We have spoken a number of times in the past about the warehousing of debt following on from the Covid 19 emergency, and this week we come to you with another update on this.
Revenue have recently extended the debt warehousing scheme will be extended for an additional sixteen months. The scheme allowed businesses to “warehouse” certain tax debt in order to keep the business afloat during troubling times, the deadline for repayment was due to be the end of 2022 and has now been changed to May 1st 2024 in what will be comforting news to some businesses still dealing with the after-effects of the pandemic, as well as the ever-increasing price increases and the ongoing cost of living crisis. These businesses will receive a notification from Revenue in December of this year advising them of the extension.
In similarly positive news, it has also been revealed that when repaying the debt, businesses will from January 1st, 2023, be able to avail of a significantly reduced interest rate (3% down from 10%). Collector-General Joe Howley has said of the extension that.
“This extended deadline in terms of debt remaining in the warehouse, and the ongoing availability of the reduced rate of interest of 3%, will provide businesses with greater certainty in the current economic climate and give them additional time before they have to start addressing the warehoused tax debt.
Where a business has the capacity to repay any or all of the debt warehoused in the meantime, then they can of course do so.”
If you are currently experiencing tax related difficulties, it is vital to contact Revenue ASAP in order to create a plan that works for both sides. Speaking to Revenue early on about any issues is crucial and ensures that the matter can be dealt with before becoming problematic or incurring additional costs.
Should you have any queries about any financial or business matters, please do not hesitate to contact us here at EcovisDCA where we will be happy to assist in any way we can.