The Minister for Finance has announced that he is reducing the interest rate on Warehoused Debt from 3% to 0%.
This will come as a relief to many businesses as they face pressures amidst the cost-of-living crisis and the reintroduction of the 13.5% VAT rate for hospitality.
What timeframe will taxpayers be given to make repayments?
Revenue will look at businesses on a case-by-case basis. It may be possible to extend repayments beyond the normal 3 to 5 year timeframes. Lump sum payments may not be required in every case.
What do I need to do now?
If you have Warehoused Debt you still need to engage with Revenue by the 01 May deadline. By this date the debt needs to be paid or you need to enter into a phased payment arrangement with Revenue to clear the debt.
Early engagement with Revenue is key, as is keeping current tax liabilities and returns up to date.
What if I made payments on my warehoused debt already?
Some people have already paid back Warehoused Debt at the 3% interest rate. Arrangements are currently being made to refund those taxpayers.
Tax Debt Warehousing Scheme
Date published 6 Feb 2024 | Last updated 6 Feb 2024This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
We specialise in supporting independent businesses and work with 6,246 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 23 locations, meet with us online through video call software, or talk to us by telephone.
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.