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Repayment of Warehoused Tax Debt - PPA Deadline Approaching – 1 May 2024

Repayment of Warehoused Tax Debt - PPA Deadline Approaching – 1 May 2024

As discussed in our Debt Warehousing e-zine, issued on 7th February 2024, the Debt Warehousing Scheme (DWS) was aimed at assisting businesses during the Covid-19 pandemic.

The DWS allowed for the deferral of the payment of VAT, Employer PAYE and certain income tax labilities from January 2020 to December 2021 for most businesses with an extension to April 2022 for certain businesses including hospitality. 

Businesses were allowed defer payment of warehoused tax debt until 1 May 2024.

1 May 2024 deadline

 The deadline for engaging with Revenue to agree repayment of warehoused tax debt is 1 May 2024. At this date businesses must have either repaid their warehoused debt or agreed to enter a payment arrangement with Revenue to repay the debt over an agreed period of time.

Phased Payment Arrangements (PPA)

Revenue have stated they will be flexible in negotiating a PPA for warehoused debt including:

  • Flexibility in the level of the downpayment needed including where tax clearance is required. There is scope to make a nominal downpayment or indeed no downpayment.

  • Scope to select a later date than 1 May 2024 to commence paying the instalments in the PPA.

  • A willingness to consider realistic and sustainable PPA proposals for extended payment terms where appropriate for viable businesses (i.e., for terms longer than the usual maximum 60-month period).

  • Scope to amend the agreed payment schedule if cashflow difficulties arise, including deferring payments and payment breaks.

 
The PPA will be tailored to each business based on its capacity to pay.
 
Where a business has an existing phased payment arrangement for other taxes it can apply to have this consolidated with the payment arrangement for warehoused debt.
 
It is now vitally important for all business to address any historic tax liabilities which benefited from the warehousing scheme. If your business is currently benefiting from the scheme, we would advise you to contact your relationship manager immediately to seek assistance with an application for a PPA.


Contact Us

Padraig O’Donoghue | Tax Partner | Cork
padraig.odonoghue@mooreireland.ie
+353 21 427 5176 ​

Eoghan Bracken | Tax Partner | Dublin
eoghan.bracken@mooreireland.ie
+353 1 888 1004

Colin Dignam
 | Tax Director | Dublin
colin.dignam@mooreireland.ie
+353 1 888 1004

Shane Rice |
Manager | Dublin
shane.rice@mooreireland.ie
+353 1 888 1004