FDC Group Availability Of Debt Warehousing
Revenue reminds businesses and self-assessed taxpayers of the availability of debt warehousing
Revenue has last week written to over 100,000 taxpayers confirming that their tax debts totaling €2.2 billion are eligible for Debt Warehousing.
The Debt Warehousing Scheme allows VAT and PAYE (Employer) debts incurred by businesses during the period of restricted trading caused by Covid-19 to be ‘parked’ on an interest free basis for 12 months following the resumption of trading. At the end of the 12-month interest free period, the warehoused debt may be paid in full without incurring an interest charge or paid through a phased payment arrangement at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 10% per annum that would otherwise apply to such debts.
The letters which issued last week explain the benefits of warehousing and confirm for each individual business the exact amount of debt that has been warehoused. In some cases where returns are outstanding, the businesses are requested to file these returns within 28 days in order to continue availing of the benefits of debt warehousing.