As part of the Covid-19 July Stimulus Package, Revenue announced that certain Revenue liabilities will be subject to a reduced interest rate of 3% under a Phased Payment Arrangement (PPA). These liabilities comprise VAT, PAYE, Income tax, Corporation tax, CGT and RCT; and returns must be filed with Revenue before agreement is reached.
The deadline for applying for the PPA is the 31st October 2020. If you want to avail of this, please contact our office and the team here will prepare the necessary documentation and present it to Revenue where agreement will be reached. Qualifying liabilities are those that arose prior to 30 September 2020.
If your income tax for 2019 has been filed or will be filed prior to the 31st of October, this can potentially form part of the PPA.
Specifically, if your preliminary tax payment for 2019 was not sufficient, the due date for the balance of your 2019 liability reverts back to 2019, which means that this liability can qualify for the reduced interest rate. On the other hand, if your preliminary tax payment for 2019 was sufficient, the due date for the balance of your 2019 liability is 31 October 2020, which means that this liability cannot qualify for the reduced interest rate (because it falls due after 30 September 2020).
In order to qualify:
•The relevant tax returns must be submitted to Revenue in advance.
•An application must be submitted to Revenue for a phased payment arrangement before 31st October 2020.
•A down payment will have to be paid.
•The balance can be deferred for a number of months and paid over an extended period.
Please note this is for Revenue debts outside those that can be warehoused. Please refer to our website and previous
communication for further information on warehousing.
Normal interest rates (10% for VAT, PAYE and RCT; 8% for Income Tax, Corporation Tax and CGT) will apply until the application is agreed with Revenue. The reduced interest rate of 3% then applies for the period of the phased payment arrangement.
It is important to note that, if there are any undisclosed liabilities to Revenue, these can also qualify for the same rates, once there is a qualifying disclosure submitted to Revenue before 31st October 2020.
Going forward, you must ensure that all your tax returns are submitted on time and that agreed payments are made. Otherwise, Revenue have the power to cancel the phased payment arrangement and the reduced interest rate would no longer apply.
If you want to avail of this Phased Payment Arrangement with Revenue, please contact our office as soon as possible so that we can begin the process.
If you have any queries in relation to this matter, or indeed any other tax or financial issue, please contact Francis Moriarty or your usual PSC contact.
Our message is simple, we are here to help.
On behalf of the entire team here in PSC, we wish you and yours good health and Stay Safe.
2nd Floor Riverside House, Dan Spring Road, Fels Point, Tralee, Co. Kerry,
T: +353 66 7126333 E: email@example.com