- Remote working daily allowance
- Small benefits
- Travel and subsistence
Revenue’s Approach to ERR in 2024
To assist employers during the transition, Revenue adopted a supportive compliance approach for the duration of 2024:
- No formal compliance interventions were carried out.
- No penalties for ERR non-compliance were applied.
However, Revenue now expects that all liable employers have implemented the necessary procedures to meet ERR obligations. Employers who began filing after 1 July 2024 are required to backdate their filings to that date.
Looking Ahead to 2025: Compliance Focus
From 2025, ERR is expected to become a standard part of PAYE compliance interventions. Revenue may use ERR compliance as a factor when selecting employers for compliance reviews.
As we approach the end of Revenue’s initial “service to support compliance” phase, it is essential for employers to ensure full compliance with their ERR obligations, which have been in place since 1 January 2024.
Small Benefit Exemption (SBE): Reporting Christmas Gifts
With the holiday season approaching, employers are reminded to report Christmas gifts provided to employees that qualify under the Small Benefit Exemption (SBE).
Key SBE Criteria for 2024:
- Up to two non-cash benefits (e.g., vouchers) per year.
- Combined value must not exceed €1,000 per annum.
- The first two benefits meeting these conditions must be reported under ERR.
Changes to the Small Benefit Exemption from 1 January 2025
Starting 1 January 2025, the SBE will be expanded as follows:
- Employers can provide up to five tangible non-cash benefits per year.
- The total cumulative value of these benefits must not exceed €1,500 per annum.
Action Points for Employers:
- Ensure systems are in place to meet ongoing ERR reporting obligations.
- Report all qualifying Christmas gifts for 2024 under the Small Benefit Exemption.
- Prepare for the updated SBE limits effective from 1 January 2025.
By staying compliant, employers can avoid potential interventions and ensure smooth adherence to ERR rules in the years ahead. Our article on ERR from 11 Dec 2023 can be found here.