On 7 May 2020, Revenue announced additional measures to support both SME* businesses and larger businesses experiencing cashflow and trading difficulties arising from the impacts of COVID-19.
Under these updated measures, Revenue announced that the charging of interest on late payments is suspended automatically for SMEs and on request for larger businesses for the following:
- May and June PAYE (Employers) liabilities normally due in June and July respectively
- May/June VAT liabilities, normally due in July
This announcement was in addition to earlier announcements by Revenue regarding the suspension of charging interest on late payments for the following:
- January/February and March/April VAT liabilities
- February, March and April PAYE (Employers) liabilities
Revenue has again stressed the importance of filing tax returns even where payment or part payment is not immediately possible. Where key personnel are unavailable to compute the tax returns due to the COVID-19 virus, businesses should still file on a ‘best estimates’ basis. Any subsequent amendments can be completed on a self-correction basis without penalty.
Businesses other than SMEs who are experiencing temporary cash flow or trading difficulties, including larger businesses managed by Revenue’s Large Corporates Division (LCD) or Medium Enterprise Division (MED) should contact the Collector-General’s office through MyEnquiries or directly with their LCD or MED branch contacts, if they have not already done so.
It is important that businesses proactively engage with Revenue as soon as possible where they are facing difficulties in paying their tax liabilities to ensure that appropriate arrangements can be put in place.
If you require any assistance with an application for the suspension of interest, the tax team in Smith & Williamson would be happy to assist.
*For tax purposes, Revenue has advised that a SME is a business with an annual turnover of less than €3 million who is not dealt with by either Revenue’s Large Cases Division or Medium Enterprises Division. SMEs are managed from both a service and compliance standpoint by Revenue’s Business Division.
Government and Tax legislation, sourced from Revenue, is that prevailing at the time, is subject to change without notice and depends on individual circumstances. Clients should always seek appropriate tax advice from their financial adviser before making financial decisions.
We have taken great care to ensure the accuracy of this publication. However, the publication is written in general terms and you are strongly recommended to seek specific advice before taking any action on the information it contains.
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