In early 2019, Revenue launched live reporting of payroll for employers all over Ireland. It was made mandatory for all employers to switch to the new reporting system from 1st January 2019. From an employee’s perspective, documents like P45s and P60s were discontinued. This project was named PAYE modernisation and it was designed after extensive consultation with stakeholders. Although early on, the system had many discrepancies, with time, Revenue has improved the entire system. During the Covid-19 lockdown, it is actually because of this PAYE modernisation system that Revenue was able to launch the Temporary Wage Subsidy Scheme (TWSS) so quickly and efficiently.
Department of Employment Affairs and Social Protection recently announced changes to the Pandemic Unemployment Payment (PUP). The changes involved reduction of the flat €350 for people who were earning less than €200 per week before the start of Covid-19 lockdown. Again, this up to date information is only available to DEASP – Department of Employment Affairs and Social Protection because of the PAYE modernisation reporting system. As part of the launch of the system, all employees in Ireland were asked to sign up to Revenue’s online service for employees called myAccount. Services offered through myAccount have been improved and increased over the last few months.
This blog is mainly focused towards people who start their first job or who have recently changed their job. If you are an employee who is starting your first job in Ireland or if you have recently changed your job or even if you have started a second job, I would suggest that you sign in to your myAccount and update your record. myAccount enables employees to register their new job or to cease an old job, allocate or transfer tax credits, cut off points and USC bands as required. It also enables users to claim new tax credits.
Registering as a user for the service is quite simple. You go to Revenue’s website. Click on the myAccount link.
Now you will have three options. 1- If you already have myAccount setup, you can sign in to myAccount with your PPS number, Date of Birth and Password.
2- If you have a verified MyGovID account, you can also use your MyGovID details to sign in
But if you do not have any of the above setup, Click on Register now
Once you have completed the process, you will either be posted a pin number to your home address or you may be given a temporary pin number provided you fulfil a specific criterion. Check Revenue’s website (www.revenue.ie) for details.
Once registered and signed in, you can register your job by following the “Update Job or Pension” Details link. You will be asked to provide an employer tax number, job start date and few other questions depending on your record held by Revenue.
Who is it for? This service is for anyone who:
a- Is starting a new job b- Is starting to receive payments from a private pension (not a DEASP, i.e. social welfare, pension) c- Has left a job or pension and has received their final payment
What do I need? To add a new job or pension you will need:
a- Your new employer or pension provider’s tax registration number b- The date your job starts or pension becomes payable and how often you will be paid c- To tell us an estimate of your overall incomes d- If you have recently moved to Ireland, you will need to provide some additional details such as arrival date.
How long does it take? About 10 minutes for most people. Some people may have more or less questions to answer. The sections are as follows;
1- Section One: Add your new job or pension
2- Section Two: Tell us how long you have been living in the Republic of Ireland
3- Section Three: Tell us about your overall incomes
4- Section Four: Review your details and submit
To make a change to your credits and cut off points, follow the link “Manage Your Tax 202X”.
You will be brought to a page showing your employments registered with Revenue. Scroll down to the section and you will see “How your tax credits and rate band are currently divided”. If you would like to make changes to this section, press the Edit button. You can now give Revenue estimated figures of your expected gross income for each job. Revenue will then calculate an allocation for each job and prompt you to confirm if you are happy to continue. Revenue’s allocation system does not always work the way you like. So you have the option to accept Revenue’s allocation, to divide the credits and cut off points equally or if you like to distribute your tax credits and cut off points in a specific percentage, you will be given the option to type a message. This message is then sent to Revenue and they make the changes for your manually.
If you go to myAccount and click on “Review Your Tax 201X – 201X “,
You will be brought to a page where you will be able to review and file your tax return for the previous 4 years and claim overpaid taxes.
More details about this in my next blog.
ABOUT THE AUTHOR: The content of this blog has been written by Rehan Khan. The author has been part of many successful multinational companies where he learned and excelled. He has worked in IT, Finance, Accounting and Advisory sectors. Currently, the author is not only running his own successful businesses but also acting as an advisor for several past employers on a regular basis. In case you need to contact the author, use the comments section below.
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