Revenue has said that it will support employers who are attempting to comply with new reporting obligations coming into effect on 1 January.

The new rules require employers to report details of certain expenses and benefits made without the deduction of tax to employees and directors.

The benefits covered include the small-benefit exemption, the remote daily working allowance, and travel-and-subsistence payments.

The requirements arise after the Finance Act 2022 introduced section 897C to the Taxes Consolidation Act 1997. The Minister for Finance signed a commencement order for the new rules earlier this week.

Compliance ‘will take time’

Revenue said that it acknowledged the “significant engagement” by all involved during 2023 to prepare for the introduction of the measure.

In a statement, it said that it understood that compliance with the new rules would take time to fully integrate into employers’ business processes.

The tax body confirmed that it would take a ‘service-for-compliance' approach for the first six months of the measure – up to 30 June 2024.

“This approach will involve supporting employers who are attempting to comply with their reporting obligations,” Revenue stated, adding that it would not operate any compliance programmes, nor seek to apply any penalties, during this period.