Revenue won’t charge small businesses interest on late payments of taxes
Move by Revenue is one of a package of State supports to help businesses hit by Covid-19
Revenue will not charge small companies interest for late payment of income tax and VAT over the coming months to aid business through the Covid-19 crisis.
Revenue will not charge small companies interest for late payment of income tax and VAT over the coming months as part of the State’s efforts to aid business through the Covid-19 crisis.
The Government last week announced extra supports for enterprises hit by the coronavirus lockdown when it gave details of plans to lift restrictions over coming months.
Revenue confirmed on Thursday that the measures include suspending interest charges on pay as you earn (PAYE) and VAT for this month and June that employers would normally pay next month and in July.
The tax authorities said the suspension would automatically apply to taxes due from companies with annual turnovers of up to €3 million and to bigger businesses that request the support.
The scheme is in addition to existing arrangements deferring payments of VAT for January/February and March/April, and PAYE due for February, March and April.
Revenue said that the total amounts deferred under these arrangements now stands at more than €1.26 billion.
Under the new scheme, Revenue will ringfence VAT and PAYE debts due while a business cannot trade or is restricted from doing business by the Covid-19 measures. Employers pay PAYE to Revenue on their workers behalf.
Revenue will also ringfence tax debt due for a further two months after a business resumes trading .
“There will be no collection of any of the debt in question during this period and no interest will apply,” Revenue said in a statement. The debt will be “warehoused” for 12 months after trade resumes, meaning that Revenue will not collect it or charge interest.
However, once normal trade resumes, businesses will have to pay ongoing liabilities as they arise.
Revenue’s statement stressed that businesses that want to avail of the scheme should make all relevant returns while trading is halted or restricted.