Brexit centre

The decision of the UK people to leave the European Union is one of the most significant events to occur in the history of the EU. Because of our geographic, social and economic ties with the UK, Ireland will experience the greatest impact of this decision among EU countries. The land border makes the situation particularly onerous. Ireland currently operates a trade surplus with the UK and customs checks and controls are increasingly likely.

Chartered Accountants Ireland

Latest Brexit news

Brexit

  This past week saw the UK do a U-turn on their commitment to the backstop; saying a hard border on the island of Ireland could be avoided using alternative arrangements. No details have been provided about what that means.  In other news, the economic impact of a disorderly Brexit looks particularly grim for Ireland with growth forecast to contract by 4.25 percent The weekly round-up In a busy week on the Brexit front, UK Prime Minister Theresa May won the support of her parliament last week for an attempt to go back to the EU and negotiate an alternative to the backstop.  No concrete details have been released as to what these alternative arrangements might be. Taoiseach Leo Varadkar said that the UK’s U-turn on the backstop has only “reinforced” the need for the backstop. And the EU weren’t happy either reportedly saying  politicians in Westminster would be disappointed if they think the EU will drop the backstop. UK foreign secretary, Jeremy Hunt tells BBC radio that the UK government might need extra time to prepare to leave the EU if a deal is agreed with the EU at the eleventh hour and key legislation needs to be put in place. Minister Donohoe outlines initial assessment of economic and fiscal impact of ‘no deal’ Brexit Minister for Finance and Public Expenditure & Reform, Paschal Donohoe discussed the economic and fiscal impacts of a disorderly exit of the UK from the EU stating that all forms of UK exit will have a detrimental impact on the Irish economy.  The Minister said that: Under a disorderly exit of the UK from the EU, the Irish economy could be 4¼ percent smaller than the current projections over the medium-term; Employment would increase more slowly and the unemployment rate could rise by 2 percentage points; The public finances would deteriorate – the modest surplus projected for 2020 would turn to deficit, and The most adverse impacts likely to be felt in agri-food and indigenous manufacturing sectors. The Minister said that no matter what form the UK will take to exit the EU, it will have a “detrimental” impact on the Irish economy.  The most adverse effects will be felt in agri-food and indigenous manufacturing sectors. Read the Minister’s statement.  

Feb 04, 2019
Brexit

Author and journalist Ian Kehoe addressed over 200 members of Chartered Accountants Ireland on Tuesday last at a breakfast briefing in Dublin and there was clear evidence of the deepening uncertainty Brexit is bringing to the business community in Ireland. Opening the event, Institute President Feargal McCormack warned that the introduction of a hard border and customs controls between Ireland and the UK as a result of a no-deal Brexit is now almost inevitable, and that Irish businesses and consumers in every part of the country will feel the effects through higher import prices, supply chain disruption and a heavy administration burden. Keynote speaker, Ian Kehoe said that the UK leaving the EU was never going to be easy and the process has become a political game.  Mr Kehoe said “The process has been marked by competing ideologies and conflicting narratives. If Brexit was purely about economics and finance, it would have been resolved by now. Instead, it has been driven by political power games.” Cróna Clohisey, Manager in the Tax & Public Policy department at the Institute told members that any business involved in trade with the UK would need to get their customs knowledge up to date and undertake a thorough supply chain review in order to be prepared for all eventualities. Businesses voiced their concerns that import VAT could be extremely costly regardless of whether there is a Brexit deal as Irish traders will have to pay VAT upfront on imports from the UK.  The Institute has repeatedly called upon the Government for VAT on imports to be delayed until the next VAT return and are concerned that no proposals to do so were included in the outline of no-deal Brexit legislation published last week.  Amid all the uncertainty, attendees were urged to continue their contingency preparations for a no-deal Brexit and that the Institute will support members in the process via Tax news, eNews and its Brexit web-centre. Speaking in front of a capacity audience in Chartered Accountants House, Mr McCormack said “The decision of the UK people to leave the European Union is one of the most significant events to occur in the history of the EU. Chartered Accountants, as business leaders and financial planners and managers, will be at the forefront of dealing with any new trading obligations post Brexit. It is in all of our interests that the UK and EU get the best deal possible”. Thank you to all members who supported the event.  For those who missed it, the recording is available to view using this link.  Pictures of the event can be found on our Flickr account.      

Feb 01, 2019
Brexit

As we are all facing Brexit and the uncertainty this creates, the Institute has written to training firms to advise them regarding the specific implications for trainees in relation to audit experience and potential audit rights post Brexit should a no deal Brexit arise.   Should a final agreement along the line of the proposed Brexit/EU agreement be in place, the good news is that the current regime (status quo) will effectively remain in place and provide an opportunity to agree new arrangements.  However this appears to be unlikely at this time. Read the letter sent to training firms.

Jan 31, 2019
Brexit

This week saw the UK do a U-turn on their commitment to the backstop; saying a hard border on the island of Ireland could be avoided using alternative arrangements. No details have been provided about what that means.  In other news, the economic impact of a disorderly Brexit looks particularly grim for Ireland as the government ramps up its no-deal Brexit legislation proposals. The weekly round-up In a busy week on the Brexit front, UK Prime Minister Theresa May won the support of her parliament this week for an attempt to go back to the EU and negotiate an alternative to the backstop. No concrete details have been released as to what these alternative arrangements might be. Taoiseach Leo Varadkar said that the UK’s U-turn on the backstop has only “reinforced” the need for the backstop. And the EU weren’t happy either reportedly saying  politicians in Westminster would be disappointed if they think the EU will drop the backstop. UK foreign secretary, Jeremy Hunt tells BBC radio that the UK government might need extra time to prepare to leave the EU if a deal is agreed with the EU at the eleventh hour and key legislation needs to be put in place. Minister Donohoe outlines initial assessment of economic and fiscal impact of ‘no deal’ Brexit Earlier this week Minister for Finance and Public Expenditure & Reform, Paschal Donohoe discussed the economic and fiscal impacts of a disorderly exit of the UK from the EU stating that all forms of UK exit will have a detrimental impact on the Irish economy.  The Minister said that: Under a disorderly exit of the UK from the EU, the Irish economy could be 4¼ percent smaller than the current projections over the medium-term; Employment would increase more slowly and the unemployment rate could rise by 2 percentage points; The public finances would deteriorate – the modest surplus projected for 2020 would turn to deficit, and The most adverse impacts likely to be felt in agri-food and indigenous manufacturing sectors. The Minister said that no matter what form the UK will take to exit the EU, it will have a “detrimental” impact on the Irish economy.  The most adverse effects will be felt in agri-food and indigenous manufacturing sectors. Read the Minister’s statement. Irish government publishes Brexit legislation The Irish government published the outline scheme of its Miscellaneous Provisions (Withdrawal of the United Kingdom from the European Union on 29 March 2019) Bill 2019 last week as part of the continued contingency plans for a no deal Brexit.  The Bill is made up of 17 parts and “focuses on the broad themes of protecting the citizen, and supporting the economy, enterprise and jobs.”  The Bill includes how healthcare and travel arrangements would be maintained between the UK and Ireland, how the single electricity market would continue to operate, how tax reliefs would work as well as information on financial services and third country provisions.   You can find more detail about the tax sections in our Five things you need to know about tax section of today’s newsletter. Read all of our Brexit updates on the dedicated Brexit section of our website.     .

Jan 31, 2019
Brexit

A no deal Brexit can only mean a hard border Over 200 members of Chartered Accountants Ireland attended a Brexit breakfast briefing in Chartered Accountants House this morning and there was clear evidence of the deepening uncertainty Brexit is bringing to the business community in Ireland. As talks between the UK and EU come down to the wire, a hard Brexit is becoming increasingly likely. And a no-deal Brexit will mean a hard border on the island of Ireland. Opening the event, Institute President Feargal McCormack warned that the introduction of customs controls between Ireland and the UK as a result of a no-deal Brexit is now almost inevitable, and that Irish businesses and consumers in every part of the country will feel the effects through higher import prices, supply chain disruption and a heavy administration burden. Keynote speaker, author and journalist Ian Kehoe said that the UK leaving the EU was never going to be easy and the process has become a political game. Mr Kehoe said “The process has been marked by competing ideologies and conflicting narratives. If Brexit was purely about economics and finance, it would have been resolved by now. Instead, it has been driven by political power games.” Businesses voiced their concerns that import VAT could be extremely costly regardless of whether there is a Brexit deal as Irish traders will have to pay VAT upfront on imports from the UK. The Institute has been asking government bodies for the VAT on imports to be delayed until the next VAT return and are concerned that no proposals to do so were included in the outline of no-deal Brexit legislation that was published last week.  Amid all the uncertainty, attendees were urged to continue their contingency preparations for a no-deal Brexit and that the Institute will support members in the process. Speaking in front of a capacity audience in Chartered Accountants House, Mr McCormack said “The decision of the UK people to leave the European Union is one of the most significant events to occur in the history of the EU. Chartered Accountants, as business leaders and financial planners and managers, will be at the forefront of dealing with any new trading obligations post Brexit. It is in all of our interests that the UK and EU get the best deal possible”. Ian Kehoe was the key note speaker at Chartered Accountants Ireland’s Brexit Breakfast Briefing which was held in Chartered Accountants House this morning in front of a capacity audience. About Chartered Accountants Ireland Chartered Accountants Ireland is Ireland’s largest and longest established professional body of accountants founded in 1888. The Institute, which is an all-island body, currently represents over 27,000 members around the world, including 5,000 in Northern Ireland.  The Chartered Accountants Ireland Brexit Action Group coordinates extensive lobbying and public information activities to help its members North and South of the border prepare for the departure of the UK from the EU. Reference: Bryan Rankin, Marketing Manager, Chartered Accountants Ireland T: (01) 637 7268 / M: 087 2047905 E: bryan.rankin@charteredaccountants.ie

Jan 29, 2019
Tax

With 60 days to go until the UK leaves the EU, there is still no agreement on the withdrawal agreement with the backstop still proving the sticking point. There are reports that the EU have said if there is no backstop, the UK must remain in a permanent customs union with the EU.  The Irish government has published an outline of the legislation which will be required here as we manage our future arrangements with the UK in the event of a no-deal Brexit. Permanent customs union President of the European Commission Jean-Claude Juncker has reportedly said that if the UK wants to do away with the backstop, it must sign up to a permanent customs union with the EU. Leaked information documenting a conversation between Mr Juncker and Theresa May suggest that unless the UK changes its position dramatically, the current proposals contained within the withdrawal agreement were non-negotiable. The backstop has proved the biggest obstacle in getting the withdrawal bill through the UK Parliament. More votes Labour MP Yvette Cooper and some other backbenchers put forward a proposal to delay Brexit in the event of the tweaked Brexit deal not being passed by the House of Commons by 26 February.  The proposal would allow MPs to vote on the case for extending the Article 50 process. Under EU law, the Article 50 process can only be extended if the other 27 Member States agree. Other alternatives to move forward with Brexit have been proposed by MPs through a parliamentary tool known as an “amendment”.  Over the weekend, support was being drawn up for an amendment which requires the backstop to be replaced with alternative arrangements to avoid a hard border. There’s hope that if this amendments is passed in parliament, it offers a good chance of progress with the EU. Tomorrow (29 January), the UK parliament will discuss and vote on these amendments. Read more about the amendments proposed. Irish government publishes Brexit legislation The Irish government published the outline scheme of its Miscellaneous Provisions (Withdrawal of the United Kingdom from the European Union on 29 March 2019) Bill 2019 last week as part of the continued contingency plans for a no deal Brexit.  The Bill is made up of 17 parts and “focuses on the broad themes of protecting the citizen, and supporting the economy, enterprise and jobs.”  The Bill includes how healthcare and travel arrangements would be maintained between the UK and Ireland, how the single electricity market would continue to operate, how tax reliefs would work as well as information on financial services and third country provisions.   Revenue Chairman in front of Oireachtas committee Revenue Chairman, Niall Cody appeared before the Joint Committee on Finance, Public Expenditure and Reform yesterday to talk about Revenue’s Brexit preparedness.  Commissioner Cody’s message to business has been, he says, “clear and consistent.  You need to undertake a Brexit impact assessment for your business; you need to identify the challenge or challenges of adapting your business processes; and you need to be ready to comply with the customs requirements that will arise from trading with the UK as a third country.”  You can read the Commissioner’s opening statement using this link. Revenue guidance on Brexit Revenue has added some more content to its Brexit web centre to include specific information on the customs implications for Irish traders trading with the UK.  

Jan 28, 2019