Cost of Living Increases – Deadlines Extended for Businesses

The Government have announced further deadline extensions for businesses to support them with the cost of living increases.

9% Reduced VAT Rate

The 9% rate applies to supplies of goods and services in the tourism and hospitality sector and also includes cinema admissions, theatre, museums, hairdressing services and printing. This VAT rate will apply for a further 6 months until August, where it will then revert to the standard 13.5%.

Temporary Business Energy Support Scheme (TBESS) 

Claims in relation to energy bills can be made until the end of the extended deadline of May 2023.

The threshold has also been reduced from 50% increase to a 30% increase – If you are a business, and your unit cost of electricity or gas has increased by 30% in 2022 compared to 2021, you qualify. This covers the cost of gas and electricity from 1 September 2022.

The scheme will pay out an increased 50% from 40% of the increased cost of energy bills from 1^st March, up to an increased maximum of €15,000 from €10,000 per premises, per month.

The TBESS does not enable businesses that use LPG, kerosene or fuels other than natural gas or electricity to claim, therefore the Government are looking at introducing a new grant to help such firms.

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Please note this article is for information purposes and does not constitute advice. Details correct at time of publishing.