News

Tax

Since January of this year Revenue has received circa 380,000 Form 12 income tax returns from PAYE taxpayers. Most of these returns (99 percent) were submitted online according to Revenue at a recent meeting of the TALC Collection subcommittee. Revenue continue to review the treatment of Directors under the real time PAYE system. Revenue told us that the Revenue Legislative Service are now considering the matter of the PAYE and income tax treatment of Directors, which includes the submission we made to Revenue last November.. We continue to engage with Revenue on this important matter and will keep you informed of any developments.

Mar 09, 2020
Tax

The final minutes of the TALC Audit subcommittee meeting which took place in November 2019 are now published on the Revenue website.  The minutes note the representations made concerning the PAYE real time reporting system and Directors.  We continue to engage with Revenue on the practical issues raised by members; the main issue being the practical income tax and PAYE treatment of Directors’ fees and other related payments.  We will report any updates when we receive them.   

Mar 02, 2020
Tax

Employees and directors will not receive a P60 for 2019. Instead an Employment Detail Summary is available to view and download in myAccount. This summary replaces the P60 and shows pay and statutory deductions for the year as reported by employers or pension providers. It is like the information that was stated on the P60. It can be used in the same way as a P60 was previously used, for example, it can be provided to third parties as proof of income. More details are available on the Revenue website.  The summary can be accessed in the ‘PAYE Services’ on myAccount. Revenue have an information video which sets out how to access your pay and tax details on myAccount.

Jan 06, 2020
Tax

We have had extensive discussions with Revenue at the TALC forum on PAYE and directors.  Last November we submitted to Revenue a document setting out the clarifications as sought by members. In response Revenue provided an information note.  We will continue our discussions with Revenue on this area and publish any clarifications and updates as we receive them. As a reminder, we published information on PAYE and directors in September last which may be of some help. 

Jan 06, 2020
Tax RoI

In response to members queries raised with us recently on the treatment of payments to directors and real time PAYE, we have assembled the main information from Revenue and legislation and summarised below.   Treatment of income Payments to directors of Irish incorporated companies are subject to the Schedule E charge to Irish income tax and to deductions at source under the PAYE system. More information is contained in Revenue Tax and Duty Manual Part 42.04.61.  The legislation (section 112 Taxes Consolidation Act 1997) provides two treatments for directors depending if the individual is a proprietary director (holds at least 15% of the company shares) or a non-proprietary director:   Income (i.e. Director’s fees) received by a proprietary director is taxed when the income is earned i.e. at the time it is put through the accounts and not when received. Proprietary directors also have to file an income tax return and include details of the director’s fees earned.   Income received by a non-proprietary director is taxed when it is actually received. Under PAYE Modernisation any payments paid to non-proprietary directors must be reported to Revenue on or before the pay date. The PAYE system applies to both proprietary and non-proprietary directors as it does to any other employee. For proprietary directors, emoluments paid more than six months after the end of the accounting year, are deemed paid on the last day of the previous year. In these instances, the company must make an amendment to the payroll submission for that period and resubmit to Revenue. See the Revenue website for more information on payment to directors. General treatment Since 1 January 2018, income from an office/employment is chargeable to tax on a receipts basis. This means that the income is subject to tax, USC and PRSI when it is received, regardless of when it is earned. Income received by a proprietary director is still taxed on an earnings basis. Employers must, however, operate PAYE on the director’s salary at the time of payment and report this payment to Revenue on or before the date it is paid. More information on employers’ PAYE obligations can be found in Revenue's Tax and Duty Manual Part 42.04.35a. We continue to engage with Revenue via the TALC forum on PAYE Modernisation and aspects of the system that are of concern to members.  We have specifically raised the treatment of payments to directors and guidance specific to these cases and we will report on any further clarifications in Tax eNews as they arise. 

Sep 30, 2019
Tax RoI

Revenue has updated the Employer’s Guide to PAYE to provide clarification on the following: The meaning of gross pay Employer’s obligations when employments commence Using the Revenue Payroll Notification (RPN) Revenue say that while the majority of employers are submitting accurate payroll information, some recurring issues have been identified.  Employers can contact the National Employer Helpline on 01 7383638 if they need help.  Employers are also reminded to ensure that their contact details are correct on ROS.  Read Revenue’s eBrief.

Aug 19, 2019
Tax

From 15 May onwards, employees can view their payroll information in MyAccount under the new real time reporting PAYE system. Employers must make a monthly return of pay details by the 14th day of the following month. Therefore employees can view their pay and tax details for the previous month once the return has been received by Revenue’s system. For example, from 15 May onwards, an employee should be able to see his or her pay and tax details for the month of April. The information reported to Revenue by an employer does not include non-statutory deductions, such as union subscriptions or payments to a credit union.  Therefore these deductions are not available to view in myAccount.  See Revenue’s webpage - PAYE Modernisation for employees for more details. 

May 20, 2019
Tax

Revenue will be visiting a number of employers in the coming weeks to alert the employer to the issues identified with data submitted under the new real time PAYE system.  Revenue’s objective is to assist the employer correct the data and ensure that correct data is submitted going forward. Details of common mistakes in the operation of the new system are set out in eBrief 93/19. According to Revenue, these are “service for compliance visits” to provide additional assistance to employers on the correct operation of the new reporting requirements.  The visits are not audits and the opportunity to self-correct without penalty is available to the taxpayer.  Revenue told Chartered Accountants Ireland that they will make advance contact by telephone with the employer to ensure the visit is at a convenient date and time for the taxpayer.  The employer will be advised what information to have available for the visit.

May 20, 2019
Tax RoI

Revenue published an update on PAYE Modernisation last week stating that since its launch on 1 January 2019, 161,000 employers have submitted over 2 million payroll submissions in respect of 2.6 million employees. The update highlights several recurring issues with payroll submissions that Revenue are seeing.  No timeline however is given for one of the key benefits of PAYE modernisation as proposed to taxpayers - that employees should have access to view their payroll information via MyAccount. The update sets out that when errors with payroll submissions arise, Revenue are urging employers to immediately rectify these errors to reduce the possibility of a Revenue intervention. The update also outlines that Revenue will continue to assist any employer who is experiencing genuine difficulty in complying with the new PAYE requirements. However, Revenue are reminding readers that employers who fail to engage with Revenue or who persistently breach the PAYE Regulations are liable to a €4,000 penalty per offence under section 987 TCA 1997.  Revenue are also informing employers that when employees receive online access to their payroll details, any discrepancies between payroll details on an employee’s payslip and those reported to Revenue will be visible to the employee and as such the data submitted to Revenue should be accurate and in line with the employee’s payslip record.  Read Revenue’s update.

May 07, 2019
Tax RoI

Revenue’s guidance on foreign employments has been updated to clarify when income from a foreign employment should be reported to Revenue when an employer has dual reporting obligations in Ireland and in a foreign jurisdiction. The guidance also outlines when an employer is relieved from the obligation to operate PAYE in respect of a foreign employment exercised in Ireland.

Mar 04, 2019
Tax

Revenue have updated its ROS guidance to reflect additional services available to employers in the Employer Services panel in light of PAYE modernisation.   Revenue will no longer send emails to agents to notify them when a client’s monthly statement has been sent to their ROS Inbox. Agents should check ROS on the 5th of each month to view the monthly statements for each employer that is linked to them.  

Mar 04, 2019
Tax RoI

Last Friday Revenue issued a statement to say that during the first month of go live, Revenue received payroll information for over 2.4 million employees, representing 90 percent of employees registered with Revenue.  While this is wondrous in terms of tax administration, there is still no real time access for employees, which had been promised as a benefit of PAYE Modernisation.  For many employers the new system has merely added to workload and costs with little apparent benefit. Revenue have said that they are writing to 65,000 employers, advising them to check their January ‘Nil’ statement, and if any amendments are required to make these before 14 February, to address the 10 percent of employees for whom Revenue did not receive payroll information.  Statements reflecting the January payroll information issued on 5 February.  Employers have until this coming Thursday (14 February) to make any amendments/correct errors to the payroll submissions, after which it will form the statutory return. If the payroll details are correct no action is necessary and the details will be deemed to be the statutory monthly return on 14 February. This will be the process each month. Revenue have also said that they intend to make real time reporting available to employees shortly. We will keep you updated as to when employees can expect to receive this access. Chartered Accountants Ireland under the auspices of the CCAB-I are in discussion with Revenue regarding the terms of a self-correction mechanism under the new real-time PAYE system.  The CCAB-I are arguing the case that a taxpayer should be afforded every opportunity in terms of the time frame for self-correction under the real-time PAYE system given the increased workload of employers brought about by the new system.  For PAYE queries, Revenue have advised to contact the National Employer Helpline at 01-7383638.  Stay informed with up-to-date information on PAYE Modernisation on our website.

Feb 11, 2019
Tax RoI

PAYE Modernisation launched on 1 January and Revenue have added a “Hot Topics” section to its website to help with the transition.  In addition to the employer helpline, Revenue also have a dedicated webpage on Revenue.ie and have published the New Employers Guide to PAYE to help with queries. Tax and Duty Manuals that have been updated or created to reflect PAYE Modernisation changes are listed here. Stay informed with up-to-date information on PAYE Modernisation on our website.

Jan 07, 2019
Tax RoI

Read about the Budget 2019 changes that took effect in Ireland from 1 January, additional guidance from Revenue for PAYE Modernisation as well as HMRC’s tool to help decide whether a self-assessment tax return needs to be submitted for 2017/18.       Ireland Some of the changes brought about by Budget 2019 which took effect from 1 January 2019 include:   Income Tax The 4.75 percent rate of USC has reduced to 4.5 percent The standard rate band threshold for all earnings raised by €750 i.e. single rate band increased to €35,300 The earned income credit for the self-employed has increased by €200 to €1,350. Employers PRSI increases from 10.85 percent to 10.95 percent The lower rate of employers PRSI will apply to income of €386 or less per week VAT, betting and excise duty The special 9 percent VAT rate for the hospitality sector reinstated to its original rate of 13.5 percent The rate of VAT on electronic publications falls from 23 percent to 9 percent  Betting tax will increase from 1 percent to 2 percent For non-hybrid vehicles, a 1 percent surcharge for diesel passenger vehicles registering in Ireland will apply across all vehicle registration tax (VRT) bands   PAYE Modernisation launched on 1 January and Revenue have added a “Hot Topics” section to its website to help with the transition. In addition to the employer helpline, Revenue also have a dedicated webpage on Revenue.ie and have published the New Employers Guide to PAYE to help with queries   UK HMRC has launched an online tool for use to check whether a self-assessment tax return needs to be submitted for 2017/18 Genuine HMRC contact and recognising phishing emails and texts sets out the latest phishing scams        International 5.   Online payment companies targeted in anti-tax fraud measures at EU level. Read more

Jan 03, 2019
Tax

Read about the resources available to help with the transition to PAYE Modernisation, HMRC’s decision to prioritise Brexit when it comes to IT delivery and how 16,000 rulings have been swapped under BEPS exchange of information.            Ireland As we approach the launch date for PAYE Modernisation, we would like to remind readers about a number of resources that are available to help them with the transition.  Read more Revenue have underwent a reorganisation and gave a presentation on this matter recently at Main TALC.  Read more   UK HMRC have decided to slow the IT delivery of some elements of MTD for income tax and corporation tax in order to allow more IT resources to be dedicated to Brexit.  Read more In a recent press release, HMRC have set out how easy it is for employees to claim back tax relief for work expenses online, rather than using agencies to do so   International 16,000 rulings swapped under BEPS exchange of information.  Read more

Dec 20, 2018
Tax

PAYE Modernisation Update is an easy-to-follow booklet which is a client service summarising the key aspects and requirements of the new PAYE system, effective from January 2019. This is now available in print and digital formats: click here for more information.

Dec 13, 2018
Tax

Revenue’s National Employer Helpline is available to provide support to employers during the transition to PAYE Modernisation.  Full details of the extended Helpline telephone opening hours and availability over the Christmas period can be found on Revenue.ie.  Stay informed with up-to-date information on PAYE Modernisation on our website.

Dec 10, 2018
Tax

Are you ready for PAYE Modernisation 2019? The current PAYE system is being reformed and modernised with the introduction of real-time reporting (RTR). This change to how employers and employees interact with Revenue is the most significant change to the PAYE system since it was originally introduced. What does PAYE Modernisation mean for Employees? The new system will be effective from 1 January 2019 and will apply to all employers, regardless of size. Penalties of €4,000 per breach can apply, so it is important to be ready. With only a month to go, now is the time to make whatever changes are necessary to get ready for 'PAYE Modernisation'. In doing so, they should consult with their Chartered Accountant. Chartered Accountants Ireland has created an easy-to-follow, six-page booklet, similar to our annual Budget Summary Service, to summarise the key aspects of PAYE Modernisation. This is now available in printed form or as a PDF, which you can brand and send to your clients. How to order Please download and complete the Order Form and return it to: publishing@charteredaccountants.ie or post it to: Chartered Accountants Ireland, Chartered Accountants House, 47–49 Pearse Street, Dublin 2. If you would prefer to collect your order, please note your preference at the end of the order form. All prices quoted exclude VAT. Please call us at 01 637 7204 if you would like further information or to place an order by phone.

Nov 26, 2018
Tax

A reminder to employers that the latest date for sending employee lists to Revenue via ROS for the purposes of PAYE Modernisation is next Wednesday 31 October 2018.   This list will ensure that both employers’ and Revenue’s records are accurate and up to date ahead of the 1 January 2019 launch date.  More information is available on Revenue.ie and on the Institute’s PAYE modernisation centre.

Oct 25, 2018
Tax

Employers must act now to prepare for PAYE Modernisation Tuesday, 18 September 2018 Chartered Accountants Ireland is calling on all employers to engage with Revenue in advance of the fast approaching 1 January 2019 implementation of a new PAYE system called PAYE Modernisation. So far it appears only some 11,000 employers have provided Revenue with the list of employees which is critical to the smooth commencement of the new system.   There are almost 200,000 employers in the country. According to Chartered Accountants Ireland Director of Public Policy and Taxation Brian Keegan, there is a real risk of some employees suffering harsh emergency tax in the January payroll - the first pay cheque after Christmas - unless these lists are right.   “PAYE Modernisation should ultimately have benefits for employers and employees alike, as employees who pay their tax through the PAYE system will be able to claim tax credits and reliefs with more ease under the new arrangements.  There is however a compliance cost to Irish business.  It’s essential that all employers get involved now with the switchover to manage this cost and help ensure their workers don’t lose out” said Dr Keegan. The Institute recommends that employers submit their employee lists to Revenue through Revenue’s Online Service (ROS).  Uploading this list will ensure that both Revenue and employer records are aligned and employers are receiving the most up to date employee information to calculate their deductions. The deadline for uploading this list is 31 October 2018, to allow sufficient time to complete the data alignment process and amend any differences before the go live date of 1 January for PAYE.  Failure to upload this list runs the risk of discrepancies between employer’s lists and Revenue’s lists not being remedied before 1 January, resulting in a high possibility of employees suffering harsh emergency tax in the January payroll. ENDS Reference: Brian Keegan, Chartered Accountants Ireland Director of Public Policy and Taxation – 01 637 7200 Note to editors:  Chartered Accountants Ireland is Ireland’s biggest and fastest growing professional accountancy body, with 26,500 members across the globe. It is the voice of the accountancy profession in Ireland.

Sep 18, 2018
Tax RoI

New PAYE regulations have been signed by the Revenue Commissioners.  The new regulations will come into operation on 1 January 2019 and are in light of the roll out of PAYE Modernisation. The current Income Tax Regulations will continue to apply to any payment of emoluments made on or before 31 December 2018.

Sep 17, 2018