Businesses in the hospitality and tourism sector across Ireland rejoice this week, following the governments Tuesday announcement that the 9% VAT rate for hospitality and tourism businesses will be retained until September. Woohoo!
This comes as a huge sigh of relief for many, as the cost of living crisis continues to cause difficulty in meeting heating and electricity costs. Come September the VAT rate will return to the standard 13.5% rate, as was the norm before November 2020. (although we would welcome another extension!)
Further to this, the Temporary Business Energy Support Scheme (TBESS) has also been extended until the end of May, at a newly lowered rate of qualification, and an increased amount of relief available. This scheme allows businesses who have seen an increase in energy prices by over 50% (now lowered to include those with a 30% rise) when compared to the previous year, to receive relief on 40% (now 50%) of eligible costs from March 1st.
Because the scheme as currently designed does not enable businesses that use LPG, kerosene or fuels other than natural gas or electricity, the Government is to look at introducing a new grant to help such firms.
Don’t worry taxpayers – this extra aid isn’t coming out of your pocket. €1.2bn was set aside for the scheme under the 2023 budget, with only €38m being paid out under the scheme so far.
If you haven’t already applied for the Temporary Business Energy Support Scheme (TBESS), you can do so by clicking here.
With an extra few bob in your business, you might look to bring in some extra staff! Click below to download our app and book some Wrkstars today: