Enhanced Revenue Reporting Rules On Tax-Free Gifting in Ireland
Enhanced Revenue Reporting (ERR) requires employers to report benefits like gift cards that qualify for the Small Benefit Exemption Scheme to Revenue.
Effective from January 1, 2024, with full enforcement beginning in 2025, the Enhanced Reporting Requirements by Revenue mandated employers to report all qualifying non-cash benefits provided under the Small Benefit Exemption Scheme.
Tax–free gift cards are becoming increasingly popular for businesses in Ireland to reward employees. The reporting compliance by Revenue created a critical obligation. Let's understand how ERR impacts your business and what needs to be done to meet Revenue's guidelines.
What Are Enhanced Reporting Requirements?
Enhanced Reporting Requirements were introduced in Section 897C of The Finance Act 2022. The compliance requires employers to report details of certain expenses or benefits provided to employees and directors.
These details must be reported to revenue by the employer on or before the benefit payment date to the employee. All employers must report the following benefits:
2. Travel & Subsistence Payments
3. Remote Working Daily Allowance
Employers can report these benefits digitally via Revenue Online Service (ROS) or through their payroll software integration.
What Must Be Reported To Revenue?
Employers need to submit the following details to Revenue to comply with ERR:
1. Employee Name
2. PPS Number
3. Employment ID4. Category of benefit
5. Amount of benefit
6. Date of payment
Why Did Revenue Introduce ERR?
Revenue's requirement to report employee benefits under Enhanced Reporting Requirements is not just about adding admin work, but is also about building a stronger, fairer compliance system. According to Revenue, the data collected will:
1. Enhance Revenue's compliance intervention framework
By having real-time visibility of reported benefits, Revenue can direct resources away from fully compliant employers and focus interventions where issues are more likely to persist.
2. Support policy decisions by the Department of Finance
The data gives policymakers quality insights into how tax-free gifts are being used in Ireland.
3. Increase Transparency
ERR gives a clearer picture of employee benefits across all sectors and strengthens trust in the tax system.
How To Report Small Benefit Gift Cards To ERR?
Employers should follow the steps below to report small benefit gift cards issued to employees:
1. Record all the details required, like the employee's name, PPS number, employment ID, value of benefit, and date.
2. Convert records into Revenue's JSON or XML format, ensuring PPSNs are encrypted.
3. Upload files to ROS manually or via a payroll software integrated with the ERR functionality.
How Does ERR Impact Your Business?
The biggest impact of Enhanced Revenue Reporting on the Small Benefit Exemption Scheme lies in the increased administrative and compliance workload. Employers must now report qualifying benefits in real-time, requiring HR, payroll, and finance teams to collaborate more closely than ever before.
How To Effortlessly Manage Enhanced Reporting To Revenue?
Enhanced Reporting Requirements represent a significant shift in how Irish businesses must handle tax-free employee gifting. With detailed reporting on each benefit payment, compliance is no longer optional. Here are some practical steps to make reporting simple and stress-free:
1. Leverage payroll software with ERR integration
Use payroll software that directly integrates with Revenue, ensuring employee benefits are reported in real-time. Manual reporting through ROS can be a lengthy and time-consuming process.
2. Create policies and processes to report efficiently
To ensure proper compliance with ERR, set processes in place that allow efficient workflow between HRs and admins so accurate details are recorded and monitored from the beginning.
3. Use automation tools that help with accurate reporting
Since submission must be in JSON or XML format, consider tools that can bring details of all employee gift cards in one place. If using CleverCards to issue gift cards, you can access all details on the online portal.
4. Educate Admins, HRs and Finance professionals on ERR
Employees handling benefits should understand Revenue's exemption limits and reporting rules. Awareness helps avoid costly mistakes.
The Smart Way To Manage Employee Rewards With CleverCards
While ERR has introduced an additional step to employee reward programs, it also ensures more structured and transparent spending for companies. What businesses now need is a smart solution that reduces the administrative burden and keeps costs under control.
CleverCards enables businesses to send employee benefit cards digitally, delivered instantly via email. Whether it’s for 10 employees or 10,000, cards can be issued in seconds. Simply preload the amount, upload employee details, and send it online. This streamlined process cuts out unnecessary admin, ensuring your team can stay focused on compliance without sacrificing efficiency.
Fill out the form below to discover how CleverCards make employee rewards effortless.