Category: Uncategorized

Finance Act 2022 introduced Section 897C which will require you to report details of certain payments made to your employees and directors.

A real time approach was introduced in the payroll process in 2019. Where you make one or more of the payments below, you must submit the details electronically to Revenue. This submission must be made on or before the payment date. It is intended that this will commence from 1 January 2024.

Phase one will apply to the following payments:

Small benefit

You will be required to report the value of the benefit paid to each employee.

Remote Working daily allowance

For each employee for whom a Remote Working daily allowance is paid you are required to report the:

•  total number of days
•  and
•  amount paid.

Travel and subsistence

The following items, and amount of each payment, must be reported in respect of every employee and director:

•  travel vouched
•  travel unvouched
•  subsistence vouched
•  subsistence unvouched
•  site based employees
•  emergency travel
• and
•  eating on site

How will this information be reported to Revenue?

A facility will be made available in Revenue Online Service (ROS) to allow you report these payments to Revenue. This facility will be similar to that used currently for payroll reporting. Revenue is currently engaging with 3rd party software providers to develop this enhancement to the service.

There will be continuous engagement as this work is progressed during the year. This began in January with Revenue contacting all stakeholders seeking their engagement in the implementation of this reporting requirement.

Further information will be published in due course.

Overview

The new Rent Tax Credit is available for the tax years 2022 to 2025. The Rent Tax Credit reduces the amount of Income Tax that you are due to pay for a tax year.

To benefit from the Rent Tax Credit, you must have an Income Tax liability to offset against it.

Note:

You can now claim your Rent Tax Credit for the 2022 tax year on your Income Tax Return. If you have PAYE Income, this can be done through myAccount. Otherwise, you can do this through Revenue Online Services (ROS)

If you have PAYE income, you are also able to make a claim for your Rent Tax Credit for 2023 in real time. This can be done in myAccount by clicking the ‘Manage Your Tax 2023’ option in PAYE Services.

The amount of Rent Tax Credit you can claim will be calculated for you when you submit your claim. This amount will depend on the amount of:

• rent you pay
• and
• Income Tax you pay.

Rent means the amount you pay for use of the property. It does not include any amount you pay for extra services such as utilities, board or laundry. You should exclude any amount you pay for these services when calculating the rent you pay.

The maximum value of the Rent Tax Credit is €1,000 per year for jointly assessed married couples or civil partners. The maximum value is €500 in all other cases, including single persons. This is the case no matter how many properties you pay rent for during the year.

Subject to a number of conditions, the Rent Tax Credit may be available where you pay rent for:

• your principal private residence
• another property you use to facilitate your attendance at work or on an approved course
• or
• a property used by your child to facilitate their attendance on an approved course.

The conditions which apply relate to the:

• location and use of the rental property
• type of tenancy
• relationship between you, or your child, and the landlord
• and
• age of your child and the type of course they are attending, where relevant.

For more information go to: https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/rent-credit/qualifying-conditions.aspx

Overview

The TBESS was introduced to support businesses with increases in their electricity or natural gas (energy) costs. Your business can make a claim under the scheme if it:

• is tax compliant
• carries on a Case I trade or Case II profession (this includes charities and approved sporting bodies that carry on certain activities)
• and
• has experienced a significant increase of 30% or more in its electricity and, or natural gas average unit price.

Qualifying businesses can claim for:

• 40% of the increases in their September 2022 to February 2023 energy bills
• and
• 50% of the increase in their March 2023 to July 2023 energy bills.

The increase in energy bills must be between the ‘claim period’ and the ‘reference period’.

A claim period is a calendar month from September 2022 to July 2023. A reference period is the corresponding calendar month in the previous year. For example, September 2021 is the reference period for the September 2022 claim period.

Further information on the scheme is contained in the TBESS guidelines.

Claim amount

If your business is a qualifying business, it can make a claim for a Temporary Business Energy Payment (TBEP).

The TBEP is equal to:

• 40% of a business’ eligible costs for September 2022 to February 2023 claim periods
• and
• 50% of a business’ eligible costs for March 2023 to July 2023 claim periods.

The TBEP is subject to a monthly cap.

Note:

You can use Revenue’s online calculator to determine the increase in your energy bills and calculate the potential TBEP.

State aid

The scheme is designed to be compliant with the European Union State Aid Temporary Crisis Framework and Transition (TCTF). The TCTF sets out overall limits on the financial support that may be claimed by single undertakings.

Publication

Revenue will publish a list of the names and addresses of all businesses who avail of the TBESS. The list will include the total amounts they have claimed.

As a requirement under the TCTF, Revenue will publish additional details in relation to persons who are members of a single undertaking where claims under the TBESS exceed:

• €100,000 for any claim period
• or
• €10,000 per claim period where the single undertaking is engaged in farming or fishery and aquaculture.

Note:

A number of enhancements have been made to the TBESS.  Please see the next page in this section for further information.