Simplified Filing Arrangments 2012

Revenue will shortly be writing to those businesses identified as qualifying for simplified filing arrangements from 1 January 2012. Members will be aware that simplified filing arrangements for VAT, PAYE/PRSI and RCT, are available to smaller businesses with liabilities below certain thresholds. This allows them to file returns on a less frequent basis than the standard.

Businesses identified as qualifying for simplified filing are automatically enrolled in the arrangement by Revenue. This means that if clients wish to continue to file on the standard basis, they will need to contact Revenue to “opt out”. Clients may have a preference to continue to file “as normal” if, for example, they are in a permanent VAT refund position.

Extension to newly eligible VAT, PAYE/PRSI, & RCT customers

Reductions in the frequency of VAT, PAYE/PRSI, & RCT tax returns and payments for smaller businesses are being extended to eligible businesses from 1 January 2012.

  • Businesses making total annual VAT payments of less than €3,000 are eligible to file VAT returns and make their payments on a 6 monthly basis;
  • Businesses making total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make their payments on a 4 monthly basis;
  • Businesses making total annual PAYE/PRSI payments of up to €28,800 are eligible to make their payments on a 3 monthly basis
  • Businesses making total annual RCT payments of up to €28,800 are eligible to file RCT returns and make payments on a 3 monthly basis.
What are the benefits to businesses?

The benefits for qualifying businesses 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?

Revenue will shortly write to each eligible business confirming that reduced frequency of tax returns and tax payments will apply from 1 January 2012.

A copy of the letter will also be sent to the agent or tax practitioner on record for eligible customers (other than PAYE/PRSI customers).

There is no need for businesses to take any action to benefit from these changes as Revenue will extend this facility for reduced filing and payment to eligible businesses without any action required by the businesses concerned.

 

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