Busy time for business before PAYE overhaul

While 66% of small businesses throughout the country are ‘short on detail’ on the PAYE system overhaul due to come into effect next January, a massive 40% say they are ‘not at all prepared’.

These were the findings of the latest Big Red Cloud SME Survey, which asked over 200 business owner/managers throughout the country their position on the PAYE Modernisation being introduced by Revenue.

The new system means that employers will have to provide real-time information of wages, tax deductions and allowances for each employee, regardless of the basis on which they are employed.

It will see employers submitting payroll data in real-time as employees are paid – and Big Red Cloud says it represents a fundamental shift from the existing system where detailed payroll data in the form of a P35 (end of year return) is submitted annually.

“We’ve been doing a lot of work behind the scenes to prepare our Payroll software to ensure all our client’s and their payroll processes are compliant when the changes come into force,” said Marc O’Dwyer, CEO of Big Red Cloud, supplier of payroll and online accounting software to the Irish SME market.

“We have also been working closely with accountants working with SMEs all over Ireland to assist in any way we can as everyone gets ready for the huge overhaul of the PAYE system – the first in 58 years – that will come into force in just over four months,” he added.

Mr O’Dwyer said that a huge amount of preparation would be necessary on the part of both accountants and business owners to ensure operational and regulatory compliance.

For more, read this week’s Connacht Tribune.

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