Revenue issues an update which will be welcomed by Small Businesses from 1st January 2014
Reduced Frequency of Filing Tax Returns and Payments
Extension to newly eligible VAT, PAYE/PRSI and RCT customers
Reductions in the filing and payment frequencies for VAT, PAYE/PRSI and RCT by smaller businesses are being extended to eligible customers from 1 January, 2014.
- Businesses making total annual VAT payments of less than €3,000 are eligible to file VAT returns and make payments on a 6 monthly basis;
- Businesses making total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make payments on a 4 monthly basis;
- Businesses making total annual PAYE/PRSI payments of up to €28,800 are eligible to make payments on a 3 monthly basis;
- Businesses making total annual RCT payments of up to €28,800 are eligible to file RCT returns and make payments on a 3 monthly basis.
What are the benefits to eligible businesses?
The benefits are two-fold:
- Improved cashflow by only having to make payments at the end of each 3, 4 or 6 monthly period, as appropriate.
- Reduced costs of administration through less frequent filing of tax returns.
How will these changes be implemented?
Revenue will shortly write to each eligible business confirming that reduced frequency of tax returns and tax payments will apply from 1 January, 2014.
A copy of the letter will also be sent to the agent or tax practitioner on record for eligible customers (other than PAYE/PRSI customers).
Revenue will automatically extend the reduced filing and payment frequencies to eligible businesses without the need for any action on their part.