I am advised by Revenue that the new administrative arrangements for PAYE (PAYE Modernisation) started on 1 January this year. These new arrangements do not affect the way income tax and other statutory deductions are calculated under the PAYE system, but do change the way employers report payroll information to Revenue on or before each pay date.
PAYE Modernisation has also streamlined the reporting process for employers by eliminating the need to complete the various forms and returns that were required under the old system (e.g. P30, P45, P46, P35, P60) and making it a by-product that is seamlessly generated with each payroll run. Crucially, it provides Revenue with the most up to date pay and deductions details for employees in real-time, which greatly helps in ensuring that taxpayers benefit fully from their various credits and entitlements. Also, for the first time, employees can view the information reported to Revenue on their behalf by employers.
On receipt of either an employment cessation or the starting date for a new employment, Revenue immediately updates the person’s tax record and provides the necessary pay and tax information in real-time to any new employer or to other Government departments/agencies as required, for example the Health Services Executive (HSE) or the Department of Employment Affairs and Social Protection (DEASP). This removes any requirement for a P45 form or any other type of written confirmation.
While employees can now access their pay and tax details online via the myAccount service, Revenue accepts that there may be circumstances where persons require written confirmation of their pay and tax or employment position, for example in a non-e enabled situation. Where this occurs, taxpayers can request written confirmation of their position, including in respect of a cessation of employment, by contacting Revenue on telephone 01-7383636.