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The Debt Warehouse Scheme, the ability to defer or ‘park’ certain tax liabilities, continues to be available to businesses experiencing tax payment difficulties due to the impacts of COVID-19.
Businesses can continue to warehouse current VAT and PAYE (Employer) liabilities and Temporary Wage Subsidy Scheme (TWSS) overpayments arising from the COVID-19 crisis and the current level 5 public health restrictions. Such tax debts arising during the period of COVID-19 restricted trading plus 2 months can be deferred, or ‘warehoused’. Following the resumption of normal trading these debts can be warehoused for up to 12 months’ interest free. A 3% annual interest rate (compared to an annual interest rate of 10%) will apply thereafter to any outstanding tax debts until they are paid in full.
The Warehousing scheme applies to:
Self-assessed income tax obligations (balance of 2019 Income Tax liability and 2020 preliminary tax) can also be warehoused.
Terms and conditions
Warehousing of tax debts is conditional on the filing of all relevant tax returns for the restricted trading period(s) so that the business can quantify its tax debt. Current tax liabilities that fall due while the warehousing scheme is in place and for the duration of any payment arrangement must be maintained.
The terms of the scheme remain the same; businesses that fall within Revenue’s SME criteria, essentially those managed by Revenue’s Personal or Business Divisions, automatically qualify. Larger businesses, those managed by Revenue’s Large Corporates Division or Medium Enterprise Division, must apply for access to the scheme.
