Reductions in the frequency of VAT, PAYE/PRSI, & RCT tax returns and payments for smaller businesses are being extended to eligible businesses from 1 January 2012. This will mean that businesses eligible for the reduction will only have to make payments at the end of each 3, 4 or 6 monthly period, as appropriate.

The reduced frequency of tax returns and payments 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
• Businesses making total annual RCT payments of up to €28,800 are eligible to file RCT returns and make payments on a 3 monthly basis.

Eligible business will receive a letter from Revenue confirming the reduced frequency of tax returns and tax payments. A copy of the letter will also be sent to the agent or tax practitioner on record for eligible customers (other than PAYE/PRSI customers).

Readers should note that there is no need to take any action to benefit from these changes as Revenue will extend this facility for reduced filing and payment to eligible businesses without any action required by the businesses concerned.