03 Oct 23
Finance Act 2022 - Enhanced reporting requirements
Reporting obligations in force from 1 January 2024
Section 897C of the Taxes Consolidation Act 1997, introduced under the Finance Act 2022, provides for a range of enhanced reporting obligations for employers with respect to certain payments made to employees and directors.
Employers will be required to report to the Revenue Commissioners ("Revenue") details of certain payments made to employees and/or directors with respect to small benefits, remote working daily allowance and travel and subsistence payments. These reporting obligations are due to enter into force from 1 January 2024.
Information is being collected in order to enhance Revenue’s Compliance Intervention Framework, as well as informing the Department of Finance policy decisions and providing increased visibility and assurances for employees in relation to non-taxable payments.
Employers are required to report to Revenue details of payments made under the following categories:
|Small Benefit Exempt||Details include date paid and value of benefit|
|Remote Working Daily Allowance||Details include total number of days claimed under allowance, amount paid and date paid.|
|Travel and Subsistence||Details include date paid and amount of each payment – travel vouched, travel unvouched, subsistence vouched, subsistence unvouched, site based employees including ‘Country Money’, emergency travel and meals on site.|
Submissions to Revenue must be made on or before the payment is made to the employee. Reporting is filed electronically through a facility made available on Revenue Online Service (ROS), similar to the process currently in place for payroll reporting.
It is worth noting that the new requirements from January 2024 represent phase one of the Enhanced Reporting Requirements, with Revenue yet to indicate what will be included in any future phases.
Revenue will issue comprehensive guidance in due course on the enhanced information to be reported, as well as the reporting options available to employers. In the meantime, employers should begin the process to review their internal HR system and expense payment policy in advance of the new guidance being issued to ensure they are ready to update as required to ensure a smooth reporting transition.