Revenue writes to 30,000 employers


According to Chartered Accountants Ireland, Revenue has began writing to 30,000 employers that included employees on their P35s for 2016 but had not registered them with Revenue as employees.  It seems like a lot.

Under PAYE rules an employer must register a new employee with Revenue either by submitting a P45(3) issued by the previous employer, or a P46 in cases were a P45(3) isn’t available.

As part of its modernisation of PAYE project, Revenue has reviewed P35 returns for 2016 submitted by employers to identify those employers that had employees on their books in 2016 but did not register them with Revenue.  These are employees from which tax was deducted and paid over to Revenue, there’s nothing underhand going on, just an omission by the employer to inform Revenue about the employees in the correct manner.

Where an employer fails to notify Revenue about a new employee, that employee will not be assigned any tax credits or standard rate cut-off point, and will therefore be placed on emergency tax.  The incorrect tax could be deducted resulting in an over or under payment of tax by the individual.  Therefore, it’s important that the employer has the correct tax credits for each employee to enable the correct operation of the PAYE system.  The onus is on the employer to ensure it has tax credits (and the most up-to-date tax credits) for all employees.

Revenue is asking employers to review their records and register any employees that haven’t yet been registered.

If you have employees on your payroll that have not yet been registered with Revenue, you must submit either a P45(3) or P46 for them.  It’s a fairly straightforward process, and most payroll packages will produce a file for uploading on to ROS.  The down side, it may play havoc with your cashflow if you have employees that have been on emergency tax for a while as they could be due a rebate which the employer has to fund pending submission of the next P30 return.


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