eBrief No. 59/2008 advises that the reduced frequency arrangements for Employers PAYE/PRSI and VAT for small businesses has been “extended” to “newly eligible customers”.

There is no actual extension. The thresholds below which payments may be made quarterly etc are not extended or revised. And what are “newly eligible customers”? Well, these are taxable persons or employers in circumstances whereby they can avail of the reduced frequency arrangements. Maybe these are now more numerous on account of the economic slowdown. So what's actually happening is that businesses which are eligible for reduced frequency are being moved on to it.

Fewer returns and payments mean less processing and as a follow-on less work for Revenue, and the thresholds involved are such that the cashflow cost to the Exchequer is neither here nor there. Having less processing work to do presumably means that Revenue can focus their attentions on other areas.

It seems that Revenue are unable to notify the agents involved with PAYE/PRSI taxpayers that the change is in the offing, so if you have clients with PAYE/PRSI payments between €2k to €3k per month, it might be worth checking with them to see if they are availing of the Revenue offer.

It should be remembered that businesses are free to opt out. They frequently do so, for example, preferring the rigour of the bi-monthly VAT return and payment as they manage themselves.

eBrief No. 59/2008 is reproduced in Section 2.05.