Jackie Cahill
Ceist:48. Deputy Jackie Cahill asked the Minister for Finance his plans for the continuation of VAT and PAYE warehousing for the hospitality sector; and if he will make a statement on the matter. [4785/21]
Amharc ar fhreagraThursday, 28 January 2021
Ceisteanna (48)
Freagraí scríofa
The Debt Warehousing Scheme remains available to support businesses, including the hospitality sector, experiencing tax payment difficulties arising from the current COVID-19 public health restrictions. Currently, there are approximately 70,000 businesses availing of the scheme covering €1.9 billion in tax debt. An information leaflet is available on Revenue’s website at https://www.revenue.ie/en/corporate/communications/documents/debt-warehousing-reduced-interest-measures.pdf .
The scheme was expanded in Budget 2021 to include certain self-assessed income tax liabilities (balance of 2019 Income Tax liability and 2020 preliminary tax) and Temporary Wage Subsidy Scheme (TWSS) overpayments in addition to PAYE (Employer) and VAT tax debts that have arisen due to the COVID-19 crisis.
Under the scheme, these debts can be ‘parked’ on an interest free basis for 12 months following resumption of trading. At the end of the 12-month interest free period, the warehoused debt may be paid in full without incurring an interest charge or paid through a phased payment arrangement at a significantly reduced interest rate of 3% per annum. This compares to the standard rate of 10% per annum that would otherwise apply to such debts.
Any business, including those operating in the hospitality sector, experiencing trading difficulties as a result of COVID-19 restrictions can avail of the scheme whether it had done so during the previous period(s) of trading restrictions or not. Businesses that previously availed of the scheme, and subsequently resumed trading and paying their tax debts as they arose, can recommence using the scheme if their trade has again been impacted by the current restrictions, which will remain in place until 5 March 2020. The warehousing facility remains available to eligible businesses for at least two months after resuming trading, for example a business that resumes trading in March 2021 can continue to warehouse VAT and PAYE (employer) liabilities until June 2021.
Eligibility for the scheme remains the same in that access is automatic for SMEs and on request for larger businesses. It also remains a requirement that businesses continue to file all relevant tax returns for the restricted trading period(s) so that the tax debt can be quantified and included in the scheme.
Finally, Revenue has confirmed that it is in the process of writing directly to businesses availing of debt warehousing to confirm that the scheme remains available for those that have had to close or continue to be significantly negatively impacted by the current COVID-19 related restrictions.