Revenue announce new VAT and PAYE Filing options for SMEs

SMEs you may qualify to reduce the frequency of PAYE and VAT filings with Revenue.  Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will be extended to certain businesses from 1 January 2011. Similar arrangements in respect of RCT will also become available from that date.

The new pay & filing arrangements are based on the level of annual payment.  They are:

• Annual VAT payments < €3,000 - pay and file on a 6 monthly basis;
• Annual VAT payments between €3,000 and €14,400 - pay and file on a 4 monthly basis;
• Annual PAYE/PRSI payments < €28,801 - pay and file on a 3 monthly basis; and
• Annual RCT payments < €28,801 - pay and file on a 3 monthly basis.

What are the benefits to businesses?

The benefits for qualifying businesses are (a) improved cashflow by only having to make payments at the end of each 3, 4 or 6 monthly period as appropriate, and (b) reduced costs of administration through less frequent filing of tax returns.

How will these changes be implemented?

Revenue is now in the course of writing to each eligible business advising them of the reduced frequency of tax returns and tax payments that will apply to them with effect from 1 January 2011.