Revenue issued a guidance note yesterday, 13 March 2020, which will be of interest to many of our SME clients. The note can be accessed at https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-130320-revenue-announce-measures-to-assist-smes-experiencing-cashflow-difficulties-arising-from-covid-19.aspx
The main points as they apply to SME clients are as follows:
Application of Interest: The application of interest on late payments is suspended for late payments of January/February 2020 VAT (due by 23 March 2020) & for both February and March 2020 Employer PAYE 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.
To avail of the benefits noted above it is critical that the returns are submitted to Revenue on time notwithstanding that the associated liabilities remain outstanding.
Further information and guidance is excepted to issue from Revenue as this situation evolves.
UPDATE – Revenue have clarified their definition of an SME as follows
– for tax purposes, an SME is a business with at Turnover of less than €3m who is not dealt with by either Revenue’s Large Cases Division or Medium Enterprises Division.