Special warehousing and interest provisions (Section 3, 4 and 5)

Jul 27, 2020

Debt warehousing legislation is set out in the Bill to support the scheme announced in May. The measures deal with VAT and PAYE debt incurred by businesses, who, due to Covid-19 related restrictions, are unable to pay their liabilities and who have filed all required PAYE, VAT and employment contributions returns. No interest will be charged on PAYE and VAT debts for the initial “Covid-19 restricted trading period” (period 1) or twelve months thereafter (period 2, the “zero-interest period”). Period 2 may be extended by Ministerial Order up to 31 December 2022. Interest will be charged at a reduced rate of 3 per cent per annum in Period 3 until the debt is paid in full.