Temporary Business Energy Support Scheme extended
Small firms are being encouraged to sign-up for the now extended business energy support scheme, through www.revenue.ie. The business energy support, announced in Budget 2023, has been extended, to 31 May 2023, and is now easier to qualify for with the threshold reduced from a 50% increase in electricity or gas costs to 30% increase (to apply retrospectively from 1 September last year), and by increasing from 1 March the level of relief from 40% to 50% of eligible costs, subject to a monthly limit, which will also be increased from March, to €15,000 per month per trade or profession, subject to an overall cap of €45,000 where the business is carried on from more than one location.
SFA advocated for this support to be extended past its March deadline, since its announcement in September, to support our smallest employers, as they continue to face escalating energy costs. Due to applications opening in December, take-up for this business energy support has been lower than expected, SFA encourages all small business owners who meet the new qualifying criteria to apply for this important business support at www.revenue.ie.
The cost of business measures announced, last week, by government also included the temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, to be extended to 31 August 2023. This reduced rate of VAT will benefit small firms in the Experience Economy including cinemas, adventure centres and hairdressers.
SFA released a press release welcoming these announcements and will continue to speak to small business owners on these two important business supports, review the situation and lobby the Government, as small firms continue to battle with high energy prices and inflation across products and services.