Debt Warehousing Scheme

Debt Warehousing Scheme

Posted on 25th - October - 2022

Revenue have commenced sending Level 1 Revenue Compliance Intervention Notification letters to taxpayers who are participating in the Debt Warehousing Scheme (or who were eligible to participate).

Warehoused tax liabilities can benefit from the reduced 3% rate of interest from 2023. A 0% interest rate applies on warehoused tax liabilities up to 31 December 2022.

Revenue is encouraging taxpayers seeking Phased Payment Arrangements (PPAs) to engage with Revenue as early as possible through the online system to get PPAs in place.

Further guidance is awaited from Revenue in relation to proprietary directors with warehoused PAYE liabilities.  

Current tax returns and payments must be kept up to date to ensure that the PPA arrangement can remain in place.

Revenue have just announced a 12-month extension to the Debt Warehousing Scheme. This means that businesses will not need to enter into a phased payment arrangement to clear the warehoused debt until May 1, 2024. The 3% interest rate will still apply to warehoused debt from 1 January 2023.

Revenue said it will write to all businesses with debt warehoused in early December setting out their statement of debt and advising them of the extension just announced.

Please contact us if you require any assistance with PPA arrangements in relation to warehoused debt.

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