Phased Payment Arrangements (PPAs)

Interest rates and charges

Interest is charged on all PPAs at the:

• standard rate of 8% for:
  • Income Tax (IT)
  • Corporation Tax (CT)
  • Capital Gains Tax (CGT).
• standard rate of 10% for:
  • Employers' IT
  • Value-Added Tax (VAT)
  • Relevant Contracts Tax (RCT).

Interest within a PPA is made up of:

• accrued interest on unpaid amounts included in the PPA
• projected interest based on the expected payments over the lifetime of the PPA
• interest on late payment charges due on any part paid periods within the PPA.

Changes to the repayment schedule during the lifetime of the PPA will result in a recalculation of the interest charges applied.

Reduced rate PPA

A reduced rate PPA was introduced during 2020 to help businesses experiencing cash-flow difficulties due to COVID-19.

For Income Tax 2019 liabilities, the reduced rate was available to customers who applied for a PPA before 10 December 2020.

The reduced rate was available to customers who applied for a PPA before 31 October 2020 for all other taxes.

Note

You might be currently availing of a reduced rate PPA. If you are, and your PPA cancels, you will not be able to avail of the reduced rate PPA again. Any future PPA will be subject to full interest.

Next: Down-payments and instalments