Our Director of Restructuring Services, Barry Donohue will be discussing and presenting a seminar on enforcement powers together with Cork County Sherriff, Sinead McNamara on the 1 May 2019 in UCC’s recently renovated Cork University Business School (CUBS) historic building in the heart of Cork’s Business District at 1, Lapps Quay, Cork.
Barry has over 30 years’ experience working with financial institutions, regulatory bodies, creditors and Revenue authorities on enforcement and restructuring assignments. He is currently trustee in bankruptcy over a number of Irish-based bankruptcies.
The Employment (Miscellaneous Provisions) Act 2018 came into force on the 4 March 2019. The primary purpose of the Act is to limit the use of zero hour contracts and provide better protection to employees on casual contracts. You can check out the key changes on the DEASP website by clicking the link below:
From 1 January 2019 Revenue will be rolling out a new real-time system which will completely change the way PAYE currently operates. The importance of understanding and correctly adopting the new system cannot be underestimated as non-compliance or continuous errors will likely result in Revenue intervention.
What is the aim of the new system?
- 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 so that the right amount of tax is being deducted at the right time from the right employees.
What is changing?
- Employers will have to report payroll information to Revenue on or before making a payment to an employee.
- P60s, P45s, P30s, P35s and End of Year Returns will be abolished.
- The current tax credit certificate (P2C) is being replaced by a Revenue Payroll Notification (RPN) which will provide employers with all necessary information regarding tax credits and cut-off.
- An “Employment Identifier” will be used to distinguish between multiple employments of an employee with the same employer and different periods of employment with the same employer.
- An “Employer Reference Number” must be reported to Revenue for every payment made to an employee who has not provided a PPSN.
- Revenue will issue monthly statements to employers which will show a summary of total liability.
Getting PAYE Modernisation ready!
Employers should: –
- Register all their employees with Revenue
- Have the right PPS numbers for all employees
- Have up to date tax credit certificates for all employees
- Complete the P45 process for any employees no longer employed with them
- Have adequate controls in place to ensure benefits/notional pay are being accurately calculated during the year
- Have their ROS digital certificate ready for the 1 January 2019.
Anything else to note?
- It is not recommended to have a net pay arrangement with employees. We have no option but to use the credits and cut off provided to us by Revenue, and therefore employers with net pay arrangements can be exposed to an additional liability due to reallocation of credits by the employee.
- Grossing up of drawings to repay overdrawn directors’ loans will result in us having to amend prior periods rather than filing a supplementary return (which previously was the option selected) and will inevitably increase the risk of interest and penalties on late filing plus will draw attention to the BIK that was deemed to be provided to the director when they received the interest free loan.
If you have any queries or concerns with respect to the new PAYE Modernisation system, or should you require assistance with your payroll, then please call us on 021-4810035.
We were delighted to be awarded Cork Business Training and Development Winners 2018 last Saturday! A fantastic achievement and a great night!
The Minister for Finance & Public Expenditure and Reform Paschal Donohoe delivered the budget for 2019 on the 9 October 2018. Some changes became effective almost immediately while others won’t come into effect until next year.
Some of the main points are as follows: –
- The Department of Health will see an increase of a billion euro to the health budget.
- The Government is to allocate €2.3 billion to tackle the housing crisis in Ireland.
- The inheritance tax limit has been increased to €320,000 between parents and their children.
- For self-employed persons, earned income tax credit will be increased to €1,350.
- Increased capital allowances for employer provided fitness and childcare facilities effective from 1 January 2019
- The National Training Fund Levy payable by employers will see an increase to 0.9% from 1 January 2019.
- Tax relief for start-up companies will be extended until the end of 2021
- Minimum wage will increase to €9.80 per hour from 1 January 2019
- A new scheme to provide 2 weeks paid parental leave in the child’s first year will be introduced in November 2019.
- Decreased rate of Universal Social Charge (USC) from 4.75% to 4.50%
- A Future Growth Loan Scheme for SMEs and the agriculture and food sector is being launched providing up to €300m.
- A new Anti-Tax Avoidance Directive (ATAD) at a rate of 12.5% was introduced. This tax arises where a company attempts to avoid Irish tax by migrating or transferring assets offshore
- Mortgage interest relief for landlords will rise to 100% from 1 January 2019
- Overseas aid will increase by almost €110m
- As from midnight 9 October 2018 the price of a 20 pack of cigarettes increased by 50c.
- Around €710 million will be put aside for Brexit-related measures.
- The Christmas payment will be paid to all social welfare recipients in 2018 and from March 2019 social welfare payments will increase by €5 per week.
See our brochure for even more Budget 2019 details