Debt Warehousing Scheme – Get ready for 1 May 2024

On 5 February 2024, the Minister for Finance announced that the interest rate applying to tax debt in the Debt Warehousing Scheme, which was introduced in May 2020, is reduced to 0%. Revenue subsequently confirmed that it would adopt a flexible approach to payment of the debt, having regard to the circumstances of a business.

To avail of the 0% interest rate, businesses need to engage Revenue by 1 May 2024 about paying this warehoused tax debt.

Here are resources that could help you get ready.

Tax Talk with Revenue Representatives

In the latest Tax Talk episode, we talk to Revenue about what businesses need to do before the 1 May 2024 deadline. Joining podcast host, Donal O’Donovan, to discuss the key issues for business and the flexibilities available to pay off the debt are:

  • Davena Lyons, Collector General’s Division, Revenue
  • Maureen Marray, Collector General’s Division, Revenue
  • Stephen Gahan, ODG Advisory and Institute Council Member
  • David Broderick, Small Firms Association

If you are a tax adviser working with clients on payment plans for warehoused debt or a business who received a letter at the end of March, this 35-minute episode is a useful resource.

Listen here or on your favourite podcast app.

Revenue Guidelines and Videos on Phased Payment Arrangements (PPA)

Recently, Revenue updated its Guidelines for Phased Payment Arrangements to outline the flexibilities available when paying warehoused debt in instalments and updated its Information Booklet on the Debt Warehousing Scheme..

Revenue has information and videos on managing a PPA on its website here and recorded a presentation on the actions businesses need to take by 1 May 2024.

Revenue Letters on Warehoused Debt

Examples of the letters Revenue issued to taxpayers with warehoused debt in March are available below:

Irish Tax Review Article

In Issue 1, 2024 of the Irish Tax Review, you can find an article by Revenue about engaging on the Debt Warehousing Scheme in the Revenue Commissioners’ Update. Institute members can access this resource using your membership number and password.