CRSS Scheme and treatment for tax?

S

SMBIRE

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I was wondering how exactly the government Covid supports are working in terms of a pub which has been closed.

Lets say the pub had an average weekly turnover of €30,000 in 2019.

The CRSS scheme will give an Advance Credit for Trading Expenses (ACTE) equal to 10% of the average weekly turnover of the business in 2019 up to €20,000, plus 5% on turnover over €20,000. In the case of new businesses, the turnover is based on the average actual weekly turnover in 2020. The ACTE is subject to a maximum weekly payment of €5,000.

So our pub will get 20000*10% + 10000*5% = €2,500 per week.

How is this payment treated for tax?
 
I see the guidelines are here but presumably you have already read through them but 78 pages can be daunting.. If you do Control F you will get approx 80 references to the word tax so perhaps you can restrict your search using this method.

Hopefully others here will be able to give advice in due course.
 
So it is effectively just giving money now with a bigger tax bill to pay later. These schemes that are designed to help with the immediate cash flow problems such as CRSS and the debt warehousing is basically a timebomb waiting to go off when those bills come due in 2022 especially as some businesses will have delayed their rent on top of this. For sole traders especially this could result in a very nasty tax bill versus their 2021 profit before tax figure. Do you know any any good analysis/articles on this?
 
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