Revenue have advised that the reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Similar arrangements in respect of RCT will also become available from that date. The good news is that there is no need for you to take any action if you qualify as Revenue will notify you shortly if you are eligible. You will receive a letter confirming that the reduced payment and filing frequency is being applied to you.
A business will qualify for the reduced frequency for the filing of returns in the following circumstances:-
VAT
- 6 month filing will apply where total annual VAT return payments are less than €3,000.
- 4 monthly filing will apply where the total annual payments for VAT are between €3,000 and €14,400.
PAYE/PRSI
- 4 monthly filing of PAYE/PRSI returns will apply where total annual payments are between €3,000 and €14,400
- 3 monthly filing of PAYE/PRSI returns will apply where total annual PAYR/PRSI payments do not exceed €28,000.
RCT
- 3 monthly filing will apply where the total annual RCT payments does not exceed €28,800.
If you or your business qualifies, the reduced frequency of tax returns and tax payments will apply to them with effect from 1 January 2011.