PAYE Modernisation

Revenue propose to roll out real time reporting of PAYE from 1st January 2019.

This means that payroll software will submit data (much akin to the annual P35) to Revenue each pay period.

The technology behind this may pose some challenges, not least for Revenue who will need to handle significant volume. Most payroll software companies will be able to adapt, assuming that file specifications, test environments etc. are provided to them in good time by Revenue.

The core issue is the possible expectation that the periodic payroll data transmission should be sent to Revenue “on or before” each pay date. This is the position in the UK where RTI (real time information) has been in place for a number of years. The “on or before” requirement has caused problems and HMRC had to relax their requirements (and penalties regime) in the initial year or so.

“On or before” represents a seismic shift for bureaus and employers alike and a much better alternative might be the submission of monthly returns. This is where the monthly P30 is enhanced to include all the P35 fields.

Automatic retrieval of P2C data would be a nice feature of PAYE modernisation and hopefully this will be included as part of the overall package.

The consultation document can be found at http://www.revenue.ie/en/spotlights/paye-modernisation.html

Submissions are invited up to 12th December 2016.

Interested in finding out more about PAYE Modernisation? Register now for our free PAYE Modernisation webinar. Click here to find out more.

Posted byPaul ByrneinPayroll SoftwareRTI

What might be coming down the tracks for Irish employers

Here is an article that recently appeared in the online version of Business & Finance and that should be of interest to all Irish employers.

http://businessandfinance.com/whats-coming-down-the-track-for-irish-employers/?ref

Posted byPaul ByrneinAuto EnrolmentPayroll SoftwareRTI

Real Time Information (RTI) - the UK experience so far

From April 2013, the UK has experienced a major change in the way employers report PAYE to HMRC. Employers now report their payroll information to HMRC in real time, on or before every payday. This is akin to a P35 being submitted weekly, fortnightly or monthly by UK employers .

Having such up to date information means that HMRC can issue accurate and timely instructions to employers thereby ensuring that an employee’s tax position at any time is correct i.e. there are less under or overpayments of tax. It will also help ensure the success of the new universal credit system whereby six working-age benefits will be merged into one.

There has been a number of teething problems with the new system, which is only to be expected given the scale of the change but various actions taken by HMRC prior to the live date have ensured that the transition has gone relatively smoothly. These actions included a pilot program, consultations with employer groups, consultations with software companies, various workshops and an overall general helpfulness on the part of the relevant HMRC staff.

It is understood that the Irish Revenue is a very interested spectator!

Bright Contracts – Employment contracts and handbooks
BrightPay – Payroll Software

Posted byPaul ByrneinPayroll SoftwareRTI