Government Business Support
The Government has confirmed that the 9% reduced VAT rate for the hospitality sector has been extended to 31 August 2023. The reduced VAT rate will return to 13.5% from September 2023.
The items that are subject to the 9% VAT rate include the following:
Catering and restaurant services (excluding alcohol, soft drinks and bottled water)
Tea, coffee and hot takeaway food
Hotel lettings, for example, guesthouses, caravan parks or camping sites
Admissions to cinemas, theatres, certain musical performances, museums, art galleries or exhibitions.
Hairdressing Services
The Government has also announced that the Temporary Business Energy Support Scheme (TBESS) will be extended to the end of May 2023.
In order to help more businesses to qualify for the TBESS, the threshold for qualification will be cut from the current 50% increase in electricity or gas costs compared to the same period a year ago, to a 30% increase.
The level of relief will also increase from 40% to 50% of eligible costs from March 1st. The payment will remain subject to a monthly limit, but that will also rise from the current €10,000 to €15,000 per month per trade or profession from next month. Payment will be subject to an overall cap of €45,000, up from €30,000 where the business is carried on from more than one location.
The scheme as currently designed is only available for businesses with metered gas or electricity. The Government is looking at a grant to help businesses that use LPG, kerosene or other fuels.
Please contact Padraig if you would like us to help register your business for TBESS or if you have any questions.
Email: pambrose@nkc.ie
Phone: 01 6754382