Debt Warehousing - Extension 2022

An extension of the Debt Warehousing scheme will also now facilitate those eligible for the scheme to warehouse or ‘park’ certain tax liabilities (e.g. PAYE, VAT) arising in in the period from 1 January to 31 March 2022 (previously the cut-off was 31 December 2021).

As a result, the interest free period will now run from 1 April 2022 to 31 March 2023.

The businesses must already be eligible for warehousing and have a valid claim during the period from 1 January 2022 to 30 April 2022 for any of the following Government COVID-19 Support Schemes:

• Employment Wage Subsidy Scheme
  
• Covid Restrictions Support Scheme
  
• other Government Covid-19 Support Schemes.

Businesses which were most impacted by the additional public health restrictions in place in December 2021/ January 2022 should now benefit from an extension to the periods of favourable interest rates that are available under the Debt Warehousing scheme as follows:
- 0% interest rate will commence from 1 May 2022 and run until 30 April 2023
- A reduced 3% interest rate will be payable thereafter until the debt is repaid

Taxpayers must meet their other obligations in terms of filing tax returns and paying other taxes e.g. VAT and PAYE) in order to obtain the beneficial treatment available under the scheme, otherwise the normal interest rate for late payments of 8% per annum will apply.

They must also have met their preliminary tax obligations for 2019. The use of the scheme will not impact on a taxpayer’s ability to obtain a tax clearance certificate.