What is PAYE modernisation?

SMART PAYE

 

Revenue, employers and employees will have the most accurate, up to date information relating to pay and statutory payroll. This will ensure the correct amounts of Income Tax, Pay Related Social Insurance, Universal Social Charge and Local Property Tax are:
  • deducted at the right time
  • deducted from the right employees
  • paid by employers in the correct amount of deductions for every employee.
This will improve the accuracy, ease of understanding and transparency of the PAYE system for all stakeholders.
SMART PAYE sets out the key design principles of the project.

By working to these principles throughout the design stages, we can ensure the:

  • project meets its objective
  • benefits for all stakeholders are easily identifiable.

 

What are the benefits?

For an employer:

  • Seamless integration into payroll.
  • Minimise employer cost to comply.
  • Abolition of P30s, P45s, P60s and end of year returns.
  • Right tax paid on current due dates.
  • Time savings.

For an employee:

  • Simplified online services.
  • Maximise use of entitlements.
  • Automatic end of year review.
  • Real time accurate data.
  • Transparency.

For Revenue:

  • Statutory in-year return.
  • Making compliance easier.
  • Accurate up to date income details.
  • Reduced customer contacts.
  • Timely targeted interventions.