The TBESS was introduced by Irish Revenue to provide support to businesses impacted by the unprecedented increase in energy costs suffered between September 2022 and February 2023.
Claims for these periods must be made within four months of the end of the claim period to which the electricity or gas bill relates. While Revenue has extended the time limit for making a claim for energy bills arising in September 2022, deadlines of 28 February 2023 and 31 March 2023 apply to claims for the October and November 2022 periods respectively. A further extension to the scheme was recently introduced.
The Temporary Business Energy Support Scheme (TBESS) was introduced by Irish Revenue to ease the pressures many businesses are currently experiencing due to the increased cost of electricity and gas between September 2022 and February 2023.
Who qualifies for TBESS?
Under this scheme, any businesses carrying on a trade or profession taxable under Case I or II of Schedule D income is eligible. In addition, approved sporting bodies and certain charities may be eligible to avail of the scheme. To qualify, these eligible businesses must meet the following criteria:
- Pass the energy costs threshold. This can be done by demonstrating that the business has incurred at least a 50% increase in the average unit price per their relevant energy bill (electricity or gas) during a claim period (between September 2022 and February 2023) when compared with the average unit price for the comparable prior 12-month period (the reference period);
- Have an up-to-date tax clearance certificate and be fully tax compliant throughout the claim period; and
- Is an eligible business throughout the claim period and intends to continue to be in the future.
How much can a business claim?
Qualifying businesses can claim a Temporary Business Energy Payment (TBEP). This cash payment is equal to 40% of the increase in energy costs incurred in a calendar month compared with the cost incurred in the same month of the previous year.
For each monthly claim period, a limit of €10,000 applies to the total payment a qualifying business can claim per trade. If the qualifying business operates its trade from multiple locations it may increase the monthly limit by €10,000 for each location, up to a maximum of €30,000 per month.
How to make a claim
To complete a claim under the scheme, an eligible business will be required to register for TBESS on the Revenue Online Service (ROS). The business must provide the relevant details when making a claim, including energy costs and energy bills for both the monthly claim period and the corresponding monthly reference period (12 months prior).
If the business does not have an energy bill for the comparable reference period, Revenue will use a deemed reference unit price for the comparable period, available from the Sustainable Energy Authority of Ireland.
The business must keep records relating to the claim for 10 years from the end of the claim period.
Deadlines for making a claim
The time limit for making a claim under the scheme is four months from the end of the monthly claim period to which the energy bill relates. As such, claims relating to energy bills from September 2022 were due to be submitted by 31 January 2023. This time limit has been extended by Revenue, but the 4-month time limit remains in place for all other claim periods, with deadlines of 28 February 2023 and 31 March 2023 applying to claims for the October 2022 and November 2022 periods.
Latest TBESS update
The Irish Government announced on 21 February 2023, that the TBESS will be extended until 31 May 2023, and a number of proposed enhancements to the scheme have been put forward.
To assist companies in qualifying, it is proposed that the threshold for qualification is reduced from a 50% increase in electricity or gas costs compared to the same period a year ago, to a 30% increase. This is to apply retrospectively to claims from September 2022.
It is also proposed that the level of relief will increase from 40% to 50% of eligible costs, with an increased monthly limit of €15,000 applying, from 1 March 2023.
Revised Revenue guidelines and further details are expected in due course.
We would be happy to assist you in determining if you are eligible for TBESS and submitting a claim.
If you have any questions in relation to the above, or if you would like to discuss this topic further, please contact a member of the Mazars corporate tax team below: