Revenue Note for Guidance

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Revenue Note for Guidance

985G Return by employer

Summary

This section provides that with effect from 1 January 2019, all employers are required to submit payroll data to Revenue on or before the making of a payment of emoluments to an employee. The data is to be submitted through a payroll notification submission. This payroll data will be used by Revenue to generate a monthly statement of the tax due by the employer. If the statement is correct, the employer may accept it at any time prior to the return filing date (14th of the following month), and it will become his or her return for the month. If the employer does nothing, the statement will be deemed to be a return on the return filing date.

If the statement does not reflect the correct position, the employer must correct the payroll submission data, by the return filing date, to ensure that the updated statement reflects the correct liability..

If there are no payroll submissions from an employer for a month, a NIL statement will be issued by Revenue and if the employer does not accept the statement by the return filing date, the NIL statement will be deemed to be a return on the return filing date. .

If the employer makes corrections to the payroll submissions for a month after the 14th of the following month, an amended statement will issue from Revenue and the amended statement will be deemed a return when issued. Repayments which arise following a correction of a return by an employer shall only be repaid, if the correction is made within four years from the end of the year of assessment in which the income tax month falls.

(1) A return includes a return deemed to have been made under subsection (4).

(2) Either before or at the time of the payment of any emoluments or the provision of any reportable benefits, the employer must provide Revenue with the following information for each employee:

  1. amount of the emoluments,
  2. date of payment of the emoluments,
  3. amount of income tax deductible or repayable, and
  4. other information required by the PAYE regulations.

The requirement in regard to the provision of any reportable benefits applies from 1 January 2024.

(3)(a) On or before the return date (i.e. the 14th of the following month), an employer must make a return to Revenue specifying the total PAYE deducted or repaid for the month and,

(3)(b) on or before the due date (i.e. either the 14th or the 23rd of the following month), an employer must pay the Collector General the tax due for that month.

(4) Where an employer receives a statement from Revenue setting out the total amount of tax deducted or repaid by the employer for an income tax month, this statement will be deemed to be a return made by the employer on the return date, or on the date of issue of the statement if the statement is issued after the return date.

(5) Where an employer receives a statement from Revenue setting out the total amount of tax deducted or repaid by the employer for an income tax month, but the statement is not correct, i.e. it does not accurately reflect all payments of emoluments by the employer or the full liability of the employer, such statement will not be deemed to be a return made by the employer on the return date, or on the date of issue of the statement if this is later than the return date.

(6) Where an employer receives a statement from Revenue setting out the total amount of tax deducted or repaid by the employer for an income tax month, but the statement is not correct, the employer must ensure that his or her return for the month accurately reflects the tax liability for that month.

(6A)(a) An employer is not entitled to a repayment of tax referred to in section 984B, or to be given credit for it, unless the return for the relevant income tax month in which the repayment arose is made within 4 years of the end of the year of assessment in which the income tax month falls. This four-year time limit on repayments applies to all monthly returns made by employers under this section from 1 January 2019.

(6A)(b) Where, in a return made under subsection (3)(a), an amount the employer is liable to pay pursuant to section 984B exceeds an amount of a repayment referred to in section 984B, then any credit available may be used against the amount the employer is liable to pay in that same return and no time limit applies.

(6B) The decision to refuse the repayment based on the four-year time limit will be notified in writing by Revenue to the employer.

(6C) A taxpayer aggrieved by a Revenue decision to refuse the repayment of tax based on the application of the four-year time limit can appeal the decision to the Appeal Commissioners. This appeal must be notified to the Appeal Commissioners within 30 days of the decision.

(7) The Collector General may, by notice to an employer, vary the due date for a month e.g. allowing certain employers to make payments quarterly rather than monthly.

(8) The Collector-General may withdraw a notice under subsection (7) at any time prior to the due date.

Relevant Date: Finance Act 2025