The OECD has published its report on turning the Tax Administration 3.0 vision into organisational reality. The report focuses mainly on the issues relevant for the digital transformation of tax administrations and the actions they can take.

We take this opportunity to remind you of the forthcoming deadline for 2024/25 expenses and benefits returns/employment related securities which is this coming weekend on Sunday 6 July 2025. The 2024/25 online filing deadline to apply for a PAYE settlement agreement is Saturday 5 July 2025, with payments due by 22 October 2025 (19 October 2025 if not paying electronically). Here’s a reminder of the key deadlines next month:  6 July 2025: deadline for submitting all 2024/25 P11D(b) and P11D forms (if benefits not processed via payroll) and the employee must receive their copy of the P11D,  6 July 2025: deadline for online reporting of the 2024/25 annual return in respect of employment related securities, 19 July 2025: deadline for non-electronic payment of Class 1A National Insurance Contributions (NIC) for 2024/25, and  22 July 2025: deadline for electronic payment of Class 1A NIC for 2024/25.  HMRC are continuing to hold a series of webinars for employers and payroll providers on a range of related topics. The latest webinars available to register for will cover: Social functions and parties, Travel expenses, and Company cars and vans.

In March 2024 HMRC delivered the IT functionality which allows taxpayers to directly register for the VAT Import One Stop Shop (IOSS) system in Northern Ireland, the HMRC system which allows business to report and pay VAT on imports of low value goods to consumers in the EU, Northern Ireland, or both. HMRC is now working on the second phase of delivery of its IOSS system which will allow agents to register and act on behalf of businesses. HMRC is seeking agent volunteers to participate in testing during phase 2, a unique opportunity to help shape delivery in this phase. The role of a VAT IOSS agent/intermediary is to fulfil the VAT reporting and payment obligations on behalf of businesses who are involved in business to consumer imports of low value goods into the EU and Northern Ireland. HMRC is seeking support to develop its VAT IOSS intermediary service and would benefit from end-user feedback on the prototype designs. HMRC has provided a high-level overview of what would be expected from participants. HMRC is looking for Northern Ireland based agents/intermediaries. Volunteers will be participating in one to one moderated MS Teams sessions with HMRC’s implementation team. Sessions are expected to be one hour in length and timings will be flexible to suit participant availability. Participants will be required to sign a consent form to take part which will also include an agreement not to disclose any information relating to the project and their participation. The objective is to test and gather feedback on the digital prototypes of the VAT IOSS agent service including the registration, return filing, and payment journeys to ensure that these meet user’s needs. Sessions are expected to commence from this month onwards. The ask from HMRC is whether you would be willing to take part in this user research to support them with delivery of phase 2. Email tax@charteredaccountants.ie if you would like to participate or require more information.

HMRC has published the 2025 edition of the Tax Gap for 2023/24, the difference between the estimated amount of theoretical tax that should have been paid to HMRC and the amount that has actually been paid. According to the publication, this fell in real terms to 5.3 percent despite the cash figure of £46.8 billion being at a record high and comparing unfavourably to £46.4 billion in 2022/23. The key trends are that there is a continuing fall in the VAT gap, upward trends in both the small businesses tax gap and corporation tax, however avoidance is showing a small reduction the reasons for which are not clear. The information published represents the best estimate of the Tax Gap at the time of publication and is subject to revision by HMRC if more data becomes available. Since HMRC began to publish this information in 2005/06, the Tax Gap had fallen from 7.4 percent to 5.1 percent in 2017/18 but was broadly stable at circa 5.5 percent in more recent years. In the report’s introduction, HMRC compares the movement in percentage terms for each category of tax from the first year of reporting to 2023/24. The only tax head to show an increase is corporation tax which increased from 11.4 percent in 2005/06 to 15.8 percent in 2023/24; all other tax heads have reduced. The Tax Gap for small businesses remains the largest component by taxpayer group with a 60 percent share in 2023/24. The VAT gap has reduced from 13.8 percent of the theoretical VAT liability in 2005/06 (£11.6 billion) to 5.0 percent in 2023/24 (£8.9 billion). However, although the trend has been one of gradual decline, this has been more erratic in recent years which does not make sense in the context of Making Tax Digital for VAT being fully implemented from 1 April 2022. Avoidance has been revised down in the period 2019/20 to 2022/23 from 0.2 percent to 0.1 percent and according to the report was at an estimated record low in 2023/24 though the reasons for this are not clear and could be because some aspects have been reclassified to other behaviour categories. In its accompanying press release on the 2023/24 figures, the Government overtly references its objective of raising an additional £7.5 billion via measures announced in the 2024 Autumn Budget and Spring Statement to close the tax gap. The following publications and news releases all relate to the 2025 Tax Gap edition: https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/tax-gap-estimated-at-5-dot-3-percent-3392916, Quality report: Measuring tax gaps, and Measuring tax gaps tables.

One of the measures set out in the UK Economic Crime and Corporate Transparency Act is one to improve transparency by making more company financial information available to the public.   Companies House has announced that over the coming days it will start to contact by email all the UK companies on their register to let them know that from 1 April 2027, all accounts filings must be made using commercial software. From then web and paper routes will be closed for accounts filings but will remain open for other statutory filings.   UK Accounts filing options will be also streamlined from April 2027 for small and micro-entity companies. From then micro-entities will be required to file a copy of their balance sheet and profit and loss account. Small companies will be required to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account.  Companies will no longer be able to prepare and file ‘abridged’ accounts. Related changes include updates to audit exemptions and accounting reference periods. For more information on these planned changes readers can check out Changes to accounts article on Companies‘ House website. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

The Pensions Research Accountants Group (PRAG) has published an invitation to comment on its proposed amendments to the Statement of Recommended Practice, Financial Reports of Pension Schemes 2025 (Pension SORP). 2026 has been a busy year for the various bodies responsible for developing and maintaining SORPS, as they seek to align their SORPs to FRS 102, and the changes effective on 1 January 2026. PRAG is the Financial Reporting Council’s (FRC) designated SORP-making body for pension schemes. The Pensions SORP was last updated in 2018 and since then, the FRC has made amendments to its FRS 102 Standard. There have also been several industry developments which impact on pension scheme financial reporting as well as changes to pensions legislation and regulations. Some documents of interest issued as part of the invitation to comment include; PRAG consultation page  Copy of draft SORP Webinar on 18 July to discuss the draft SORP PRAG Press Release The Invitation to comment remains open until 17 September 2025.  

In Irish news this week, the administrative challenges of the Enhanced Reporting Requirement (ERR) were raised by Deputy Shay Brennan in the Dáil and we bring you an update from the recent TALC Collections sub-committee meeting. In UK news, members have been sharing their perspectives on the Institute’s refreshed campaign to reduce the corporation tax rate in Northern Ireland and the Institute is advocating for more broad ranging reform of the UK enquiry regime. In International news, the OECD has published a report on the use of technology by tax administrations globally. Irish 1. View the parliamentary question on ERR raised by Fianna Fáil finance spokesperson, Shay Brennan TD last week following our recent meeting with the Deputy.   2. Read about the representations made by the Institute, under the auspices of the CCAB-I, at the recent TALC Collections sub-committee meeting.   UK 3. In response to the Institute launching its refreshed campaign to reduce the corporation tax rate in Northern Ireland, members and the Institute’s senior management have been sharing their perspectives on the new campaign.   4. Read about the recommendations of the NI Tax Committee who are advocating for wider reform of the UK enquiry regime in their submission to the consultation on behavioural penalties.   International 5. The OECD has published a report outlining how technology is being leveraged by tax authorities around the world. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.

Professional Standards have published Issue 41 of the Regulatory Bulletin. Please click on the link provided to access this publication.

June marks the month-long celebration of Pride and it is great to see the country awash with the colourful rainbow, a meaningful representation of inclusion, solidarity and progression. Dublin saw its first-ever Pride demonstration take place in June of 1974, as a small group of activists marched from the Department of Justice on Stephen’s Green to the British Embassy on Merrion Road calling for the decriminalisation of homosexuality in Ireland.  The theme for Dublin Pride 2025 is "Taking Liberties", celebrating the liberties gained while also acknowledging the ongoing fight for full equality and the need to protect these freedoms.  2025 marks a milestone year for Pride in Ireland as it's the 10th anniversary of significant LGBTQI+ rights milestones in Ireland, including marriage equality, the Gender Recognition Act and the Children and Family Relationships Act.  However, while overall societal shifts, diversity and inclusion initiatives have made great strides in helping to support and celebrate our LGBTQI+ community, from our work at Thrive, we know that difficulties, hardship and discrimination still remain and members in our community still feel the effects of this.  Pride Month is a time to celebrate the LGBTQI+ community, but it also highlights the ongoing mental health challenges faced by many within the community. Studies in Ireland show that LGBTQI+ individuals experience disproportionately higher rates of depression, anxiety, and suicidal thoughts compared to their heterosexual and cisgender peers.  A recent survey released by Trinity College in association with Belong To and GLEN  indicate that mental health and wellbeing have declined amongst the LGBTQI+ since its initial study back in 2016.  Amongst the total LGBTI+ population, within the study the new report also shows that 34% experienced severe/ extremely severe symptoms of anxiety, 64% reported suicidal thoughts while 52% had self-harmed.  60% had sought professional help for a mental health problem in the past five years.  The Central Statistics Office (CSO) also found that those who identify as LGBTQI+ reported the highest rates of discrimination in Irish society and 17.5% of the community have experienced workplace discrimination. Coping with such concerns can have a detrimental impact on our wellbeing, self-esteem and the general navigation of our daily lives. Feeling empowered to express who you are freely in the workplace and beyond is crucial to your mental health. If you are struggling with any worries or challenges around these important personal issues, Thrive is here to help all year around. We offer a wide range of services including free counselling services and career coaching to support our community who are in need. Happy Pride!

The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary. IFRS Practice Statement 1 - Management Commentary supersedes the previous version of the same document which was issued in December 2010 and is effective for application for periods commencing on or after 23 June 2025, with early application permitted. The Statement is not an IFRS Accounting Standard or an IFRS Sustainability Disclosure Standard. The Practice Statement sets out requirements for management commentary and how those requirements can be met. Management commentary complements and accompanies financial statements with explanations from management about a company's performance, strategy and risk. On releasing the revised Practice Statement, the IASB noted that they intend that it will "serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance". In recognition of the strong connectivity between management commentary and the International Sustainability Standards Board (ISSB) Standards, the IASB noted that they worked closely with the ISSB in the development of the document to help align the requirements of the two boards and to facilitate connected information across a company's financial reports.

Revenue has updated the guide outlining the adoption into Irish tax legislation of the various international frameworks for the exchange of tax information between countries. The updated guide includes details on the European Union Directives on administrative cooperation in the field of taxation (DAC’s), the relevant OECD frameworks and the US Foreign Account Tax Compliance Act (FATCA).

Revenue has published a new guide on the Taxation of Deposit interest which provides details on the income tax liabilities arising on domestic and foreign sourced deposit interest income, including the relevant tax rates and reporting obligations. The guide outlines details on the taxation of interest through the application of Deposit Interest Retention Tax (DIRT) as well as the tax treatment of interest where tax has not been deducted at source. Details of relief for foreign tax suffered on deposit interest are also provided.