COVID-19 Business Supports Hub

Top tips: Revenue & tax during COVID-19

Revenue has provided the following updated advice which will further assist businesses that are experiencing trading difficulties caused by the impacts of COVID-19.

'Warehousing' of tax 

  • Revenue will be permitted to 'warehouse' VAT and payroll tax debt that has arisen as a result of the COVID-19 restrictions - details can be found here.

Dealing with Revenue during the COVID-19 period

  • All Revenue’s telephone helplines will be closed for the period the measures are in place with the exception of the National Employer Helpline (01 7383638) which will continue to support employers with queries on the Temporary COVID-19 Wage Subsidy Scheme and the ROS Technical Helpdesk (01 7383699).
  • Enquiries and correspondence on any matter can be sent through My Enquiries.
  • Clients should check any direct debits in place with Revenue (e.g. VAT, payroll taxes, income tax, phased payment arrangements) and whether these should be altered/suspended/cancelled.
  • Revenue is prioritising issuing of refunds, in particular VAT and PSWT.
  • For PSWT refunds the claim and copies of the F45 certs may be submitted via My Enquiries (if F45 cert cannot be issued due to COVID-19 circumstances a written statement from the Government body/entity to the taxpayer should suffice).
  • R&D tax credit refunds will be processed early where corporation tax returns are filed.
  • Current tax clearance status will remain in place for all businesses over the coming months.
  • Interest on late payments is suspended for February, March and April payroll taxes and January/February and March/April VAT.
  • For businesses that have no capacity at present to pay their current taxes the Revenue is generally agreeing to a one month deferral, at which point a payment proposal should be made to Revenue. Such applications are to be reviewed by Revenue on a case by case basis.

Information for SMEs

  • Tax returns: businesses experiencing temporary cash flow difficulties should continue to send in tax returns on time.
  • Application of interest: the application of interest on late payments is suspended for January/February VAT and both February and March PAYE (Employers) liabilities.
  • Debt enforcement: All debt enforcement activity is suspended until further notice.
  • Tax clearance: current tax clearance status will remain in place for all businesses over the coming months.

Information for subcontractors

  • RCT (Relevant Contract Tax): the RCT rate review scheduled to take place in March 2020 is suspended. This process assesses the current compliance position of each subcontractor in the eRCT system and determines their correct RCT deduction rate, i.e. 0%, 20% or 35%. As this process may result in a subcontractor’s RCT rate increasing due to changes in their compliance position, the review is suspended.
  • Subcontractors and agents are reminded that RCT rate reviews can be self-managed in ROS. Subcontractors can check if their rate should be lower and can then ‘self-review’ to get that lower deduction rate.

Information on importing goods

  • Customs: critical pharmaceutical products and medicines will be given a customs ‘green routing’ to facilitate uninterrupted importation and supply.

Businesses, other than SMEs, who are experiencing temporary cash flow or trading difficulties should contact the Collector-General’s office (01 7383663). Alternatively, these businesses can engage directly with their branch contacts in Revenue’s Large Corporates Division or Medium Enterprises Division.

 

If you need assistance with your tax planning during this time, please contact us.


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