Who applies for Tax Credit Cert?

J

jokerini

Registered User
Messages
92
Employer takes on new employee who has no P45. Is the onus on the employee or employer to apply for a tax credit cert?

Thanks
 
I think 12A is for first time employments only. The employer usually informs Revenue of the new employee but the employee can do it also if they have the employer's tax reference number.
 
smeharg said:
The employer usually informs Revenue of the new employee but the employee can do it also if they have the employer's tax reference number.
Click to expand...

You'd be surprised how many outsourced payroll-providers (esp those located outside the State) don't do this!

Some MNCs leave it all to the employee to do - including finding out the ER number.
 
I'd say the onus is on the employee.
If the employer doesn't have a tax credit cert linked to their PPSN, they will apply emergency tax as per the rules. It's not costing them any more; the employee suffers lower net pay.
 
Time said:
It is 100% the employees responsibility to inform the revenue.
Click to expand...

I presume you mean the employeR?

Practically all of the obligations in the PAYE system are on the employer. See here: http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-recommencing.html

It's up to the employer to ask the new employee for their P45 and/or their PPSN, and to register the employment.

"It is extremely important that an employer notifies Revenue when a new employee commences employment and it is not good practice for an employee to remain on a week 1/month 1 basis for an unnecessary period of time. Only in exceptional circumstances would it be acceptable for an employee to remain on a week 1/month 1 basis across 2 tax years."
 
Really.

I was under the impression that if the employee does nothing the employer just deducts tax under the emergency rules and this situation would continue until the employee contacted revenue to apply for a cert.
 
Time said:
Really.

I was under the impression that if the employee does nothing the employer just deducts tax under the emergency rules and this situation would continue until the employee contacted revenue to apply for a cert.
Click to expand...

The onus is on the employer to ask the employee for their PPSN / P45. If the employee doesn't provide the details then there's not really much the employer can do but operate emergency tax, until the employee does produce their PPSN. At which point the onus is back on the employer to inform Revenue.

It's logical when you think about it - do you give responsibility for the operation & integrity of the PAYE system to (say) 2m employees, or to a couple of hundred thousand employers.
 
What is supposed to happen when the employer informs revenue of a new employee? Do they contact the employee?

Just asking as in my experience with PAYE you stayed on ET until you contacted revenue yourself. I have never known an employer to take the initiative.
 
Time said:
What is supposed to happen when the employer informs revenue of a new employee? Do they contact the employee?

Just asking as in my experience with PAYE you stayed on ET until you contacted revenue yourself. I have never known an employer to take the initiative.
Click to expand...

It's all laid out very simply here:
http://www.revenue.ie/en/business/paye/guide/employers-guide-paye-recommencing.html

You either:
Get a P45 from the new employee, in which case you fill in Part 3 and send it to the tax office to receive a tax credit cert,
Don't get a P45 but get the employee's PPSN, in which case you can complete a Form P46 to register the employment and receive a tax credit cert (I think you can also do that online, and get back a cert in electronic format which can be transposed directly into most payroll software packages),
Don't get a PPSN or P45, in which case it's emergency tax until the employee comes up with the details or contacts the tax office themself.

Personally, I've never had an employer who didn't do what they were supposed to, out of half a dozen in total since my schooldays.
 
I agree with Mandelbrot - but I've seen some major MNCs with thousands of Irish employees simply not notify the Irish Revenue. Payroll is often outsourced to a UK company, not affiliated - properly outsourced, and their call-centre staff don't know Irish legislation/policies and procedures.

I recommend that new employees do what their new employer asks e.g. give them last P45 etc but make sure to ring the Revenue themselves re their own tax credit situation.

Saves heartache in the end.
 
You must log in or register to reply here.
Back
Top