Finance Bill 2022
The Finance Bill 2022 was published on 20 October 2022 by the Irish Government to give effect to measures announced in the recent Budget and in addition to introduce additional measures. The measures as introduced in the Finance Bill may get modified and additional measures may get added as the Bill makes its way through the Houses of the Oireachtas.
Some of the additional measures introduced include the following :
More payroll administration being introduced
A provision is included in the Finance Bill to provide for the automatic reporting to the Revenue Commissioners by employers in respect of three specific measures, collectively referred to as “reportable benefits”. Such reportable benefits are made without the deduction of tax.
The reportable benefits are:
- the remote working daily allowance of €3.20
- the payment of travel and subsistence expenses where no tax is deducted, and
- the small benefit exemption. (which Finance Bill 2022 confirms is being increased to a total of €1,000 per annum for up to two vouchers)
The introduction of this additional realtime reporting obligation on employers is significant and will further add to the administration burden for businesses for each payroll period.
Cycle to Work
The Cycle to Work Scheme has been extended to include cargo bicycles.
An employee can avail of an exemption from benefit-in-kind (IncomevTax, PRSI and USC) on the first €1,250/€1,500 of expenditure incurred by an employer in connection with the provision of a bicycle/pedelec and/or safety equipment to an employee or director, where all of the conditions are satisfied.
The amendment extends the benefit-in-kind exemption to cargo bicycles and e-cargo bicycles (i.e. pedelec configuration) by increasing the threshold to €3,000.
The changes will apply from 1 January 2023.
Employer Contribution to PRSA
The Bill provides that employer contributions made to a Personal Retirement Savings Account (PRSA)
on behalf of an employee are no longer considered a taxable benefit in kind for the employee.
A person who registers for VAT in respect of domestic-only transactions but subsequently engages in intra-Community trade, is required to notify the Revenue Commissioners of this engagement
within 30 days of that engagement.
Whilst every effort has been made to ensure the accuracy of matters covered by this article, no responsibility for loss or damage occasioned by any person acting, or refraining from acting, as a result of matters above. Professional advice should always be sought before acting on any interpretation of matters covered by this article.
20 October 2022