Ready for PAYE Modernisation?

Revenue are in the process of reforming the current PAYE system. From 1 January 2019 Revenue will be rolling out the new real-time system. Employers, agents and payroll providers will need to review their business processes and practices so they meet the new requirements.

The aim of PAYE modernisation is to:

  • Improve the streamlining of current business processes
  • Reduce the administrative burden currently experienced by employers to meet their PAYE reporting obligations.
  • Ensure Revenue, employers and employees have the most accurate, up to date information relating to pay and statutory payroll deductions

With the new system employees will be able to log into their Revenue account and view information submitted by their employer. Other changes will include payroll software automatically updating changes to P2c files regarding tax credits and cut-off, and automatically uploading data to Revenue. The new system will also see the abolition of P60s, P45s, P30s and P35 forms. Revenue are also reviewing options to deal with the taxation of Illness Benefit which would remove the obligation for an employer to tax it through payroll. 

It will be important for employers to ensure payroll is updated every week or month as the file will be automatically uploaded to Revenue, and non-compliance or continues errors will likely result in Revenue intervention.

To prepare for PAYE modernisation, employers should ensure they have registered all of their employees, received an up to date Tax Credit Certificate (P2C) for each employee and check they have the correct PPSN for all employees. Employers are required to submit a list of employees to Revenue through the Revenue Online Service (ROS). Revenue have published a manual to provide guidance on how to complete and submit the employee list.

Need a Loan to Survive Brexit?

If you own a small or medium sized enterprise and are worried about the impact Brexit will have on your business, then you may be eligible to avail of a loan from certain financial institutions.

The SBCI (Strategic Banking Corporation of Ireland) Brexit Loan Scheme is available to viable micro, small and medium sized enterprises (SMEs) and Small MidCap enterprises that meet certain eligibility criteria. Loan applications can now be made to participating banks, which includes AIB, Bank of Ireland and Ulster Bank. The Scheme will operate until March 2020, or until it has been fully subscribed.

The purpose of the Scheme is to support Irish SME’s/enterprises, allowing eligible businesses to use loans for future working capital requirements and to fund innovation, change or adaptation of the business to mitigate the impact of Brexit.

The Scheme is offered in partnership with the Department of Business Enterprise and Innovation and the Department of Agriculture Food and the Marine, and is supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 Financial Instruments.

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