The government is reminding business owners that the time during which tax debt may be warehoused has been extended to 31 December 2022, giving some relief to those emerging from the Covid crisis.

The question of tax returns falling due is now on the agenda for many businesses, and finance minister Paschal Donohoe (pictured) has issued the reminder that the original debt warehousing period during which interest would not be charged, due to expire on 31 December 2021, has been extended for another year.

Thye minister explained: “The extension of the period during which tax debts may be warehoused will give clarity and certainty to businesses in relation to their tax liabilities for the remainder of 2021. It will assist businesses with their cash-flow for the remaining months of the year as they seek to emerge from months of lost or very diminished trade.

“The extension of Period 1 until the end of 2021 will also provide businesses with additional breathing space on reopening, allowing additional liabilities to be warehoused and further deferring the date on which payment of current and warehoused liabilities will commence.”

For eligible businesses, Period 1, during which tax debts may be warehoused, is now extended to 31 December 2021. Previously, it was linked to the date on which a business reopened.

In Association with

Period 2, during which no interest will be payable, is now extended to 31 December 2022. The taxpayer is required to repay the relevant tax during Period 3, when interest is charged at 3%. Businesses whose taxes are warehoused are still be able to obtain tax clearance certificates if they meet their other tax obligations.

The scheme applies to:

• Value-Added Tax 
• PAYE (Employer) which includes the following remitted by employers under the PAYE system:
  • Income Tax 
  • Pay Related Social Insurance 
  • Universal Social Charge 
  • Local Property Tax 
• Certain Income Tax liabilities for self-assessed taxpayers
• Temporary Wage Subsidy Scheme (TWSS) overpayments
• Employment Wage Subsidy Scheme (EWSS) overpayments.

Full details are available here.

A total of €2.4 billion has already been warehoused involving €1.1m in PAYE (employer) liabilities, €400m in PRSI, €1.3m VAT and €33m in income tax.