Income tax warehousing – Information Booklet updated

Dec 07, 2020

Revenue updated the Information Booklet on the Debt Warehousing Scheme to provide for two new questions in the FAQ section on income tax debt warehousing. The new questions cover the situation for jointly assessed couples seeking to warehouse income tax debt and the availability of the scheme to landlords whose tenants are unable to pay rent due to COVID-19.

The new questions included in the Information Booklet are:

Paragraph 4.28 - Can a couple who are jointly assessed for income tax purposes avail of warehousing where one spouse or civil partner is self-employed and the other has PAYE income?

Under joint assessment, the assessable spouse or civil partner is charged to tax on the combined total income of the assessable and non-assessable spouse/civil partner. To be eligible for warehousing of preliminary tax for 2020 and the balance of income tax for 2019, the couple’s combined total income for 2020, returned by the assessable spouse/civil partner, should be estimated to be less than 75% of the couple’s combined total income for 2019. However, for a couple subject to joint assessment, where one spouse/civil partner is self-employed and the other is a PAYE employee, Revenue will treat the assessable spouse/civil partner as eligible to avail of debt warehousing if the income of the self-employed spouse/civil partner for 2020 is estimated to be less than 75% of that spouse’s/civil partner’s income for 2019.

Paragraph 4.29 - Can a landlord warehouse income tax liability if a tenant is unable to pay rent due to COVID-19?

If a landlord’s tenant/s is/are unable to pay all or part of the rent due under a tenancy, as a result of the impact on their income of Covid-19 restrictions, and as a consequence the landlord estimates her/his total income for 2020 will be less than 75% of her/his total income for 2019, the landlord can avail of debt warehousing for income tax.