Finance Bill signals new workload for firms on PAYE

Employers face a considerable more work under measures in the Finance Bill detailing the new monthly information they will be obliged to provide to Revenue for access by staff online.

It is part of the so-called modernisation of the PAYE system that will allow taxpayers access to the amounts of tax paid and their tax credits on a monthly basis from January 2019.

Further details of the changes were provided in the new Finance Bill published yesterday following the budget last week.

Experts have warned that employers will face a significant increase in the work to comply with the new PAYE measures. “A lot of work will be required of employers,” said PwC tax partner Nicola Quinn.

On the increase in stamp duty to 6% from 2% on sales of commercial buildings, current transactions will only be exempt if they are effectively completed by the end of the year.

The bill also confirmed exemptions on stamp duty for agricultural land transactions.

The Finance Bill proposes amendments to the domicile levy designed to prevent the number of appeals from wealthy individuals paying the domicile levy in Ireland.

“The amendments proposed will ensure that capital allowances and losses are not allowed as a deduction for the purpose of the worldwide income test,” according to the bill.

The €200,000 a year domicile levy is currently paid by people who are domiciled in Ireland and whose worldwide income is greater than €1m; who own Irish property worth more than €5m; and whose income tax in Ireland was less than €200,000.

Plans to implement budget measures on share options held by SME employees were welcomed.

“The scheme applies to small or medium-sized enterprises with less than 250 employees and annual turnover of not more than €50m or a balance sheet total of €43m,” said Deloitte tax partner Daryl Hanberry.

The bill proposes that reduced free or reduced health insurance by firms will be included as a benefit-in-kind for taxpayers.

Other new measures included provisions that companies in financial difficulties cannot qualify for the diesel rebate scheme.

Most Read in Business

World Markets