Important reminder about the Debt Warehouse Scheme deadline

Important reminder about the Debt Warehouse Scheme deadline

Revenue reminds businesses who are availing of the Debt Warehouse Scheme that they have until next Wednesday, 1 May 2024, to engage with Revenue and formulate a plan to pay their warehoused debt or, where their financial circumstances permit, pay their outstanding balance in full.

Increasing numbers of businesses have been contacting Revenue to set up Phased Payment Arrangements and discuss the flexible payment options available for warehoused debt, and it is expected that this trend will continue as we approach the key deadline. To further facilitate the increasing levels of engagement, Revenue has announced that its Collector General’s Division phone lines will be open tomorrow, Saturday 27 April, from 9.30am to 1.30pm. The phone lines will also be open from 9.30am to 16.30pm on Monday 29 April and Tuesday 30 April.

Speaking about the increasing level of engagement from businesses, Revenue’s Collector General, Joe Howley, outlined:

Applications for Phased Payment Arrangements are being submitted on a constant basis and customers are also engaging with us via phone and MyEnquiries. As a result of this increased level of engagement, over 6,500 payment arrangements for warehoused debt have now been set up on our system, an increase of over 3,700 in the period since 31 March.

The level of warehoused debt which is not yet subject to an active payment plan is now below €1 billion and this balance will continue to reduce as we approach the key deadline of 1 May. We are actively progressing a further 1,300 Phased Payment Arrangement applications at present and we are aware that many customers have financially planned to pay their warehoused debt in full on or close to 1 May, in order to fully maximise the benefit of the 0% interest rate.

The Collector General’s Division can be contacted on 01 738 3663 or through MyEnquiries, and Revenue’s online 24/7 Phased Payment Arrangement application system can be accessed through ROS, by clicking on the ‘Other Services’ section. Businesses with warehoused debt of €50,000 or more will be required to submit supporting documents with their applications. Businesses can also pay their debt through one of Revenue’s online payment channels, in full or in partial payments, and can also use an approved refund or credit to pay their outstanding balance.

Outlining the steps which businesses should take now, if they have not yet engaged with Revenue on their warehoused debt, Joe Howley advised:

It is important to stress that there is no expectation on businesses to pay their warehoused debt in full by 1 May. However, in order to retain the benefit of the 0% interest rate applicable to warehoused debt, businesses must engage with us in a meaningful way by this key date. Those businesses that submit an application for a Phased Payment Arrangement through ROS by 1 May will be considered to have met this requirement.

Where a business fails to meaningfully engage with us by 1 May, the balance outstanding will immediately be subject to standard debt collection proceedings and the standard interest rate of 8%/10% will apply. 

The crucial message, therefore, for any business that has not yet engaged with us in respect of their warehoused debt, is to act now and engage with us immediately to formulate a payment plan.

A summary of the key actions required before 1 May 2024 can be found on the Revenue website, accessible here.  

[Ends 26/04/2024]

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