Looking to postpone your tax payment? Revenue sets December deadline

Self-employed have until December 10th to apply for income tax warehousing scheme

The ability to postpone your tax payment applies to all self-assessed income taxpayers – including those with rental income

The ability to postpone your tax payment applies to all self-assessed income taxpayers – including those with rental income

 

Those hoping to avail of the Revenue’s offer of paying no tax this year have until December 10th to file their return and request use of the scheme.

Last week the Minister for Finance Paschal Donohoe announced that the Tax Debt Warehousing Scheme, which had been used by larger companies to postpone their tax payments, would be extended to self-employed people with income tax liabilities for 2019.

The scheme means that the self-employed can now postpone payment of 2019 tax liabilities as well as 2020 preliminary tax. Such liabilities will be warehoused for a period of 12 months following a resumption of “normal trading”, during which time Revenue will not look to collect payments owed nor will it charge any interest.

Revenue has now confirmed that applicants have until December 10th to apply for the income tax warehousing scheme, the same date that they must file their 2019 Form 11 and to pay preliminary tax for 2020.

The ability to postpone your tax payment applies to all self-assessed income taxpayers – including those with rental income. This means that landlords can also apply for an interest-free postponement of their tax liabilities; however,applicants must show that their income for 2020 has been reduced by at least 25 per cent compared to 2019.

For those taxpayers who paid too little preliminary tax last year to meet this year’s bill, Revenue is also extending a helping hand. While you cannot “warehouse” this underpayment Revenue will allow you to pay it in phased payments, at a reduced interest rate of 3 per cent. Again, however, you need to agree this with Revenue by December 10th.