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How the scheme works

The Covid Restrictions Support Scheme (CRSS) supports businesses that can no longer operate, or can only trade at significantly reduced levels, due to Covid restrictions.

If your business is eligible, from 13 October 2020, you can apply to Revenue for a cash payment for each week your business is affected. Payments are subject to a maximum weekly payment of €5000 and are calculated as follows:

• 10% of the first €1m in turnover and 5% thereafter.
• Based on average VAT exclusive turnover for 2019.

The scheme applies when Level 3 or higher restrictions are imposed and will run until 31 December 2021. Read more >

It's straightforward to account for this in Sage 50 Accounts. To get set up, follow the three stages below.

Create new nominal codes to record grants

We recommend you create the following nominal codes to record when you make a claim and when grants are received, unless otherwise advised by your accountant. This helps you reconcile any grant income received.

Nominal Code	Name	Management report	Category
1150 or next available code	Covid Restrictions Support Scheme Accrued Income	Balance Sheet	Debtors
4950 or next available code	Covid Restrictions Support Scheme Income Received	Profit and Loss	Other Sales

1. On the navigation bar click Nominal codes then click New/edit.
2. Complete the Nominal Record window as follows:

   N/C	Enter the nominal code number you want to create, for example, 1150.
   Name	Enter the name of the account, for example, Covid Restrictions Support Scheme Accrued Income.

3. Click Save then click Close.
4. Repeat this process to create the second nominal code.

TIP: If not already included, you need to add your new nominal codes to your existing chart of accounts. If preferred, you can show coronavirus grants as a separate category on your profit and loss.

Record grants claimed

You need to record each claim you make as a journal entry, to post a debit for accrued income on the balance sheet under Debtors, and a credit on the profit and loss under Other Sales.

For the purposes of this section we'll use the following example:

• The company makes a claim for €10000 on 10 November 2020.
• No grant has yet been received.
• In this example, we're using the non-vatable tax code, T9.*

1. On the navigation bar click Nominal codes then click Journal entry.
2. In Reference, enter a reference, then in Posting Date enter the date of the claim.
3. Enter the following information to record the accrued income:
   

   N/C	Name	Details	T/C	Debit	Credit
   1150	Covid Restrictions Support Scheme Accrued Income	Covid Restrictions Support Scheme claim	T9	10000.00
   4950	Covid Restrictions Support Scheme Income Received	Covid Restrictions Support Scheme claim	T9		10000.00

4. Click Save then click Close.

Record grants received

You need to record grants received as a bank receipt to the Covid Restrictions Support Scheme Accrued Income nominal code. This increases your bank account balance and reduces the accrued income balance.

For the purposes of this section we'll use the following example:

• A grant for €10000 is received on 20 December 2020.
• The grant is received into the company current account, nominal code 1200.
• In this example, we're using the non-vatable tax code, T9.*

1. Click Bank accounts, click Receipts then click Bank receipt.
2. Complete the Bank receipts window as follows:
   

   Bank	Date	N/C	Details	Net	T/C	Tax
   1200	20/12/2020	1150	Covid Restrictions Support Scheme income received	10000.00	T9	0.00

3. Click Save then click Close.