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Sunday 17 December 2017

Spreading payment evenly over course of the year

when is tax due? January 2014 (First payment)

This is essentially paying the tax "on the drip".

Payment is spread evenly over the year, with automatic renewal each year.

Revenue favours this method of payment as there is a certainty that it will get its money every month.

And if there are any problems, Revenue officials will be able to use its considerable powers to lean on employers without having to deal with consumers.

It is easier to deal with one employer, where there may be hundreds of workers having the tax taken from their wages, rather than hundreds of individual consumers.

Head of taxation at Chartered Accountants Ireland Brian Keegan said it had been proven in the past that there were higher compliance levels when a tax was taken from wages or pensions.

Deduction at source involves the tax being taken from your salary, pension or farm scheme payment once a month.

The first of 12 separate payments from your pay or pension will start in January next year.

To opt for this method you choose the deduction at source option on the paper form, or online.

You must provide the employer's name and tax registration number of your employer or pension provider.

You will find this on your pay slip or pension receipt.

If you want the tax to be taken out of your farm payment, then you need to provide your name, PPS (personal public service) number and herd number.

Irish Independent

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