PAYE Settlement Agreement for 2024
It is getting close to that time of year when employers need to consider whether they are required to make an application to Revenue in relation to a PAYE Settlement Agreement (PSA) for 2024.
Following on from a previous article written in October 2021, the Finance Bill initiated amendments to the free use of property legislation changing how the benefit arising on a loan from a family member would be calculated. However, this was never implemented. When the decision was made to not proceed with the amendment, it was clear that an amendment would be reconsidered in the future.
Now, with effect from 1 January 2024, the tax rules have been amended to account for a new mandatory filing obligation if you receive a gift in respect of a specified loan from close relatives.
What is a specified loan?
A specified loan is any loan, advance or any form of credit that is:
Filing obligations
An individual is required to file a CAT return where all the below conditions are met:
As it is deemed an individual to have received the benefit on 31 December each year, the CAT return would need to be filed no later than 31 October in the following year. Therefore, the first mandatory filing date will be 31 October 2025.
If you are required to file a CAT return, you will have to include the following information:
Careful consideration must be given when receiving a loan from a close relative to ensure that any arising filing obligations have been met.
The timing of the interest payments must be looked at closely as interest needs to be paid in each relevant period so as not to be reportable in respect of that particular period.
It is important to remember that all specific loans, whether received from the same close relative or multiple close relatives, must be aggregated when considering whether the threshold amount of €335,000 has been exceeded or not. Where the loan balance exceeds €335,000 at any time within the relevant period, a reporting obligation arises.
If you have any questions in relation to the above, or if you would like to discuss this topic further, please contact a member of the Mazars private client team below:
Staff Member | Position | Telephone | |
Alan Murray | Tax Partner | amurray@mazars.ie | 01 449 6480 |
Siobhán O’Moore | Tax Director | somoore@mazars.ie | 01 449 6418 |
March 2024
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