As previously advised, for the majority of businesses in the Debt Warehousing Scheme Period 2 will end on 31 December 2022. Revenue intends to contact taxpayers in October 2022 requesting they make arrangements to repay the warehoused debt. Those eligible for the April 2023 Period 2 extension will receive letters in February 2023.If a Phased Payment Arrangements (PPA) is required, it must be applied for through the normal online channels and will be subject to caseworker approval.
A standard PPA will have a down payment of 25% and a duration of up to 36 months. These applications can process very quickly.
For non-standard PPAs, the taxpayer will need to outline a business case for why a non-standard PPA is required and, as part of the caseworker review of the application, additional supporting documentation may be requested. The extent of additional documentation required will be dependent on the specific circumstances of the case and may include some of the following documents:
- Up to date bank statements
- List of all assets and any encumbrances thereon
- Outline of what, if any, cost cutting measures have been implemented in the business including drawings by the owner, directors.
- Cash flow projections
- Up to date management accounts
- Copies of any relevant Contracts which would impact [positively or negatively] on the ability to make repayments.