The Government has announced that Revenue will be permitted to 'warehouse' VAT and payroll tax debt that has arisen as a result of the COVID-19 restrictions. The details are yet to be announced, but the following are the key points:

• COVID-19 related VAT and payroll tax debts, due from 1 March 2020 to the date when sectoral restrictions are lifted, will be parked for a period of 12 months;
• no interest will accrue on the tax debts during the 12 month period;
• reduced interest rate of 3% (down from 10%) will then apply until the debt is paid;
• the timeframe allowed to pay the ‘warehoused’ debt will be flexible and will take account of current taxes due;
• for the warehousing arrangement to apply, all returns must be filed in accordance with the Revenue guidance that has applied since the start of the current pandemic.