Debt management and debt warehousing

Note

Your business may be facing tax payment difficulties for the first time. We will work with you to resolve these difficulties.

You are advised to pay your tax liabilities when it is possible to do so. However, Revenue recognises businesses may be negatively affected by the COVID-19 pandemic and experiencing tax payment difficulties. We have in place the following arrangements for these businesses.

Suspension of debt enforcement

Debt enforcement activity is largely suspended.

Some businesses have continued to operate at normal or enhanced levels during the pandemic. If these businesses fail to meet their filing and payment obligations, they will be subjected to debt collection and enforcement action.

Phased payment arrangements

With early and meaningful engagement, we can generally agree a payment arrangement that is acceptable to both the business and Revenue.

You can find more information about phased payment arrangements in the Starting and running a business section.

Debt warehousing

Revenue recognises that some businesses in addition to tax debt, businesses face the challenge of:

  • paying their ongoing tax liabilities as they arise after they reopen
  • pay their trade and other non-Revenue creditors
  • completing any necessary restructuring to deal with new trading arrangements.

The Government has legislated to allow for tax debt associated with the COVID-19 crisis to be ‘warehoused’.

Debts arising from the COVID-19 crisis can be ‘parked’ for a period of 12 months from January 2022 to December 2022. After a business resumes trading. After the 12-month interest-free period, the warehoused debts can be repaid at a low interest rate of 3% per annum.

You can find more information about debt warehousing in the Starting and running a business section.