On 13th January 2021, Revenue confirmed that the Debt Warehousing Scheme remains available to support businesses experiencing tax payment difficulties arising from the current COVID-19 Level 5 public health restrictions, which are to remain in place until at least 31 January 2021.
Revenue have suspended debt collection and the charging on interest on late payment of VAT, PAYE, self-assessed Income Tax (2019 liabilities and preliminary tax 2020) and TWSS overpayments. This allows businesses negatively impacted by COVID-19 to park these debts on an interest-free basis for a period of 12 months following the resumption of trading.
At the end of the 12-month interest free period, the warehoused debt may be paid in full without incurring an interest charge or paid through a phased payment arrangement at a significantly reduced interest rate of 3% per annum – a reduction from the standard 10% rate per annum.
The terms of the scheme remain the same in that access is automatic for SMEs and on request for larger businesses.
It also remains a requirement that the business continues to file all relevant tax returns for the restricted trading period(s) so that the tax debt can be included in the warehousing scheme.
Contact a member of our team today.
+353 42 933 9955 info@fdw.ie
Niall Donnelly
Source: Revenue