At a recent meeting of the TALC Collections group, Revenue highlighted important updates on the Tax Debt Warehousing Scheme, phased payment arrangements and eRCT bulk rate reviews.

Period 1 of the Tax Debt Warehousing Scheme concludes on 31 December 2021. Revenue recently commenced issuing letters to taxpayers in the Debt Warehousing Scheme setting out compliance issues where returns are outstanding. In cases where compliance is in order, then the letter provides a schedule of the warehoused tax debt. The letter also notes that qualifying businesses can warehouse PAYE and VAT debt up to 31 December under Period 1. Revenue will write again to taxpayers in the Debt Warehousing Scheme in February confirming their final tax debt in the warehousing scheme.

In March, Revenue plan to launch an enhancement to the phased payment arrangement facility where by a taxpayer can combine a tax debt warehoused phased payments arrangement with non-warehoused tax debt phased payment arrangement.

Revenue confirmed that 4,310 individuals warehoused income tax debt on the basis that they experienced a 25 percent reduction to total income when compared to 2019, due to the impact of COVID-19 restrictions. Another 922 individuals availed of the extended scheme provided for under Finance Bill 2021 which facilitates directors impacted by section 997A TCA 1997 whose PAYE was warehoused by their employers.

Revenue will operate an eRCT bulk-rate review in early 2022 on sub-contractors in Revenue’s Business Division. Revenue will issue letters in advance to taxpayers to give them an opportunity to regularise their tax compliance in advance of a RCT rate change.