Due to the unprecedented situation facing taxpayers arising from the COVID-19 pandemic, Revenue has a provided a number of supports to individuals and companies experiencing financial difficulties.
Irish Revenue has a provided a number of supports to individuals and companies experiencing financial difficulties due to the COVID-19 restrictions on their business. One of the key supports available is the Debt Warehousing Scheme.
In brief, the Debt Warehousing Scheme allows qualifying companies and individuals (who continue to file their tax returns on time) to defer payment of certain liabilities under the following headings - VAT, PAYE (Employer) and TWSS (Temporary Wage Subsidy Scheme).
Income Tax liabilities for qualifying self-employed individuals for the year ended 31 December 2020 and Preliminary Tax liabilities for the year ended 31 December 2021 can also be warehoused.
Despite deferring the payment of tax liabilities, the Debt Warehousing Scheme charges an initial rate of 0% interest increasing to 3%, which contrast favourably against interest rates of up to 10% that usually apply where liabilities are not paid on time.
If you would like to discuss the application of the Debt Warehousing Scheme to your circumstances, please contact a member of our tax team.
Warren & Partners are a boutique Irish tax and business advisory firm based in Ballsbridge, Dublin. Our experienced-team of tax advisors will create unique tax solutions for your specific business needs.