The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. Among the issues discussed, Revenue provided clarity on the tax clearance requirement for Residential Premises Rental Income Relief claims, provided an update on its banking modernisation programme, and advised that the PAYE Exclusion Order application is going online. Minutes of the meeting will be available in due course.
Residential Premises Rental Income Relief & Tax Clearance
Residential Premises Rental Income Relief (RPRIR) contained in section 480C TCA 1997 provides an income tax relief for landlords with qualifying residential premises rental income. It requires landlords with residential property wishing to claim the relief to have tax clearance on 31 December 2024. However, as it is a new relief, landlords who may have been tax compliant on 31 December 2024 may not necessarily have held a clearance certificate on that date.
Revenue has confirmed that on an administrative basis, it will accept the landlord’s current tax clearance at the time of filing the tax return. Revenue will update the relevant guidance to reflect this position.
A landlord filing a Form 12 income tax return without a current tax clearance in place at the time will see an error message to prompt them to apply for a tax clearance prior to filing.
ROS issues with RPRIR
Revenue is aware of issues with the ROS Form 11 calculation of Residential Premises Rental Income Relief (RPRIR) for properties with shared ownership in jointly assessed cases. A fix for RPRIP in the Form 11 will be released on 21 June 2025. Revenue will correct any submissions that have been made before that date.
Local Property Tax
Revenue noted that there are 2.1 million residential properties owned by 1.4 million taxpayers with 95 percent payment compliance to date. Revenue is aware of approx. 17,000 taxpayers registered for either income tax or corporation tax with an exposure to the Local Property Tax (LPT) surcharge if they file an income/corporation tax return before they pay their LPT liability. Revenue wishes to remind agents to check that their clients are LPT compliant before the filing deadline and, if required, put in place a separate agent link which is necessary for each property. Revenue is encouraging agents to check LPT compliance with their clients well in advance of the income/corporation tax filing deadlines to avoid unnecessary delays.
A revaluation of properties for LPT purposes will be required on 1 November 2025 and Revenue will commence a bulk issue campaign in mid-September advising them of the changes and their obligations.
Form 50A request for offset
CCAB-I has received feedback from members reporting delays in Revenue approving F50A offset requests and which is resulting in taxpayers incurring interest charges on late payment of tax, although the money is with Revenue. Based on CCAB-I’s feedback Revenue informed the group that it will mark F50A offset requests as priority so the offset is available when the other activity happens.
Banking Modernisation
A new payments hub panel will be available on the ROS landing page in mid-August to manage bank account details and create new variable direct debit (VDD) mandates. Taxpayers will be able to see payment activity and status. Guidance will be updated accordingly.
The VAT fixed direct debit (FDD) scheme will begin to be wound down from August 2025. VAT FDD taxpayers will be moved to pay and file VAT returns on a bi-monthly basis but, where applicable, they can opt to file tri/bi-annually.
In September 2025, taxpayers paying preliminary tax by direct debit will be migrated to the new payments hub. They will be required to complete and return a new direct debit mandate which will be sent to them by Revenue. Linked agents will be copied on the request.
In 2026 Revenue intends to integrate the remaining direct debit arrangements (LPT, VHT, NLWT and C&E) onto the payments hub. It hopes to replace RDIs with VDDs for most tax heads removing the necessity for taxpayers to ‘push’ payments to Revenue. The single debit instruction (SDI) may be redesigned to have future dated SDIs. Revenue will also endeavour to migrate RCT to the payments hub at a later date.
Revenue also informed the meeting that it will no longer accept payment by commercial debit card from 1 September 2025.
PAYE exclusion order going ‘live’
Revenue informed the group that the PAYE exclusion order application process is going online. The paper system will continue to run in tandem for a period of time and the Tax and Duty Manual and notes for guidance will be updated in due course.
Revenue has advised that there is no separate permission required to apply for PAYE exclusion orders but the agent does have to be linked to the applicant in order to apply on behalf of the applicant. If agents are applying on behalf of an employer or a PAYE employee, they must be the PREM/ payroll agent or the PAYE agent on record.
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