Revenue’s Continued Removal Of Paper Transactions…

PAYE the Price for Digital Life…

In recent years, Revenue have begun to modernise their systems across the board and move to a largely paperless mode of working, including a full revamp of the PAYE system. This revamp of outdated systems is ongoing. Most recently, Revenue issued new guidance and information in April of this year regarding the introduction of a new electronic system of professional services withholding tax (ePSWT). With the recent updates to other Revenue systems, this new update is a welcome change and somewhat overdue to get all systems in line and ensure that no individual system is outdated and move further into a paperless system.

It is proposed that this new system will be introduced on July 1st, 2021 and will act as the final removal of the paper F45 form. This new solution will have far reaching effects for both employers and employees and will naturally require a period of adjustment. The paper F45 form will be replaced with new electronic ‘Payment Notifications’ on Revenue’s Online Services system (ROS). There will be ongoing updates and information available to view via the Revenue site so we would advise keeping up to date with all new updates. Revenue will add a new link to the ROS main screen entitled “Manage Professional Services Withholding Tax” which will link through to the new system. It is important to note that when inputting a payment notification, the tax registration number of the company in question will be required.

From the new “Manage Professional Services Withholding Tax” link, the next steps will differ based on your respective needs and whether or not you are registered for PSWT. Accountable individuals who have been registered will click into the “Payment Notifications” section, where they will then be permitted to input individual payment notifications and search previous payment notifications among other uses which we will discuss here.

Search Payment Notifications:

The search facility under the “Payment Notifications” will also offer the ability to amend or cancel payment notifications as well as generating acknowledgements for payment notifications submitted, which will be a handy tool for your files going forward.

Batch Payment Notifications:

Batch uploads can be completed by uploading a CSV file of payment notifications, which will greatly streamline this process.

Amend Payment Notifications:

One key feature of this system will be the ability to self-correct the record up until such a point as the F35 has been fully filed. Before this point, certain fields of the PN can be amended, and the accountable person will also have the ability to delete an existing payment notification or add a new one.

Payment Acknowledgements:

Accountable persons will be able to generate a payment notification acknowledgement PDF for all payment notifications. These acknowledgements can be given to as a tax record.

All accountable persons will be required to file an annual return detailing all payments during that tax year, the filing deadline will be Feb 23rd. This is intended to streamline the entire process from the current paper-based system and make it easier to process a refund once the paper F45 form is finally removed. The changes to this process will be as follows:

Old Process:
File a paper F45.
Deduct 20% from a specified person.
Give paper F45 to a specified person.
Remit the 20% to Revenue on a monthly basis as part of the F30 return.

New Process:
Make a Payment Notification on the ROS system as specified above.
Deduct 20% from a specified person.
Remit the 20% to Revenue on a monthly basis as part of the F30 return.

Something which is important to note as we make the change over to this new system is that as the change is happening mid-year there will be additional requirements for 2021, most notably there is a requirement that the F35 continue to be filed, but without the need for the schedule of payments after August 2021. There will also be a requirement for an additional F35. The traditional F35 will be required to be submitted by 23rd August 2021 for the period January to June 2021 including the usual schedule of payments. The F35 for the period July to December will be due by 23rd February 2021 and will not require any schedule of payments as we move into a more digital system.

We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.