If your business has been affected by the Covid-19 pandemic and you are struggling to pay your taxes on time, you may be eligible for the Debt Warehousing Scheme (DWS). This is a scheme that allows you to delay some of your tax payments without any interest for a certain period. This can help you to manage your cash flow and trading difficulties until your business recovers.
Period 1: This is the period when your business was affected by Covid-19 restrictions and could not pay its taxes as normal. During this period, you can warehouse your eligible tax debts without any interest.
Period 2: This is the period when your business resumes trading and pays its current taxes as they fall due. During this period, you do not have to pay your warehoused tax debts and no interest applies to them.
Period 3: This is the period when you have to start paying your warehoused tax debts. You can either pay them in full or enter into a phased payment arrangement with Revenue. During this period, a reduced interest rate of 3% applies to your warehoused tax debts, instead of the usual 10% rate.
How long can I warehouse my tax debts?
The DWS was originally supposed to end on 31 December 2022, which means that you would have to start paying your warehoused tax debts by then or enter into a phased payment arrangement by 1 May 2023.
However, due to the current challenging economic situation for businesses, Revenue has announced that it has extended the DWS for another year. This means that you now have until 1 May 2024 to clear your warehoused tax debts or enter into a phased payment arrangement with Revenue. You will still benefit from the reduced interest rate of 3% during this period.
If you want to avail of the DWS, you need to meet certain criteria and conditions. These include:
If you qualify for the DWS, you will receive a letter from Revenue confirming your warehoused periods, returns, amounts and interest rates. Your warehouse will automatically update to include all qualifying returns up to the end of Period 1.
If you have any questions or concerns about the DWS, you can contact Revenue through MyEnquiries in myAccount or ROS or by phone. You can also visit Revenue’s website for more details on the DWS.
Alternatively, you can contact us for professional advice and guidance on how to manage your tax affairs during Covid-19. We are here to help you navigate through these challenging times and find the best solutions for your business.
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