Revenue confirms Debt Warehousing Scheme remains available to support businesses impacted by Level 3 restrictions
Today (13/10/20) Revenue confirmed that the Debt Warehousing Scheme remains available to support businesses experiencing cashflow or trading difficulties arising from COVID-19 related public health restrictions, including the most recent restrictions announced by Government.
The Debt Warehousing Scheme allows businesses to ‘park’ PAYE (Employer) and VAT tax debts arising from the COVID-19 crisis. Currently, almost 70,000 businesses are availing of the scheme to the value of €2.1 billion.
Following changes in the public health measures announced last week, Revenue has confirmed that this vital liquidity support remains available. Acknowledging the difficulties for businesses that have had to again close, or have again been significantly negatively impacted by the restrictions, Collector-General, Joe Howley, said:
“The public health measures announced last week are going to further negatively impact in what has been a most challenging year for businesses. The Debt Warehousing Scheme was designed to alleviate financial burden and to give businesses certainty regarding the payment of tax debts. Any business experiencing trading difficulties as a result of Covid-19 restrictions can avail of the Debt Warehousing Scheme whether or not it has previously done so during the period of trading restrictions. Businesses that did previously avail of the scheme and subsequently resumed trading and paying their tax debts as they arose can recommence using the scheme if their trade has been negatively impacted by the latest restrictions.”
The terms of the scheme remain the same in that access is automatic for SMEs (businesses managed by Revenue’s Business Division) and on request for larger businesses (managed by Revenue’s Medium Enterprise Division (MED) and Large Corporates Division (LCD)). It also remains a requirement that the business continue to file all relevant tax returns for the restricted trading period(s) so that the tax debt can be included in the warehousing scheme.