Finance Act 2018
|
PAYE modernisation | ||
|
58. (1) The Principal Act is amended— | ||
(a) in section 472(2)(a)(ii), by substituting “Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(b) in section 531AL— | ||
(i) by inserting the following definition: | ||
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”, | ||
and | ||
(ii) by deleting the definition of “PAYE Regulations”, | ||
(c) in paragraph (a) of the Table to section 531AM(1)— | ||
(i) in subparagraph (i), by substituting “Regulation 31 of the Income Tax Regulations” for “Regulations 41 and 42 of the PAYE Regulations”, and | ||
(ii) in subparagraph (III), by substituting “following receipt of a notification issued by an inspector under section 984(1)” for “on the direction of an inspector in accordance with Regulation 10(3) of the PAYE Regulations”, | ||
(d) in section 531AN— | ||
(i) by substituting the following for subsection (7): | ||
“(7) Subsection (5) shall not apply where— | ||
(a) the normal day on which relevant emoluments are paid to an individual during a tax year changes either during that year or the preceding year, or | ||
(b) a payment of relevant emoluments occurs on a relevant date and that date is not the normal day on which relevant emoluments are paid to an individual.”, | ||
and | ||
(ii) by inserting the following subsection after subsection (7): | ||
“(8) A reference in subsection (7) to the normal day is a reference to the day during the weekly or fortnightly cycle, as the case may be, on which relevant emoluments are paid to the individual concerned.”, | ||
(e) by inserting the following section after section 531AO: | ||
“Return by employer | ||
531AOA. (1) In this section, ‘return filing date’ means, in relation to an income tax month, the day that is 15 days from the last day of the month. | ||
(2) On or before the return filing date for an income tax month, an employer shall make a return to the Revenue Commissioners specifying the total universal social charge deducted or repaid in respect of that month in accordance with Regulations made under section 531AAB. | ||
(3) Where the Revenue Commissioners issue a statement to an employer which sets out, in summary form in respect of an income tax month, the total amount of universal social charge deducted or repaid by that employer, the details of the statement shall on the return filing date, or where the statement is issued after the return filing date, on that later date, be deemed to be a return made by the employer in respect of that month for the purposes of subsection (2). | ||
(4) Subsection (3) shall not apply where a statement referred to in that subsection is issued to an employer and the details on that statement do not accurately reflect all payments of emoluments, to which this Part applies, made by the employer in the income tax month concerned or the liability of the employer to deduct universal social charge on those payments. | ||
(5) Where subsection (4) applies, the employer concerned shall ensure that all payments relating to the income tax month concerned and the associated universal social charge liability are accurately reflected in the return required under subsection (2) in respect of that month.”, | ||
(f) in section 531AY(4), by substituting “Income Tax Regulations” for “PAYE Regulations”, | ||
(g) in section 531AAD(10), by substituting “Within 14 days” for “Within 46 days”, | ||
(h) in section 784(2B)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”, | ||
(i) in section 784A(3)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”, | ||
(j) in section 787G(1)(b), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”, | ||
(k) in section 790AA(7)(b)(ii), by substituting “a revenue payroll notification (within the meaning of section 983)” for “a certificate of tax credits and standard rate cut-off point or a tax deduction card”, | ||
(l) in section 864A— | ||
(i) in subsection (1)(d), by substituting “a claim under Regulation 22(5) of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “a claim under Regulation 26(5) of the Income Tax (Employments)(Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, and | ||
(ii) in subsection (8), by substituting “Regulation 4, or amended the amount in accordance with Regulation 5, of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 10, or amended the amount in accordance with Regulation 13, of the Income Tax (Employments)(Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(m) in section 897A— | ||
(i) in subsection (1)— | ||
(I) by deleting the definition of “Consolidated Regulations”, | ||
(II) by substituting the following for the definition of “employee pension contribution”: | ||
“ ‘employee pension contribution’ in relation to a year of assessment and a scheme referred to in either section 774 or 776, means a contribution referred to in paragraph (1)(b) of Regulation 31 of the Income Tax Regulations;”, | ||
(III) by inserting the following definition: | ||
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”, | ||
(IV) by substituting the following for the definition of “PRSA employee contribution”: | ||
“ ‘PRSA employee contribution’, in relation to a year of assessment, means any PRSA contribution made by the employee in the year of assessment which is a contribution referred to in paragraph (1)(c) of Regulation 31 of the Income Tax Regulations;”, | ||
and | ||
(V) by substituting the following for the definition of “RAC premium”: | ||
“ ‘RAC premium’, in relation to a year of assessment, means any qualifying premium (within the meaning of section 784) paid by an individual in a year of assessment which is a contribution referred to in paragraph (1)(d) of Regulation 31 of the Income Tax Regulations.”, | ||
(ii) by substituting the following for subsection (2)— | ||
“(2) Any person who is required to notify the Revenue Commissioners under section 985G(2) shall include the following particulars relating to employees in that notification— | ||
(a) where a pension contribution deduction is made from the emoluments paid to an employee, the amount of the pension contribution, | ||
(b) where a PRSA contribution deduction is made from the emoluments paid to an employee, the amount of the PRSA contribution, | ||
(c) where an RAC premium deduction is made from the emoluments paid to an employee, the amount of the RAC premium, | ||
(d) where an additional superannuation contribution deduction is made from the emoluments paid to an employee, the amount of the additional superannuation contribution, | ||
(e) the amount of an employer pension contribution, and | ||
(f) the amount of a PRSA employer contribution.”, | ||
and | ||
(iii) by substituting the following for subsection (3)— | ||
“(3) Sections 1052 and 1054 shall apply to a failure by a person to provide the particulars required by subsection (2) as they apply to a failure to deliver a return referred to in section 1052.”, | ||
(n) in section 903(1), in the definition of “records”, by substituting “revenue payroll notifications (within the meaning of section 983)” for “certificates of tax credits and standard rate cut-off point, tax deduction cards, certificates issued in accordance with Regulation 20 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(o) in section 960(2), by substituting “Regulation 28 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(p) in section 960A— | ||
(i) in the definition of “assessment”, by deleting “under section 990 or”, | ||
(ii) by inserting the following definition: | ||
“ ‘Income Tax Regulations’ means the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 );”, | ||
and | ||
(iii) by deleting the definition of “PAYE Regulations”, | ||
(q) in section 960I— | ||
(i) in subsection (5)(a), by substituting “Income Tax Regulations” for “PAYE Regulations”, and | ||
(ii) by substituting the following for subsection (6): | ||
“(6) For the purposes of subsection (5)— | ||
(a) any amount of tax assessed under section 990, or | ||
(b) any balance of tax so assessed but remaining unpaid, | ||
is deemed to be an amount of tax which any person paying emoluments was liable, under Chapter 4 and the Income Tax Regulations, to pay to the Collector-General.”, | ||
(r) in section 960O(4)— | ||
(i) in paragraph (a), by deleting subparagraph (iv), and | ||
(ii) by substituting the following for paragraph (c): | ||
“(c) For the purposes of paragraph (a)(i), ‘authorised employer’s PAYE liability’, in relation to an employer whose due date for the payment of tax has been varied by way of a notice under section 985G(7), means the amount determined by the formula— | ||
(A + B - C) + D | ||
where— | ||
A is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that the employer is liable under Chapter 4 and the Income Tax Regulations to deduct from emoluments paid by the employer during the relevant period, | ||
B is any amount which, if a notice under section 985G(7) was not issued, would have been an amount due at the relevant date in respect of sums that were not so deducted but which the employer was liable, in accordance with section 985A and any regulations under that section, to remit to the Collector-General in respect of notional payments made by the employer during the relevant period, | ||
C is any amount which the employer was liable under Chapter 4 and the Income Tax Regulations to repay during the relevant period, and | ||
D is any interest payable under section 991 in respect of the amounts referred to in the meanings of A and B.”, | ||
(s) in section 960P— | ||
(i) in subsection (3), by deleting paragraph (e), and | ||
(ii) in subsection (5), by substituting “Income Tax Regulations” for “PAYE Regulations” in the meanings of A and C, | ||
(t) in section 985H(1)(i), by substituting “Regulation 19 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 22 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(u) in section 986A, by inserting the following after subsection (3): | ||
“(4) The amount referred to in subsection (3) shall, notwithstanding sections 18 and 19, be an amount chargeable to tax under Schedule E on the employee concerned.”, | ||
(v) in section 997(3), by substituting “Regulation 28 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, | ||
(w) in section 997A(3), by substituting “Regulation 28 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”, and | ||
(x) in section 1080(2)(b)(ii), by substituting “Regulation 28 of the Income Tax (Employments) Regulations 2018 ( S.I. No. 345 of 2018 )” for “Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 )”. | ||
(2) Subsection (1), other than paragraphs (r)(ii), (s)(ii) and (u), shall apply for the year of assessment 2019 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2019. | ||
(3) Subsection (1)(r)(ii) shall apply— | ||
(a) where a relevant period (within the meaning of section 960O of the Principal Act) commences before 1 January 2019, in respect of that part of the relevant period which falls on or after 1 January 2019, and | ||
(b) where a relevant period (within the meaning of section 960O of the Principal Act) commences on or after 1 January 2019, in respect of that relevant period. | ||
(4) Subsection (1)(s)(ii) shall apply— | ||
(a) where a relevant period (within the meaning of section 960P of the Principal Act) commences before 1 January 2019, in respect of that part of the relevant period which falls on or after 1 January 2019, and | ||
(b) where a relevant period (within the meaning of section 960P of the Principal Act) commences on or after 1 January 2019, in respect of that relevant period. |