Irish employers urged to prepare for PAYE revamp Irish employers urged to prepare for PAYE revamp

Irish employers urged to prepare for PAYE revamp
28 Sep 2018

Irish workers could end up paying emergency tax from the start of next year if employers fail to engage with a new approach to Pay As You Earn (PAYE).

While employers currently submit detailed payroll data on an annual basis using a P35 form, they will need to do so more frequently from January next year. But to date a mere 11,000 employers have engaged with the tax authority out of a total of 200,000 in order to accommodate the changes, according to Chartered Accountants Ireland.

The accountancy body's director of taxation, Brian Keegan, told the Independent: "There is a real risk of some employees suffering harsh emergency tax in the January payroll - the first pay cheque after Christmas - unless these lists are right."

Keegan said the move should ultimately benefit both employers and employees, with staff who pay their tax through the PAYE system being able to claim tax credits and reliefs more easily.

"There is, however, a compliance cost to business,” he added. “It's essential that all employers get involved now with the switchover to manage this cost and help ensure their workers don't lose out."

Chartered Accountants Ireland has recommended that employers submit their employee lists to the Revenue through its Online Service (ROS). The aim is to ensure that both Revenue and employer records match and employers receive the most up-to-date employee information to calculate their deductions.

The deadline for uploading the list is 31 October to allow sufficient time to complete the data-alignment process and tackle any discrepancies before the PAYE go-live date of 1 January. Failure to do so would lead to a high probability of employees suffering harsh emergency tax in the January payroll, Keegan said.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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Irish workers could end up paying emergency tax from the start of next year if employers fail to engage with a new approach to Pay As You Earn (PAYE).

While employers currently submit detailed payroll data on an annual basis using a P35 form, they will need to do so more frequently from January next year. But to date a mere 11,000 employers have engaged with the tax authority out of a total of 200,000 in order to accommodate the changes, according to Chartered Accountants Ireland.

The accountancy body's director of taxation, Brian Keegan, told the Independent: "There is a real risk of some employees suffering harsh emergency tax in the January payroll - the first pay cheque after Christmas - unless these lists are right."

Keegan said the move should ultimately benefit both employers and employees, with staff who pay their tax through the PAYE system being able to claim tax credits and reliefs more easily.

"There is, however, a compliance cost to business,” he added. “It's essential that all employers get involved now with the switchover to manage this cost and help ensure their workers don't lose out."

Chartered Accountants Ireland has recommended that employers submit their employee lists to the Revenue through its Online Service (ROS). The aim is to ensure that both Revenue and employer records match and employers receive the most up-to-date employee information to calculate their deductions.

The deadline for uploading the list is 31 October to allow sufficient time to complete the data-alignment process and tackle any discrepancies before the PAYE go-live date of 1 January. Failure to do so would lead to a high probability of employees suffering harsh emergency tax in the January payroll, Keegan said.

Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

OTHER ARTICLES THAT MAY INTEREST YOU

Ireland denies being tax haven despite low tax rates enjoyed by top companies

Ireland extends deadline for filing country-by-country reports by multinationals

Tax expert warns that up to E1.5bn euros is caught up in Irish appeals system

 

 

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