The TBESS was introduced to support businesses with increases in their electricity or natural gas (energy) costs.
Your business can make a claim under the scheme if it:
- is tax compliant
- carries on a Case I trade or Case II profession. This includes charities and approved sporting bodies that carry on certain activities
- has experienced a significant increase of 50% or more in its electricity and/or natural gas average unit price.
Qualifying businesses can claim for 40% of the increases in their energy bills. The increase in energy bills must be between the ‘claim period’ and the ‘reference period’.
A claim period is a calendar month from September 2022 to February 2023. A reference period is the corresponding calendar month in the previous year. For example, September 2021 is the reference period for the September 2022 claim period.
If your business is a qualifying business, it can make a claim for a Temporary Business Energy Payment (TBEP). The TBEP is equal to 40% of a business’ eligible costs. This is subject to a monthly cap.
Qualifying criteria for eligible businesses
Each of the following is considered an eligible business under the TBESS:
- a business that carries on a trade or profession, which is taxable under Case I or Case II of Schedule D
- certain approved sporting bodies that carry on a trade or profession that would be taxable under Case I or II, but for an exemption
- certain charities that carry on trading activities that would be taxable under Case I, but for an exemption.
This includes companies, sole-traders, self-employed individuals and partnerships.
Qualifying criteria For your eligible business to qualify for the TBESS, it must:
- pass the ‘energy costs threshold’ (see below)
- be tax compliant with regards to tax registration, tax payments and filing of tax returns
- be eligible for a Tax Clearance Certificate throughout the claim period
- be an eligible business throughout the claim period and intend to be an eligible business following the end of the claim period
- complete the TBESS registration and claim process, including completion of all required declarations.
These conditions must be met for each period for which your business is making a claim.
Costs that can be included in a claim
A claim may be made in respect of electricity or natural gas costs only.
Eligible costs A qualifying business can make a claim to Revenue for a Temporary Business Energy Payment (TBEP). This payment is equal to 40% of the business’ eligible costs.
The eligible costs in relation to an electricity or natural gas bill is calculated as the increase in:
- the bill amount in a claim period
- the bill amount for the corresponding reference period.
The following items should not be included in the eligible costs:
- Value Added Tax (VAT)
- any arrears or prepayments (the charges must relate to the particular billing period).
Making a claim There is a two-step process to make a claim under the Temporary Business Energy Support Scheme (TBESS). The eligible business needs to:
- register for the TBESS on the ROS
- complete a claim in respect of energy costs arising in a claim period or claim periods.
Registration When registering for the scheme you will need to:
- provide details about the business
- provide details in relation to electricity or natural gas connections
- make declarations confirming eligibility for the scheme.
You can register on ROS from 26 November 2022.
Making a claim You can make a claim on ROS from 5 December 2022.
Energy costs for a claim period relate to each calendar month from 1 September 2022 to 28 February 2023.
Energy costs for a reference period relate to each calendar month from 1 September 2021 to 28 February 2022.
If your business has more than one energy bill in a claim period, you can make a claim in respect of each bill. You will need to meet the qualifying criteria for each claim period. This is subject to a limit of €10,000 per month or up to €30,000 in certain circumstances.
Time limit for claims
Claims for an electricity or natural gas bill must be made within 4 months of the end of the claim period.
Offset A TBEP will be offset against any outstanding tax due in line with normal Revenue offset rules.
The offsetting rules will not apply to tax liabilities that have been warehoused under the Debt Warehousing Scheme. This is provided the business satisfies the conditions of Debt Warehousing by filing returns and making payments on time.
The offsetting rules will not apply to tax liabilities that a business is paying under a Phased Payment Arrangement (PPA). This is provided it is meeting its obligations under that PPA.
How much can a business claim
A limit of €10,000 applies to the total payments that a qualifying business can claim for each claim period.
Where a person carries on more than one trade or profession, a monthly limit of €10,000 applies to each qualifying business.
If your business has separate electricity and gas accounts, the limit of the eligible costs applies to both energy accounts.
Your business may have more than one electricity account and may be eligible for the increased limit. In this case the limit will apply, for both electricity and natural gas costs.
The increased limit will not apply where multiple electricity accounts are located:
- at the same electricity supply address
If you are interested in finding out how we can help your business, please book a no obligation call.