The simplified arrangements for small businesses first introduced during 2006 and 2007 are being further extended to include newly eligible customers from 1 January 2010. Revenue has announced in eBrief No. 78/.09 that they are in course of writing 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 2010.

The arrangements introduced during 2006 and 2007 provided that:

• Businesses making total annual PAYE/PRSI payments up to €28,800 could make quarterly payments.
• Businesses with total annual VAT payments less than €3,000 could file their VAT returns and make the payments on a 6 monthly basis.
• Where total annual VAT payments were between €3,000 and €14,400, businesses could file their VAT returns and make the payments on a 4 monthly basis.

Revenue advises that there is no need for businesses to take any action; a letter will issue from Revenue where appropriate, confirming that the reduced payment and filing frequency is being automatically applied to them from 1 January 2010.

A copy of the letter will also issue to the agent/tax practitioners for businesses to which the simplified arrangements for VAT returns and payments apply. Revenue is unable to issue a copy of the letter for the simplified PAYE/PRSI arrangements.

EBrief No. 78/09 is reproduced below at 2.05.