Annuity, Approved Minimum Retirement Fund, Approved Retirement Fund, Health Claim and vested Personal Retirement Savings Accounts payments subject to changes in processing.
Payments from the above are liable to the Pay As You Earn (PAYE) system of taxation.
Revenue is undergoing a PAYE Modernisation project. This is the most significant reform of the PAYE system since its introduction in 1960 and affects all in receipt of payments subject to PAYE. For information regarding the Revenue PAYE Modernisation project, please visit their website by clicking here.
This also means that there are changes to how Friends First processes payments that are subject to PAYE. Friends First will endeavour to ensure that there is no impact to service and the processing of your client’s payments. However, please note that some payment dates have to be altered to ensure payments are now received in the month that they are due.
In the past, some annuity payments were typically made shortly before the month that they were due. Payments must now be made from the 01st of the month that they are due in. A note to advise this has been added to the payslip for any annuitants who are affected.
It is recommended that you review the changes outlined on the Revenue website and, in particular, that Revenue Payroll Notifications (RPN) that will replace the existing Tax Credit Certificates.
Please ensure that your client’s records with Revenue are up to date. This will ensure that Revenue can make the most up to date RPN available to Friends First when payments are processed.
If a client’s RPN is not up to date, then their payment may be subject to a higher rate of Income Tax and Universal Service Charge than it should be. In such cases, the client will be able to subsequently claim back over deductions through Revenue (if they are entitled to same).