CG 7 Direct Debit - PAYE/PRSI & VAT
PAYE/PRSI & VAT
You can pay your PAYE/PRSI and VAT in monthly instalments by direct debit. Applications to avail of the Direct Debit facility are confined to customers with bi-monthly VAT liabilities up to €50,000 and monthly PAYE/PRSI liabilities up to €25,000. For customers with liabilities greater than these amounts, please consider using the Revenue Online Service (ROS).
Advantages of Direct Debit
Direct debit reduces Revenue paperwork requirements and assists cashflow planning for your business. You will only have to fill in one annual return as follows:
- For PAYE/PRSI you will only need to fill in and make one annual P35 return on or before the 15th February. No monthly P30 returns are required.
- For VAT you will only need to fill in and make one annual VAT3 return on or before the 19th day of the month following the end of the VAT accounting year. No interim returns are required.
- If taxes are being paid by direct debit, late payment of tax does not arise during the year.
If your business is seasonal, Revenue provides a facility to allow you to vary up to a maximum of three payments in a 12 month period. Applications to avail of this facility should be made in writing at the beginning of the accounting year.
Obligations with Direct Debit
You are obliged to submit the annual return by the due date. Where the return is not submitted, liabilities will be estimated and collection will be pursued, using enforcement where necessary. The facility to pay by direct debit may be withdrawn.
Where insufficient amounts are paid by direct debit and there is a balance of tax payable at the end of the accounting year, interest is payable if the amount is not paid by the due date. In addition if the amount due exceeds:
- 20% of the annual liability for VAT, or
- 10% of the annual liability for PAYE/PRSI,
interest will be back-dated to the mid point of the accounting year.
Instructions
- Complete and sign the
direct
debit mandate (PDF, 27KB) and return to:
Direct Debit
Collector General
Sarsfield House
Limerick - Deductions will be taken from your bank account on the 3rd last working day of each month.
- Direct debit payments are made in arrears, e.g. payments made in February relate to the January tax debt.
- You should ensure that your monthly direct debit payments are sufficient to cover your annual liability. Where necessary, you should adjust the direct debit amounts to achieve this. In general, the monthly payment amount should represent approximately one twelfth of the final annual liability.
- If you wish to amend the amount of your direct debit deduction during the year, email cgdd@revenue.ie or write to the Collector General requesting the change. In the amendment request please state:
- Registration Number details
- Reason for amendment
- Direct debit monthly deduction amount
- If you change your bank or bank account number for direct debit payments, please notify the Collector-General immediately who will cancel the existing arrangement and arrange a new direct debit instruction in respect of the new account.
- Please note that there is no limit to the number of occasions that the direct debit monthly amount can be increased. However, reductions in monthly payments are limited to two per 12 month period except in exceptional circumstances. Please email cgdd@revenue.ie or write to the address above requesting the change. You should note that in the event of any payment not being honoured, your participation in the scheme will be reviewed and your authorisation to pay by direct debit may be withdrawn.
Have you considered Revenue Online Service (ROS) as an alternative method of paying PAYE/PRSI & VAT?
Related information
You can also pay preliminary income tax (CG9) by direct debit.
Contact details
Write to: Direct Debit, Collector General, Sarsfield House, Limerick
Email: cgdd@revenue.ie
Phone: 1890 20 30 70
Callers from outside Republic of Ireland should use +353 61 488 000
