Representatives from the Institute, under the auspices of the CCAB-I, attended the first meeting of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements Subgroup last week to discuss the implementation of enhanced reporting requirements provided for in section 897C TCA 1997. The new legislation, which will be effective from 1 January 2024, requires that employers report certain non-taxable payments made to employees. The ‘reportable benefits’ are travel and subsistence payments, the remote working allowance and the exempt small benefits.
Revenue informed the group that it has been engaging with the Payroll Software Developers Association (PSDA) and other software providers to assist in the development of software to enable taxpayers to make the necessary submissions under the new regime. Revenue advised that it identified the various providers following a survey it commenced in January.
Revenue is now encouraging employers to contact their software providers to ensure their software will integrate with Revenue Systems. For employers that will not be using software, Revenue is in the process of developing its own reporting platform on ROS, separate to its payroll reporting platform. It is Revenue’s intention that reporting will be done on a real-time basis. At the subgroup meeting, practitioners raised their concerns with the additional costs associated with the new measures as well as concerns around the practicality of real-time reporting.
Revenue is planning to engage with employers from September to provide webinars and information sessions on the new system, following distribution of the attached leaflet in the coming weeks. Noting Revenue’s intention to implement the new reporting system from 1 January 2024, our representatives expressed concern at the minimal preparatory time to be given employers and their agents to comply with the new requirements.
The Institute has been highlighting to Revenue the onerous and costly administrative burden that this new reporting requirement will cause for all businesses. Cróna Clohisey, Tax and Policy Lead in the Institute also raised concerns about the system in a piece in the Sunday Independent Business at the weekend.
We will keep members updated of developments in this area.