The Government is expected to confirm that its new support scheme aimed at assisting businesses with the rising cost of energy will be extended to include professional firms, when it publishes the Finance Bill today.
When the €1.25 billion Temporary Business Energy Support Scheme (TBESS) was announced in last month’s budget, it was originally planned to cover just Case 1 income or money made by businesses involved in trade such as shops, hotels and restaurants.
However, following representations from those involved in professional businesses, such as doctors, accountants, solicitors and dentists, who are classed as Case 2 by Revenue, the Government is to extend its scope to cover such firms.
It is understood that new businesses will also be eligible for the TBESS scheme.
The fund aims to help mainly small businesses, covering up to 40% of the increase in energy bills up to €10,000 per month until February.
However, the Government has also decided that where a business operates from more than one location, the cap will be increased to a maximum of €30,000 a month.
Expanding the scope of the TBESS is likely to increase the overall cost of the scheme.
The supports will be open to businesses that are tax compliant and have experienced a significant increase in their natural gas and electricity costs.
It will be administered by Revenue and will operate on a self-assessment basis.
The Finance Bill sets out many of the legislative changes needed to implement many of the budget day announcements.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
The Small Firms Association (SFA) said it is eagerly awaiting the publication of the Finance Bill, and hopes it will provide clarity for businesses in terms of energy supports.
Elizabeth Bowen, Interim Director of the SFA said it is too soon to say if the Temporary Business Energy Support Scheme (TBESS) will be enough to help businesses survive a winter of rising energy bills.
“The issue with the new energy support is that it only runs until February,” she said speaking on Morning Ireland.
“This is very disappointing and does not give certainty to small business owners, especially if we have a hard winter.”
Ms Bowen called for the TBESS to be made available to all small businesses, in every part of the economy.
“No business should be excluded from an energy support,” she said.
She said the SFA and businesses right across the country are keen to hear about the details of the scheme.
“We need to know how the scheme will operate, who will be able to access it and then how quickly it is going to get out to companies.
“What is most important about any small business support is that it is able to get to businesses as quickly as possible,” she added.
The SFA is calling for the energy support to be extended beyond February, and for further supports to be put in place if needed.
“We also want to see the 9% VAT rate extended to protect the thousands of jobs in the experience economy right across the country,” Ms Bowen said.
As we head into the winter months, Ms Bowen said the SFA will be meeting with small businesses, reviewing the situation and lobbing the Government.
“Nobody wants to hear any more stories of businesses closing down,” she said.
Additional reporting by Gill Stedman
