Revenue eBrief No. 011/23

17 January 2023

Income Tax (Employments) Regulations 2022 S.I. No. 690 of 2022

Tax and Duty Manual Part 42-04-71 - Income Tax (Employments) Regulations 2018 - has been updated to reflect the changes made to the Income Tax (Employments) Regulations 2018 S.I. No. 345 of 2018 as a result of the Income Tax (Employments) Regulations 2022 S.I. No. 690 of 2022.

These changes, which are operational from 1 January 2023, amend the Income Tax (Employments) Regulations 2018 that prescribe the manner in which the deduction of tax from salaries and wages under the “Pay As You Earn” system operates.

The changes are as follows:

• Regulation 4(1)(a) is amended to provide that the reliefs from income tax which an employee is entitled to for the year may include reliefs in respect of which a claim has been made, prior to the end of the year of assessment, through such electronic means as Revenue will make available.  The amendment also provides clarity that tax relief available under section 469 of the Taxes Consolidation Act 1997 ‘Relief for health expenses’ may be included on a claim made prior to the end of the year of assessment
• Regulation 10(1) is amended to provide clarity that an employer is required to send certain information relating to a payment of emoluments to an employee using the prescribed form which is ‘a notification’. And to provide for the reporting of certain information in respect of employee and employer contributions to a Pan-European Pension Product (PEPP)
• Regulation 11(3) is a technical amendment amending the reference from ‘section’ to ‘Regulation’
• Regulation 17(2) is amended to provide clarity that an employer is required to send certain information relating to the commencement of a new employee in employment using the prescribed form which is ‘a notification’
• New Regulation 22A, which provides that an employer may, in certain circumstances and where no payment of emolument is made during the last income tax month of the year, make a repayment of tax to an employee during the last income tax month of the year so that the employee can get the benefit of any unused credits at the end of the year under the cumulative PAYE system 
• Regulation 27 is amended to require an employer to correct a return for any pay period when requested to do so by Revenue
• Regulation 31, which provides for net pay arrangements, is amended in paragraph 1 to include contributions to a PEPP in the meaning of ‘allowable contribution’.