As many of you will be aware, the TBESS Scheme was introduced in the recent budget to help businesses that have experienced a significant increase in their electricity and natural gas costs. The scheme aims to reimburse a business in respect of some of its increased energy costs relating to the period 1 September 2022 to 28 February 2023.
Please note that claims must be made within 4 months of the end of the claim period i.e., the deadline for claiming the costs incurred in September 2022 was 31 January 2023. However, because September 2022 is the first month in respect of which claims are due to be submitted, Revenue recently extended the deadline to 28 February 2023 in respect of claims for September 2022. Therefore, if you have not yet submitted your claim for September 2022, you still have an opportunity to do so.
To qualify, the following criteria must be met:
1. A company, self-employed individual or partnership must be carrying on a trade the profits of which are subject to tax under Case I (trade) or Case II (profession) of Schedule D of the Taxes Act. This includes sporting bodies & charities that would be chargeable but are availing of the exemption.
2. The entity must be tax compliant i.e. all tax returns, under each tax head, must be filed and any liabilities must be settled. The entity should also have a tax clearance certificate from Revenue.
3. The entity must be able to demonstrate that the average unit price of electricity or natural gas on the relevant bill has increased by 50% or more as compared to the average unit price of electricity or natural gas in a reference period. For example, September 2022 vs September 2021. A review of each claims period must be carried out i.e., for each month in which the scheme applies.
An entity is entitled to claim a Temporary Business Energy Payment (TBEP) amounting to 40% of its eligible cost. The eligible costs are calculated as the increase in:
- the bill amount in a claim period e.g., September 2022
- the bill amount of the corresponding reference period e.g., September 2021
VAT exclusive costs should be used when claiming TBESS, irrespective of whether or not the business is registered for VAT or is VAT exempt. A limit of €10,000 applies to the total payments that a qualifying business can claim for each claim period. This figure may be increased to a maximum of €30,000 where a qualifying business operates across multiple locations.
Example – claim in respect of gas bill for November 2022 of €6,000 (VAT Exclusive)
Reference Invoice Details:
||Cost (excl. VAT)
Current Invoice Details:
||Cost (excl. VAT)
Therefore, the total TBEP claimed for November will be €1,600 ((€6,000 – €2,000) x 40%) in relation to gas.
This is on the assumption that the number of units used (kWh) was the same for the reference period and claiming period and that the average unit has, therefore, increased in cost by 50% or more.
Submitting a Claim
The entity must register for the scheme using Revenue Online Service (ROS), provide certain information and make a declaration that they satisfy the conditions to make a claim.
A claim portal in respect of TBESS is available via the e-Repayment Claims system on ROS.
The scheme operates on a self-assessment basis. The entity should retain evidence supporting their basis for making a claim under the scheme for a period of 10 years following the end of a claim period.
Revenue will be publishing the names of the entities availing of the scheme.
Do not be left in the dark when it comes to supports that your business can possibly avail of in these challenging times. If you have not already considered if your business is eligible to avail of support under this scheme, you should do so as soon as possible and if you are eligible ensure that your claim for the months of September and October 2022 are submitted by 28 February 2023 and submit your claims monthly thereafter with the final claim being due for submission by 30 June 2023 in respect of the month ended 28 February 2023 unless the scheme is extended further in due course.
Content adapted from DCU Business School Alumni Newsletter.