Revenue Help - How Likely is it?

Hi Everyone

I owe Revenue 18,000 from last year, I am keeping up to date with this years quartely payments for Revenue, but want to put a payment plan in place over 24 months for last years arrears, does anyone know if this is possible?

I would not be able to keep my business going if I were to pay them back in 12 months as is the norm on payment plans. I employ 18 people in a small business, I would have to put them all on the dole which would cost the state over 180,00 if I did this, but I owe them 18,000 and it makes more sense for me to pay them back over a longer period than put everyone on the dole which would be my only option if a payment plan was not acceptable to Revenue.

I am confident I can pay back over 24 months, longer would be great, I struggled last year paying a huge bank loan back and have completed that so now would be free to pay my Revenue arrears.

This is making lose sleep every night and I am a wreck because of it.

Any help would be greatly appreciated, especially on how to approach Revenue as I dont have the confidence at the moment or the know how as this stage to make that first call to them.

Thank You.

Contact Revenue's debt management section (ring the Collector-General's office and you'll be put through).

You'll be asked to make a lump sum payment of about 25% of the outstanding debt and then you should be able to pay the balance over 24 months. If you require a tax clearance certificate, Revenue may look for a 40% downpayment. It is possible to push the timescale out further, but Revenue will try and resist this. Interest at approximately 10% will be applied. You'll also have to keep your tax affairs up to date. The above percentages are also negotiable within reason.

The staff in the debt management section are generally helpful. Be upfront, be honest, be friendly with them and they'll work with you. They actually don't want you entering into an arrangement that you can't stick to, so be fair to yourself and to them. Two years ago, they were far more difficult to deal with but I've noticed a more pragmatic approach from them of late.

If you require a further steer, PM me and I'll do my best to help. Small businesses like yours are the cornerstone of our economy and will drive its recovery.

Hi there

I have organised quite a few installment plans with Revenue for clients recently.

Although what the above poster has said is correct and this is what you are told when you enquire - I have been able to arrange several 36 month payment plans with no downpayment.

I am in the middle of trying to arrange a 60 month plan, with no doenpayment but I dont have the outcome of this yet.

Revenue are very helpful and are very accommodating in my experience.

Thank you to you both for your swift replies which are very much appreciated, what you have given me is hope, something I did'nt have two hours ago before I wrote my query. I will take on board all the advice you have given me, I dont think people on here realise the benefit of these threads, especially when you are the one on the other end desperate for advice and direction.

Thank you so much.

Gekko said:

It is possible to push the timescale out further

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Tomorrow said:

Although what the above poster has said is correct and this is what you are told when you enquire - I have been able to arrange several 36 month payment plans with no downpayment.

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As I said, it's possible to push the timescale out further. However, the OP is looking to pay over 24 months.

Best of luck, Carols. Any queries, post in this thread or feel free to PM.

Just to reinforce what the posters above have said, I am aware of a number of similar arrangements that have been agreed over periods of up to 36 months which did not require any downpayment up front.

Thanks a million guys, I will make a call to the Revenue today, my only worry is getting the right person and someone who can actually make a decision, I wonder is it just the luck of the draw as to who you get on the other end of the phone.

You are entirely correct that you need to speak to the correct person. Just keep trying until you do. In your circumstances you really need to go and have a meeting with someone senior.

Don't forget it's like any other negotiation but revenue are being reasonable.

This must be causing you unbearable stress and well done for keeping the business going in these difficult times, if you're able to do that you're able to deal with revenue. They are well aware of how business is currently and have set up units to deal with arrears in a sympathetic manner. Best of luck.

Carols said:

Thanks a million guys, I will make a call to the Revenue today, my only worry is getting the right person and someone who can actually make a decision, I wonder is it just the luck of the draw as to who you get on the other end of the phone.

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It may already have been assigned to a caseworker. Do you have a tax adviser? You could ask them for assistance although you would then be incurring costs.

You're not looking for the sun, moon and the stars so hopefully you should be able to strike a deal.

As per the earlier posts, keep us updated and feel free to revert if you require a further steer.

I just wanted to update this thread on my earlier post, in case there is anyone else in the same boat.

I was successful in arranging the 60 month installment arrangement with Revenue for my client, with no downpayment.

The amount is quite large and after providing Revenue with all the required information, ie creditors, debtors, cash flow projections etc, they were quite fast in coming back with approval for the plan.

Is interest applied to these installment plans??

Yes, there is interest charged. I dont have the rate to hand but I think its about 8%

Not sure but is the interest negotiable, do revenue waive it in certain circumstances.

The interest is 0.0332% per day which approx. equates to 12% per annum. I presume these cases arent in a position to borrow from banks (surely at a cheaper rate than 12%) and settle with the Revenue, maybe even getting a discount from Revenue?

Paddy199 said:

The interest is 0.0332% per day which approx. equates to 12% per annum. I presume these cases arent in a position to borrow from banks (surely at a cheaper rate than 12%) and settle with the Revenue, maybe even getting a discount from Revenue?

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The rate is 0.0219% per day for direct taxes (e.g. income tax, corporation tax, CGT and gift tax). That's about 8% per annum.

The rate is 0.0274% per day for indirect taxes (e.g. VAT, payroll taxes and relevant contracts tax). That's about 10% per annum.