by Jillian O’Sullivan, Partner, Corporate Compliance at Grant Thornton
Revenue have recently confirmed that it’s ‘service to support compliance’ approach to Enhanced Reporting Requirements (“ERR”) will end on 31 December 2024.
ERR came into effect for employers on 1 January 2024 and under these rules, employers are required to report three categories of non-taxable payments or benefits on a real-time basis: remote working daily allowance, small benefits and travel and subsistence.
For the duration of 2024, Revenue agreed not to operate any formal compliance interventions in respect of ERR and not to seek penalties for non-compliance, in an effort to support employers to comply with ERR during the first year of operation. Revenue expects that by now all liable employers will have put appropriate procedures in place to comply. It is also expected that any employers who commenced filing after 1 July 2024, backdates its filings to 1 July 2024.
It is expected that ERR will form a normal part of PAYE interventions in 2025 and ERR compliance may be factor informing selection of employers for compliance interventions.
As we reach the end of Revenue’s “service to support compliance” approach towards ERR, it is critical for employers to ensure they are fully compliant with ERR obligations that have been in effect since 1 January 2024.
Small Benefit Exemption
It is also timely to remind employers about reporting Christmas gifts made to employees that meet the criteria for the Small Benefit Exemption (SBE) where appropriate. Revenue have clarified that the first two benefits made in a year, that meet the small benefit criteria, (i.e. the provision of no more than two vouchers or benefits up to a combined value of €1,000 per annum), will be deemed to be a small benefit and therefore must be reported under ERR.
From 1 January 2025, the number of tangible non-cash benefits that can qualify for the SBE will increase to five benefits, provided their cumulative value does not exceed €1,500.
About the author
Jillian O’Sullivan leads the company secretarial and employer solutions team at Grant Thornton, which includes the provision of outsourced payroll services. She assists companies establishing a presence in Ireland, from their initial setup to their on-going compliance, payroll and other outsourced service requirements. She also deals with all areas of corporate compliance and governance. Jillian has significant experience in the restructuring of corporate entities and groups, both medium and large, and in the implementation of related tax planning and succession schemes. She lectures extensively and facilitates seminars on both the role and responsibilities of directors in companies.
