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Preliminary End of Year Statements

6 Important Points About Your Income Tax Return

Claim Tax Back in Ireland on Health Expenses and Nursing Home Expenses in Real Time

Tax Credit Certificates 2022

Tax Treatment of Employment Flat Rate Expenses

The PPS Number Entered Cannot Access MyAccount

Cohabiting Couples Income Tax Treatment 2021

Complete Income Tax Return For 2020

Split Income Tax Credits Between Jobs or Private Pensions

Inform Revenue That You Are A Medical Card Holder

Local Property Tax (LPT) for 2022

Public Holidays Should only be Referred to as Public Holidays

Comptroller & Auditor General Supports Claim that beneficiaries of the TWSS were paid no more than their pre-pandemic pay

Parent’s Benefit

Deactivation of Revenue Receipts Tracker App

COVID-19 Employment and Training Supports to Get People Back on Payroll

Social Welfare and Revenue Payments for Covid -19 Year 2020

S ocial Welfare Payments Paid with PUP

Employment Status of Employee or Self-Employed Determination

Summary of Pandemic Unemployment Payments 2020

Average Pay by Sector in Ireland 2020

Closure of the PUP for New Applicants is Now 7th July.

Employee on Pay as You Earn (PAYE) V Self Employed on Relevant Contracts Tax (RCT)

Revenue’s PUP Return to Work Protocols Update 14th April 2021

Band 1 Credit Reduction

Covid-19 Pandemic Unemployment Payment and Enhanced Illness Benefit - Update on 12th April 2021

COVID-19 Pandemic Unemployment Payment and Enhanced Illness Benefit - Update on 8th April 2021

Public Holidays Ireland 2021

Calculate Reduction in Tax Rate Band and Tax Credits for PUP

Taxation of Maternity Benefit

Returning to Work After Been Furloughed Due to Covid-19

Employment Wage Subsidy Scheme - EWSS

How to Check Revenue Statement

2020 PAYE and USC End of Year Balance

Calculate Underpayment of PAYE and USC on Covid-19 Temporary Wage Subsidy

Calculate Take Home Pay

Covid-19 Temporary Wage Subsidy Scheme

Galway Races Brexit Factor

Ireland's Disappearing Fiscal Space 2016 - 2019

The 2 main reasons for failure within Start-ups and In-Company Improvement Projects

Change of Company Name under new Companies Act 2014

Critical Success Factors for the Implementation of an Enterprise Resource Planning System

Google My Business

The 3 Biggest Challenges to Public Sector Projects in 2020

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Preliminary End of Year Statements

To view your Preliminary End of Year Statement, you must:
sign into myAccount and complete the Two-Factor Authentication (2FA)
click on ‘Review your tax 2018-2021’ link in PAYE Services
select the appropriate tax year and request a Statement of Liability.
Your preliminary result will appear at the top of the next page.

This is a preliminary calculation only. It will show if you have paid the correct amount of tax and Universal Social Charge (USC) for the year. It is based on the information held on Revenue’s records. The Preliminary End of Year Statement for 2021 will include Pandemic Unemployment Payment from the Department of Social Protection. If you wish to receive a Statement of Liability, you must complete an Income Tax Return.

Letters from revenue issued during week ending 15th October 2022 are causing stress among thousands of Carers, Widows Pensioners, people on invalidity pensions and other DSP recipients, with no other income sources. Revenue are Issuing Preliminary End of Year Statements & Requesting Taxpayers & PAYE workers to complete Income Tax Return for previous Years. The Facebook Group for PAYE workers Payroll Matters in Ireland has raised this issue and are following up on it. We believe that these notices have been issued in error but are still awaiting some official clarification from Revenue. We have a Step-by-Step Guide video on How to Complete an Income Tax Return + Claim Tax Back for the Years 2018 to 2021.

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6 Important Points About Your Income Tax Return

1. The responsibility for filing correct returns and providing accurate information to Revenue rests solely with you the taxpayer.

2. As a taxpayer you cannot assign your tax compliance responsibilities to a tax practitioner, tax agent, tax rebate or tax back company.

3. Where, due to the actions of a tax practitioner/agent, an incorrect return is filed or inaccurate information is provided, Revenue will pursue you as the taxpayer for tax, interest and penalties as appropriate.

4. You can claim relief on the cost of health expenses. These can be your own health expenses or those of a family member, as long as you paid for them. You cannot claim relief for any amounts that you have already received, or will receive from:
> any policy of insurance
> a public authority, for example, the Health Service Executive (HSE)
> any other source, such as a compensation payment.

5. You must keep all relevant documentation to support claims for tax credits, reliefs, allowances, etc. (e.g. as a taxpayer claiming medical expenses you must have receipts to support the expenses claimed). All supporting documentation must be kept for a period of six years from the end of the year to which the claim or liability refers. Where you upload receipts to the receipts tracker in myAccount or through ROS, you do not need to keep the original receipts.

6. You should keep Revenue informed of any changes in basic personal details such as a change of address as well as changes in yourr circumstances that may affect your entitlement to a tax credit(s). In particular, significant “life events” such as:, marriage or civil partnership, cohabitation, separation, or bereavement should be brought to Revenue’s attention as soon as possible.

Be sure to hit that subscribe button to stay up to date with payroll matters in Ireland. . In my next video I will be bringing you through a step by step guide to completing your 2021 income tax return which will include references to Work related flat rate expenses, working from home tax credits, dependant relative tax credit and stay and spend tax credits.

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Claim Tax Back in Ireland on Health Expenses and Nursing Home Expenses in Real Time

A Real Time Credit facility is available on Revevenue to claim Health Expenses and Nursing Home expenses as they are incurred rather than waiting until the end of the year. Use the 'Manage Your Tax' link to make a claim. You can claim for health expenses and nursing home expenses at the time you incur the expense. You can benefit from increased tax credits in your next payroll payment from your employer.

HOW TO MAKE A REAL TIME CREDIT CLAIM

You can make a real time claim once you have incurred qualifying expenditure. A readable image of each receipt must be uploaded to the Receipts Tracker. The Receipts Tracker is in the PAYE Services and Manage My Record cards in myAccount. You will need to provide details of the date the expense was paid and the amount paid by you. You may need to supply more information when claiming for certain credits or reliefs. For example, the name and Personal Public Service Number (PPSN) of the nursing home resident if you pay the fees. In the Receipts Tracker:

> select Add a new receipt
> input the expenses you paid
> select a category from the list provided
> select a sub-category from the list provided
> confirm if you have received a reimbursement from a third party
> upload your receipt following the instructions on the page
> select Add receipt on the bottom of the page
> follow any further prompts
> sign and submit by entering your myAccount password.

When your claim has been processed, an amended Revenue Payroll Notification (RPN) will be made available to your employer. An amended Tax Credit Certificate (TCC) will also issue to you.

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Tax Credit Certificate 2022

Tax Credit Certificates used to be delivered by post through your letterbox but are now notified to you via your inbox. Revenue is currently in the process of sending out notification emails to thousands of PAYE workers every day to advise them that they have a new notification in their inbox on their Revenue MyAccount. There are many people who don't bother looking at these notifications for one reason or another. The main reason however is that they don't know how. We here at BPPM and Payroll Matters in Ireland have increasing numbers asking questions about these certificates, and we are happy to answer any question or clarify any issues. Here are a few of the most frequently asked questions.

HOW TO VIEW MY TAX CREDIT CERTIFICATE ONLINE?

If you are a Pay As You Earn (PAYE) customer, you can view, download or print your Tax Credit Certificates from My Documents. My Documents is a facility in myAccount to store certain documents. You can access it on the ribbon running across the top of the myAccount home page or from the ‘Manage My Record’ card. If you have any unread documentation, an orange circle will display on the My Documents folder icon. When you access the service from a desktop or mobile device, you may need to amend your browser settings to allow pop up messages. This will allow you to access your documents.

HOW TO ACCESS REVENUE PAYE SERVICE

My Documents can be accessed through myAccount, by following these steps:
> Click on ‘My Documents’ on the myAccount home page.
> Select the specific year folder from the ‘Summary’ screen.
> View, download or print from My Documents.

WHAT IS A TAX CREDIT CERTIFICATE?

Your Tax Credit Certificate (TCC) lists for the tax year, your::
> Tax credits which reduce the amount of tax you pay.
> Your rate band which is the amount you can earn at the 20% tax rate.
> Universal Social Charge (USC) rates and rate band

HOW IS MY INCOME TAX CALCULATED?

If you are paid weekly, your Income Tax (IT) is calculated by::
> applying the standard rate of 20% to the income in your weekly rate band
> applying the higher rate of 40% to any income above your weekly rate band
> adding the two amounts above together
> deducting the amount of your weekly tax credits from this total.

WHAT DOES PAYE UNDERPAYMENT MEAN?

The main reason for this in 2022 will be for Tax owed if you were on PUP or TWSS in 2020. To check have a look at the Statement of Liability you received at the beginning of 2021 (you can see statement of liability in year 2020 documents) and you should see this amount on it if this relates to the reduction of your credits over 4 years.

PAYE Underpayment 2022 Tax Credit Certificate

WHAT DOES TAX CREDITS REDUCED BY MEAN?

If you happened to be receiving a taxable Department of Social Protection Payment (DSP) towards the end of 2021 then your tax credit cert will be reduced by 20% of the weekly amount of your benefit multiplied by 52. So, for example if you were on the PUP at 250 your credits will show a reduction of €2600. The same would apply to illness and maternity benefit.

WHAT DOES RATE BAND IS DECREASED BY MEAN?

If you happened to be receiving a taxable Department of Social Protection Payment (DSP) towards the end of 2021 then your tax credit cert will be reduced by the weekly amount of your benefit multiplied by 52. So, for example if you were on the PUP at 250 your rate band is decreased by €13000. The same would apply to illness and maternity benefit.

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Tax Treatment of Employment Flat Rate Expenses

During the course of Revenue’s review of its flat rate expenses regime in 2018 and 2019, a number of policy issues emerged. Revenue decided to defer its implementation of any planned changed to the regime pending the outcome of a review of a number of these policy issues. The policy issues are:

> The differing tax treatment of expenses as between the self-employed and employees.
> The inclusion of professional registration/subscription fees and trade union subscription fees.
> The nature of expenses that should come within the scope of the expenses tax regime.

A commitment was made to examine these issues as part of the Tax Strategy Group (TSG) and, if appropriate, to include options for legislative change. In the meantime, however, the COVID-19 pandemic has resulted in widespread and unprecedented disruption to the social and economic life of the country, including to the employment of those working in many sectors of the economy. The purpose of this exercise is to set out the issues as originally envisaged as well as some options that may be considered in the area of flat rate expenses. In relation to the policy issues addressed, and having regard to the huge disruption in the labour market brought about by COVID-19, the question of the appropriate timing of the introduction of any policy changes relating to the flat rate expenses regime is one that will require careful consideration.

Waitresses & Kitchen Porters Flat Rate Expenses.

We have been doing some analysis of Tax Credits awarded to particular jobs in respect of flat rate expenses for Payroll Matters in Ireland. When our analysis is completed, we will be putting together an interactive tool to enable people to easily see what tax credit PAYE workers can claim for flat rate expenses relating to their job.

Thus far there are two points worth noting from our analysis:
1. The credits have not been revised for over 10 years despite the fact that the expenses and costs have been rising.
2. The credits for Waitresses and Kitchen Porters not providing or laundering their uniforms is less for those working in hotels than for those working in Hospitals.
Revenue concluded a comprehensive review of the flat rate expense allowances in 2019. The implementation of any planned changes to the flat rate expense regime has been further deferred until at least 1st January 2022.Payroll Matters in Ireland hope enough attention is drawn to these so that they can be changed next year.

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The PPS Number Entered Cannot Access MyAccount

This is the error message some women get when logging on to Revenue with a 2 letter ending RSI/PPS numbr ending with a W- (e.g., 1234567TW). Before 2000 when some women got married, they had to use the same RSI/PPS number as their husband, but with a W at the end of the number. This W number was issued by Revenue to identify spouses in a jointly assessed relationship. The W number was linked to the RSI/PPS number of the assessable spouse (which is the term used in Revenue for the spouse who is charged tax on the income of both spouses).

PHASING OUT OF W RSI/PPS NUMBERS

These numbers are being slowly phased out and W numbers have not been issued since 1999. Boyle Payroll Project Management have assisted many women particularly widows in receipt of a private widows pension with income tax issues due to issues associated with the W number. Anyone in this situation may PM me if they have difficulty getting the matter resolved by their pension provider, Revenue or DSP.If your RSI/PPS number is the same as your husband’s RSI/PPS number but the last letter is W, you must get a new RSI/PPS number in these circumstances:

If your spouse is deceased
If you are divorced or separated
If you were issued with a Social Insurance number before 1979

If you have a RSI/PPS number ending with W and you cannot access the Local Property Tax online system using this number, you may need to request a new number. If you were issued a RSI/PPS number after 1979 and before you married, the Department may re-issue you with your original number on request.Any woman with a W-number (that is a RSI/PPS number that includes a ‘W’ as the second letter, for example 1234567TW) whose number was updated to a new, distinct RSI/PPS number by DEASP, must use the new distinct RSI/PPS number from DEASP. Please check recent correspondence from Revenue or DEASP to confirm your new RSI/PPS number.

If you are changing your W number for a new RSI/PPS number, you do not need to go through the same application process as everyone else. To get your new number or to be re-instated with your old number contact the Client Identity Section in the Department of Social Protection (DSP). The phone number is (071) 967 2616 or Lo-call 0818 927 999.
When you get your new number from the DSP, you should inform any organisations that may hold your old number. For example, your employer, your bank, the National Driver License Service, the HSE and Revenue – you can inform Revenue using the Revenue’s online Jobs and Pension Service or contact your local tax office. Ref: Citizens Information & Revenue

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Cohabiting Couples Income Tax Treatment 2021

At the moment cohabiting couples have both incomes assessed in a means test for social assistance payments, yet a cohabiting couple cannot claim or transfer unused tax credits between themselves as jointly assessed income tax couples can. Payroll Matters in Ireland supports the claim that co-habiting couples should be treated fairly within the PAYE taxation system.
The tax system in Ireland does not treat cohabiting couples the same as married couples or civil partners, and it is unfair for them and for those with children. The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy vs. Attorney General (1980). This decision was based on Article 41.3.1 of the Constitution where the State pledges to protect the institution of marriage. The decision held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income. The taxation system has changed somewhat since 1980 and this legislation needs to be revisited. Tax legislation provides that cohabiting couples are assessed as single individuals and each cohabiting partner will be entitled to the basic personal tax credit of €1,650.

Charge of income tax for 1980-81 and subsequent years.

Where a person who is charged to income tax for the year 1980-81 or any subsequent year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), he shall, notwithstanding anything in the Income Tax Acts but subject to section 5 (3) of the Finance Act, 1974 , be charged to tax on his taxable income—
(a) in a case in which he is assessed to tax otherwise than in accordance with the provisions of section 194 of the Income Tax Act, 1967 , at the rates specified in Part I of the Table to this section, or
(b) in a case in which he is assessed to tax in accordance with the provisions of the said section 194, at the rates specified in Part II of the said Table, and
(i) each of the first two rates in each part of that Table, and
(ii) the other rates in each Part of that Table shall be known, respectively, by the description specified in column (3), in each Part of the Table opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.

Tax Bands 1980

Both the tax system and the way people live their lives has changed considerably in the past 40 years since the judgement that the current tax system for unmarried cohabiting couples was predicated on. In 1980 the tax year ran from 6^th April 1980 to 5^th April 1981. From January 1st 2002, the tax year was changed to run from January 1st to December 31st. Our taxation policies and PAYE taxation system have not kept pace with the way people live their lives. and it is time to change them.

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Complete Income Tax Return For 2020

You complete a tax return where you wish to:
1. claim additional tax credits, reliefs or expenses
2. declare additional income
3. obtain a Statement of Liability for the year
4. claim refunds of any tax and or USC overpaid.

Details Required to Complete Income Tax Return

1. Personal Details and claim for Tax Credits, Allowances and Reliefs for the year 2020
2. Income from Irish Employments, Offices (including Non-Proprietary Directorships), Pensions, etc. Income from Foreign Offices or Employments Attributable to the Duties of those Offices and Employments Exercised in the State
3. Income from a Trade or Profession
4. Income from Fees, Irish Rental Income, Covenants, Distributions, etc.

Step-by-step video guide for PAYE Workers in Ireland to complete their Income Tax Return for 2020.

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Split Income Tax Credits Between Jobs or Private Pensions

Individuals or jointly assessed couples who have more than one active job or private pension can amend how tax credits and rate bands are divided. You can divide your tax credits, tax rate band and USC rate band between your jobs in any way you want. Splitting your tax credits and rate bands between jobs will not change the total amount of tax you have to pay. It can ensure that you pay an even amount of tax in each job and get the full benefit of your tax credits and rate bands during the year. In conjunction with Boyle Payroll Project Management, Payroll Matters in Ireland will be doing a step-by-step video for those that are not familiar with conducting activities online. By managing your credits in this manner means that you will not need to wait until you make an income tax return to get any overpaid tax refunded. There is a facility in 'Manage Your Tax 2021' in the PAYE Services section of myAccount that will allow you to do this.

Manage Your Tax

In Manage Your Tax 2021, scroll down and you will see "How your tax credits and rate band are currently divided". There are two tabs – PAYE and USC and they can be accessed by clicking on the relevant tab. The PAYE tab gives details of a customer’s standard rate cut off point and overall tax credits. Details of a sample person’s tax credits, and rate bands are shown in the picture below. Where a person has more than one job, the standard rate cut off point and tax credits applicable to each job is shown.

Tax Credits Divided Between Jobs and Private Pensions

By clicking the ‘edit’ above where the employments are listed, you can split tax credits and rate bands between jobs & private pensions to avoid overpaying tax in one employment and having to wait for the end of the year to claim it back. Individuals and jointly assessed couples who have only one active job will not have this link on the navigation bar.

Estimate Your Annual Income From Each Employment and Private Pension

Singly assessed individuals or jointly assessed couple can amend how their tax credits and rate bands are allocated by clicking on the ‘Divide tax credits’ link on the navigation bar. To ensure that your tax credits and rate bands are appropriately allocated across different jobs, you will be asked to estimate your gross income for each job and your spouse or civil partner’s jobs, where appropriate. This is to ensure that you pay the right amount of tax during the year (and no underpayment or overpayment arises) Where you are unable to estimate your income, you should click on the ‘Unable to Estimate’ box. If you have made changes to your record and/or to your spouse’s or civil partner’s record and you are unable to provide an estimate of their income for at least two of their jobs, you will be asked to select their main job i.e., the job with the highest income. The adjustments to your tax credits and/or rate bands will be made against this job. If you provide an estimated income for one job only, the adjustments will be made against that job. If you have made no changes to their records but want to make changes to how their tax credits and rate bands are divided must provide an estimate for at least two of your jobs (if relevant). A re-allocation of tax credits and rate bands will only take place amongst jobs where an income has been provided. You will have the option of not accepting the allocations done automatically for them. When this happens, you will be asked how you want your tax credits and rate bands to be divided.

Divide Tax Credits and Rate Bands Equally Between Employments

Where you estimate your income, you will be given the Revenue recommended allocation, but you will also have the option to divide equally. Where the customer cannot estimate their income, the divide option will then be provided. If a customer opts for an equal split, this request will process automatically. If you are happy with this allocation select ‘Proceed with Recommendation’ if you would like to make additional changes "Proceed with Different Recommendation".
After a submission has been made, a Revenue Payroll Notification RPN will be made available to the relevant employer(s). The RPN is the employer’s copy of the TCC and shows, amongst other things, the employee’s total tax credits and tax and USC cut-off points for the year. A copy of the Tax Credit Certificate (TCC) will be available to view by employees in My Documents (which is also available in myAccount) usually within 2 days of the submission being made. The TCC sets out a customer’s tax credits and tax and USC rate bands for the current tax year. The information provided by the customer, in addition to the information held on Revenue’s record, will determine the appropriate tax credits and rate band.

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Inform Revenue That You Are A Medical Card Holder

Payroll Matters in Ireland continues to remind medical card holders they must inform Revenue that they have a medical card, for the reduced rate of Universal Social Charge to be applied to their payroll. There are a couple of ways for medical card holder to inform Revenue to apply the reduced rate of USC:
You can call into or phone your Local Revenue Office. Calling in to Revenue offices may not be an option during Covid -19 restrictions.
You can do it on line by going into My Enquiries on the top right hand corner of the Home Screen

In the Enquiries Record go into Add New Enquiry at the bottom of the page

Add new Enquiry on Revenue

In the Enquiry relates to box select PAYE (Pay As You Earn) employee/pensioner - other & in the More specifically box select PAYE Services query. You can leave the 2 boxes under more info blank. In the Enquiry details enter - I currently have a medical card and I wish to apply for the reduced rate of USC for medical card holders: Can you please amend my current Tax Credit and Universal Social Charge Certificate and issue a revised RPN to my Employer. My Medical Card Number is and I attach a picture of it. Thank you.

Your email address will appear in the box underneatth the Enquiry Details. You are asked to re-enter your email address to confirm. Attach a copy of your Medical Card and "Submit".

Add a new enquiry on Revenue.ie

Apply for USC reduction for Medical Card

Attach photo of Medical Card to new enquiry for reduced USC for medical Card Holders.

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Local Property Tax (LPT) for 2022

Your property is liable for Local Property Tax (LPT) for 2022 if it is a residential property on the valuation date of 1st November 2021. Revenue has confirmed that it is contacting over 1.4 million property owners directly, to explain the three things they need to do to meet their LPT obligations for 2022:

1. determine the market value of their property as at 1st November 2021
2. submit their LPT Return including their valuation by 7th November 2021
and
3. pay or make arrangements to pay their LPT Charge for 2022.

LPT is a self-assessed tax. This means that you need to self-assess the value of your property at 1st November 2021. The valuation of your property on this date will determine the amount of LPT you pay for 2022 and for the three years from 2023 to 2025. Revenue has provided an interactive tool and information to help you determine the value of your property and meet your LPT obligations.

Many people do not know how to access details regarding notifications they have been receiving from Revenue. Because of the number of queries already received from people not used to using online services, Payroll Matters in Ireland are complementing Revenue's and Citizens Information guidance by assisting people in the Facebook group Payroll Matters in Ireland with issues they may encounter during this process. The Facebook group Payroll Matters in Ireland is voluntary and welcomes people living in Ireland to become members. Some people think because it is a private group there may be a cost involved, which is not the case.The very popular Facebook Group Updates Ireland has been instrumental in supporting Payroll Matters in Ireland with disseminating information for helping people to come to grips with their LPT obligations for 2022. The most recent posts about the Local Property Tax and the Local Adjustment Factor for Local Property Tax have attracted more than 180 likes/dislikes, 450 comments and 200 shares in less than 36 hours in this Facebook Group alone.

Because one of the options for paying this tax is through payroll, Payroll Matters in Ireland is advising people to use the interactive tool when they receive Revenue's notice, rather than waiting for the 1st November to value their property and determine the LPT. If there were to be 1.4 million people trying to access the interactive tool on 1st November, you can be guaranteed long delays. People can have their LPT calculated without having to make payment, as payment only becomes due from 1st January. They can also arrange for payment before 1st January if they wish. In order to calculate your LPT together with Revenue's Online Valuation Tool there are two tables as outlined below that you need to refer to.
1. Valuation Bands and Basic Rates for Valuation Period from 2022 to 2025 and
2. Local Adjustment Factor for Local Property Tax.

Valuing Your Property

The tax is based on the chargeable value of a residential property. You can do this exercise now. You do not need to wait until the 1st Novemebr. The chargeable value is defined as the market value that the property could reasonably be expected to be sold for on the open market now. You can read about how to value your property for Local Property Tax. on Citizens Information. We shall only be outlining Revenue's Online Valuation Tool that will give you the average values for property in your area.

Logging in to MyAccount on Revenue

It would appear from feedback received on a post about the LPT on the Facebook group Updates Ireland that Revenue are using hard copy mail via the post for some people and soft copy e-mail for others to explain the process to people. To login to your MyAccount on Revenue to see the notification you must be registered. Once you have logged in using your PPS No, DOB and Password and ticked the box to indicate that you are not a robot you will be brought to the Home screen.

View your Local Property Tax Notification

Look in My Documents

My Docunents on Revenue.ie

Look at unread documents or if you have viewed it already look at LPT 2022 Return.

Unread Documents in Revenue.ie

The Local Property Letter Sample. You will need the property ID and PIN number when accessing your LPT on Revenue for arranging Payment.

Local Property Tax Revenue Notification Letter

Local Property Tax Valuation Guide

The valuation of your property will determine the amount of LPT you pay for 2022 and for the three years from 2023 to 2025. Revenue has provided an interactive tool and information to help you determine the value of your property and meet your LPT obligations. If you have your Eircode just enter it in the box indicated and search. A black dot will appear and when you click on it the propert valuation will be shown in a pop up window.

Property Valuation Tool

Valuation bands and basic rates for valuation period from 2022 to 2025

Local Property Tax Valuation Bands

Local Adjustment Factor for Local Property Tax

Local authorities can vary the basic LPT rate on residential properties in their area. These rates can be increased or decreased by up to 15%. This is known as the local adjustment factor.Residential properties of the same value in different local authority areas may pay different amounts of LPT, depending on whether the local authority has applied a local adjustment factor or not.Many people have queried the accuracy of the interactive tool with Payroll Matters in Ireland and it is quite understandable. There is a second table for adjustments depending on where the property is located. You can refer to the LPT Local Adjustment Factor for each Local Authority in the table below to check if your LPT charge for 2022 is different from the basic rate.

Local Adjustment Factor for Local Property Tax

Now that we have gone through the steps of determinining your basic rate and adjusted it in accordance with the Local Adjustment Factor the next step is submit your valuation on or before 7th November and arrange to pay the tax. You can do this at any time from when you receive notice about LPT from Revenue.

How to Pay Local Property Tax (LPT)

You will need your Property ID and PIN to pay your LPT. You can choose to make one single payment, or you can phase your payments in equal instalments. You can read about how to pay your LPT on Citizen’s Information You can log in to the LPT On-line system to view your Local Property Tax record and to pay any arrears (using your PPSN, Property ID and PIN). You can also access LPT through Revenue's myAccount and ROS services. You can contact the LPT helpline for assistance. Queries can also be sent to Revenue through MyEnquiries.

Citizens Information How to Pay LPT

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Public Holidays Should only be Referred to as Public Holidays

Public Holidays are Legislated for by Government by means of the ORGANISATION OF WORKING TIME ACT, 1997.
There is no mention in any part whatsoever of this Act to the name of the institutions that brought our country to its knees over a decade ago. Why therefore are Public Holidays continually referred to as "the institutions that brought our country to its knees over a decade ago" Holidays. Any reference to a Public Holiday other than its official name only confuses employees and makes it more difficult for PAYE workers to understand Payroll Matters in Ireland.

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Comptroller & Auditor General Supports Claim that beneficiaries of the TWSS were paid no more than their pre-pandemic pay

The C&AG reports outlines that for recipients of the TWSS "In January 2021, Revenue calculated and estimated amounts totaling €186 million as being due from 198,400 employees — about 30% of employees in receipt of payments under the scheme (TWSS). The estimated average liability was €938 per liable employee.
The report states in 11.1 "The pandemic unemployment payment (PUP) is an income support scheme for employed and self-employed claimants who have temporarily lost their income due to the Covid-19 global pandemic. The schem0e is administered by the Department of Social Protection (the Department)."
The report also confirms that the TWSS was funded by the DSP and as such Payroll Matters in Ireland believes it should have been treated like all other Social Welfare payments and not subject to USC. In section 12.5 "The legislation underpinning the Temporary Wage Subsidy Scheme provided that it would be funded by the Department of Social Protection (the Department) but would be administered by the Revenue Commissioners (Revenue).
Similar to the €350 per week rate paid to the majority of TWSS recipients the report outlines in section 11.3 The PUP payment rate for payment dates from 31 March 2020 to 30 June 2020, a flat rate of €350 per week was paid to all claimants. Section 11.6 The adoption of differing rates of payment from the end of June 2020 had a significant impact. For payments on 30 June 2020, all 439,000 claimants were in receipt of €350 per week.

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Parent’s Benefit

From Department of Social Protection Published on 17 August 2021.

Parent's Benefit is a payment for people in employment to allow them to take time off work, up to five weeks, to care for their child. This leave may be taken any time in the first 24 months after they were born. Parent's Benefit leave must be taken in minimum blocks of at least one week. These weeks can be combined up to a maximum of five weeks depending on their circumstances. Over 20,400 parents have been awarded Parent’s Benefit between April and July this year compared with 4,600 in the same period in 2020. This five-fold increase shows huge demand for the scheme

Parent’s Benefit was extended from two weeks to five weeks in April 2021.Parents who originally availed of the two weeks can now apply for the additional three weeks benefit. The quickest and easiest way to apply is via MyWelfare.The Minister for Social Protection, Heather Humphreys, has today announced that the Department of Social Protection has issued Parent’s Benefit payments valued at €14 million in the four-month period April to July 2021. The number of parents availing of Parent’s Benefit has increased almost five-fold compared to the same period last year.

On 1st April this year, Parent’s Leave and Benefit was extended to five weeks – an increase of three weeks – in line with the commitment in the Programme for Government. Since then, 20,411 parents have been awarded Parent’s Benefit. In July 2021 alone, the Department issued payments valued at €4.4 million to parents in receipt of Parent’s Benefit. In comparison, €572,000 was issued by the Department in Parent’s Benefit payments in July 2020, when the support was paid for two weeks.

Parent’s Benefit is paid at the same rate as Maternity, Paternity and Adoptive benefits, which is €245 per week. It is available for both parents to allow them to spend more time with their new-born children during these important and formative years or with their adopted children.

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Deactivation of Revenue Receipts Tracker App.

Revenue Receipts Tracker is a free mobile app provided by Revenue, Ireland’s tax, and customs authority, to help you manage your receipts and expenses in support of your claim for tax relief. Revenue Receipts Tracker is a free mobile app, to help you easily keep track and save certain receipts, images, and expense details. You can record receipts relating to the following:

1.    Health, Medical, Dental and Nursing Home Expenses
2.    Remote Working Relief (for 2020 onwards)
3.    Rental Property Expenses
4.    Stay and Spend
5.    Trade or Business Expenses
6.    Other expenses and documents, for example tuition fees

The Revenue Receipts Tracker App (RRTA) provides an option to save and securely store receipts details and/or images to Revenue storage. The benefits of uploading your receipt images include not having to retain the original receipt images and details of your expenses, and the details are available to assist the completion of your income tax return. If you chose not to save your receipt images and details to Revenue storage, you must retain the original receipt for a period of 6 years.You can also securely upload receipts details and/or images using the Receipts Tracker in the web version in myAccount or ROS. Both can be accessed on www.revenue.ie. In order to claim any tax credits or reliefs due, as a result of receipts uploaded, an Income Tax Return must be completed.

However, for some reason which has not been published Revenue has commenced deactivation of the Receipts Tracker App (RRTA). This means that you can no longer upload receipts details or images using the app. A facility to use this app to generate and save a PDF of your locally saved receipts will be available until the 30th of September 2021.The deactivation process will be completed on 30 September 2021. You can continue to upload and view receipt details by using the Receipts Tracker Service in myAccount or Revenue Online Service (ROS).

The reason for deactivation may have something to do with the User Friendliness of the Application as seems to the view of the 117 people who left reviews as outlined here:

Revenue Receipts Tracker App Reviews

Ref Url: https://appgrooves.com/android/ie.revenue.mobile.app.receiptstracker/revenue-receipts-tracker/the-revenue-commissioners

Reviews on the Apple Apps website. Ref for remainder of blog https://apps.apple.com/ie/app/revenue-receipts-tracker/id1528644259

Reviews for Revenue Receipts Tracker on Apple Apps

You can continue to upload and manage your receipts by using Receipts Tracker in myAccount or ROS, which can be accessed on the go from your mobile device by creating a link using the instructions below in conjunction with www.revenue.ie. You will also be able to access a range of other services including:

• myEnquiries
• Manage Your Tax for the current year
• Review your tax for the previous four year
• Create a Summary of Your Pay and Tax Details

Receipt details NOT uploaded to Revenue storage

If you have saved receipt details to your mobile device only (you did not upload to Revenue), they will be available in the App until 30 September 2021. You should generate and save PDFs of receipt details that are stored only in the App. You can generate a separate PDF for each year from 2017 to 2021. If you fail to save the details as PDFs before 30 September 2021, you risk losing this data permanently.

Receipt details uploaded to Revenue storage

Receipt details that are successfully uploaded ('synced') with Revenue will be available in the Receipts Tracker Service in myAccount or ROS. There is no need to take further action.

How to access the Receipts Tracker Service on www.revenue.ie

If you are registered for myAccount or ROS, you can access the Receipts Tracker by signing into your account on www.revenue.ie.

How to create a website link on your mobile device home screen

You can also create a quick link to the Revenue website on your phone home screen by following these steps:
iOS
1. Launch Safari on your iPhone or iPad.
2. Navigate to the myAccount or ROS login page on www.revenue.ie.
3. Tap the Share icon (the square with an arrow pointing out of it) at the bottom of the screen.
4. Scroll down to the list of actions and tap Add to Home Screen.

Receipts data and images not saved or uploaded to Revenue storage

If you had previously only saved your receipts to your mobile device i.e. you did not upload your receipts to Revenue storage, you will continue to be able to access the app for a short period to allow you to generate and save a PDF of your receipts. This facility will be available until 30th September 2021.

You can generate a PDF of your receipts for your records as follows:

• Sign into the app
• Choose the relevant year you wish to generate the receipts
• Click ‘Generate receipts details (as PDF’)
• Choose each expense category type you wish to include in the PDF. Any images saved will automatically be included in the PDF
• Click ‘Next’
• A preview of the PDF will appear on your screen
• You can save the PDF to your mobile device or share the PDF to a third party by email or message. The options available will depend on your particular mobile device and operating system.

You can generate a PDF of the receipts you have saved locally for the current year, 2021, and the previous four years 2017 to 2020. You will need to generate and save individual PDF’s for each year that you have saved receipts to your mobile device.

Original Receipts
You are reminded that if you have not uploaded your receipt images to Revenue storage you must keep original receipts for a period of six years in support of any claims for tax credits or reliefs made in relation to same.

Delete Revenue Receipts Tracker App

Once you have generated and saved the PDF of the receipts you require it is recommended that you delete the Revenue Receipts Tracker App from your mobile device(s). The receipts data you have recorded using Revenue Receipts Tracker and saved to Revenue storage will also be available to assist you to complete your income tax return or Form 11.

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COVID-19 Employment & Training Supports to Get People Back on Payroll

From Department of Social Protection Published on 11th August 2021.

1. Supports to find a job if you are getting PUP
2. Training and education supports if you are getting PUP
3. Supports to start your own business if you are getting PUP
4. Supports for the self-employed if you are getting PUP

The COVID-19 pandemic has had a huge impact on the working lives of thousands of people in Ireland. Intreo offers a wide range of supports to help you during this time.If you lost your job because of the COVID-19 pandemic, the COVID-19 Pandemic Unemployment Payment (PUP) is the main income support offered to you.This payment can open opportunities for employment and training supports, which can help you to find a job and gain valuable skills. To get these supports you may have to apply for a different social welfare payment, such as jobseekers, or you may be able to remain on the COVID-19 Pandemic Unemployment Payment depending on the type of support you need. More information on how you can get these supports is available below.

SUPPORTS TO FIND A JOB IF YOU ARE GETTING PUP

Work Placement Experience Programme (WPEP)

The Work Placement Experience Programme (WPEP) is a programme for jobseekers who are getting a social welfare payment and have been unemployed for 6 months (156 days) or more.Time spent on the COVID-19 Pandemic Unemployment Payment counts towards the 6 months, but you must transfer to a jobseeker's payment before you can take up a WPEP placement.

Community Employment (CE)

The Community Employment (CE) programme helps people who are long-term unemployed to get work through part-time and temporary placements in local communities. Time spent on the COVID-19 Pandemic Unemployment Payment counts towards the 12 months qualifying period. To qualify for this scheme, you must apply for one of the qualifying payments.

TÚS

TÚS (community work placement initiative) provides short-term work for unemployed people. The work placements are provided by community and voluntary organisations to benefit the community. Time spent on the COVID-19 Pandemic Unemployment Payment counts towards the 12-month qualifying period. To qualify, you must transfer to Jobseeker's Allowance.

JobsPlus

JobsPlus is an employer incentive which encourages and rewards employers who employ jobseekers on the Live Register.Time spent on the COVID-19 Pandemic Unemployment Payment counts towards the 12-months qualifying period.

TRAINING AND EDUCATION SUPPORTS IF YOU ARE GETTING PUP

Back to Education Allowance (BTEA)

The Back to Education Allowance (BTEA) is available if you are unemployed, parenting alone or have a disability; and you are getting certain payments from the department. You can take part in a second-or third-level education course in Ireland or Northern Ireland and get a Back to Education Allowance.You must close your COVID-19 Pandemic Unemployment and transfer to a jobseeker's payment to qualify for this allowance.

Part-Time Education Option (PTEO)

The Part-Time Education Option (PTEO) allows you to keep your jobseeker’s payment and attend a part-time day or evening course of education or training. It is available to you if you are getting the COVID-19 Pandemic Unemployment Payment without affecting your weekly payment. However, you must be genuinely seeking work.

Training Support Grant (TSG)

The Training Support Grant (TSG) provides access to short term training, to obtain or renew certification and permits for jobseekers where a case officer has identified a gap that prevents someone from accepting a job offer.Getting the COVID-19 Pandemic Unemployment Payment or a jobseeker's payment is one of the conditions to qualify for this grant.

SUPPORTS TO START YOUR OWN BUSINESS IF YOU ARE GETTING PUP

Back to Work Enterprise Allowance (BTWEA)

The Back to Work Enterprise Allowance (BTWEA) scheme helps people getting certain social welfare payments to become self-employed. If you take part in the scheme you can keep a percentage of your social welfare payment for up to 2 years. If you are getting the COVID-19 Pandemic Unemployment Payment you must transfer to a jobseeker's payment first to qualify for this allowance

Short-Term Enterprise Allowance (STEA)

The Short-Term Enterprise Allowance (STEA) supports you if you have lost your job and want to start your own business. It is paid instead of a jobseeker's benefit payment for a maximum of 9 months. If you are getting the COVID-19 Pandemic Unemployment Payment, you must transfer to a jobseeker's benefit payment first to qualify for this allowance.

Enterprise Support Grant (ESG)

The Enterprise Support Grant (ESG) provides financial support for new enterprises. The grant is available to people getting the Back to Work Enterprise Allowance or Short-Term Enterprise Allowance.

SUPPORTS FOR THE SELF-EMPLOYED IF YOU ARE GETTING PUP

COVID-19 Part-time Job Incentive Scheme (PTJI) for the Self-Employed.

The COVID-19 Part Time Job Incentive (PTJI) for the Self-Employed is available to self-employed people who are getting a COVID-19 Pandemic Unemployment Payment or a jobseeker’s payment in the week before application.

Enterprise Support Grant (ESG) for businesses impacted by COVID19.

The Enterprise Support Grant for businesses impacted by COVID-19 is available to help eligible self-employed recipients who close their COVID-19 Pandemic Unemployment Payment. It provides a grant of up to €1,000 to restart your business which was closed due to the COVID-19 pandemic.

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Social Welfare and Revenue Payments for Covid -19 Year 2020

The year 2020 was an exceptional year for the Department of Social Protection. As the year began Ireland’s economy was performing steadily with stable economic growth. The sudden arrival of COVID-19 had devastating consequences for public health, the economy and the labour market. The Government introduced a number of supports to cushion the impact to the public of the public health emergency restrictions arising from the COVID-19 pandemic. These supports included both an employment income support (COVID-19 - Pandemic Unemployment Payment) and wage supports (Temporary Wage Subsidy Scheme and Employment Wage Subsidy Scheme). To fully capture the statistics behind the range of supports provided by the Department in response to the public health emergency, this report is divided into two parts.

The normal edition of the report is in Part I and relates to statistics on all social protection schemes for 2020 and earlier years. Part II covers COVID-19 related supports offered by the Department. Note that the Temporary Wage Subsidy Support and Employment Wage Subsidy Scheme were administered by the Office of the Revenue Commissioners but subsidised by expenditure from the Department’s accounts. In addition, the recipient numbers in this part of the report refer to accumulative annual figures.

The reference to this Document can be found at Payroll Matters in Ireland face book page or in the Payroll Matters in Ireland group. It is worth noting that both the PUP and TWSS are funded by the Exchequer, but USC is charged on the TWSS but not on the PUP. Imagine the amount of USC that was paid by employees on the 2.7 billion paid out on TWSS. Payroll Matters in Ireland believes that the TWSS should not have been subject to USC. 2020 Annual Statistics Report from Department of Social Protection Published on 9th August 2021

Employers paying employees' 2020 TWSS tax & USC liability

Revenue are facilitating employers who wish to pay some or all of the employees' 2020 tax liabilities. This applies to Income Tax (IT) and Universal Social Charge (USC) liabilities which arise due to the TWSS.Initially this facility was limited to payments made by employers on behalf of their employees up to end June 2021. The concession is extended to run until the end of September 2021. This will ensure employers have the fullest information available following the TWSS Reconciliation process. Payroll Matters in Ireland believes that the TWSS was a social payment fully funded by the Exchequer and hence not subject to USC.

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Social Welfare Payments Paid with PUP

If you were working and getting a social welfare payment, can you keep your social welfare payment at its current rate and claim the COVID-19 Pandemic Unemployment Payment?
Official Answer is yes in accordance with this backup..

PAYMENT OF COVID-19 PANDEMIC UNEMPLOYMENT PAYMENT WITH OTHER SOCIAL WELFARE PAYMENTS.

223F. (1) Notwithstanding section 247(1) or (2), where, a person is entitled to, a payment under Chapter 12B of the Act and any payment specified in sub-article (2) would be payable to or in respect of a person, both such payments may be paid to or in respect of that person in respect of that period, if the person meets the eligibility conditions of both payments.

(2) The following payments are specified for the purposes of this article –
(a) partial capacity benefit;
(b) health and safety benefit;
(c) disablement benefit;
(d) carer’s benefit;
(e) widow’s (contributory) pension;
(f) widower’s (contributory) pension;
(g) surviving civil partner’s (contributory) pension;
(h) guardian’s payment (contributory);
(i) jobseeker’s allowance payable in accordance with section 148A of the Principal Act;
(j) blind pension;
(k) widow’s (non-contributory) pension;
(l) widower’s (non-contributory) pension;
(m) surviving civil partner’s (non-contributory) pension;
(n) guardian’s payment (non-contributory);
(o) one-parent family payment;
(p) a relevant payment within the meaning of paragraphs (a) or (b) of section 178(1) of the Principal Act;
(q) carer’s allowance;
(r) disability allowance;
(s) child benefit;
(t) working family payment;
(u) back to work family dividend;

Ref: irishstatutebook:S.I. No. 573/2020 - Social Welfare (Consolidated Claims, Payments and Control) (Amendment) (No. 16) (Covid-19 Pandemic Unemployment Payment – Ancillary Provisions) Regulations 2020

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Employment Status of Employee or Self-Employed Determination

The Minister for Social Protection, Heather Humphreys, TD, published an updated Code of Practice on Determining Employment Status on Wednesday 21st July, 2021. The term ‘employment status’ for Payroll Matters in Ireland (which is a Face Book Group for people living in Ireland and welcomes new members). refers to whether a worker is classified as either an employee or as being self-employed. This classification has implications for the rate of Pay Related Social Insurance (PRSI) and tax that is owed. It also affects the level of social welfare and employment rights protections that are afforded a worker.

Employment status can be a complex area, so the purpose of the Code of Practice is to set out the key characteristics that are used to inform decisions on employment status, taking into account current labour market practices and developments in legislation and case law. These developments include, for example, new forms of work such as platform work and the gig economy. It is intended to be a ‘living document’, which will continue to be updated to reflect relevant changes into the future. Its publication will encourage workers and employers to ensure their working arrangements are properly categorised. The Social Protection Department’s Scope Section is on hand to support with advice or indeed provide a formal determination of employment status, if needed. They can be contacted at scope at DSP. Ref: Department of Social Protection Published on 21st July 2021.

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Summary of Pandemic Unemployment Payments 2020

• In 2020, an estimated €5.1 billion was spent on the PUP scheme.
• The month with the highest expenditure was June (€865 million), followed by May (€828 million) and April (€820 million) in line with pandemic-related public health developments.
• Dublin had the highest overall expenditure of any county (€1.6 billion),which accounted for 32 percent of all PUP expenditure, followed by Cork (€502million) and Galway (€277 million).
• The Accommodation and Food service activities sector had the highest overall expenditure on PUP (€1.2 billion), followed by the Wholesale and Retail trade sector (€756 million) and the Construction sector (€505 million).
• The month with the highest number of distinct recipients was April (643,342), followed by May (628,339) and June (563,204).

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Average Pay by Sector in Ireland 2020

To illustrate the tax revenue implications of the asymmetric labour market shock, the table below presents stylized examples of a worker employed in sectors where pay is below average (accommodation and food / wholesale and retail) and sectors where pay is above average (finance and ICT).
The Table below shows Taxable income of worker in indicative sectors, € euros Source: CSO, Department of Finance calculations.Rounding may affect totals. Gross pay is an annual average based on Q1-Q4 for 2020. USC is calculated based on 2020 bands.*For comparative purposes, tax liability assumes a single person employee tax credit of €1,650 & PRSI credit of €1,650.**PRSI is excluded as PRSI receipts are non-Exchequer revenue.These simplified calculations show that the tax paid in both nominal terms and as a percentage of income by those earning relatively low pay is considerably lower than that paid by those on higher earnings. The accommodation and food and wholesale/retail sectors were particularly impacted by the pandemic yet contributed a relatively low amount of income tax revenue on a per-worker basis. In contrast, the tax-rich sectors represented in the table by the ICT and financial sectors, saw minimal job losses through the period. Payroll Matters in Ireland has the link to the report issued today Tuesday 10th August and will be addressing questions raised by PAYE workers concerning payroll matters.
Ref: Annual Taxation Report August 2021 From Department of Finance Published on 10 August 2021.

Average Income Ireland

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Closure of the PUP for new applicants is now 7th July.

This extension was agreed in light of the decision to defer the July 5th re-opening of indoor hospitality. It means people who have already returned to work to prepare for an anticipation of businesses re-opening next will not be disadvantaged. Speaking today, Minister Humphreys said:

As a result of the decision to defer the planned re-opening of indoor hospitality, I today secured Cabinet approval to keep the Pandemic Unemployment Payment open to new entrants up to and including 7th July. This will give certainty to anyone who may have returned to work to prepare for re-opening next week in the likes of pubs and restaurants.Furthermore, Minister Humphreys also secured Government approval to extend the Special Covid-19 Illness Benefit – paid at €350 per week – until 8th February 2022.

This payment is available to people who are diagnosed with Covid-19 or who are a probable source of infection.The extension will ensure that people do not feel it necessary to attend their workplace and risk spreading the virus. Just under 228,000 people receive the Pandemic Unemployment Payment this week, a decrease of over 16,000 on last week. While the extension of Pandemic Unemployment Payment remaining open for new applications up to and including 7th July, those returning to work will still face excessive tax deductions because of the process for taxing the PUP. Payroll Matters in Ireland are continuing to have the process revised to be more equitable and not put PAYE workers under further financial pressure.

Employee on Pay as You Earn (PAYE) V Self Employed on Relevant Contracts Tax (RCT)

The following checklists give a general overview of how to determine employment status and determining if a person is an employee or a subcontractor.

A worker is normally an employee if they:

1.    are directed by someone on how, when, and where to work.
2.    have set working hours.
3.    have no personal financial risk relating to the work.
4.    receive a fixed wage.
5.    supply labour only.
6.    cannot subcontract the work.
7.    are covered under the employer’s insurance.
8.    work for only one or two employers.

Employers are responsible for the collection and payment of employees Income Tax (IT), PRSI and USC.
Employees work under your contract of employment.
Employees may be entitled to some DSP benefits.
Employees receive the rights and entitlements associated with their employment.

A worker is normally self-employed if they:

1. control how, when and where the work is done.
2. control their working hours.
3. are exposed to financial risk.
4. control costs and pricing.
5. can hire other people to complete the job.
6. provide their insurance cover.
7. own their business.
8. can provide the same services to more than one person or business at the same time.

What to do after determination of self-employed status?

Subcontractors are regarded as self-employed. Self-employed persons are responsible for the payment of their own Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC). Self-employed persons must:

a. Register for all appropriate taxes.
b. Pay preliminary tax.
c. File Income Tax returns towards the end of the year, for which they must keep receipts for things that can reduce tax.
d. Self-employed persons may be entitled to some Department of Social Protection (DSP) benefits but are not entitled to holiday pay or protection from unfair dismissal.
e. Self-employed persons are engaged under a relevant contract.
f. Self-employed people may have to employ an accountant to do tax and VAT returns.

Relevant Contracts Tax (RCT)

Self-employed persons in the construction industry may be a principal contractor or a subcontractor (or both). RCT applies when a subcontractor is hired by a principal contractor to carry out construction operations under a relevant contract. All RCT transactions are submitted through the Revenue Online System (ROS).
A subcontractor enters a relevant contract with a principal contractor in the construction, forestry, or meat processing industries. This contract is not a contract of employment and a subcontractor must give the principal contractor the details they need to register the relevant contract with Revenue.
The RCT tax rate will depend on A subcontractor compliance record with Revenue. The three tax rates in the RCT system for subcontractors apply as follows:

1. an up-to-date tax compliance record: 0%
2. a substantially up-to-date tax compliance record: 20%
3. a poor tax compliance record, or for those who have not registered with Revenue: 35%.

After a principal contractor notifies Revenue of a payment, Revenue will issue a deduction authorisation. Revenue credits the subcontractor tax record with any RCT that the principal has deducted.

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Revenue’s PUP Return to Work Protocols Update 14th April 2021

Published: 14th April 2021

The video below provides practical information for employees returning to employment who are, or were, in receipt of PUP in 2021. It outlines what you should do to cease PUP payments when you resume, or take up, regular employment. It also provides examples on how your PUP is taxed in 2021 and the associated changes to your credits and rate bands.

BPPM worst fears that thousands of workers returning to the workforce and signing off the PUP on the day they return to work will be be realised next week when weekly paid PAYE construction workers will receive their 1st payment following their return to work. Not alone is the process as outlined here flawed but the example of the process as outlined in this video could never achieve the result of taxing the PUP in real time. I am hoping that the process as outlined in the video is a mistake.

Step 1: Tax Credits and Tax Rate Bands Reduced by Annualised Amount of PUP.

Step 2: Tax Credits and Tax Rate Bands Reduced by Annualised Amount of PUP and Applied to Recipients.

Step 3: PAYE Workers Return to Work and Sign Off the PUP on Their 1st Day back at Work.

Step 4: DSP Notify Revenue of Amount of PUP Actually Paid.
If the process as outlined in this video is reflective of the actual process then why would DSP need to advise Revenue of the actual amount paid to PUP recipients.

Step 5: Revenue Reverse The Reductions Made To Tax Credits & Tax Rate Bands

In the case for example where the revised certs reversing out the annualised are received by employers in advance of the 1st wages paid would have the effect of recouping Zero (00) tax owing on the PUP paid. This would likey be the case for monthly and 4 weekly paid PAYE workers.
The correct process for Revenue to recoup the actual amount owing on PUP in 2021 is what Boyle Practical Project Management in the You Tube video entitled Taxation of Pandemic Unemployment Payment Following a Return to Work after Receiving the Pandemic Unemployment Payment, Maternity and Illness Benefits in 2021, recommends as the only solution for Revenue to collect Taxes owed on the PUP when these workers return to work and sign off the PUP immediately:

1. Reverse all the annualised reductions on certs issued to those receiving Pandemic Unemployment Payment, Maternity and Ilness Benefits.

2. Replace them with their normal Credits and Standard Rate Cut Off point.

3. Issue the certificates on a week 1/Month1 Basis.

4. When the persons sign off in accordance with the rules and receive their last payment of Pandemic Unemployment Payment, Maternity and Ilness benefits, DSP notify revenue of the amount of Pandemic Unemployment Payment, Maternity and Ilness benefits earned in 2021.

5. Revenue reduce Tax Credits and SRCOP to reflect actual Pandemic Unemployment Payment, Maternity and Ilness Benefits earned in 2021, and issue Tax Credit Certs on a wk1 basis.

Result: Tax due on PUP is recovered at the rate of approx. €7 per week for someone in receipt of €350 PUP per week, when workers return to work.

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Band 1 Credit Reduction

A person’s standard rate cut-off point, and credits can be reduced by Revenue, and depending on the amount of the reductions, they may also have a band 1 credit reduction. This has arisen in 2021 for thousands of recipients of the Pandemic Unemployment Payment PUP. A message shows on their Tax Credit as follows: “Tax Credits Reduced by DSP PUP Payment”. When the tax credit reduction is greater than the tax credits a person has, this will end up as a negative tax credit and a further reduction of the tax band is made to offset this. The Band 1 Credit Reduction is derived at by multiplying the the negative credit by 5.

Tax Credits Reduced by DSP PUP Payment

In 2021 with the process of taxing PUP in real time the Department of Social Protection notifies Revenue of Pandemic Unemployment Payment (PUP) amounts paid to recipients on or after 12th January 2021 i.e., earned in 2021. Revenue reduces the person’s tax credits and 20% standard rate cut-off point SRCOP, by the weekly amount of PUP multiplied by 52. So, for example someone paid €350 per week PUP on or after 12th January 2021 will have their Tax credit reduced by €3,640 and SRCOP is reduced by €18,200 (350*52). €18,200 * 20% = €3,640. The adjusted tax credits and the 20% SRCOP are applied on a Week 1 / Month 1 basis. For those seeing a:
Total Tax Credits (A-B) of - €340 means that Revenue is attempting to reduce their Tax Credits by €3,640 when they only gave them €3,300. It is like Revenue gave them 3 apples and are trying to take 5 back from them. As an aside a person who contacted BPPM thought they were getting a tax refund of €340. For the average person with basic tax credits and tax bands their tax cert would show:

Gross Tax Credits (A) 3,300
Tax Credits Reduced by DSP PUP Payment 3,640
Gross Tax Credits Reduction (B) 3,640
Total Tax Credits (A-B) -340
Adjustment 340

Rate Band 1 36,300
This rate band is decreased by:
DSP PUP Payment 18,200
Band 1 Credit Reduction 1,700
The amount of your income taxable at 20% 15,400

The Band 1 Credit Reduction of 1700 is arrived at by multiplying 340 by 5. (20% of 1,700 = 340)

Notifications such as these, without any explanation or clarification issued by Revenue only contribute to more confusion among PAYE workers. If you see the line “Band 1 Credit Reduction” on your Tax Credit and Universal Social Charge, then you will need to ensure that your credits are amended when you take up employment. Otherwise, your tax credits will be left at 00 and your tax band will remain significantly reduced. The bottom line will be that you will be taxed on all your earnings because employers are not receiving updated Revenue Payroll Notification (RPN) for employees in this category. The worst part is that PAYE workers are left to their own devices to figure out what the hell is going on and what can they do to fix it. The Face Book Group and Page called Payroll Matters in Ireland together with the Linkedin Page and Twitter Page are running a campaign to put an end to this process and replace it with a process that will have the result of recouping taxes owed in the year 2021. If you have been overtaxed on your return to work please use any of these platforms to show your support for the campaign by simply commenting:
"I was over taxed when I returned to work due to annualised reductions made to my tax band and my tax credits. I signed off the PUP on my 1st day back at work."

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COVID-19 Pandemic Unemployment Payment and Enhanced Illness Benefit - Update on 12th April 2021

Update on payments awarded from Department of Social Protection. Published on 12th April 2021 and last updated on 12th April 2021.

Over 421,000 receive the Pandemic Unemployment Payment this week, a decrease of over 15,000 on last week. €125.52 million in PUP weekly payments to be paid into bank accounts tomorrow Tuesday 13th April..2,078 people currently in receipt of Enhanced Illness Benefit. People returning to work should close their claim on their first day back in work by logging on to www.MyWelfare.ie.Quickest and easiest way to apply for PUP, Enhanced Illness Benefit and Jobseekers is online at www.MyWelfare.ie.

Public are warned about Scam Phone callers purporting to be from the Department of Social Protection. This week, the Department of Social Protection has issued weekly payments valued at €125.52 million to 421,373 people in receipt of the Pandemic Unemployment Payment (PUP).The number of people receiving a Pandemic Unemployment Payment this week has decreased by 15,776 compared to last week. The figures published today are in addition to the 183,096 people who were on the Live Register at the end of March. All Covid-19 Pandemic Unemployment Payments issued will be in recipients’ bank accounts or at their Post Office tomorrow, Tuesday, 13th April.

Dublin is the county with the highest number of people who are receiving PUP this week at 134,417. It is followed by Cork (42,391) and Galway (22,774). All sectors have fewer people receiving PUP this week, reflecting the number of people who have closed their claims in recent weeks to return to work. The sector with the highest number of people receiving PUP this week is Accommodation and Food Service activities (102,405), followed by Wholesale and Retail Trade (67,990) and Construction (50,169).

Accommodation and Food Service activities is the sector that has seen the largest decrease in the number of people receiving PUP this week with 3,753 fewer people receiving the payment compared to last week. The Construction sector has seen the number of PUP recipients decrease from 52,723 last week to 50,169 this week. This is followed by the Wholesale and Retail sector which has seen the number of PUP recipients decrease from 70,083 last week to 67,990 this week. Some 48% of those in receipt of PUP are receiving the maximum rate of €350 this week.

People Returning to Work

The past seven days saw 7,327 people close their PUP claims, with 5,966 of these stating that they were doing so because they are returning to work.Dublin had the greatest number of people closing their claims to return to work (1,478), followed by Cork (672) and Kildare (311).

The sectors with the largest number of employees closing their Pandemic Unemployment Payment claims to return to work are Construction (1,501), Wholesale and Retail Trade (970), and Accommodation and Food Service activities sector (723). Some 654 people closed their claims to return to work in the Manufacturing sector while 119 closed their claims as they return to work in the Education sector.

The Department continues to remind workers who are returning to work that they must close their claim for the Pandemic Unemployment Payment (PUP) on the actual date that they start back at work, in order to ensure that their claim is processed correctly and to avoid incurring an overpayment that the Department will take steps to recover.

The easiest way to close a claim for the Pandemic Unemployment Payment is online via www.MyWelfare.ie. Any worker returning to work with an enquiry about closing their claim, can contact the Department’s dedicated Income Support Helpline at 1890 800 024 between 9am and 5pm Monday to Friday.

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COVID-19 Pandemic Unemployment Payment and Enhanced Illness Benefit - Update on 8 April 2021

Update on payments awarded from Department of Social Protection. Published on 6 April 2021 and last updated on 8 April 2021.

Over 437,000 receive the Pandemic Unemployment Payment this week, a decrease of over 6,000 on last week. 2,061 people currently in receipt of Enhanced Illness Benefit.

This week, the Department of Social Protection has issued weekly payments valued at €130.31 million to 437,149 people in receipt of the Pandemic Unemployment Payment (PUP).

The number of people receiving a Pandemic Unemployment Payment this week has decreased by 6,098 compared to last week. Dublin is the county with the highest number of people who are receiving PUP this week at 140,124. It is followed by Cork (43,871) and Galway (23,589). All sectors have fewer people receiving PUP this week, reflecting the number of people who have closed their claims in recent weeks to return to work.
The sector with the highest number of people receiving PUP this week is Accommodation and Food Service activities (106,158), followed by Wholesale and Retail Trade (70,083) and Construction (52,723).

Construction is the sector that has seen the largest decrease in the number of people receiving PUP this week, with 1,591 fewer people receiving the payment compared to last week. The Wholesale and Retail sector has seen the number of PUP recipients decrease from 71,099 last week to 70,083 this week. This is followed by the Accommodation and Food Service activities sector, which has seen the number of PUP recipients decrease from 107,043 last week to 106,158 this week.Some 48% of those in receipt of PUP are receiving the maximum rate of €350 this week.

People Returning to Work

The past seven days saw 7,165 people close their PUP claims, with 5,524 of these stating that they were doing so because they are returning to work. Dublin had the greatest number of people closing their claims to return to work (1,422), followed by Cork (623) and Meath (294).The top three sectors with the largest number of employees closing their Pandemic Unemployment Payment to return to work are Construction (1,312), Wholesale and Retail Trade (870), and Accommodation and Food Service activities sector (684).

The department continues to remind workers who are returning to work that they must close their claim for the Pandemic Unemployment Payment (PUP) on the actual date that they start back at work, in order to ensure that their claim is processed correctly and to avoid incurring an overpayment that the department will take steps to recover.

The easiest way to close a claim for the Pandemic Unemployment Payment is online via www.MyWelfare.ie. Any worker returning to work with an enquiry about closing their claim, can contact the department’s dedicated Income Support Helpline at 1890 800 024 between 9am and 5pm Monday to Friday.

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Public Holidays Ireland 2021

Public holidays may commemorate a special national day or other event, for example, Saint Patrick's Day (17 March) or Christmas Day (25 December). There are currently 9 public holidays in Ireland in the year. On a public holiday many businesses and schools close. Most businesses in the hospitality sector will remain open on public holidays. Other services, for example, public transport still operate but often with restricted schedules.

Public Holidays Dates 2021

Friday, January 1st, 2021 – New Year’s Day

Wednesday 17th March 2021 – St Patricks Day

5th April 2021 – Easter Monday

May 3rd, 2021 – May Day Bank Holiday

Monday, June 7th, 2021- June Bank Holiday

August 2nd, 2021 – August Bank Holiday

Monday, October 25th, 2021 – October Bank Holiday

Saturday 25th December 2021 – Christmas Day

Sunday 26th December 2021 – St Stephens Day

Qualifying Rules for Pay Entitlement

A person’s entitlement to public holidays is set out in the Organisation of Working Time Act 1997.together with the appropriate rate of daily pay. Most employees are entitled to paid leave on public holidays. One exception is part-time employees who have not worked for their employer at least 40 hours in total in the 5 weeks before the public holiday. If an employee qualifies for public holiday benefit, they are entitled to one of the following:

A paid day off on the public holiday.

An additional day of annual leave.

An additional day's pay.

A paid day off within a month of the public holiday.

Employees may ask employers at least 21 days before a public holiday, which of the alternatives will apply. If the employer does not respond at least 14 days before the public holiday, employees are entitled to take the actual public holiday as a paid day off.

Public Holidays Falling on a Weekend:

If a public holiday falls on a weekend, workers do not have any automatic legal entitlement to have the next working day off work. If a public holiday falls on a day that is not a normal working day for a business (for example, on Saturday or Sunday), employees are still entitled to the benefit for that public holiday by one of the following.

A paid day off within a month of the public holiday

An additional day of annual leave

An additional day’s pay

Public Holidays on an Employee Normal Working Day

Where the public holiday falls on a day on which the employee normally works, the employee is entitled to a full day’s pay for the public holiday, if they do not work on the day i.e., as if they had done their normal hours on that day. If they work on the holiday, they should also get their usual pay on top of the public holiday entitlement.

Public Holidays on an Employee Non-Working Day:

Where the public holiday falls on a day on which the employee does not normally work, the employee is entitled to one-fifth of his/her normal weekly wage for the public holiday.If weekly pay varies, then the employer uses an average of the weekly pay over the last 13 weeks prior to the public holiday and divides it by five.

Part-time Employees

When an employee has worked for an employer at least 40 hours in the 5 weeks before the public holiday and the public holiday falls on a day the employee normally works, the employee is entitled to a day's pay for the public holiday. If they are required to work that day, they are entitled to an additional day's pay.

Qualifying part time employees who do not normally work on the public holiday should receive one-fifth of their weekly pay. Even if they are never rostered to work on a public holiday, they are entitled to one-fifth of their weekly pay as compensation for the public holiday.

Bank Holiday

Bank holidays are sometimes referred to as public holidays and vice versa which causes endless debate and confusion about pay, especially at Easter and Christmas time. There is already enough confusion about entitlement to bank holiday pay in Ireland and what days are bank holidays. For example, many people are unsure if Christmas Eve and New Year’s Eve are bank holidays. Christmas Eve and New Year’s Eve are not bank holidays or public holidays.

All public holidays are bank holidays, but all bank holidays are not public holidays. In 2021 Good Friday. Monday 27th December and Tuesday 28th December are bank holidays but not public holidays. While some schools and businesses close on these days, there is no automatic entitlement to paid time off work on these days unless it is included as a paid holiday in your contract of employment, e.g., companies in the Construction Industry Federation. The following days in 2021are not public holidays and workers are not entitled to public holiday pay for those days.

Good Friday 2nd April 2021 (Banks closed not a Public Holiday)

Monday 27th December 2021 (Banks closed not a Public Holiday)

Tuesday 28th December 2021 (Banks closed not a Public Holiday)

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Calculate Reduction in Tax Rate Band and Tax Credits for PUP

The Revenue process:
1. Person Returrns to work and signs off the PUP immediately, by notifying DSP to cease to payment of PUP effectice from the day before they recommence employment.

2. The Dept. of Social Protection - DSP on receipt of this sign-off notification will cease the PUP payment.

3. The Department of Social Protection to inform Revenue of the total amount of PUP earned in 2021 (i.e., paid to the recipient after 5th January 2021). The DSP will do this after the last payment of PUP has been made.

4. When Revenue is notified that a PUP claim is closed, they will update the persons Tax Credit Certificate by reducing their Tax Credits and SRCOP by the actual amount that was earned in 2021. (paid out after 5th January 2021). Revenue will calculate the tax due based on the actual amount of PUP (not the full year annualised amount) and your tax credits will be updated to reflect the actual amount of tax due on the PUP.

5. As with all changes to PAYE workers MyAccount on Revenue, the details are notified on the employee’s Tax Credit and Universal Social Charge Certificate (TCC) and a revised Revenue Payroll Notification (RPN) is sent to their employer for processing on their payroll.

6. Caclulate what your revised Certificate should be reduced by to take account of the actual ammount of PUP received with this simple to use calculator. This revised certificate must be issued by Revenue a few days before your 1st paydate from your employer. If it is not issued on time you will be overtaxed on your 1st paydate.
Calculator to Determine Reduction in Tax Rate Rate Band and Tax Credits for PUP Received

Enter the date of your 1st day back at work and the amount of PUP you were receiving since the beginning of 2021 and the calculator will do the rest. This reduction should match what the reduction on your revised upataded certificate from Revenue.

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Taxation of Maternity Benefit

Please note that all of the tables below are taken from Revenue's website. The only difference is that Boyle Practical Project Management changed the name of the example from Sarah to Mary and updated the year from 2020 to 2021. When this blog as written on 14th March 2021, this is how Revenue were explaining how Maternity Benefit would be taxed. This note is important because it is further evidence of the flawed process currrently in operation by Revenue to tax Pandemic Unemployment Payment, Maternity and Ilness benefits in real time.

Mary has a full time job with the same company for the past few years and earns €700 per week. The RPN sent to her employer towards the end of 2020 shows the following tax credits and rate band. This will apply from 1st January 2021.

Annual Tax credits: €3,300

Weekly Tax credits: €63.47

Annual rate Band €35,300 taxed at 20% Balance taxed at 40%

Weekly Rate Band €678.85 taxed at 20% Balance taxed at 40%

Mary went on maternity leave from 11th January 2021. She qualified for Maternity Benefit and receives €235 per week. Mary's employer does not pay her wages while she is on maternity leave. Revenue receives Mary’s Maternity Benefit details from the DSP. Then Revenue reduces her annual tax credits and rate band to take account of the Maternity Benefit was receiving, effective from 11th January, as follows:

Maternity Benefit €235 p.w. * 52 = €12,200
Annual Tax Rate Band Reduction = €12,200

Annual Tax Credit Deduction = €2,444

Revenue issue an updated Revenue Payroll Notification (RPN) to Mary's employer, reducing Mary's Tax Credits and rate band as if she was going to remain receiving Maternity benefit for 1 full year, effective from 11th January.

Returning to Work After Maternity Leave

Mary returns to work on the 12th July 2021. Following her last payment DSP tells Revenue that Mary's Maternity Benefit payments have stopped. Revenue adjust Mary's tax credits and rate band by removing the Maternity Benefit annualised reductions and make a revised RPN (on a week 1 basis) available to Mary's employer. Note this is as per Revenue's Website as of 14th March, 2021 as updated on 24th February 2021.

Mary returns from maternity leave on 12th July 2021. Her first pay day is Friday, 23rd July 2021. Her gross pay is €700, and her employer calculates her weekly IT as follows on the basis that the above Tax Credit Certificate was received by Mary's employer prior to the running of their payroll:

Mary's IT payable from 12th July

Taxed at 20%    €678.85 = €135.77
Taxed at 40%   € 21.15 = €    8.46
Gross tax                       € 144.23
Deduct tax credits             €   63.47

Tax payable                   €   80.76

Mary’s gross pay of €700 is also subject to USC and PRSI as normal. Mary was not paid by her employer during her maternity leave and her tax credits exceed the tax due on her Maternity Benefit. A tax refund may be due to Mary and she should submit an online income tax return at the end of the year through myAccount.

FLAWED PROCESS FOR TAXATION OF SOCIAL WELFARE BENEFITS

I expect that Revenue will amend their example of "Sarah" to correct this error in demonstrating their flawed process. The error in Revenue's example of Sarah, who does not receive any payment from her employer while on Maternity leave, and has a weekly rate €700 per week when working is proof that the process currently in operation by Revenue to tax Pandemic Unemployment Payment, Maternity and Illness benefits in real time is flawed in many ways.
The reason is this: There is no difference between the Tax Credit Cert issued to Mary effective from the 1st January to the one effective from 12th July. The Tax Credit Cert issued to Mary effective from 12th January and sent to Mary's employer would have the effect of Mary been overtaxed €94.01 (i.e., taxed €174.77 instead of €80.76) for her last week payment received from her employer on 15th January.

The error in the above example is that the cert issued effective from 12th of July should read:

Adjustment of Mary’s annual tax credits and rate band on a wk1 basis.

Maternity Benefit €235 p.w. * 26 =   €6,110
Annual Tax Rate Band Reduction = €6,110

Annual Tax Credit Deduction   =    €1,222

The Tax Credit Cert issued to Mary effective from 12th January and sent to Mary's employer serves no purpose as it related to DSP payments. This is at the root of the flawed process. In effect if there is any delay in issuing the correct Tax Credit Cert after Mary returns to work would result in Mary paying €174.77 instead of €127.77, an overpayment of €47 over and above what she owes for her weekly maternity benefit. Boyle Practical Project Management has outlined a process that would enable Tax due on Pandemic Unemployment Payment, Maternity and Illness Benefits to be collected correctly in 2021 on a person's return to work.
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Returning to Work After Been Furloughed due to Covid-19

Zero tax credits & astronomical income tax deductions face PAYE workers returning to work in 2021 after receiving the pandemic unemployment payment.

Why are Tax Credits Reduced for 2021?

Because from 1st January 2021 pup payments earned in 2021 are taxable in real-time. This is simply rhetoric and has never been done before and appears to be poorly thought through. It seems that there is some breakdown between Department of Employment Affairs and Social protection (DEASP) and Revenue.

Band 1 Credit Reduction

If you see the line “Band 1 Credit Reduction” on your Tax Credit and Universal Social Charge, then you will need to ensure that your credits are amended when you take up employment. Otherwise, your tax credits will be left at 00 and your tax band will remain significantly reduced. The bottom line will be that you will be taxed on all your earnings because employers are not receiving updated Revenue Payroll Notification (RPN) for employees in this category. The worst part is that PAYE workers are left to their own devices to figure out what the hell is going on and what can they do to fix it? See More

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Employment Wage Subsidy Scheme - EWSS

The Employment Wage Subsidy Scheme (EWSS) is a support that focuses on business eligibility. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of eligible employees on the employer’s payroll. The EWSS replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020. It is expected to continue until 31 March 2021. In response to a Dáil question from deputy Ged Nash about the details of his plans to continue the scheme beyond the schedule of 31st March 2021, the Minister for Finance pointed out that he has always "been clear that there will be no cliff-edge to the EWSS. It is noted that the legislation implementing the measure provides that it will be in place until 31st March 2021, but also allows me, as Minister for Finance, to extend the scheme until the end of June 2021, subject to certain conditions. It is likely that continued support will be necessary out to the end of 2021 to help maintain viable businesses and employment and to provide businesses with certainty to the maximum extent possible. Decisions on the form of such support will take account of emerging circumstances and economic conditions as they become clearer."

Where an employee or any other person becomes aware of any abuse by an employer operating the scheme, he or she can report same on a confidential basis to Revenue in writing, through MyEnquiries, or online.

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How to Check Revenue Statement

This is a radio interview with Arthur Shortall about Wage Subsidy Scheme and Pandemic Unemployment Payments made to recipients in Ireland and their subsequent liability to taxation. Arthur Shortall is both On the Level and on the ball with LifeFM Cork. I found Arthur to be very thorough about a topic that has become quite complex over the past 12 months since the introduction of the Covid-19 Social Welfare Payments Pandemic Unemployment payment PUP and the temporary wage subsidy scheme TWSS. This interview will assist anyone that has questions relating to their Ireland revenue statements. Listen To Interview.

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2020 PAYE and USC End of Year Balance

This reconciliation process can be used at the end of the 2020 tax year to balance statutory deductions as outlined on your payslip for the final payment of the year with revenue. Please note that BPPM's End of Year PAYE and USC calculator only works from taxable earnings. If you have non-taxable payments or pension contributions, be sure to enter only taxable earnings. PAYE taxpayers need to submit an income tax return if on a Week 1 basis or on Emergency Tax. This process does not apply to those not in employment at the end of the year and in receipt of unemployment benefit or assistance. Read Full Post

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Calculate Underpayment of PAYE & USC on Covid-19 Temporary Wage Subsidy

The simple instructions given here will enable anyone in receipt of the Covid-19 Temporary Wage Subsidy and remains in employment to the end of 2020 with income above the tax threshold to use the calculator to determine the amount of their underpayment.

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Calculate Take Home Pay

Because of my extensive background in payroll I am often asked by people to check their pay slips for accuracy. They are happy when I can verify independently that everything is in order. The other question I get asked is “if I was earning €200 a week more how much would it be worth to me in my hand”.

Interactive Gross Pay to Net Pay Application

In 2019 I checked the internet for an interactive converter that would calculate net pay for a person in a given pay period for a given taxable pay. There was nothing on the Web that does this properly so Boyle Practical Project Management developed an interactive gross pay to net application and tested it against hundreds of scenarios for different pay cycles. This gross to net pay calculator calculates tax (PAYE), pay related social insurance (PRSI), and universal social charge (USC) for any given period. Read Full Post

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COVID-19 Temporary Wage Subsidy Payment

Revenue is as explicit as it can be as per the above for the operation of the payment and Revenue has been working extremely hard to keep employers and employees informed and updated. The scheme was put into place within a short period of time and has been updated continuously to address any legitimate shortcomings of the scheme. The many experienced payroll processing people who have been implementing the scheme on the ground have queried some of the practical problems that exist in some cases and have been liaising closely with Revenue in highlighting and resolving issues.

Updates to the Temporary Wage Subsidy Scheme

The latest Revenue Update on TWSS Reconciliation Process - 22nd March 2021. Statements from Revenue as extracted from their website:

Income tax and USC will not be applied to the subsidy payment through the payroll.

Employee PRSI will not apply to the subsidy or any top up payment by the employer.

The Subsidy will be liable to Income Tax and USC on review at the end of the year.

More detailed guidance on the operation of the Temporary Wage Subsidy Scheme is available on Revenue’s Frequently Asked Questions. The FAQ’s are updated regularly with extra additional information and clarifications. Changes to Wage Subsidy Scheme from 4 May 2020 are also outlined on the Citizens Information website.

On 15 April 2020, changes to the Wage Subsidy Scheme were announced. These changes will take effect from 4 May:
•The subsidy will increase from 70% to 85% for employees with a previous average take-home pay below €412 per week
•The subsidy will be €350 per week for employees with a previous average take-home pay between €412 and €500 per week
•The subsidy remains the same for employees with a previous average take-home pay of between €500 and €586 per week
•A tiered system has been introduced for employees with a previous average take-home pay of over €586 per week
•Employees who were taking home more than €960 per week will be able to avail of the scheme (this change applies from 16April)
•The new rates apply from 4th May and will not be backdated

The continuous improvement to the TWSS is another example of how those experienced in the field of all things payroll in the private and public sectors have come together in making a critical contribution to maintaining stability within the economy and supporting those impacted financially by the Corona Virus Covid-19.
Misinformation can arise when those that are non-qualified in payroll related matters start interpreting information or and sharing incorrect information. For the most part generalisations cannot be made about the operation of the Temporary COVID-19 Wage Subsidy Scheme. The application of Payroll processes leads to differing results for different people based on their personal circumstances. Because there is no one size that fits all. The guidance on TWSS issued by revenue is the go to location for up to date information. The spread of misinformation distracts and frustrates those that are working over and above their normal work commitment to deliver as fair and as equitable a scheme as is possible within the short timeframes available and in the knowledge that there will be circumstances where anomalies will continue to exist within the scheme.

FAQs on Temporary COVID-19 Wage Subsidy Payment

Here is a sample of frequently asked questions by employees around the Temporary COVID-19 Wage Subsidy Scheme and it’s processing through Payroll:

How long does the Temporary COVID-19 Wage Subsidy Scheme last?

The scheme is expected to last 12 weeks from 26 March 2020.

Is the Temporary COVID-19 payment subject to tax, USC or PRSI?

Income tax, USC and PRSI are not deducted from the Temporary Wage Subsidy through payroll at time of payment? Employees are processed on PRSI class J9, which attracts an employer PRSI charge of 0.5%., and nil contribution from the employee. The Subsidy will be liable to tax and USC on review at the end of the year at which time, Revenue will decide on how this tax liability will be collected from the employee.

Is the top-up payment subject to tax, USC or PRSI?

Any top-up payment is subject to income tax, USC and no PRSI is due to be paid by employees (class J9). Read Full Post

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Galway Races Brexit Factor

The year 2018 is the 149th Galway Racing Festival.. The Galway Races Summer Festival along with other festivals in the City contributes to Ireland’s Tourism industry providing 230,000 jobs nationwide.

The short term impact to Irish tourism of Brexit has been the sharp weakening of sterling against the euro. There has been a substantial drop in the number of UK visitors to Ireland this year as the post-Brexit fall in sterling has made it more expensive to travel. Outbound travel from Great Britain could see a decline of over 1 million trips because of Brexit and as a result the sport of kings at the Galway Festival will suffer. Read full post.

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The 3 Biggest Challenges to Public Sector Projects in 2020

1. Identification of outcomes. The public sector project environment involves stakeholders with conflicting agendas.

2. Determination of the criteria for measuring success. The needs of the users of the final product can be difficult to assess amid varying political influences.

3. Competition for resources. The public sector project environment is subject to changing management priorities, particularly in times of political instability.

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Ireland's Disappearing Fiscal Space 2016 - 2019


        1.       ‘Inversions’– Long Term

Corporate inversion is a term for the relocation of a corporation's legal domicile to a country with a lower rate of corporation tax. Continued measures by the US treasury to stem the flow of inversions will adversely affect the Irish Economy’s Fiscal Space. The impact will be felt as a gradual process over the next decade.

        2.       ‘Immigration’– Short Term

Immigration will impact on the Irish economy both directly and indirectly.

- Directly as immigrants are integrated into our economy - initial welfare payments and social housing provided will far outweigh tax contributions from migrants. Read Full Post

The 2 main reasons for failure within Start-ups and In-Company Improvement Projects

Organisations initiate projects, but cannot always deliver what was expected and, even on simple, straightforward projects there are many areas that can cause the sorts of problems that can lead to failure.

1. Quite often, people who become expert in their technical and operational roles are given project management responsibility. In many cases major issues arise on projects managed by competent technical individuals who do not possess the complimentary project management skills. Read Full Post

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Change of Company Name under new Companies Act 2014

The Companies Act 2014 requires that each company type be included as part of the company name. For some types of company this will require an alteration to be made to its name. The companies most affected are companies converting to or re-registering as Designated Activity Companies or Private Guarantee Companies.Boyle Practical Project Management is currently assisting Limited companies to come to grips with the Companies Act f. BPPM give the steps for companies to make the transition themselves in the form of an implementation plan.

Boyle Practical Project Management is now also assisting Designated Activity Companies (DAC) and Companies Limited by Guarantee (CLG) to come to grips with the Companies Act. The Implementation of the Act for DAC.’s and CLG.’s is somewhat more precarious than for Ltd.’s because of the name change requirement. The Companies Act 2014 provides that company names must include the company type suffix at the end of its name, unless exempted. The Companies Registration Office (CRO) has issued a number of Information Leaflets relating to the Act.

The Legislation

A company can change their name by filing a Change of Company Name Special Resolution G1Q, amended the Constitution and submit fee of €50 if filed on line/€100 on paper. The types of companies directly affected are Private Guarantee Companies and Companies Limited by Guarantee (CLG). Private guarantee companies are deemed to be Designated Activity Companies (DAC). These companies do not need to convert to DAC status but must make an adjustment to their company names. All Designated Activity Companies, which are limited by guarantee, must have the words “Designated Activity Company” or “Cuideachta Ghníomhaíochta Ainmnithe” at the end of their name unless exempted. Read Full Post

Critical Success Factors for the Implementation of an Enterprise Resource Planning System

Successful implementation of systems has never been easy. Implementation of an Enterprise Resource Planning (ERP) system is a complex, lengthy and costly process. Despite the huge investment, there is extensive evidence that many companies experience considerable problems, particularly during the actual implementation phase. The Western Health Board is currently implementing an ERP system, as part of a programme to introduce ERP systems throughout the Irish Health Service. The name given to this ERP system is PPARS (Personnel, Payroll and Related Systems). Moving to an Enterprise Resource Planning (ERP) system will require significant business process re-engineering. The strategy of not conducting a prior business process re-engineering phase and using PPARS to engineer the processes concurrently to the implementation adds to the complexity and to the project expectations. PPARS like similar public service projects often begin with a dangerous blend of optimism, inexperience, enthusiasm, and uncertainty. The personnel involved often find themselves facing uncertainty and competing agendas, such as the Health Service Reform Programme and the Financial Information Systems Project (FISP). At the same time there may be over-optimistic expectations of likely outcomes, or even the actual demand for the product being provided. Without a proper understanding of the project’s challenges and implications at the outset, you may not have the right personnel or financial resources to handle it. Analysis of critical success factors and success criteria among the stakeholder groups in this research is intended to increase stakeholder understanding of the project and the factors contributing to its success. Read Full Post

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Google My Business

Google My Business is the world’s most popular search engine and has a free tool that lets you manage your presence on Google. It lets you to share the story of your business with photos and reviews. Google has released a suite of updates recently, making Google My Business more powerful than ever for local businesses. Google is making it easy for searchers to do almost all of their research about a company within the search results page. If you are a local business owner, the top three listings that show on a Google search are precious.

BPPM provides you with an easy to follow guide which takes you through creating, claiming or verifying a listing as well as how to use the features that can help you to grow your business and get the most out of your Google My Business page.

Here is a look at my Project Management Business when I search on Google for Project Management Galway.

There it is at the top of the pile. When I click into it here is what I see.Read Full Post

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2012 - 2020 BPPM CRO Reg. No. 463423