Additional update on the Debt Warehousing Scheme

Yesterday (09/05/2024), Revenue confirmed that almost 90% of the €1.65 billion debt that remained in the warehouse at the start of April 2024 was now either paid in full, secured under phased payment arrangements or included within a proposed phased payment arrangement which is in the process of being finalised. The balance of €200 million remaining within the warehouse has therefore reduced significantly from a peak of €3.2 billion in January 2022.

Revenue acknowledges the high level of engagement from businesses and their agents throughout the duration of the Debt Warehouse Scheme and, in particular, in the lead up to the 1 May 2024 deadline, and will continue working with businesses to finalise payment plan applications which are currently in progress.

Revenue has now issued demands to those businesses with outstanding liabilities within the debt warehouse. Approximately 11,700 demands issued to businesses with warehoused debt in excess of €500. Over 60% (7,279) of those businesses have outstanding liabilities of less than €5,000 and a further 30% (3,670) have outstanding liabilities between €5,000 and €50,000. The remaining 10% of businesses (775) have outstanding liabilities in excess of €50,000, amounting to €130 million.  

The demand notices outline the tax(es) due by the business, and request the business to engage with Revenue to formulate a payment plan within seven days. The request also outlines the consequences of continued non-engagement within the timeframe specified, which will include the issue of a final demand at the end of the seven-day period and the warehoused debt immediately and automatically being subject to standard enforcement proceedings. This means that the 0% interest rate and flexible payment options which apply in respect of warehoused debt will no longer be available.

Revenue remains strongly committed to supporting viable businesses and it is Revenue’s clear preference, as has always been the case, to engage with businesses to agree mutually agreeable payment arrangements in place of the deployment of debt collection procedures. Therefore, Revenue strongly encourages any business that receives a demand in the coming days to take action immediately. Businesses can engage with Revenue 24/7 through our online channels (MyEnquiries or the Revenue Online Service (ROS) or, alternatively, contact the Collector General’s Division by telephone on 01 738 3663.

Revenue is aware that a number of businesses contacted Revenue in the last month but didn’t ultimately submit a formal phased payment proposal. If they do so before next Wednesday (15 May) the terms of the debt warehouse scheme, including the 0% interest, will be applied to that payment plan. We are currently putting in train our system updates to implement the standard interest rates on any outstanding warehoused debt and this will automatically be applied on 15 May where a payment plan has not been finalised. Therefore, the demand period affords businesses a final opportunity to engage with Revenue on same, and Revenue will continue to engage on late payment proposals submitted during the relevant demand period.

Once the system update takes place, Revenue will start to issue final demand notices for the remaining debt. The final demand notice will provide a seven-day notice before Revenue takes the appropriate enforcement action.

[ENDS 09/05/2024]