Debt Warehousing – 2024 Update

Debt Warehousing – 2024 Update

February 21, 2024
Amendments to the Debt Warehousing Scheme, 5 February 2024

On 5 February 2024, the Minister for Finance announced that the interest rate applicable to warehoused tax debts will be reduced to 0%.

In addition, Irish Revenue have confirmed that, where a business has already paid warehoused debt, which was subject to interest at 3%, it will get a refund of that interest. This will ensure that all taxpayers are treated fairly.

An Overview of Debt Warehousing

Warehousing of tax debt assisted businesses who experienced cash-flow and trading difficulties during the COVID-19 pandemic.

Under the scheme, you could defer paying some eligible tax liabilities until you were in a position financially to deal with the debt.

The interest rates that previously applied to warehoused debt were as follows:

  • 0% during period 1 and period


  • 3% from the start of period 3 to the repayment date

Period 3 interest of 3% has now been reduced to 0%.

Businesses availing of the Debt Warehousing Scheme have until 1 May 2024 to either:

  • pay their warehoused debt in full, if they can


  • engage with Revenue on addressing the debt, including arrangements for a Phased Payment Arrangement (PPA).

Businesses will be provided with every possible flexibility in managing the payment of their warehoused debt. This includes:

  • the level of down payment, if any, to commence the payment arrangement
  • an extended payment duration


  • the availability of payment breaks and payment deferral if temporary cash flow difficulties arise during the arrangement term.

It is essential that businesses keep up to date with current tax returns and tax payments as they fall due and engage with Revenue about dealing with the warehoused debt.​

Failure to meet these conditions will result in the business being removed from the Debt Warehousing arrangement. Where a business is removed from the warehouse, periods which had been warehoused:

  • will become payable immediately
  • may be subjected to debt collection enforcement action


  • will be subject to interest charges of 8% or 10% per annum

Benefits of engaging early

There are several benefits to engaging with Revenue early in relation to the repayment of warehoused debt such as:

  • providing certainty for businesses in their financial position and allowing future cashflow to be planned
  • allowing time to agree the best repayment solutions appropriate to the business
  • payment arrangements that can be activated now with a minimal down-payment and monthly repayments commencing later in May 2024


  • if circumstances change in the interim, the payment schedules can be adjusted.

How UHY FDW can help

If your business has availed of the Debt Warehousing Scheme, you must engage with Revenue prior to May 1, 2024. Our tax experts are available if you would like further information on how the changes to the Debt Warehousing Scheme may affect your business.