Yesterday (17 October 2022), Revenue announced an important and significant extension to the Debt Warehousing Scheme in light of the current challenging economic situation for businesses. Under the scheme, businesses with warehoused debt were due to enter into an arrangement with Revenue to deal with that debt by the end of the year (or by 1 May 2023 for those subject to the extended deadline). Given the current economic uncertainty, Revenue has extended the timeline to 1 May 2024.
This means that businesses will not now be faced with the challenge of either clearing the debt in the warehouse or entering into a phased payment arrangement to clear the debt until 1 May 2024. Importantly also, businesses will still be able to avail of the reduced 3% interest rate from 1 January 2023, as opposed to the general interest rate of 10%, when they come to pay the debt.
Revenue will write to all businesses with debt in the warehouse in early December setting out their statement of debt in the warehouse and advising them of the extension announced today. Such businesses will also be reminded of the importance of filing current returns and paying their current liabilities on time and as they arise.
If you have any queries on debt warehousing and how you may be affected by the extension, please don’t hesitate to contact us.