'There is no such thing as a free lunch' - sobering message delivered to Shannon Chamber members

The phrase, "there is no such thing as a free lunch" took on a new meaning in January of this year, with the introduction of the Enhanced Reporting Requirement (ERR) legislation.

This obligates employers in Clare and across the country to report to Revenue certain tax-free payments and benefits which are given to their employees.

This includes vouched and unvouched cash reimbursements of travel and subsistence, site-based payments, eating on-site allowances, emergency travel and remote working allowances.

With such payments required to be reported on or before the date of payment, and the prospect of penalties for non-compliance, it is not surprising that Revenue statistics point to returns to date involving 41,000 employers reporting, 2.4m employees, €1bn worth of payments, representing 90% of employee population.

With the ‘Service for compliance’ period set to expire on 31 December 2024 and with no further planned centralised ‘nudge’ campaigns scheduled, companies in Clare are being urged to get their returns up to date to avoid any repercussions.

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This was the advice given to Shannon Chamber member companies by a team from Deloitte when they addressed a meeting of Human Resources (HR) practitioners at an event in Shannon.

The event was hosted by Engine Lease Finance Corporation (ELFC) and organised by the Chamber. 

Attendees were left in little doubt that the onus of reporting is with their companies and it was suggested the use of company credit cards, where appropriate, as these, fuel cards (paid by the employer) and payments made directly to third parties are excluded from this tight reporting timeframe.

It’s not all plain sailing though, as reported at the event, with many companies struggling to fully understand what a reportable item in their expense system is, the quality of data required, how to treat incidentals such as parking and toll fees, and the mechanics of reporting.

Nevertheless, they were advised to constantly review their expenses and benefits’ policies to ensure that they are complying with the correct tax treatment for these items.

With staff entertainment coming under increased scrutiny by Revenue, attendees were also advised to watch out for excessive spend in this area, and the frequency of events, and to consider their expense policy updates on what is considered "allowable” staff entertainment for their businesses.

Reflecting on the presentation, Shannon Chamber CEO Helen Downes said: “Running a business and ensuring that it remains sustainable is a challenge in itself; ensuring that the business adheres to all regulatory requirements is also critical. That’s why presentations, such as given to our members by Deloitte, are critically important. They’re the experts who can act as watchdogs and advise us on how to implement employment tax and reward strategies in a tax compliant manner.”