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PAYE - new payments

The new filing arrangements for PAYE & PRSI

With effect from the 1 April 2006, if you are an employer whose total PAYE and PRSI payments for the year are €30,000 or less, you will be able to return their PAYE and PRSI payments on a quarterly, rather than monthly basis as at present.

Under this new arrangement the first quarterly return will be due on 14 July this year.

There is no need for employers to take any action in relation to this change as the Revenue have identified those employers who are eligible to avail of it.

The Revenue will issue a PAYE/PRSI return (form P30) relevant to the new filing arrangement to each eligible employer specifying the due date for the filing and payment. 

When are PAYE and PRSI paid?

Under the current arrangements the PAYE (total tax deducted) and the PRSI (total contributions deducted from pay plus the amount payable by the employer) are required to be sent to the Collector-General between 1st and 14th of the next calendar month following the payroll month in which the deductions were made.

Each month a Form P30 with a combined Bank Giro and Payslip is issued by the Collector-General on which the Employer's name, address, registration number and the relevant month are computer printed to facilitate the payment being made.

Where there is no PAYE/PRSI liability for a particular month, the Form P30 is returned marked Nil.

For small employers this arrangement now becomes quarterly per the table below.

The new PAYE/PRSI filing arrangements

The schedule for submission of PAYE/PRSI returns for eligible employers will be as follows:

Tax Period

Frequency

File and Pay

February 2006

Monthly as usual

Monthly P30 return and payment by 14th March 2006.

March 2006

Monthly as usual

Monthly P30 return and payment by 14th April 2006. (this will be your last monthly payment)

April - June 2006

Quarterly

Quarterly P30 return and payment by 14th July 2006.

July - September 2006

Quarterly

Quarterly P30 return and payment by 14th October 2006.

October - December 2006

Quarterly

A separate Quarterly P30 return is not required for the last quarter of year. payment for the last quarter to be included with P35 by 15th February 2007.

Filing and payment will continue on a quarterly basis thereafter.

End of Year Return

The Form P35, the form on which the employer declares the overall amount of PAYE/PRSI deducted from his/her employees during the tax year, must be returned before 15 February in order to avoid penalties for late filing.

P35 Year

 Filing Date

2005

15th February 2006

2006

15th February 2007

2007

15th February 2008

The balancing payment must not exceed 10% if you wish to avoid interest for late payments.




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Testimonials

"I run my own business and after years of struggling with a demanding home life and a hectic work schedule I reached a situation whereby I was functioning poorly with both. I’d missed a couple of VAT payments and had intended to catch up at the end of the year. I missed my own deadlines and tried again to catch-up in the following year. Business became a stressful job of ‘fire-fighting’ each day’s demands, eventually pushing the issue of outstanding taxes out of my mind as much as possible, in order to concentrate on work.

That said, you always know in the back of your mind that these things don’t just go away and that it was just a matter of time before ‘they’ catch up with you. 

After a few years of letting my compliance payments slide altogether, the Revenue made contact with me and gave me an estimate of all PAYE, VAT and tax owed over the years – which ran to over 6 figures- and they wanted the money immediately. I knew I was in big trouble and looked in the Golden pages for an accountant who could help me. The name www.fixmytax.com jumped out of the page and I made contact. I was immediately reassured that they could help me. I was asked for “every bit of paper” concerning the office and all old Revenue correspondence.

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Throughout the process, the fixmytax accountant was hugely supportive to me, dealt directly with the Revenue, reduced the original tax bill considerably and most importantly, had taken the fear out of the situation and given me peace of mind knowing that good progress was being made with the Revenue, rather than hiding from it all.

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My Revenue mess caused me huge amounts of anxiety all the time I did nothing to resolve it. In dealing with fixmytax, they took control of the situation and proceeded to do what had to be done. I would not hesitate to recommend them to anyone worried about any aspect of taxation and financial planning for a business.

I now have a good relationship with the Revenue, fixmytax looks after not only the basics of compliance, but also the financial planning and regularly reviews the performance of the business. My business is now stronger and more focussed that ever before simply because of the level of ongoing collaboration and support that I have with fixmytax. They are the proverbial “good accountant” that every business needs.

My most valuable lesson in dealing with fixmytax is that it is far more productive and far less stressful to get a good supportive accountant to do what they do best, leaving me free to do business. Thanks, Patrick!

Satisfied Client, name and address with firm. 

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