May 1st 2024 is the deadline set by Revenue for hospitality businesses to pay back tax warehoused during the pandemic. At a minimum, those who have take advantage of the scheme will need to repay 20% of what they owe, with a payment plan for the remaining 80%. This deadline was already extended from 1st January 2023 to the new May date, back in October 2022.
Revenue issued advice in December to start planning for the repayment of warehoused debt, and settle phased payment agreements where necessary. In addition, the VAT rate for hospitality businesses has recently gone from the special 9% rate back to the more usual 13.5%. There’s an expectation that this deadline will result in many more pubs and restaurants closing their doors. This isn’t solely due to the pandemic; it’s part of a longer-term trend. According to the Irish Times, 22.5% of pubs in Ireland have closed since 2005, and more than 150 a year since 2019. But this deadline’s enforcement is going to put pressure on businesses that are already having difficulties.
If you’re concerned about this, or any other aspect of finance for your company, contact HTH Accountants to discuss it and get some help!