The CCAB-I attended a recent TALC Collections meeting where Revenue provided details on the Debt Warehousing Scheme and the end of year review process for TWSS and PUP recipients. The CCAB-I highlighted to Revenue the huge pressures facing businesses and practitioners in meeting the TWSS reconciliation deadline of 31 October.

Letters relating to the debt warehousing scheme initially expected to issue to taxpayers by 15 October will issue in the first two weeks of November. The letter can take one of two possible formats. The letter will address outstanding tax returns which need to be submitted for the purposes of the scheme, or the letter will acknowledge that the debt warehousing scheme is in place. The letter has a standard end of period 1 (restricted trading phase) date of 31 August. If a taxpayer’s business was restricted for a longer period, then the taxpayer should contact Revenue and demonstrate that they have a later end of Period 1 date.

Revenue are putting plans in place for its end of year activity. The TWSS and PUP will be included in the end of year statement and PAYE taxpayers can then make a tax return claiming additional credits. Any underpayment of tax will be coded onto the taxpayer’s tax credits and rate bands from 2022 and will be collected over four years. Revenue will not treat a payment of tax due under the TWSS by the employer on behalf of an employee as Benefit In Kind. This treatment will be set out in the next update to Revenue’s TWSS Frequently Asked Questions guide.

The CCAB-I stressed how difficult it is for businesses and practitioners to cope with all the competing deadlines which fall due this winter. In particular, the CCAB-I requested that the TWSS reconciliation deadline be pushed out to the new year and that the current practice of not applying a late filing surcharge to Forms CT1 continues to at least the end of this year.