Reduced Frequency of Filing Tax Returns & Payments
Good News for Small Business as Revenue announce Reduced Frequency of Filing Tax Returns and Payments.
The Revenue has announced reductions in the filing and payment frequencies for VAT, PAYE/PRSI and RCT by Small Businesses from the 1st January, 2015, as follows:
Businesses making total annual VAT payments of less than €3,000 are eligible to file VAT returns and make payments on a 6 monthly basis;
Businesses making total annual VAT payments of between €3,000 and €14,000 are eligible to file VAT returns and make payments on a 4 monthly basis;
Businesses making total annual PAYE/PRSI payments of up to €28,000 are eligible to make payaments on a 3 monthly basis;
Businesses making total annual RCT payments of up to €28,000 are eligible to file RCT returns and make payments on a 3 monthly basis.
What are the benefits to eligible businesses?
The benefits are two-fold:
Improved cashflow by only having to make payments at the end of each 3, 4 or 6 monthly period, as appropriate.
Reduced costs of administration through less frequent filing of tax returns.
How will these changes be implemented?
The Revenue will write to each eligible business confirming that reduced frequency of tax returns and payments will apply from 1 January, 2015. A copy of the letter will also be sent to the agent on record for eligible customers. Therefore the change will be automatically extended to eligible businesses and there will be no need for action by you or your agent.
I trust the above is useful and any queries, please contact me.
Timothy Kelliher Chartered Accountant