Debt Warehousing – Phase Payment Arrangements

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Debt Warehousing – Phase Payment Arrangements

Revenue has recently started to write to some of our clients who availed of the Debt warehousing scheme and have outlined the following options: 

Debt Warehousing and Phased Payment Arrangements: 

There is an option to enter a Phased Payment Arrangement (PPA) With a PPA, you can spread payments over a maximum period of 60 months, resulting in substantial interest savings. Interest has been accruing on your Debt Warehousing at the rate of 3% per annum since 01/01/2023. 

Negotiating the Down Payment: 

When setting up a PPA, you have the option to negotiate the down payment. The down payment can be a reasonable amount. This provides a level of flexibility, allowing you to choose a reasonable amount that aligns with your financial capacity. 

Payment Break Option:

Upon making the down payment, you can apply for a payment break, for a maximum period up to May 1, 2024It’s important to note that you must request this option via Revenue Online Service (ROS). 

Application Process:

To initiate a PPA, you will need to submit the necessary documents, including PPA1 and supporting materials (Bank statements, forecasted cash flow, updated financial statements). For a detailed guide on the application process, please contact us and we can talk you through it.

Alternative to PPA: 

If you do not wish to enter any arrangement at this time, to ensure you can avail of the 3% interest rate on warehoused debt, a payment arrangement will need to be agreed upon with Revenue by 1 May 2024 to address the warehoused debt. Revenue recommends engaging early in advance of the 1 May deadline to avoid having the risk of debt warehoused revoked and the debt becoming collectable immediately with full interest charges applying.

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