PAYE Changes

Unfogging the Small Print

The new year period is a time of change each year and whilst so often many of our ‘New Year, New Me’ promises may not stick, there are certain changes in the financial field that are occurring this year that it would be easy to miss. As always, we want to keep you as fully informed as possible.

Until recently, some tax assessment was on what is known as the “earnings basis” and was calculated regardless of whether or not the income was paid to the individual during that assessment year. The PAYE system operates on what is known as the “receipts basis” as in the employer deducting tax from the income at the time of payment to employee. New changes to the Finance Act of 2017 will bring order to confusion and bring all in line with the PAYE system of operations, meaning that all assessments will be moved to the “receipts basis” of assessment.

Changes have been made to the PAYE (Pay As You Earn) system from January 1st 2018 that not everyone may be aware of. As of the beginning of this year, the statutory basis of assessment for most employment income is the actual amount of income received, thus placing the basis of assessment for Schedule E income in line with the operation of PAYE.

Further changes will be in effect from January 1st 2019 including a further modernisation of the PAYE system. From next year, employers will be required to report relevant payroll data to Revenue no later than the date of payment to the employee. There will then be an automatic end of year review carried out on all PAYE customers for the year 2019 and subsequent years.

There are a number of exclusions to the receipts basis who will not see this change, proprietary directors will not be required to make this move, and where there is a PAYE exclusion order in place, no changes will occur. The changes will be required of all other employers and employees.

It is hoped that these moves will have a minimal or non-existent effect on employers, who will still be required to make the deductions when payments are made using the PAYE system. Similarly, this move should also not affect employee wages. As we have discussed in the past, Revenue are eager to clamp down on outstanding tax issues, and are now making the positive move to bring everything in line on a statutory basis and bring parity where there was confusion.

For further information, we advise reading through the recently published Tax and Duty Manual Part 05-01-08 found at the Revenue website at your leisure.

Should you require any further guidance please do not hesitate to get in touch with us here at EcovisDCA where we will be happy to assist you in starting 2018 on the right foot.

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How Santa got his Tax Back

It may be the most wonderful time of the year, but it is also the time of year when people are likely to be more in need of an extra bit of cash in their wallets or accounts. Having possibly spent more than we intended to on Christmas presents having sworn that this year would be different, we may likely find ourselves in need of an extra boost of cash flow for the New Year.

Here at EcovisDCA we are always thinking of our friends and clients and, particularly at this time of year when our minds take more of a shift towards those we love and care about we thought that this would be a good opportunity to remind you all that the deadline for the four-year time limit for claiming tax back on expenses such as prescriptions, doctor fees, and tuition fees is fast approaching.

This may have fallen down the list of priorities in the run up to Christmas, but it is worth noting that the deadline for claiming expenses incurred in 2013 is 31st December 2017. It may be a wonderful way to start off the New Year on the right foot having completed your claim which has likely been on your mind for some time.

If you submit your claim to Revenue before 31st December 2017, you will be entitled to claim for all four years; 2013, 2014, 2015 and 2016, and you may be surprised to find that you are entitled to a refund. As always, the recommended route is through the PAYE Service on their MyAccount system, which has made making claims and filings infinitely easier in recent years.

Further information can be accessed on the Revenue website and as always our advice is to get your claim in as soon as possible and avoid waiting until the deadline is upon you.

Should you require any assistance or guidance on any financial or business matters, please do not hesitate to contact us here at EcovisDCA, where we are always happy to help.

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The Offshore Blues

With the Tax deadlines having just passed, taxation has been a hot topic of conversation in recent weeks, we have spoken in the past about the ways in which there will be an increased clamp down on tax evasion and this week, Revenue have confirmed that there is an inquiry underway to identify tax payers engaged in offshore tax evasion and avoidance. Recent leaks in the celebrity world have brought issues such as these to the forefront of public consciousness and now we are seeing this become a higher priority for Revenue themselves.

Changes made in the Finance Act 2016 means that now any tax payers engaged in offshore activities may face larger penalties and even prosecution for defaulting. The deadline for coming forward with declarations on offshore tax liabilities was May 5th 2017, and despite receiving over 2700 disclosures, it is thought that there may be many others.

As we have discussed previously, Revenue are embracing technological advances in order to tackle tax evasion and will be employing a system of data analytics to combat this offshore issue. According to Daniel Sinnot, Head of Revenue’s Research

“Data analytics is an integral element of Revenue decision making, and it works by having a ‘whole of taxpayer’ view. We use proprietary software to match the data that we receive from other tax administrations to Revenue’s taxpayer records, then cross-check against prior returns to ensure all relevant income and assets have been declared. We also feed the data into our social network analysis and anomaly detection tools, to highlight suspicious cases. Then, as we begin to carry out risk based compliance interventions, we use the results of our interventions to train machine-learning models that further refine our ability to recognise and target the riskiest cases.”  

Mr. Rigney also stated that Revenue study and examine the information published in the wider media, including all allegations within the so-called “Paradise Papers”. The disclosures already made have revealed that over half were related to British-based liabilities with others referring to the UK, France, Spain and Switzerland. Revenue have revealed that almost a third of the disclosures related to property, with 20% relating to shares.

It is clear that tax evasion remains a top priority for Revenue and as always we recommend early and efficient filing before deadlines to avoid any penalties or issues that may delay processing. Revenue have stated that they will continue to keep this as a priority and will investigate further as more information emerges.

Should you have any queries relating to any business or financial matters, please don’t hesitate to contact us here at EcovisDCA where we are always happy to help you and your business.

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Income Tax Deadlines 2017

As the deadline for paper filing has come and gone as of October 31st, the focus now shifts to the online pay and file deadline. This tax season has been an unusual one in many ways. It’s not very often that we find ourselves in a hurricane in Ireland, and even rarer that such a storm could bring with it tidings of good.

Revenue has extended the online pay and file deadline for self employed people as a result of Storm Ophelia and the business time lost as a result of office closures. The previous deadline was November 14th, and has now been shifted to midnight on November 16th to allow people to recoup that lost time.

Revenue has also announced that their help-desks will be open until 8pm each night leading up to this deadline, and will remain open until midnight on the deadline day itself. This is to ensure that any issues are dealt with in a timely manner to avoid late filing.

As always, our advice is to file early and avoid an over-reliance on extended deadlines where possible. Should you have any queries or concerns related to this, please feel free to contact us.

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No Budging the Budget – Budget 2018 Overview

The Budget is a contentious subject each years and a word which tends to eclipse all others in the weeks following its announcement. This comes as no surprise, as a country which has suffered enormous economic downturn in the recent past for there to be an enormous focus on an event such as the Budget which often gives a general idea of how heavy or light we can expect our wallets to feel in the coming year.


Budget 2018 was announced this week by Minister for Finance Paschal Donohoe. There were a great many predictions made in the week before the announcement but now that we have the facts to hand we will be breaking down the main points of the Budget and what it will mean for you and your business.


Positively, Ireland’s economic growth continues to rise, and Minister Donohoe has stated that he expects this to continue into 2018. This is welcome news for those who may not be seeing the economic recovery in their own pockets as yet, as there is a tentative promise that they may begin to do so in the coming months. Similarly, it was noted that unemployment figures are expected to continue to fall from the current 6.1% to 5.7% in 2018.


Here are the main points to note from Budget 2018:


Income Tax:

  • The entry point for the higher tax rate of 40% will rise from €33,800 to €34,550.
  • The 5% USC rate will drop by 0.25%, whilst the 2.5% rate is set to drop by 0.5%.



  • Stamp Duty on non-residential property being raised from 2% to 6%.
  • The Government are allotting €1.8million towards housing for 2018.
  • Mortgage Interest Relief for loans from 2004-2012 to be slowly phased out by 2020. Reducing to 70% in 2018, 50 in 2019 and 25 until the end of 2020.
  • The help to buy scheme is to be retained.



  • There will be a Brexit loan scheme of up to €300million made available to SMEs to assist with short term needs.
  • No changes to VAT rates for tourism and services sectors.
  • Social Welfare
  • All payments to be increased by €5 at the end of March 2018.
  • Social Welfare Christmas bonus to be paid at 85% of the usual rate. This is a €20 increase on last year.



  • No changes to cost of petrol and diesel.
  • Cost of 20 cigarettes to rise by 50cent.
  • Sugar tax to be applied to sweetened drinks containing 8g of sugar per 100ml.



  • Prescription charges to be reduced for all under 70s with medical card by 50cent per item.
  • Threshold for Drugs Payment Scheme to fall from €144 to €134.
  • Home Carer tax credit to be increased to €1200 per year.


As always we are available for any advice or guidance you may require on business or finance matters.

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The Supernanny Tax

Recently, the Revenue Commissioners have collected approximately €61million in taxes, penalties and interest during their ongoing investigation of over 800 medical consultants. It is believed that there was a significant underpayment of taxes by 276 consultants who had incorporated their private medical practices and other companies. These investigations are currently ongoing and to date, 36 consultants have been published on the Revenue’s list of tax defaulters. The findings include so-called “future uplift” or the estimation of future taxes collected.

Chairman of the Revenue, Niall Cody has been recently quoted as saying of the investigation:

“These are high-wealth individuals. These are people with significant incomes and there has been significant underpayment of taxes.”

This investigation has been underway since 2010, when Revenue suspected that a wrongful tax planning strategy was being marketed towards medical consultants. The incorporation of medical practices can be a legal form of tax avoidance, however many of the practices registered have been found to have no commercial reality, positioning these particular practices in the realm of illegal tax avoidance.

The chairman was also quoted as saying that these individuals had seemingly forgotten the “legitimate boundaries” in relation to tax matters and had wrongfully claimed expenses that were either non-existent or not relevant to the business they were claimed against. Nanny costs and private home expenses were among the expenses wrongfully claimed in some cases. Other issues identified are wages paid to underage family members. Mr Cody explained that in one case expenses were claimed for the services of a child working on a website “because the child was proficient in IT and the consultant wasn’t.”

825 cases have been opened in this investigation, with 552 cases now closed. In all cases closed to date it has been found that the consultants were not in fact acting in goodwill and were evading taxes wilfully and under full knowledge.

Wages were paid to underage family members by some consultants. Mr Cody described one case in which the expenses were claimed for the services of a child for work on a website, “because the child was proficient in IT and the consultant wasn’t.”

The Irish Hospital Consultants Association and tax advisers have asked Revenue to publish guidance on goodwill for medical practices.

Mr Cody was also quoted as explaining that if it seems too good to be true it is probably unethical which is a good rule for your tax matters. If you require any further guidance or advice on your own tax or financial matters, please don’t hesitate to get in touch with us.

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In recent years life and business have been taking a turn for the seemingly more convenient with it becoming increasingly easy to complete important tasks and meet deadlines remotely or via phone. Banking too became more convenient with online banking beginning to take over and allowing customers to complete many banking transactions online. Similarly, issues like tax submission etc. have become more convenient with the advent of online systems and the availability of important submission forms to download.

The Revenue website is one area which has been making a marked move towards online services with many day-to-day checks and queries being able to be answered via the ‘myAccount’ area of the Revenue website. This week, Revenue have announced that development of the myAccount system is ongoing and that there would be changes imminent in the coming weeks, which we felt might be relevant to you.

Revenue have announced that from the middle of June, their PAYE anytime service would no longer be available. This is due to the ongoing works on the website and the findings that the service is not easily accessible on mobile devices. This shows a very marked belief in progress as the need to have all services easily accessed via a tablet or smartphone showcases our current and continued reliance on these devices. The PAYE anytime service was released in 2005 and has certainly served its time and purpose well but it is time to move on.

PAYE business will now be completed via myAccount through newly enhanced PAYE Services, easily accessed on all mobile devices. Interestingly, this will also be available through the very modern RevApp allowing you to have your tax issues and queries resolved at the push of a button.

Through these new services you will be able to:

  • Manage your tax 2017.
  • Review your tax 2013 – 2016.
  • Request an End of Year Statement (P21).
  • Add a Job or Pension.
  • View your Tax Credit Certificates and End of Year Statements (P21).

The new Revenue website will be available to view from early June on all mobile devices and PCs, we are never ones to complain about convenience.

Should you require any help, advice or guidance on your own tax or other business and financial matters, please don’t hesitate to contact us here at EcovisDCA where we will be happy to help.

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Don’t Fear the Reaper…I mean Taxman


Whilst the temperatures have plummeted in recent days (the weather outside, is indeed frightful), things are certainly set up for tax evasion investigations in Ireland. The recent push towards a further clamp down on tax evasion has been a hot topic of conversation in recent months. Minister for Finance Michael Noonan recently published his finance bill which promises a further clamp down on tax evasion and a reduced level of tolerance for these activities by closing certain loopholes currently in use. The new finance bill allows six months for getting affairs in order in terms of offshore assets which it is advised should be tidied up well before the clampdown begins in earnest.


It is reported that the Office of Revenue Commissioners will now have access to and be able to comb through an unprecedented amount of international data in order to begin this clamp down on tax evasion both on and offshore. As of next year, Revenue will have automatic access to information regarding income and assets in overseas institutions, which previously may have acted as somewhat of a loophole for Irish tax payers. Previously, there were a number of areas which were somewhat protected from this level of intense scrutiny which allowed for tax evasion to take place such as Bermuda, the Cayman Islands and Switzerland. This, combined with the Revenue’s new increase in technology for clamping down on tax evasion that we have previously discussed, will make it incredibly difficult for tax evaders to carry on normal activities.


Previously, in order to check Irish records against those of other countries, the Revenue would have had to place a request based on existing information or concerns. The new technology being put in place by the Revenue will allow for cross referencing between Ireland and other countries for data on individual cases which may previously have been unavailable to them. This in turn will allow them to paint a clearer and fuller picture of an individual’s tax affairs and to assess patterns for any suspicious or untoward behaviours. It is expected that Irish records will be automatically cross referenced with those of over 100 other countries by late 2018. This will bring Irish systems in line with those currently being used in the United States.


Paul Rigney of Revenue has stated that there will be time for individuals to set their affairs in order as per Minister Noonan’s finance bill but warned that there will be a zero tolerance policy after this point.


“Those with offshore assets have until May 1st to make a voluntary disclosure before Revenue uses the “full rigour of the new system. This is the last opportunity for people to come forward because after that, the penalties are severe.”


Therefore it is strongly advised that these protocols are followed in order to avoid issues.


Should you require any help, guidance or advice on these or any other financial or business matters please don’t hesitate to contact us here at DCA Accountants where we will be happy to be of help.


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It was announced in the recently published Finance Bill that tax officials would be granted a whole new level of powers. In a move which has been considered by some to be of questionable moral grounding, as of now, tax officials will be permitted to access private financial information about individuals without being forced to inform those involved that their finances are being looked into.


Once a court appeal is granted, these tax officials will be able to access previously secure information from banks or other financial institutions without the knowledge of those affected.


Revenue themselves have also been granted additional powers in relation to searching properties and belongings for information when engaged in an investigation. Revenue have also been given more powers to utilise when dealing with those attempting to avoid Capital Gains Tax.


These measures are all part of a previously announced plan to increase the power afforded to the Revenue Commissioners and increase the ease and effectiveness of an extra clamp down on tax defaulters.


Previously, it was required that the Revenue would both need to know the identity of the suspected defaulter and that they would be required to inform those affected that their finances are being looked into, particularly when accessing secure information from parties such as banks and building societies. Now, however, these measures will no longer be necessary, providing the Revenue with a greater ease of access to the information. This may cause some boot quaking for some defaulters, which indeed may be part of the hope.


The only requirement with these new measures is that there must be “reasonable grounds” to keeping the information from the suspected defaulter which, given the circumstances will rarely be difficult to provide.


If you require assistance with your own tax and financial matters, please don’t hesitate to contact us at DCA Accountants.


It has been reported that SME’s now account for an enormous portion of all enterprise in Ireland. Unfortunately, SME’s and the self-employed rarely see their efforts being rewarded in any way when the time of the budget rolls around each year. Was the budget for 2016 any different? We have compiled some of the main changes that will affect both SME’s and the self-employed for your reference.

Self Employed Tax Credit               


It was announced in Budget 2016 that there would be a new earned income tax credit of €550 available for those who are self-employed, including farmers. Whilst this is still quite far behind the tax credits available to others, it is somewhat of a beginning for the process of not alienating the self-employed through taxation. It is suggested that this figure would be increased in future years.

Capital Gains Tax Reduction


There will also be a very welcome reduction in the Capital Gains Tax for 2016 for the self-employed and entrepreneurs. This reduction takes the tax from 33% to 20% on a gain up to €1 million, which could have significant positive consequences, despite still remaining quite far behind the UK and the North of Ireland in relation to this tax. The expenditure cap for Film Relief has also been increased to €70 million which is good news for this sector.



Farming in particular was a sector which was more acknowledged in this budget than previous, as the general stock relief and the stamp duty exemption for young farmers was extended to 2018. It was also announced that a new succession transfer proposal would be put forward in order to increase certainty for the next generation of farmers and assist with a more long-term thinking that may not have been possible previously.



Another sector of self-employment and SME’s that was newly acknowledged in Budget 2016 was the increasingly popular microbreweries. The excise relief for microbreweries will now be made available upfront. This is welcome news for the industry as it may help to free up some much needed cash flow which is always important for these SME’s.

In Conclusion


It is also hoped that the reintroduction of the Social Welfare Christmas Bonus of 75% will boost sales and income for SME’s, thus generating more revenue overall.


Unfortunately there have been few steps taken to support entrepreneurs in particular. Whilst these measures for the self-employed and SME’s in particular are small steps, at least these steps are finally being taken in the right direction and we would hope to see an end to the previous discrimination against these sector in future budgets, as SME’s begin to form the backbone of our modern economy.