On Monday 17 October Revenue announced a 12-month extension to the Tax Debt Warehousing Scheme to support businesses, in response to challenging business conditions.
Under the scheme, businesses with warehoused debt were due to enter into an arrangement with Revenue to deal with that debt by the end of 2022 (or by 01 May 2023 for those subject to an extended deadline).
Revenue has now extended that deadline to 01 May 2024. Businesses will not have to clear the debt in the warehouse (or enter into a phased payment arrangement to clear the debt) until 01 May 2024.
Taxpayers will still be able to avail of the reduced 3% interest rate from January 2023, rather than the general interest rate of 10%, when paying the warehoused debt.
The Debt Warehousing Scheme was introduced to provide support to businesses during the COVID-19 pandemic.
Revenue will write to all businesses with debt in the warehouse in early December, to provide a statement of debt, and to advise of the extension.
Revenue were also keen to emphasise the importance of keeping current returns and payments up to date, and mentioned early engagement is key where businesses experience any payment difficulties in meeting their current tax obligations.
You can read the official announcement from Revenue here
Date published 18 Oct 2022 | Last updated 20 Oct 2022
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