Irish Revenue Eases Tax Returns And Payments For Small Businesses

by Jason Gorringe, Tax-News.com, London

10 November 2008

The Irish Revenue Commission has released details of changes in the frequency in which PAYE/PRSI payments and VAT payments are required, a move set to benefit small- and medium-sized businesses.

The frequency of tax returns and payments for Employers PAYE/PRSI and VAT extension will be reduced for newly eligible companies from January 1, 2009.

Businesses making total annual PAYE/PRSI payments of up to EUR28,800 will be eligible to make their payments on a quarterly rather than monthly basis. Companies making annual VAT payments of between EUR3,000 and EUR14,400 will be eligible to file VAT returns and make their payments on a 4-monthly basis. Businesses making total annual VAT payments of less than EUR3,000 will be eligible to file VAT returns and make their payments on a 6-monthly basis.

This will improve Irish businesses' cash flow as they will only be required to make payments at the end of each quarter, 4-monthly period or 6-monthly period as appropriate. Companies will also benefit from reduced costs of administration through less frequent filing of tax returns.

The Irish Revenue has announced that it will write to all eligible businesses advising them of the reduced frequency of tax returns and tax payments that will apply to them with effect from January 1, 2009. The letter requires no action for those businesses to benefit from these changes; the letter they receive will confirm that the reduced payment and filing frequency is being automatically extended to them from January 1, 2009.

Irish Revenue has also said they will send details of the simplified arrangements for VAT returns and payments to tax practitioners or agents to those companies who out-source their accounting, where applicable.

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