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REVENUE HAS ANNOUNCED plans to scrap the traditional P60 and P45 forms.
In its latest annual report published today, Revenue outlined its new modernised approach to the Pay As You Earn (PAYE) tax system.
For employers, the new system changes current end-of-year reporting practices and employers will, from 1 January 2019, be required to report payroll data to Revenue each pay period.
Employees will be able to view all the data employers report to Revenue on their behalf.
The start of real-time PAYE reporting from 1 January 2019 will also eliminate the need for the P30, P45 and P60 forms, along with end-of-year returns.
A P60 is a certificate of an employee’s annual pay and deductions. A P45 is a statement of an employee’s pay and deductions for the year up to the date they leave their employment.
Revenue says it will ensure that ongoing employee tax deductions and contributions are correct.
Niall Cody, Revenue chairperson, said the most to real-time PAYE “represents an important step in the process of continuous improvement in service, compliance and efficiency in our administration of the tax system”.
Revenue tax collections
Revenue collected €50.76 billion in taxes, duties and levies this year, the annual report outlined.
Taxes on income rose by 4% last year, while VAT rose by 7% and corporation tax rose by 11%.
Revenue also said it saw continuing high voluntary compliance rates of over 90% across all taxes.
Cody said Revenue saw a 13% reduction in debt available for collection.
He said that Revenue intervenes early when tax payment and filing obligations are not met and it has facilitated more than 10,000 taxpayers, who had temporary payment problems, with instalment arrangements worth €94 million.
Reporting that during 2017 Revenue collected €212.4 million in over 37,000 debt enforcement cases, Cody said that “the small minority who either refuse to engage with us or refuse to pay their tax are met with determined enforcement and collection action, and the additional cost of that action”.
In relation to its action against drugs, fiscal fraud and smuggling, Cody said Revenue seized €81 million worth of illegal drugs, alcohol and tobacco products.
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Will this get rid of emergency tax when you change jobs and often have to wait weeks for your previous employer to send the paperwork out to you?
@Vigo the Carpathian: Yes
@Vigo the Carpathian: you don’t need to wait for your old employer to send your p45, you just call revenue with your new employers tax number and it’s sorted in a few days
@Vigo the Carpathian: That is completely down to the employer
@Sam Harms: They must have changed that so.. It used to be that you needed the forms from your previous employer and if they were acting the maggot it could take weeks/months to sort it. Granted the last time I did it was 2005 so…
@Vigo the Carpathian: No you can get the new employees tax no and pop it onto revenue online, its sorted by first payday
@Lie Smeller: Well that makes more sense than the old way of doing things..
when are they going to scrap bogus self employment system in the Construction Industry
@Johnny Mason: That would not be revenue but the department or enterprise and employment. Might as well be asking why the passport office don’t sort it out
@Johnny Mason: and Rte employee presenters saving 10s of thousands pa. By setting up as companies.
@Shayno O’Donnchadha: Wouldn’t that be a type of Tax evasion ?
@Johnny Mason: There is a big deference between tax avoidance and tax evasion…… The difference bring if your rich and have a good accountant you will avoid prison and a big fine, if your poor they send you to prison and take your house.
@Johnny Mason: Nope a person can set up a company and bill through that and pay corporation tax and then take a salary from the company for however much they need per month and pay income tax on that salary.
@Sam Harms: are they not allowed quite more allowances and deprecation than most on PAYE
@Johnny Mason: the company can, not the individual. It’s tax minimization it’s perfectly legal and it’s not just 12.5% corporation tax versus 52% or however much they would pay on PAYE it’s more complicated than that.
@Shayno O’Donnchadha: you don’t have a clue what you’re talking about mate. It huge advantages to setting up a company. The company is taxed at 12.5% on any profits. Any salary, bonuses etc paid by this company go through normal PAYE tax so no huge advantage. There are some minor ones but it’s nothing amazing!
Lot of good news.
Tax take up over 4% year on year, reduced admin from 01 Jan 2019, no more P45.
Revenue is very efficient by international standards – the “cost” of Revenue compared to amount they collect is one of the best in the world.
@Brinster: no surprise there. This country is a world leader in taking in maximum taxes. It’s the value for money we don’t get for our taxes that is the problem.
@Míleata Watch Co: “world leader in taking in maximum taxes.” Yeah and they’re calling it leprechaun economics because it smells like shamrocks…
@Míleata Watch Co: How dare someone highlight the positive in a news story. Take a day off travelling on the negative train for the good of your mental health.
@Míleata Watch Co: we’re not the world leader in taking in maximum taxes.
Ohhhh…suger….i see a massive cost mess coming up….
Anyone else see this merger with the USC and PRSI?
Another way to increase revenue and recoup the Irish water fiasco millions.
@Trevor Hayden:
Which merger?
@Trevor Hayden: they have been talking about it for a couple of years. Didn’t know they had done any more than that though. Any more info or links to sources?
@Stephen Brady: Nothing only what I have rrad in the tabloids but id imagine this is a way of merging USC, PRSI and property tsx in order to confuse us taxpayers into not knowing which is which.
@Trevor Hayden: Ah the tabloids. A mine of useful information.
Property tax will never be combined with usc or prsi. It was specifically brought in to broaden the tax base and catch those who pay neither
@Trevor Hayden: alot of people dont know tgat USC is an offshoot from PRSI.
Pre 2009 the PRSI system had a HEALTH LEVY incorporated into it. When the USC came out it was to bring all earnings into it where the Health levy had offsets in earnings and a cap at the time. So realistically a form of USC was charged through PRSI for many decades. Pre 2008 PRSI was capped at x% for €y then refuced to x1% for €y1 earnings.
2009 onwards it was 4% on all earnings with no offset. So if its ‘scrapped’ then really on paper it is just re incorporated into PRSI it will probably cost the same if not in fact more.
@Trevor Hayden:
@Trebor78: Exactly, if all are merged an extra €10 or €15 will not be noticed if not investigated properly, id imagine that’s what the government are hoping.
They will then claim that nobody will be paying water charges to try and boost their popularity, all the while they will be recouping the disastrous shambles that was water charges.
Roughly calculated €780 per employee per year water charge.
Yet another way to collect money for the… well…you know who…
So when are they going to scrap VRT also? Disgraceful practice
@Susan Dooley: They, they who?…. would that be Revenue or the TDs we all vote in?
Great news! When I lived in Canada I couldn’t get over how backwards their tax system was. You had to submit forms upon forms yourself. It wasn’t automatic at all. Granted you could hire an account but that costs money…
@Dainéil Ó hÍobhair: same in the U.S. Pain in the hoop. There is a whole industry built around tax season, so that is never going to change!
So you could say they are getting their P45…
Only on The Journal would people moan about an unequivocally good idea like this.
I will do a full review with PWC as sub-consultants and ministers relatives input.
All data will be harvested and sold by Xmas for a healthy if opaque price.
Rest assured that I will follow the best precedent for public service IT contracts to the letter..
I must get around to obtaining a PPS number.
Can they please abolish income tax?
Sounds good. Get rid of outdated Paper based systems and speed up job changing
Revenue and whoever runs that new passport express thing should just run the country…sh*t would get done!
@Benny: Indeed, the only efficient sector of government is the part that collects the € – the ones that spend it, on the other hand…
Why do I see a fiasco not unlike the PeoplePoint debacle, on the horizon?
Modernization??! “We wont be using that much paper from now on” a good measure none the less but state what it is FFS.
More of a Sock Vadar and Daffy Donughue statement for pats on the back!! The later getting asked some very soft questions on the Sean O’Parden me show this Morning (who knew) On a related issue was it not Vadar who held aloft a banner milly mouthing the end of USC?! That would be news but instead empty gestures and sound bites are the meal of the day, more taxes per year and almost at pre crash heights !!? But alas the problems are all to apparent, gives mind to pi.. poor management and bad accounting, sound familiar? Give my head peace….
Inheritance tax in this country is CRIPPLING. At times it costs less to refuse an inheritance than accept it. crazy. As for indirect levies and taxes & VATand rates – dare I say it – Poll tax in UK was fairer and better value. At least it as done and dusted. Import duty levels……. the rest is history. Where does it all go is the main point…….???!!!
All governments have but one function. To feed off its citizens
Could they bring back the rent tax credit while they’re at it
hmmm
All governments have but one function, to live as a parasite,feeding and feeding,
This is just Revenue gathering more real time data on everyone & thing
10000 needing help to pay, recovery recovery, where are you?
Probably on the German model?
have your say