Debt Warehousing Scheme

The debt warehousing scheme was introduced to assist businesses who were struggling during the Covid 19 pandemic.

With the scheme, it allowed businesses to defer paying tax liabilities until they were in a better position. 

The debt warehousing scheme operated as follows 

  • Period 1 ran from 1 July 2020 until 31 December 2021 which let business defer their tax liabilities due to restricted trading because of the pandemic.
  • Period 2 started from 1 January 2022 until 31 December 2022 during which no interest will be charged on deferred from Period 1.
  • Period 3 will run from 1 January 2023 until the deferred tax is repaid. During this period, interest will be charged at 3% per year on warehoused tax from Period 1. 

Many businesses are in Period 2 of the debt warehousing scheme which will end shortly on the 31st of December 2022.

Revenue will contact business owners to make arrangements to pay the warehoused tax. It is important that business owners engage with Revenue on a plan for repayment. 

It is possible to pay off the debt in advance of Period 2 end date at the applicable 0% interest rate. Should a Phased Payment Arrangement (PPA) be required it must be applied for through the normal online channels, with caseworker approval. Taxpayers are advised, where possible, to put PPAs in place sooner rather than postponing arrangements until later in the year. 

Revenue agreed that you can pay warehoused tax and non-warehoused tax together with the same payment plan. If you have issues in making the scheduled repayments, Revenue has confirmed that it will try to be flexible and take the financial circumstances of the business in regard, but it is advised to keep in contact with Revenue if you are in that position.