The interest rate on tax debt frozen since the pandemic has been cut to 0%.

The Revenue Commissioners have indicated that they will take a flexible approach to repayments which will allow for pay back arrangements spanning more than five years.

There is still €1.72 billion in tax owed by businesses under the Tax Debt Warehousing scheme introduced at the height of the Covid-19 pandemic when trade was severely disrupted.

Businesses must now engage with Revenue before 1 May to draw up a plan to pay this money back.

However, they won’t face a 3% interest rate on the debt any longer and an extended pay back period might be possible without any initial downpayment.

This will be done on a case-by-case basis and companies that already paid interest of 3% will be refunded.

For more information contact McGowan Accountancy Services.