From 1 January 2024, three types of benefits that are made without the deduction of tax must be reported to Revenue when they are paid to employees or directors.

Collectively known as ‘reportable benefits’, they are:

• The remote working daily allowance of €3.20; 
• Travel and subsistence expenses; and
• The small benefits exemption.

In November 2023, Revenue published guidance on the new reporting requirements, but we are disappointed in the relatively short timeframe given to employers to implement the measures.

Under the enhanced reporting requirements, the employer must:

• Determine whether the conditions for payment of the benefit without the deduction of tax are satisfied, and
• If so, report to Revenue details of the payment or benefit made on or before the date the payment or benefit is provided to the employee.

The reportable details are as follows:

Small benefit exemption:  The value of the benefit and the date granted to the employee/director. 

Remote working daily allowance: The total number of remote working days, the amount paid, and the date paid to the employee/director. 

Travel and subsistence: The amount and the date paid to the employee/director for each of the following subcategories: travel vouched, travel unvouched, subsistence vouched, subsistence unvouched, site-based employees (including “Country money”), emergency travel, and eating on site.

The information can be reported to Revenue by using payroll software, uploading a compatible file to Revenue Online Services (ROS), or using the new ROS online form.

Employers and their agents will require ROS permissions to report information under the new reporting requirement; employers will automatically be assigned permissions via their existing ROS certificate. Where permissions are required to apply to any sub certificate, the employer must log into their ROS permissions screen to assign accessibility to the sub certificate. Financial Agents will receive the permissions automatically via their existing ROS certificate. 

The new guidance contains numerous worked examples of reportable benefits and can be viewed here: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-38/38-03-33.pdf

Classifying an individual’s employment status for income tax purposes

The Supreme Court has delivered a judgement in the case of The Revenue Commissioners v Karshan (Midlands) Ltd t/a Domino’s Pizza, which outlines the key factors to consider when determining an individual’s employment status for income tax purposes. Revenue has published a press release that summarises those factors and encourages businesses and their agents to familiarise themselves with the judgement because it is relevant to a broad range of work, not just delivery drivers. 

The case was concerned with whether the delivery drivers were independent contractors under a “contract for service” and taxable under Schedule D of the Taxes Consolidation Act 1997, or employees under a “contract of service”, and taxable under Schedule E of that Act (PAYE). The court found that the drivers were employees for income tax purposes.

The press release stresses that businesses are responsible for ensuring the correct taxes are deducted from employees’ pay and remitted to Revenue at the correct time. Businesses who engage workers on a self-employed basis are encouraged to review existing arrangements in light of this judgement and take any appropriate action.

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