Reductions in the frequency of PAYE/PRSI and VAT tax returns and payments for smaller businesses will again be extended to eligible businesses from 1 January 2011. Similar arrangements in respect of RCT will also become available from that date.

The simplified arrangements will apply as follows:

• Businesses making total annual VAT payments of less than €3,000 are eligible to file VAT returns and make their payments on a 6 monthly basis;
• Businesses making total annual VAT payments of between €3,000 and €14,400 are eligible to file VAT returns and make their payments on a 4 monthly basis;
• Businesses making total annual PAYE/PRSI payments of up to €28,800 are eligible to make their payments on a 3 monthly basis; and
• Businesses making total annual RCT payments of up to €28,800 will now be eligible to file RCT returns and make payments on a 3 monthly basis.

Revenue advises that there is no need for businesses to take any action; a letter will issue to each eligible business advising them of the reduced frequency of tax returns and tax payments that will apply to them with effect from 1 January 2011.

Further details on the reduced payment and filing facilities are set out in Revenue's eBrief No. 79/10 which is reproduced here.