Taxes Consolidation Act 1997 section 1080C

Covid-19: interest charge on relevant person under section 1080B

Section 1080C removes the interest charge on warehoused income tax for an owner-director where both the director and their employer company have availed of Covid-19 debt warehousing, ensuring that interest on the tax due on the director's salary is collected from the employer only.

• Where an owner-director and their employer company have both warehoused tax liabilities relating to the director's salary, interest on the director's warehoused income tax is suspended
• The section applies only where the director holds a material interest in the employer company and both parties have complied with the conditions of their respective warehousing arrangements
• Interest on the warehoused tax attributable to the director's salary is collected from the employer company rather than from the director personally
• If the employer fails to meet its warehoused payment obligations, the interest exemption is lost and the director becomes liable for interest on the unpaid tax from the date of the employer's default