News

Library of Knowledge Week 65

With the current economic climate still uncertain, The Revenue Commissioners announced that the current Covid Debt Warehousing Scheme has now been extended to the 30^th April 2024.

This will come as a relief to many who by the 31^st December ’22 would have been faced with either a substantial sum to repay or to enter into a Phased Payment Agreement.

The Debt Warehousing Scheme was introduced to provide support to businesses experiencing a downturn during the pandemic.

With this extension for businesses, it is important to remember:

• The importance in keeping all current returns and payments up to date. Note: Failure to file all returns will result in being removed from the scheme.
• Proactive engagement with Revenue for any business experiencing cashflow and or difficulties with a current liability.
• It is possible to enter into a Phased Payment arrangement with the reduced interest rate of 3%, a considerable difference from the general interest rate of 10%.

Failure to comply with the items above, the warehousing option will be removed resulting in:

1. Liabilities become immediately payable.
2. Subject to debt collection enforcement action
3. Subject to interest rates of 8% or 10% per annum
4. Tax Clearance Cert will be rescinded.

For further information see link: https://www.revenue.ie/en/starting-a-business/paying-your-tax/debt-warehousing/disclosure-of-additional-liabilities.aspx

Take care