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Welcome to our latest monthly tax newswire. We hope you enjoy reading this newsletter and find it useful. Contact us if you wish to discuss any issues further.
certain conditions are met; 3.
Bicycles and safety equipment.
These exceptions shall not apply where: 1.
Salary Sacrifice Arrangements Salary sacrifice is generally understood to mean an arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment and in return his or her employer provides a benefit of a corresponding amount to the employee. Section 118B TCA 1997 generally provides that where an employee forgoes salary payable under an existing contract of employment in exchange for a benefit, the employee remains taxable on the “gross” income payable. The salary sacrificed will be considered to be an application of income earned by the employee, not an expense incurred by the employer.
There is an arrangement or scheme in place whereby the employee is compensated, wholly or partly, by the provision a benefit, which would have otherwise qualified for an exemption under section 118B(2)(a), together with a compensating payment. This shall instead be treated as an avoidance scheme.
3.
A salary sacrifice agreement is entered into in respect of any right, bonus, commission or any other emolument which arises to an individual after the end of the year of assessment concerned. A benefit, which would have otherwise qualified for an exemption under section 118B(2)(a), is provided to the spouse, civil partner or a person connected with, the individual who has entered into a salary sacrifice arrangement.
PAYE Modernisation
Exceptions to the general rule: As outlined in subsection (2) (a) of Section 118B TCA 1997, there are a number of exceptions to the above tax treatment. Where these exceptions apply, the salary sacrifice is exempt from tax. These exemptions relate to salary sacrifice arrangements specifically approved by the Revenue Commissioners in relation to: 1.
Bus, rail or ferry travel passes;
2.
Exempt shares appropriated to employees under approved profit sharing schemes, provided
also provide contact numbers for the Employer Helplines to address any employer queries. Changes from 1 January 2019 A Revenue Payroll Notification (RPN) will replace the current Tax Deduction Card (P2C). From 1 January 2019, employers will be required to:
2.
In the coming weeks, Revenue will write to all employers about preparing for the new real-time PAYE reporting regime which will come into operation on 1 January 2019. The letters will include information tailored to the recipients, for example, employers who use payroll software (according to Revenue’s records) will be advised to get in contact with their software suppliers, small employers who may not use payroll software will be told about ROS reporting, employers who have obtained an exemption from efiling will be advised about paperbased reporting etc. The letters will
May 2018
request the most up to date RPN before making payments to employees report employee payments in realtime reconcile Revenue’s response to the payroll submission.
At the end of each month, employers will receive a statement from The Revenue with payroll submission totals. Employers will need to either:
accept the statement as the correct monthly return correct payroll data if the statement is incorrect.
A variable direct debit option will also be available, subject to Revenue approval. Steps to prepare for PAYE modernisation In preparation for PAYE modernisation, employers should ensure that the correct PAYE processes and procedures are being followed. In particular, employers should ensure that they have registered all employees and have received a tax deduction card (P2C) for each of them. It is also important to check that you have the correct PPS number for each of your employees. For guidance, these steps should be followed:
Register as an employer
May 2018
Ensure that you have the correct PPSN for all employees Register employees Obtain up to date P2C
Complete the P45 process correctly Be aware of your obligations at year end
TAX DEADLINES - MAY 2018
TAX HEAD
RETURN
PERIOD
PAYMENT & FILING DATE
Dividend Withholding Tax
DWT
April 2018
14th May 2018
Professional Services Withholding Tax (PSWT)
F30
April 2018
14th April 2018
Professional Services Withholding Tax (PSWT)
F30
April 2018
14th April 2018
PAYE/PRSI/USC/LPT
P30 Monthly Return
April 2018
23rd May 2018
VAT
Bi-Monthly VAT 3 & Return of Trading details
March - April 2018
23rd May 2018
VAT
4 Monthly VAT & Return of Trading details
January - April 2018
23rd May 2018
VAT
Monthly VAT 3 & Return of Trading details
April 2018
23rd May 2018
Corporation Tax
Preliminary tax
Accounting periods ending between 1st - 30th June 2018
23rd May 2018
Corporation Tax
Corporation tax return (Form CT1)
Accounting periods ending between 1st - 31st August 2017
23rd May 2018
Relevant Contracts Tax (RCT)
RCT Monthly return
April 2018
23rd May 2018
Corporation Tax
Returns of Third Party Information (Form 46G)
Accounting periods ending between 1st - 31st August 2017
30th May 2018
Please contact a member of our team if you would like to discuss any of the issues raised. Call: 020 7993 8850 Email: info@makesworth.co.uk