Revenue has confirmed that they intend to concentrate on the "shadow economy" in 2011. They will explore underpayments of tax by PAYE workers where they have other undeclared income i.e. rental income. They are also concentrating on incorrect tax credits being claimed by PAYE workers. They will continue their focus on cash businesses i.e. doctors, dentists, lawyers, accountants and jewellery businesses, all of which could include unannounced visits by Revenue. Mandatory e-filing
Mandatory electronic payments and filing, using Revenue's Online Service (ROS), is part of Revenue's strategy to establish the use of electronic channels as the normal way of conducting tax business. Taxpayers will be required to pay and file their tax returns electronically from 1 June 2011.
Revenue may exclude a taxpayer from their obligation to pay and file electronically, if they are satisfied that the taxpayer does not have the capacity to do so.
Changes to PPS numbers attached to husband A ‘W’ format PPS number will no longer be recognised by Revenue’s systems. Revenue policy has changed to ensure that every individual holds a unique PPS number. Where an individual had a PPS number in her own right prior to marriage, this number will have been reactivated by the Department of Social & Family Affairs (DSFA.) If a pre-marriage number did not exist, DSFA will assign a new PPS number to the person concerned.
You should contact the DSFA’s Client Identity Services (firstname.lastname@example.org) should you have any questions, or require a new PPS number.
Once received, the DSFA notification of the replacement PPS number should be presented to Revenue to allow the new PPS number to be registered.
Employer PRSI @ 8.5% halved
With effect from 2nd July 2011, the 8.5% rate of employer PRSI payable under PRSI Class A, will be halved to 4.25%, where the employee's reckonable earnings do not exceed €356 per week. This reduction in employer PRSI will apply to both new and existing jobs and will apply until the end of 2013. A revised SW14/PRSI Tables should be available soon.