Expenses reporting requirements with effect from 01 January 2024

The Finance Act 2022 introduced Section 897C to the Taxes Consolidation Act 1997.  The section will require employers to report details of certain expenses and benefits made without the deduction of tax to employees and directors. The items that come within the scope of the enhanced reporting requirements (ERR) are the small benefit exemption, the remote daily working allowance and travel and subsistence payments. Reporting the details of these expenses and benefits applies from 01 January 2024, following the signing of a Commencement Order by the Minister for Finance yesterday.

Revenue acknowledges the significant engagement by stakeholders, including software providers, employers and tax practitioners during 2023 to prepare for the introduction of the measure. Revenue understands that compliance with the new reporting rules will take a period of time to fully integrate into employers’ business processes. In line with Revenue’s approach to the introduction of other new reporting regimes, it is confirmed that a service for compliance approach will be taken until the 30 June 2024. This approach will involve supporting employers who are attempting to comply with their reporting obligations. During this period, Revenue will not be operating any compliance programmes in relation to the ERR and will not seek to apply any penalties for non-compliance.

Full details of the ERR are available on the Revenue website, which is accessible here. Support is also available from the National Employer Helpline and contact details for same are accessible here.

ENDS [14/12/2023]