Taxes Consolidation Act 1997 section 1080B

Covid-19: special warehousing and interest provisions (income tax)

Section 1080B allows self-assessed income taxpayers whose income fell by more than 25% as a result of Covid-19 restrictions to warehouse unpaid income tax liabilities, with interest relief during the warehousing period.

• Self-assessed taxpayers who declared that their 2020 or 2021 total income was less than 75% of their 2019 income due to Covid-19 restrictions could defer payment of income tax liabilities falling due during Period 1, provided they remained compliant with filing obligations.
• No interest accrues during Period 1 or Period 2; during Period 3, interest at 3% per annum (0.0082% daily) applies, but only if the taxpayer engaged with the Collector-General before 1 May 2024 to agree a payment plan and continues to comply with its terms.
• If a taxpayer fails to comply with tax obligations or does not enter into a payment arrangement with the Collector-General, interest reverts to the standard rate of approximately 8% per annum (0.0219% daily), backdated to the relevant non-compliance or default date.
• A self-assessed taxpayer with a material interest in a company that has warehoused PAYE employer liabilities under section 991B may warehouse the Schedule E liability arising from that company, even where the 25% income-reduction test is not met.