Revised Arrangements for PAYE Tax Agency Services

1. Background

In recent years there has been an increase in the number of service providers offering to assist PAYE taxpayers review their tax liabilities and tax credits. Up to now a temporary approval system has been operated by Revenue whereby a small number of agents have been authorised to receive PAYE refunds directly to the agent’s bank account.

This temporary approval system will cease on 14 October 2012, and will be replaced by the new arrangements with effect from 15 October, 2012, outlined below.

This eBrief supersedes eBrief 40/10 – ‘Setting up new agent links’ – insofar as that eBrief relates to the creation of agent/client links for PAYE taxpayers.

Agents/representatives must have a tax advisor identification number (TAIN) in order to be recorded as an agent for a taxpayer. Applications for a TAIN should be e-mailed to dublinagents@revenue.ie

2. Revised Arrangements

The new arrangements apply to all agents and their clients and are based on the following control framework.

1. A Revenue mandate (PAYE A1) must be completed by a taxpayer authorising an agent to act on his/her behalf.
2. An alternative Revenue mandate (PAYE A2) will be required where a taxpayer authorises the payment of a refund directly to an agent’s account.
3. The new Revenue mandates include (i) a requirement that all available documentary material relating to credit claims must be provided to the agent; (ii) a requirement that details of all sources of income must be provided to the agent; and (iii) a reference to the civil and criminal penalty provisions for making false claims.
4. Agents must retain a signed hard copy of the mandate.
5. Compliance activities will involve both pre and post refund checks.
6. This is part of a broader PAYE Compliance Programme for all PAYE tax refund claims irrespective of whether such claims are submitted directly by a taxpayer or through an agent.
7. Compliance with the new procedures, verification and processing of claims will be carried out in the District where the PAYE customer resides.
8. Agents will be required to request and retain documentary evidence of entitlement to credits and reliefs in respect of claims that they submit to Revenue. Documentation must be retained by the agent for a period of 6 years. Details regarding documentation and information required are set out in the Appendix below.
9. Where Revenue is satisfied that an agent has systems in place to receive and scan/store documentation and has provided this documentation in support of an appropriate percentage of claims, the number of compliance checks will be reviewed and adjusted.
10. Agents must use the PAYE Anytime service, accessible through the agent’s ROS Digital Certificate, to conduct their business to the extent that the electronic service covers the transactions.

3. Transitional Period and Completion of Mandates

In order to assist agents in adjusting to the new arrangements, the current arrangements will remain in place until 14 October 2012. There is no requirement for any action on the part of agents during this transitional period. The requirements for completion of new mandates are as outlined below.

1. Agents must ensure that all new clients complete a new Revenue mandate from 15 October 2012 onwards before the agent/client link is established on Revenue’s records.
2. Agents must ensure that existing clients complete a new Revenue mandate in respect of any new claim made on or after 15 October, 2012.
3. Once the new mandate is submitted to Revenue, it will remain in force until it is revoked by either the agent or the client.
4. Agents must use the eRegistration facility on ROS to create or break an agent/client link for an existing PAYE registration. Agents must upload, via the eRegistration facility, the appropriate new mandate authorising the setting up of the agent/client link. Electronic copies of signed mandates must be in 'tif', '.tiff' or '.pdf' image format and be less than 5Mb in size.

eRegistration submissions take 3-4 working days for the client link to update to ROS.

4. PAYE Refunds to Employers' Accounts

Section 865(8) of the Taxes Consolidation Act, 1997 allows, in a limited number of cases, PAYE refunds to be made directly to employers' bank accounts. These refunds generally relate to short-term employments in Ireland and are unaffected by the provisions of this eBrief.

Appendix