On 5 February 2024, the Minister for Finance, Michael McGrath, announced significant changes to the Tax Debt Warehousing Scheme.
The Tax Debt Warehousing Scheme allowed businesses who experienced trading difficulties during the COVID-19 pandemic to defer paying certain tax liabilities until they were in a better financial position.
Minister McGrath has reduced the interest rate applying to warehoused tax debt to 0% from 5 February 2024. In addition, Revenue has confirmed that, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest.
Businesses who availed of this Scheme still have until 1 May 2024 to pay the warehoused debt in full or to enter into a formal payment plan with Revenue. Revenue confirmed that it is taking a flexible approach in relation to payment plans for warehoused debt. This will include the possibility to extend the duration of payment plans beyond the typical three to five-year duration on a case-by-case basis, and that an initial down payment may not always be required.
If you would like our assistance with agreeing a payment plan with Revenue, please contact us.