Debt Warehousing Scheme Deadline: 1 May 2024

Bernard Doherty
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Businesses availing of the Debt Warehousing Scheme (DWS) have until 1 May 2024 to either:

  • Pay their warehoused debt in full; or
  • Engage with Revenue on addressing the debt, including arrangements for a Phased Payment Arrangement (PPA)

Debt Warehousing was introduced in response to the Covid-19 crisis and allowed businesses to defer the payment of certain taxes –principally Employer PAYE and VAT – interest-free until 31 December 2022 (or 30 April 2023 for those eligible for the extended deadline). A 3% rate of interest applied thereafter and businesses had a 1 May 2024 deadline to either repay the debt or enter into a Phased Payment Arrangement (PPA) to clear the debt.

Recently the Minister for Finance announced a number of key changes:

  • The interest on outstanding warehoused liabilities was reduced from 3% to 0%; and
  • Businesses who had already paid interest at 3% would be able to claim a refund of that interest.

Minister McGrath also noted Revenue’s commitment to a flexible approach to PPAs including:

  • The level of initial down-payment, if any, required when commencing the PPA;
  • Possible extension of the duration of the payment arrangement beyond the typical 3-5 year period on a case by case basis; and 
  • The availability of payment breaks/deferrals if temporary cash flow difficulties arise during the PPA term.
  • However, to avail of the flexible approach outlined, businesses must file current tax returns on time, meet current tax liabilities as they fall due and engage with Revenue to initiate a PPA prior to 1 May 2024. Revenue will be writing to businesses that have not engaged but tax agents will not be copied on final reminders so cases within the scheme need to ensure they engage by the deadline.
  • Failure to do so could result in warehousing being revoked, the application of 10% interest rates and the immediate enforcement of all outstanding debt, including interest.