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The new Enhanced Reporting Requirements (ERR) for certain non-taxable benefits are due to come into effect from 1 January 2024. Currently, employers submit details of all reckonable earnings paid to each of their employees. The ERR sees the introduction of an entirely separate submission. ERR reporting is a new obligation concerning employer returns for certain non-taxable payments of expenses and benefits to employees. This will be the case regardless of whether these payments are processed through a company’s payroll system or via an expenses protocol operated by the employer. There are 3 categories of expenses and benefits included under the ERR system as follows:   1.Travel and Subsistence Tax free expense payments in this category that will require to be reported under ERR will include payments for:

• Travel - vouched and unvouched.
• Subsistence - vouched and unvouched.
• Emergency travel.
• Eating on Site.
• Site – based employees.

Payments for “Country Money”, which can be received by employees, involved in the construction and related sectors are covered within this category.   2. Small Benefit Exemption Amounts paid in vouchers, subject to an annual maximum of two benefits per employee not exceeding a total of €1,000.   3. Remote Working Relief (daily allowance) The number of days and the amount paid, with a payment of not more than €3.20 per day for the days an employee performs employment duties from their residence. The use of company credit cards or prepaid cards aren’t currently in the scope of ERR. Also excluded are fuel cards, toll tags, car insurance, and motor tax paid by an employer. These payments are excluded as no payment has been made directly to employees or directors by an employer.   The pressure points for employers can be categorised under three headings: 1.Systems integration issues: Many employers do not have integrated payroll and expense systems and this could lead to practical difficulties in complying with ERR obligations on a timely basis, given the requirement to report details 'on or before' the making of a payment or reportable benefit.  For travel and subsistence payments, employers may need to consider making reimbursements less frequently (perhaps monthly) to reduce the administrative burden of making multiple reports.  Employees may take an adverse view of this as it will delay their reimbursement. 2. Timing issues for small benefits: Given the broad nature of what can be considered for the purposes of the small benefit exemption, clear timing issues may arise with reporting, particularly where the benefit is of an ad hoc or unexpected nature.   3. Steps that should be taken by employers in preparation for the reporting requirements of ERR:

• Identify the system(s) used to pay expenses such as travel, subsistence, working from home and small expenses, are they paid via payroll or ad hoc payments.
• Establish whether your current payroll software can accommodate the additional reporting requirements.
• Discuss with employees any changes to the frequency of payments that may arise.
• Ensure that records are maintained of the days for which the remote working allowance is paid.

  It is important to remember that from 1 Janaury 2024, for all employers who make payments which fall under the categories outlined above, two returns will be required following each payroll run: the current and standard Payroll Submission Report and the Enhanced Report Requirements submission for any expenses paid.   If you require any further information in relation to the above or would like to consider an outsourced payroll service, please do not hesitate to contact us at info@robertsnathan.com.

Vivian Nathan, Managing Partner at Roberts Nathan, was featured in the latest Business Plus Magazine Accountancy and Business Advisory Survey issue. As part of the survey response, Vivian outlined the ongoing growth the firm is experiencing, an increased focus on clients who are expanding into the international markets, and recruitment opportunities within Roberts Nathan.  

One of the positive announcements for businesses in Budget 2023 was the introduction of the Temporary Business Energy Support Scheme (TBESS) to reimburse businesses for the increase in energy costs. Registration for the scheme opened on 26th November and claims can be made from 5th December 2022. The scheme will cover the period from 1st September 2022 to 28th February 2023 with the deadline for a claim being 4 months from the end of the month for which the claim relates (i.e. 31st January 2023 for a September 2022 claim). Where a business has seen an increase in energy costs of over 50% from the corresponding month in the prior year then it will be entitled to claim for 40% of the increase. A claim is limited to a cap of €10,000 per month per business line or €30,000 per month where more than two business lines with separate MPRNs exist. Given the significant energy cost increases for business we would anticipate a high participation in the scheme with the government setting aside €1.2bn for the energy bill subsidies. We would encourage you to speak to us about registration and submission of claims to ensure timely compliance with the scheme.