qualifies?

A business, be it a company or sole trader whose business had to close or operate at significantly reduced levels, where the turnover for the period of restrictions has reduced by 80% compared to your average weekly turnover in 2019 for the same number of weeks.

For instance, if a company is closed from midnight on Wednesday the 21st to the 1st of December 2020 then their income for the period would be nil for each of the 6 weeks. In this instance, it is clear that the business would qualify. However, in the event that the business is partly open (i.e. a restaurant for take away), you compare your weekly income in this period to your average weekly income for 2019 and if the average weekly income has reduced by 80% then you qualify.

Example 1 – Company has take-away only for the next 6 weeks and turnover is €5,000 (i.e. €833 per week) for the period. Turnover for the whole of 2019 was €1m. Your average weekly turnover for 2019 was €19,230. The company’s turnover has decreased by over 80% and hence they qualify for the scheme.

How much can you get?

This is dependent on your 2019 turnover. You can claim up to 10% of your first 1 million turnover and 5% on everything above that subject to a maximum weekly payment of €5,000.

Example 2 – 2019 turnover is €3m. Your first €1m is at 10% which equals €100,000. This divided by 52 (the number of weeks in the year) is €1,923.  Your next €2m is at 5% which equals €100,000. This divided by 52 equals €1,923. Therefore, the total weekly payment this business can receive is €3,846. They will receive this amount for each week that they qualify for the scheme.

Example 3 - 2019 turnover is €750k. Your first €750k is at 10% which equals €75,000. This divided by 52 (the number of weeks in the year) is €1,442. They will receive this amount for each week that they qualify for the scheme.

Example 4 - 2019 turnover is €10m. Your first €1m is at 10% which equals €100,000. This divided by 52 (the number of weeks in the year) is €1,923.  Your next €9m is at 5% which equals €450,000. This divided by 52 equals €8,653. However, there is a limit of €5k per week that a business can receive. Therefore, the total weekly payment this business can receive is €5k. They will receive this amount for each week that they qualify for the scheme.

When is it coming in from?

It is coming in from Budget day, the 13th of October 2020. Any payments will be backdated to then if you qualified from this period. We are expecting businesses to either qualify from the 13th of October or from the 21st of October. The initial application will be until the 1st of December. Depending on the level of restrictions after this date will determine whether a company can stay on the scheme.

When can you apply?

Mixed messages on this. Today is the 20th of October. We had been assured applications would be open this week. However, Revenue issued a “general overview” of the scheme and they have indicated that the claims process will only be available from mid-November – I don’t know if this is a misprint or whether this is genuine. We were told cash would be issued within a couple of days of making a claim but we were also told that claims could be made this week. We need more guidance around this aspect.

Businesses will need to continue to file their returns on time and continue to hold a tax clearance certificate in order to qualify. Also, it must be the intention of the business to reopen when restrictions are lifted.

Is there guidance published?

Not yet – but expect there will be and once published we will set out the rules in more detail.

Will the EWSS be considered turnover for the purposes of qualifying?

This is unclear but the all the sound-bytes would indicate the EWSS will not be considered turnover.

Will the payment be taxable?

Kind of – the payment is known as an “Advanced Credit for Trading Expenses”. It will reduce your expenses when you are calculating your taxable profits. However, it will only result in additional tax if the company is profitable for the year in question.

When does the Scheme end?

31 March 2021 – but expect businesses to be jumping on and off the scheme depending on the level of restrictions in place.

How will it operate with Group companies?

If businesses are operating from separate business premises then they will be treated as separate activities for the purposes of the scheme. This is the case whether the businesses are in separate companies or out of the same company.

Our Initial Verdict on the Scheme?

Very positive so far. It may allow businesses to hang on in there that little bit longer. Hopefully the detail in the guidance won’t make it too complicated.

We will issue more information on this when Revenue issue the guidance.

Regards

Dave O'Brien

Tax Partner - Quintas

Commencement date - Midnight on Wednesday

Initial duration - 6 weeks (until Dec 1st)

Review Stage - These measures will be reviewed in 4 weeks. At which stage, lockdown restrictions may be eased in certain counties if the prevalence of the virus is low enough.

KEY POINTS:

Pandemic Unemployment Payment (PUP)

Restored to €350 for those with previous earnings of €400 per week.

Claim the PUP here - https://services.mywelfare.ie/en/topics/covid-19-payments/covid-19-pandemic-unemployment-payment/

Social & Family Gatherings

Pubs & Restaurants

Off-Licences

‍Retail & Services

Construction

Work

 Exercise & Sporting Events

️‍Golf

Can remain open. Golfers however must live within 5km of the golf course.

Gyms, Pools & Leisure Centres

Schools & Creches

Domestic Travel

Public Transport

Religious Services

Weddings

Hotels

1
Covid Restrictions Support Scheme (CRSS) Overview and Examples

Overview

In his Budget speech on 13 October 2020, the Minister for Finance announced his intention to
introduce the Covid Restrictions Support Scheme (“CRSS”) as an additional support for businesses
subject to significant Covid-19 restrictions. The scheme is intended to be in addition to the supports
provided to employers under the Employer Wage Support Scheme (“EWSS”). Set out below is
information on how the scheme is intended to operate as well as some worked examples
demonstrating this.

It is proposed that CRSS will be available to companies and self-employed individuals operating a
business, profits from which are chargeable to tax under Case I of Schedule D. To qualify, the
business must be operating from a premises wholly located in a region subject to restrictions under
the Government’s plan for living with Covid-19 “Resilience and Recovery 2020-2021: Plan for Living
with Covid-19”, with the result that the business is required to prohibit or considerably restrict
members of the public from accessing their business premises.

Generally, the restrictions apply at
Level 3, 4 or 5 of the Plan for Living with Covid-19 but, in the case of certain businesses could apply
at lower levels of restrictions.

Where as a result of the restrictions, a business has been required to temporarily shut their premises
or operate at significantly reduced levels, with the result that turnover for that period will be no
more than 20% of the average weekly turnover for a period equal to the same number of weeks in
2019 (or using 2020 turnover figures for new businesses), that business will qualify under the
scheme.

Qualifying taxpayers will be able to log on to ROS and register for CRSS as soon as possible. The
registration process will include providing details such as the location of the business and average
weekly turnover for 2019. The claims process will be available from mid-November. Once they have
registered, a taxpayer will be able to make a claim for the period their business is restricted from
operating. Revenue will publish guidelines on the registration process and on the operation of the
scheme in due course.

The relief will operate as a cash payment equal to 10% of the average weekly value of the 2019
business’s turnover up to €20,000 and 5% thereafter, subject to a maximum weekly payment of
€5,000, for the same number of weeks as the restricted period.

The payment is known as an “Advanced Credit for Trading Expenses” and is taken into account when
computing the profits and gains of the business under Case I of Schedule D as a reduction against
deductible trading expenses. However, the receipt of the payment will only result in additional tax
where the business is in a profitable position for the chargeable period.

The scheme will operate on a self-assessment basis and is conditional on the taxpayer continuing to
file all tax returns on time, holding a current tax clearance certificate and on the intention to resume
the business when the restrictions are lifted. Details of taxpayers availing of the scheme will be
published on the Revenue website at a later time.

The Scheme will run from 13 October 2020 until 31 March 2021.

2
Examples

Example 1 – individual operates a pub in Dublin city

Mr. A has been running a pub (that does not serve food) in Dublin City for many years. In the year
ended 31 December 2019, his turnover from the business was €663,000 (excluding VAT). His VAT
returns are up to date and he has tax clearance. On 15 March 2020, he closed the pub to customers
in line with Government restrictions. The pub has remained closed for business since that time.

As of 13 October 2020 (the date the CRSS was announced), Level 3 restrictions under the Living with
Covid-19 Plan are in place for Co. Dublin and are expected to remain until 28 October. The Level 3
restrictions mean that the pub will have to remain closed until 28 October and, as a result, Mr. A
expects that he will have no turnover in that same period.

Based on:
a) the fact that official Covid restrictions are in place which prohibit customers from accessing
the pub, requiring him to temporarily close his pub between 13 and 27 October, and
b) Mr. A’s reasonable expectation that he will have no turnover between 13 and 27 October,
he is entitled to apply to Revenue for an Advance Credit for Trading Expenses (ACTE) for the period
13 to 27 October, which constitutes a claim period.

The amount of the ACTE that he is entitled to for this claim period will be calculated by reference to
his turnover for 2019 and the number of full weeks that comprise the claim period, as follows:

Average weekly turnover 2019         €12,750     (i.e. €663,000 / 52)
10% of €12,750                                    € 1,275
Number of full weeks                         2
€1,275 X 2                                            ACTE is  €2,550

If the restrictions for Co. Dublin are extended, with the result his pub remains closed and the pub
will have no turnover, he can make a subsequent claim for the extended period of restrictions, which
will constitute a new claim period, and on making a further claim he will be entitled to a payment of
€1,275 for every week of the new claim period.

Example 2 – company operating cafés in Letterkenny and Sligo town

Yummy Nibbles DAC carries on a café trade operating from separate business premises, one is
located in Letterkenny and the other is in Sligo town. Because the cafes are operated from separate
business premises, they are treated as separate activities for the purposes of the CRSS.

Letterkenny café
In the year ended 31 December 2019, turnover for the Letterkenny café was €195,000 (excluding
VAT). As of 13 October (the date the CRSS was announced), Level 3 restrictions under the Living
with Covid-19 Plan are in place for Co. Donegal and are increased to Level 4 with effect from 16
October 2020. The Level 4 restrictions are expected to stay in place until 10 November, at which
point the situation will be reviewed by the Government. Under both Level 3 and Level 4 , the café
may remain open only for take-away and delivery and outdoor dining or service up to a maximum of
15 people.

However, the café has a thriving take-away service and recently set up a heated outdoor
dining area that can accommodate up to 12 people at a time. As a result, Yummy Nibbles DAC
expects that while turnover in restricted period will be reduced, it will not be less than 20% of four
weeks of the average weekly turnover of 2019.

Sligo town café
In the year ended 31 December 2019, turnover for the Sligo town café was €221,260 (excluding
VAT). As of 13 October 2020, Level 3 restrictions under the Living with Covid-19 Plan are in place for
Co. Sligo and are expected to remain until 28 October. While the Level 3 restrictions are in place,
the café will operate on a take-away only basis (it does not have an outdoor seating area). Yummy
Nibbles DAC expects that in the 2-week period in which the Level 3 restrictions are in place, turnover
will be approximately €1,400. This represents 16.45% of two weeks of the average weekly turnover
for the café in 2019.

Yummy Nibbles DAC claim
Although both business premises from where the cafés operate are subject to Government
restrictions, the company is not entitled to claim an ACTE in respect of the Letterkenny Café because
turnover for the period during which the restrictions are in place will not be less than 20% for the
comparable period in 2019. However, Yummy Nibbles DAC is entitled to apply to Revenue for an
ACTE in respect of the Sligo Café for the claim period 13 to 27 October. The amount of the ACTE that
the company is entitled to for this claim period is calculated by reference to the Sligo town café’s
turnover for 2019 and the number of full weeks that comprise the claim period, as follows:

Average weekly turnover 2019                     €4,255 (i.e. €221,260 / 52)
10% of €4,255                                                  €425.50
Number of full weeks                                     2
€425.50 X 2                                                ACTE is €851

If the restrictions for Co. Sligo are extended, Yummy Nibbles DAC can make a new claim for the
extended period of restrictions, where the Sligo business continues to qualify. Yummy Nibbles DAC
will be entitled to a payment of €425.50 for every week of the new claim period.
If it later transpires that the Letterkenny café did not do as well as had been expected, the company
may then be entitled to apply for an ACTE, as long as a claim is made within 8 weeks of the
commencement of the restricted period. Similarly, the company may be entitled to make a claim for
an ACTE in respect of the Letterkenny café for a later period of restrictions.

The company has filed VAT returns and has tax clearance.

Example 3 – Individual runs a dance studio in Co. Clare

Ms. Y runs a small dance studio from premises in Co. Clare, from which she teaches contemporary
dance to groups of children and teenagers on a part-time basis. Her turnover in 2019 was €35,100
and she is not registered for VAT and will need to apply for tax clearance. As of 13 October (the date
the CRSS was announced), Level 3 restrictions under the Living with Covid-19 Plan are in place for
Co. Clare and are expected to remain until 28 October. As dance classes may not take place under
Level 3, she cancels all classes for the two-week period in which the restrictions are in place and
issues refunds to affected customers. As a result, she expects to have no turnover for the two-week
period in which the restrictions are in place.

Based on the foregoing, she is entitled to apply to Revenue for an ACTE for the claim period, 13 to 27
October as follows:

Average weekly turnover 2019                             €675 (i.e. €35,100 / 52)
10% of €675                                                              €67.50
Number of full weeks                                             2
€67.50 X 2                                                          ACTE is €135

If the restrictions for Co. Clare are extended, Ms. Y can make a new claim for the extended period of
restrictions, where her business continues to qualify. She will be entitled to a payment of €67.50 for
every week of the new claim period.

Legal Disclaimer
This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every
issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the
statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss
suffered as a result of relying on any matter published herein.

Source: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-overview-and-examples.pdf

The Stay and Spend Tax Credit is a new tax credit available for the years 2020 and 2021. It may be used against an Income Tax (IT) or Universal Social Charge (USC) liability in a year of assessment.

You can claim the Stay and Spend credit for qualifying expenditure incurred between 1 October 2020 and 30 April 2021. This includes expenditure on either:

• holiday accommodation
• ’eat in’ food and drink.

The minimum spend is €25 per transaction. You must submit a copy of your receipt with the claim.

A ‘qualifying service provider’ must provide the service. Qualifying service providers are those who have registered with Revenue to participate in the scheme.

The maximum tax credit available under the scheme is €125 per person. The maximum tax credit available for those under joint assessment is €250.

An individual taxpayer must spend a minimum of €25 each time on qualifying expenditure (accommodation, food and non-alcoholic drinks) as verified by a receipt from the relevant establishment. The taxpayer will submit the receipt by taking a photograph of same using a mobile phone and submitting same to Revenue using the mobile app. The taxpayer may continue to submit receipts until the cap on expenditure of €625 is reached. Revenue will provide an income tax credit of up to €125 (€625 @20%) per taxpayer (up to €250 in the case of a married couple, jointly assessed) in end of year balancing statement. The taxpayer will get the benefit of the credit in the year after the expenditure is incurred.

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National Women’s Enterprise Day 2020

Wednesday, 14^th October

National Women’s Enterprise Day moves online this year and the big themes are resilience, self-care, innovation and opportunity.  All events in the programme are FREE of charge and include workshops with experts, panel discussions, a virtual market place and facilitated networking to connect more entrepreneurs with each other.

Entrepreneurs sharing their insights and journeys include Olympian-turned-company founder Derval O’Rourke of Derval.ie, Sonia Deasy of the Irish global skincare brand, Pestle & Mortar, Pamela Laird of Moxi Loves who was a finalist on BBC’s The Apprentice and Áine Kerr, founder of Kinzen and RTÉ broadcaster who is also the MC for the day.

To view the full line-up and to book your place, click on ...

https://www.localenterprise.ie/CorkCity/Training-Events/National-Women-s-Enterprise-Day-2020/

Prepare for Brexit with LEO Cork City

Prepare for Brexit with LEO Cork City

• Brexit – information session for Small Businesses

16/10/20, 09:30-11:30

https://www.localenterprise.ie/CorkCity/Training-Events/Online-Bookings/Brexit-information-session-for-small-businesses1.html

• Exporting to the EU? Learn to overcome language and cultural barriers

04/11/20, 10:00-12noon

https://www.localenterprise.ie/CorkCity/Training-Events/Online-Bookings/Exporting-to-the-EU-Learn-to-overcome-language-and-cultural-barriers.html

• Brexit – information session for Small Businesses

19/11/20, 09:30-11:30

https://www.localenterprise.ie/CorkCity/Training-Events/Online-Bookings/Brexit-information-session-for-small-businesses11.html

• Brexit - Prepare your Business for Customs

02/12/20, 09:30-16:30

https://www.localenterprise.ie/CorkCity/Training-Events/Online-Bookings/Brexit-Prepare-your-Business-for-Customs1.html

• Brexit – Prepare your Business for Customs

15+16/12/20, 10:00-13:00

https://www.localenterprise.ie/CorkCity/Training-Events/Online-Bookings/Brexit-Prepare-your-Business-for-Customs.html

The following supports are also available on application:

• One-hour, Brexit 1-1 mentoring sessions
• Brexit Mentoring Programme
• Trading Online Voucher Scheme
• LEAN for Micro Programme
• Technical Assistance for Micro Exporters Grant

.... and also, take a look at https://www.localenterprise.ie/Discover-Business-Supports/Brexit/

The Alliance for Insurance Reform has welcomed the publication of the Law Reform Commission’s Report on Capping Damages in Personal Injuries Actions.

Peter Boland, Director of the Alliance said

“We welcome the timely publication of this important Report. Right now the Report changes nothing in that new draft guidelines on general damages are due to be submitted to the Board of the Judicial Council by the 28^th October.  But on the other hand it clearly endorses a ‘Plan B’ – the capping of damages by the Oireachtas – if the Judicial Council does not fully reflect the common good in urgently delivering the dramatic reductions in damages for minor injuries necessary if we are to address our current insurance crisis in any meaningful way”.

Eoin McCambridge, Director of the Alliance and Managing Director of McCambridge’s of Galway said

“Small businesses, voluntary groups, charities, sports clubs and cultural organisations, the heart of the Irish economy and Irish society, are being seriously damaged by the cost of insurance or in numerous cases now unable to obtain insurance at all. As the Personal Injuries Commission clearly identified, sky-high general damages are at the heart of this issue and must be cut to reflect international norms to ensure that legitimate minor injuries attract modest damages. Policyholders cannot wait any longer for dramatic, meaningful reductions in awards for minor injuries. The Alliance expects general damages for minor injuries to be reduced along the lines of the Fair Book of Quantum published by ISME.”

NOTE: Responsibility for reviewing guidelines for general damages to replace the Book of Quantum  is currently with the Personal Injuries Guidelines Committee of the Judicial Council and the Committee is due to present draft guidelines to the Board of the Judicial Council by the 28^th October. We have installed a countdown clock on our website counting down to that date.

CONTACT: contact@insurancereform.ie