Reporting the details of these expenses and benefits will commence on 1 January 2024. For the avoidance of doubt, any reference to employees in this article also includes directors.

Employers will be required to make a report to Revenue where a payment is made to an employee in respect of the three main categories below. A detailed list of benefits and expenses to be reported can be found here. Only expenses incurred by the employee will be reported.

1. Travel & Subsistence
2. Small Benefit Vouchers
3. Remote Working Daily Allowance

The facility will be made available via ROS and employers will be able to submit, amend and correct ERR data and also check data already submitted. Revenue will provide third party software providers (e.g., SAGE payroll) with facilities to integrate with Revenue systems. Employers will need to contact their software providers to engage with Revenue as soon as possible. For technical information regarding ERR service integration with Revenue systems, please see Revenue’s GitHub. 

Employees will be able to view employer submissions via their MyAccount from 2024.

Expenses and benefits can be reported by file upload or by filling an online form, both via ROS. Instructions to submit payment details to Revenue can be found here. It is imperative to note that the report must be completed before the payment is made the employee. This means that the latest you can make ERR submission is the day the payment is actually made to the employee.

More information on the enhanced reporting requirements can be found here.

Revenue are arranging several webinars to bring employers up to speed with the new reporting requirements. A link to the recorded webinar can be accessed here. 

Statutory Sick Pay & Minimum Wage for 2024

The Statutory Sick Pay is the legal minimum sick pay which employers must pay. In 2024 this will increase from 3 days to 5 days. You can get sick pay of 70% of normal weekly pay, up to a maximum €110 a day. The Sick Leave Act 2022 can be accessed here.

The national minimum wage will increase by €1.40 to €12.70 per hour from 1 January 2024 for people aged 20 and over as announced in Budget 2024.

Please contact a member of the Keogh Ryan Tierney Tax Team if you have any queries.

The Keogh Ryan Tierney Tax Team – 15 December 2023

This does not constitute advice. Advice should be taken from a professional advisor before any actions are taken.

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The Minister for Finance today announced a total core Budget 2024 package of €6.4 billion, including taxation measures worth €1.1 billion. For the first time in living memory a Minister for Finance delivered a speech unheckled!

The announcements reduce the tax burden on taxpayers, increase supports for welfare recipients with some further energy cost supports included.

The domestic economy is expected to grow by 2.25% next year, and a €8.4bn budget surplus expected next year, with National debt moving in the right direction.

The Minister said that Budget 2024 marks a step change in how we plan for the future, by putting in place a long-term plan that will make the economic future safer for all.

He announced two major new funds:

• The Future Ireland Fund, with a potential to grow to over €100 billion by the middle of the next decade, will help to protect living standards and public services for current and future generations
• €14 billion will be put aside in the Infrastructure, Climate and Nature Fund by 2030 to allow for sustained levels of investment in infrastructure in the event of economic downturns and to support climate and nature related projects.

Measures
A summary of the main tax features in this afternoon’s budget are as follows:

Personal Tax

• Income Tax Standard Rate Band increased to €42,000 (from €40,000) for a single person with a corresponding increase for other taxpayers.
• €100 increase in personal tax credit, employee tax credit and earned income credit.
• USC second rate band (2%) increased from €22,920 to €25,760.
• USC 4.5% rate reduced to 4%.
• Reduced rate of USC for medical card holders is being extended to 31 December 2025.
• Home Carer Credit and Single Person Child Carer Tax Credit increased by €100.
• €200 increase in Incapacitated Child Tax Credit.
• The income tax exemption for the microgeneration of electricity doubles to €400.
• Mortgage interest relief introduced for 2024 (only). Capped at €1,250 per property. For homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022. Qualifying homeowners will be eligible for mortgage interest tax relief in respect of the increase in interest paid on that loan between the year 2022 compared to the year 2023, at the standard rate of income tax (20%).
• Motor vehicle BIK €10,000 additional reduction retained for 2024, and BIK relief cap of €35,000 for electric vehicles (€45,000 including the additional reduction) is being retained for 2024 and 2025.

Capital Gains Tax

• The age limit for Retirement Relief is increased from 66 years of age to 70. For disposals to a child, the relief has a new limit of €10m for disponers up to the age of 70T his applies from 1 January 2025.
• A new Capital Gains Tax relief for Angel investment in innovative start-ups was announced. A reduced CGT rate of 16% or 18% applies to a maximum gain of twice the initial investment. The investment by the individual must be in fully paid-up newly issued shares costing at least €10,000 and constituting between 5% and 49% of the ordinary issued share capital of the company. A lifetime limit of €3m applied on gains to which the reduced rate of CGT will apply.

Energy Supports

Electricity credit – Three more instalments of €150 each for all households will be paid in December 2023, January/February 2024 and March/April 2024.

Corporate Tax

• R&D Tax credit is being increased from 25% to 30% for expenditure incurred in 2024. The first year payment threshold increases from €25,000 to €50,000.
• The Accelerated Capital Allowances (ACA) scheme for Energy Efficient Equipment is being extended for a further two years to 31 December 2025.

Value Added Tax

• VAT registration thresholds increased to €40,000 for services and €80,000 for goods.
• Temporary extension of 9% VAT rate for gas and electricity until 31 October 2024.
• Application of a 0% VAT rate for audiobooks, ebooks and for solar panels in schools.

PRSI

All rates will increase by 0.1% from October 2024.

Housing

• Rent Tax credit for private tenants increased from €500 to €750 and is extended to include “students in digs”. The credit will be backdated for 2022 and 2023 for parents paying for their children’s accommodation
• New rental relief for landlords at the standard tax rate on €3,000 for 2024, increasing to €4,000 in 2025 and €5,000 in 2026 and 2027. Landlords will need to retain the property rented for the 4 years in order to avoid a full clawback of the relief. This is worth €600 in 2024. Further detail will be included in the Finance Bill.
• Vacant Homes Tax increased to 5 times the LPT liability for the property (up from 3 times).
• Help to Buy scheme extended to 31 December 2025. The scheme is also being amended to reflect its interaction with the Local Authority Affordable Purchase Scheme (LAAP).

Farming Sector

• Stamp Duty Consanguinity relief is being extended to 31 December 2028.
• Accelerated capital allowances for farm safety equipment extended to 31 December 2026.
• Increase in the lifetime value of reliefs for Young Trained Farmers and Farm Succession Partnerships from €70,000 to €100,000.
• The Farmer’s VAT flat rate addition will decrease from the current 5.0% to 4.8% from 1 January 2024.

Other Measures

• 75c additional duty on a pack of 20 cigarettes with pro rata increases for other tobacco products from midnight tonight.
• Changes to EII holding periods and investment limits, with the investor limit increased to €500,000.
• Increase in Film Relief expenditure cap to €125m.
• Carbon Tax increase from 48.50% to 56.00% per tonne of CO2. The rate will apply to auto fuels from midnight, and other fuels from 1 May 2024.
• VRT relief for battery electric vehicles extended to 31 December 2025.
• Increase in threshold for tax relief on donations of heritage items, from €6m to €8m.
• Foster children are likely to avail of group B threshold for CAT purposes. More details expected in the Finance Bill.
• Weekly social welfare rates will be increased by €12.
• €300 lump sum fuel allowance will be made to Fuel Allowance recipients in the last quarter of 2023.
• €200 lump sum will be made to Living Alone Allowance recipients in 2023.
• €400 lump sum will be made to Working Family Payment recipients in 2023.
• Qualifying Social Protection recipients will receive a once-off double week (including pensioners, carers and those on disability payments and jobseekers) in January 2024, with Christmas Bonus payable in early December.
• The free school books scheme will be extended to all junior cycle pupils in recognised post primary schools within the Free Education Scheme from September next year.
• Increased Revenue compliance underway in 2024 particularly in the areas of eCommerce, payroll and expenses reporting and the cash/shadow economy.
• Extension of the fee waiver on school transport services for a further year.
• Once off reduction of the student contribution fee by €1,000 for free fees students.
• Families with income of less that €100k will have college fees for undergraduate students halved to €1,500.

The link to the relevant Department of Finance papers is included here.

Please contact a member of the Keogh Ryan Tierney Tax Team if you have any queries.
The Keogh Ryan Tierney Tax Team – 10 October 2023

This does not constitute advice. Advice should be taken from a professional advisor before any actions are taken.

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A Vacant Homes Tax (VHT) will be introduced in 2023. This will apply to residential properties which are occupied for less than 30 days in a 12-month period. The chargeable period is 12 months from 1 November 2022.The tax will be calculated at 3 times a property’s base Local Property Tax rate.

The date for filing the return is the 7th day following the end of the chargeable period (i.e., where the chargeable period is 12 months from 1 November 2022, the deadline for making the return is 7 November 2023). The tax payment is on or before 1 January in the year following the end of the chargeable period (i.e., in this case, 1 January 2024).

Temporary Business Energy Support Scheme (TBESS)

Revenue recently announced that claims under the Temporary Business Energy Support Scheme (TBESS) for the September 2022 claim period can be made by eligible businesses after the 31 January deadline. The deadline for applications in respect of claims for September 2022 energy bills has therefore been extended beyond 31 January 2023.

The Revenue guidelines have also been amended to clarify that a public body carrying on a trade or profession, the profits of which are chargeable to tax under Schedule D Case I or II, is an eligible business.

When registering for the TBESS, it will be necessary to tick a box declaring that the qualifying business has completed a carbon footprint exercise and is taking steps to reduce its energy use and environmental impact. This can be carried out using the ‘Climate Toolkit 4 Business’. A link to this can be found in the Revenue Guidelines, using the link below. Further information and Revenue guidelines can be found using the following link :

https://www.revenue.ie/en/starting-a-business/tbess/index.aspx

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The minimum wage will increase from 1st January 2023. The national minimum wage for people aged 20 and over will increase by 80c to €11.30 per hour

Residential Zoned Land Tax

The Residential Zoned Land Tax (RZLT) was introduced by the Finance Act 2021 and will come into effect from 2024, managed by the Revenue Commissioners. RZLT will operate on a self-assessment basis. If you own land liable to RZLT, you must register for the tax.

It is calculated at 3% of the market value of land within its scope. You must file a return and pay any RZLT due for 2024 by 23 May 2024.

Each local authority has now published maps identifying land within the scope of RZLT.

Supplemental and final maps will be published in 2023. Local authorities will update these maps annually from 2025 onwards for changes in the zoning and servicing status of land.

Submissions can be made to the local authority to exclude land on a map, or to include land which is not shown on a map, by 1 January 2023.

An appeal can be made to An Bord Pleanála if you disagree with the local authority decision.

From 1 January 2023, Benefit in Kind (BIK) on company cars will be calculated with reference to CO2 emissions

These changes may increase costs for both employers and employees where the vehicle is in the higher CO2 emissions bracket.

Benefit-in-kind: Effect on Company Cars from 1 January 2023

The new rules in 2023 will apply to all cars (including electric vehicles, see further detail below), whether the car is acquired in 2023 or was made available to employees in earlier years of assessment.

From 2023 onwards, the BIK cash equivalent on the use of an employer provider car will be determined based on both the business mileage undertaken and the vehicle’s CO2 emissions. Please find details below:

1. The amount of business mileage and CO2 emission category

1. The CO2 emissions category of the car is as per the following table:

Benefit-in-kind: Effect on Company Vans from 1 January 2023

For the year of assessment 2023 and onwards the cash equivalent for vans will increase from 5% to 8% of the Original Market Value (OMV).

Benefit-in-kind: Effect on Electric Vehicles from 1 January 2023

The Department of Finance announced in Budget 2022 the phasing out of the 0% BIK on Electric Vehicles over the next 4 years.  Finance Act 2021 extended the favorable BIK regime for certain electric vehicles made available to employees in the period from 1 January 2023 to 31 December 2025.  The relief from the BIK charge arising during this period applies on a tapered basis.

For an electric vehicle made available for an employee’s private use during the years 2023 – 2025, the cash equivalent will be calculated based on the actual original market value (OMV) of the vehicle reduced by:

• €35,000 in respect of vehicles made available in the 2023 year of assessment;
• €20,000 in respect of vehicles made available in the 2024 year of assessment; and
• €10,000 in respect of vehicles made available in the 2025 year of assessment.

If the reduction reduces the OMV to Nil, a BIK charge will not arise. Any portion of OMV remaining, after the reduction is applied, is chargeable to benefit-in-kind at the prescribed rates.

Further Revenue Guidance can be found in the Revenue Tax and Duty Manual Part 05-01-01b:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-01b.pdf

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Revenue has developed the IT system needed to enable businesses (Case I trades and Case II professions, together with charities and approved sporting bodies that carry on certain activities which would be chargeable to tax under Case I or Case II, but for an available exemption) to register for and make a claim under the TBESS.

The first month for which a claim can be made is September 2022. Revenue expects that businesses will be able to make claims through ROS from 5 December 2022.

The scheme will apply for claim periods from 1 September 2022 to 28 February 2023. Claims must be submitted within 4 months of the end of the claim period.

When registering for the TBESS, it will be necessary to tick a box declaring that the qualifying business has completed a carbon footprint exercise and is taking steps to reduce its energy use and environmental impact. This can be carried out using the ‘Climate Toolkit 4 Business’. A link to this can be found in the Revenue Guidelines, using the link below. Further information and Revenue guidelines can be found using the following link https://www.revenue.ie/en/starting-a-business/tbess/index.aspx

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Warehoused tax liabilities can benefit from the reduced 3% rate of interest from 2023. A 0% interest rate applies on warehoused tax liabilities up to 31 December 2022.

Revenue is encouraging taxpayers seeking Phased Payment Arrangements (PPAs) to engage with Revenue as early as possible through the online system to get PPAs in place.

Further guidance is awaited from Revenue in relation to proprietary directors with warehoused PAYE liabilities.  

Current tax returns and payments must be kept up to date to ensure that the PPA arrangement can remain in place.

Revenue have just announced a 12-month extension to the Debt Warehousing Scheme. This means that businesses will not need to enter into a phased payment arrangement to clear the warehoused debt until May 1, 2024. The 3% interest rate will still apply to warehoused debt from 1 January 2023.

Revenue said it will write to all businesses with debt warehoused in early December setting out their statement of debt and advising them of the extension just announced.

Please contact us if you require any assistance with PPA arrangements in relation to warehoused debt.

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For the first time in more than a generation, inflation, and the increase in cost of living has been the main focus for the Government in the lead-in to a Budget. The Minister for Finance stated that Budget 2023 is a “Cost of Living Budget”, focused on helping individuals, families, and businesses to deal with rising prices.

The significant expected budget surplus for the current year has given the Minister for Finance some leeway in easing the burden on taxpayers and welfare recipients, with a wide range of tax reductions, welfare increases, and energy cost supports announced.

Measures

A summary of the main tax features in this afternoon’s budget are as follows:

Energy Supports

• Once-Off Cost of living supports to include €600 in electricity credit – payable in 3 equal instalments of €200 each for all households.
• Temporary Business Energy Support Scheme (TBESS) to support significant increase in energy costs – applicable to fully tax compliant businesses with Case I trading income subject to monthly cap of €10,000, where qualifying conditions are met.

Corporate Tax

• The Finance Bill will introduce changes to the payment provisions for the R&D tax credit, to align with new international definitions of refundable tax credits.
• Knowledge Development Box extended for another 4 years. KDB will have an effective rate of 10%.

Value Added Tax and Excise

• Reduced 9% VAT rate retained for the hospitality sector to the remain until 28 February 2023.
• The current excise reduction of 21 cent per litre in respect of petrol, 16 cent per litre in respect of diesel and 5.4 cent per litre in respect of Marked Gas Oil (MGO) extended to 28 February 2023.
• Temporary extension of 9% VAT rate for gas and electricity until 28 February 2023.
• Application of a 0% VAT rate on newspapers and news periodicals, including digital additions from 1 January 2023.
• .
• Application of a 0% VAT rate to be applied to a small number of period products (currently at 9%) from 1 January 2023.
• Application of a 0% VAT rate to be applied to all non-oral hormone replacement therapy from 1 January 2023.
• Application of a 0% VAT rate to be applied all non-oral nicotine replacement therapy from 1 January 2023.
• Flat rate scheme for farmers will be decreased from 5.5% to 5.0% from 1 January 2023.
• Special Exemption Order Licence fee will be reduced from €110 to €55.
• Small cider and perry producers can avail of 50% excise relief subject to production levels.
• Qualifying production threshold for microbreweries is being increased.
• Extension of the Bank Levy until 31 December 2023.

Personal Tax

• Income Tax Standard Rate Band increased to €40,000 for a single person with a corresponding increase for other taxpayers.
• €75 increase in personal tax credit, employee tax credit and earned income credit.
• USC second rate band (2%) increased from €21,295 to €22,920.
• Reduced rate of USC for medical card holders is being extended for a further year.
• Home Carer Credit increased by €100.
• Third Income Tax band not introduced, but to be considered.
• Small benefit exemption increased to €1,000 per annum and can now be in the form of 2 vouchers per annum.
• Key Employee Engagement Programme (KEEP) extended to 31 December 2025, facilitating the buy-back of KEEP shares by the issuing company and increasing the company limit to €6 million.
• Special Assignee Relief Programme (SARP) extended to 31 December 2025 and minimum income limit for new entrants increased to €100,000.
• Foreign Earnings Deduction extended to 31 December 2025.

Housing

• €500 tax credit for private tenants who are not in receipt of other State housing supports. The credit will be claimable in 2023 and in subsequent years. It can also be claimed for 2022 (in early 2023).
• Allowable pre-letting expenses for landlords doubled to €10,000 and vacancy period halved from 12 to 6 months.
• Vacant Homes Tax will apply to property occupied for less than 30 days per annum and will be 3 times the LPT liability for the property.
• Help to Buy scheme to be kept under review and will continue to the end of 2024 at current rates.
• Residential Zoned Land Tax maps to be published on 1 November by Local Authorities. Following publication, the zoning status of their land can be amended as part of a variation process. The Finance Bill will include several amendments to streamline the operation of the tax.
• The Residential Development Stamp Duty Refund Scheme for land used for residential development is extended to the end of 2025.
• Defective Concrete Products Levy will be applied from the 3rd of April 2023 at a rate of 10 per cent.
• Living City Initiative extended to 31 December 2027.

Farming Sector

• Young Trained Farmer Stamp Duty relief extended to 31 December 2025.
• Young Trained Farmer and Registered Farm Partnerships Stock Relief extended to 31 December 2024.
• Accelerated capital allowances for the construction of slurry storage facilities so that 50% of expenditure is claimed over two years.
• Farm Restructuring (Capital Gains Tax) Relief and Farm Consolidation (Stamp Duty) Relief extended to 31 December 2025.

Other Measures

• 50c additional duty on a pack of 20 cigarettes from midnight tonight.
• Carbon Tax increase will mean that there will be an increase of just over two cent VAT inclusive per litre of petrol and diesel. But the NORA levy which is collected at a rate of 2 cent per litre (VAT exclusive) will be reduced to zero to offset the carbon tax increase which means that the price at the pump will not increase.
• Weekly social welfare rates will be increased by €12 for working age recipients.
• Qualifying Social Protection recipients will receive a once-off double week (including pensioners, carers and those on disability payments and jobseekers) in October 2022, with Christmas Bonus also payable in early December.
• Funding will be provided to provide access to IVF treatments.
• Free School Book Scheme for primary school pupils from Autumn 2023.
• €200 lump sum living alone allowance to be paid in November 2022 to persons over 66 years of age, living alone and in receipt of a social welfare payment.
• €400 lump sum fuel allowance to be paid by Christmas 2022.

• Qualifying Child benefit recipients will receive a double payment in November.
• Those who qualify for Disability Allowance will receive a once of lump sum payment of €500.
• Students – once off reduction in the Student Contribution of €1,000 for eligible students in the 2022-2023 education year.
• SUSI maintenance grant recipients will receive a once-off double monthly payment.
• Post graduate tuition contribution grant will increase by €1,000.
• Extension to the 20% public transport fare reduction and the Youth Travel Card discount if 50% on all operators’ services to end 2023.
• No changes to Capital Taxes.

The link to the relevant Department of Finance papers is included here

Please contact a member of the Keogh Ryan Tierney Tax Team if you have any queries.

The Keogh Ryan Tierney Tax Team – 27 September 2022

This does not constitute advice. Advice should be taken from a professional advisor before any actions are taken.

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Revenue has updated its Travel and Subsistence: Civil Service Rates webpage to reflect the new rates and include links to the Department’s Circulars.

For further information and all revised rates please find Revenue Guidance at the below link:

https://www.revenue.ie/en/employing-people/employee-expenses/travel-and-subsistence/civil-service-rates.aspx

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Accordingly, the percentage applied in the calculation of the cash equivalent, which is based on annualised business mileage, could be actual business mileage for January 2020, for the period of the COVID-19 restrictions, which included some of 2020, all of 2021 and 2022 up to 1 June 2022.

Please note that the concession has been withdrawn with effect from 1 June 2022, so the percentage to be applied from that date should be based on actual mileage.

Call your tax contact in Keogh Ryan Tierney if you have any queries.

Keogh Ryan Tierney

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The letters request employers to conduct a Self-Review of their EWSS claims.

The letter requests that youconduct a final Self Review to verify your eligibility for all subsidies and credit received.

The letter also states that if you are satisfied that all of your EWSS claims were valid and correct, you do not need to take any further action.

Accordingly if you are satisfied that all of your EWSS claims were valid and correct, you do not need to take any further action.

However, if you identify any invalid claims and would like our assistance to correct any overclaims please let us know.

Keogh Ryan Tierney

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