TOPICS – February 2018

Welcome to our monthly newsletter, TOPICS.

This month it includes the following Topics:-

  • PAYE Modernation – It’s time to start getting ready
  • General Data Protection Regulation (GDPR)
  • Approaching Retirement Age? …Some points to consider
  • Minimum Wage from 1st January 2018

PAYE Modernisation from 1st January 2019 – It’s time to start getting ready

The existing PAYE (Pay As You Earn) system was introduced nearly sixty years ago ensuring that correct deductions are made relating to pay and tax. From 1st January 2019, this system for PAYE will undergo a long overdue update called PAYE Modernisation. Under the new legislation, whenever Irish employers pay their employees, a file must be submitted (electronically) to Revenue containing details of these payments.

The Main changes

  • ‘Real time’ reporting to Revenue of employees’ pay and tax deduction at time of payment to employee
  • All ‘P’ forms (P30/ P35 / P45 / P60) to be abolished and replaced with ‘Mini P35’ at each payroll date
  • Employees will need to register for ‘My Account’ with Revenue and can have live access to their tax affairs including viewing weekly / monthly reports submitted by employer.
  • Once reports submitted to Revenue, they will issue bill for taxes payable
  • No changes to date of payment of taxes (23rd of the following month)

Dates of change

  • Revenue will request details of all employees in mid-2018 in preparation of PAYE modernisation
  • PAYE Modernisation effective from 1st January 2019

General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) will come into force on the 25th May 2018, replacing the existing data protection framework under the EU Data Protection Directive.

As a regulation, it will not generally require transposition into Irish law (regulations have ‘direct effect’), so organisations involved in data processing of any sort need to be aware the regulation addresses them directly in terms of the obligations it imposes. The GDPR emphasises transparency, security and accountability by data controllers and processors, while at the same time standardising and strengthening the right of European citizens to data privacy.

Raising awareness among organisations and the public aware of the new law will be a combined effort of the Data Protection Commissioner (DPC), the Government, practitioners, and industry and professional representative bodies. Over the course of 2017, the DPC will be proactively undertaking a wide range of initiatives to build awareness of the GDPR, in particular providing guidance to help organisations prepare for the new law which comes into force on 25 May 2018.

The DPC is also an active participant in the Article 29 Working Party (WP29) comprising representatives from each EU member state’s Data Protection authority. The WP29 has a central role in providing further explanatory and practical guidance on key provisions of the GDPR.


The DPC has launched a GDPR-specific website with guidance to help individuals and organisations become more aware of their enhanced rights and responsibilities under the General Data Protection Regulation.

The DPC has also prepared an introductory document for organisations to help them as they transition to GDPR: “The GDPR and You”. This document lists 12 steps which organisations should take in order to be GDPR ready by 25 May 2018. It should be noted that the guide is not an exhaustive list and organisations should ensure that their preparations take account of all actions required to bring them into compliance with the new law.

For guidance on whether your organisation needs to appoint a Data Protection Officer, and how to ensure that your DPO is adequately resourced for the role, see the DPC’s Guidance on appropriate Qualifications for Data Protection Officers (GDPR).

Approaching Retirement Age? ….Points to consider….

State Pension Contributory & Non Contributory

  • Do you meet PRSI contributions criteria as per the link below?
  • Have you stopped working / contributing before retirement age?
  • If so do you need to ‘sign on’ for credits? OR
  • Do you need to apply to make additional voluntary contributions?
  • Application must be submitted at least 3 months prior to 66th Birthday
  • Note change in age of entitlement to State Pension depending on DOB below:-
  • If you were born on or after 1 January 1955 the minimum qualifying State pension age will be 67.(2021)
  • If you were born on or after 1 January 1961 the minimum qualifying State pension age will be 68.(2028)

Private Pension funds

Have you reviewed your private pension funds recently in terms of:-

  • Appropriate fund (value of fund / RISK etc.)
  • Current contributions / maximising tax savings
  • Current earnings / salary in regards to final tax free lump sum
  • We can provide an independent professional no obligation advisor to review your funds
  • Tax planning? We can help you

Minimum wages rates from 1st January 2018

These are the Minimum Wage Rates that apply in Ireland from January 2018

  • Experienced adult worker €9.55 per hour
  • Over 19 and less than 2 years since first job  €8.60 per hour.
  • Over 18 and less than 1 years since began first  job  €7.64   per hour.
  • Aged under 18   €6.69 per hour
  • Further information from the link below