Last week, the Institute, under the auspices of the CCAB-I, wrote to the Minister for Finance, Michael McGrath T.D., to highlight significant concerns our members have about the proposed introduction of Enhanced Reporting Requirements (ERR) which will require all employers to report to Revenue details of certain non-taxable benefits and payments to employees from 1 January 2024.
While it is accepted that employers already maintain records of the reportable benefits, integrating these records with a real-time filing requirement is a complex task and, in our view, unnecessary.
We have suggested that an annual return should be sufficient to provide Revenue with the necessary information while also taking into account the burden the reporting requirement will place on employers. Over the past number of months, we have been informing Tax News readers that employers will be required to report details of small benefits, travel and subsistence and remote working allowances paid to employees and directors from 1 January 2024. This new requirement was introduced in Finance Act 2022 and is set out in Section 897C TCA 1997.
As previously reported, in Tax News, representatives from the Institute, under the auspices of the CCAB-I, attend meetings of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements Subgroup and Main TALC to discuss the implementation of enhanced reporting requirements. At each meeting our representatives have raised their concerns around the practicality of real-time reporting as well as concerns with the additional costs for businesses associated with the new measures.
Revenue intends to hold information webinars on the new enhanced reporting requirements for employers commencing 14 September 2023. Invitations to attend the webinars will be delivered to the employer’s ROS inbox and an email notification is also to be provided.
CCAB-I will continue to liaise with Revenue and will inform members via Tax News.
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