Revenue has issued updated guidance on the taxation of unit trusts for pension schemes and charities – Exempt Unit Trusts (EUTs) to reflect a change introduced by Finance Act 2025. The change clarifies that, for the purposes of section 731(5) TCA 1997, an investment undertaking cannot treat a gain on selling units in an exempt unit trust as fully exempt from capital gains tax.

Revenue has updated the agents guide to the Collector General’s division to include new guidance relating to the Vacant Homes Tax and to provide information on the calculation of a Local Property Tax charge based on the property’s valuation as of 1 November 2025. Paragraph 15 of the guidance has been updated to reflect the requirements under Companies Act 2014 in respect of company addresses. This paragraph also includes instructions for updating addresses on ROS and confirms that all requests for a change of address must be submitted through ROS for information security purposes.

Last week Revenue published statistics relating to 2025 PAYE tax returns filed to date this year on the back of which PAYE taxpayers are being encouraged to use the myAccount service to finalise their tax position. The statistics showed that as at 23 January 2026, over 470,000 PAYE returns had been processed for 2025 which resulted in refunds of over €361 million to PAYE taxpayers. An analysis of Preliminary End of Year Statements indicates that an underpayment of tax arose in approximately 9 percent of the returns yet to be filed. Revenue will engage with the relevant taxpayers to collect the tax due by reducing tax credits over a four-year period from 2027. Revenue has reported they estimate a further €462 million of tax may have been overpaid by PAYE taxpayers in 2025. In light of this, Revenue has launched a campaign to encourage PAYE taxpayers to use the myAccount service to finalise their tax position. Revenue has provided details on how to access this service and detailed guidance on submitting a PAYE tax return and claiming tax credits and reliefs.  

Revenue has issued a press release acknowledging the difficulties the recent exceptional weather may have caused for timely tax compliance.  They have also stated that they will work with adversely impacted taxpayers and businesses to help maintain their good compliance records despite the disruption. The press release outlines the strong record that Revenue has of agreeing flexible payment arrangements for taxpayers and businesses facing temporary cash‑flow pressures. It also advises those impacted by Storm Chandra to contact the Collector-General’s office once their situation permits, to agree mutually agreeable arrangements for restoring timely tax compliance.  

The Institute has written to Tánaiste and Minister for Finance, Simon Harris and Minister for Enterprise, Tourism and Employment, Peter Burke to outline the administrative burdens arising from tax issues affecting cross-border and remote/hybrid working on the island of Ireland. The issues outlined in the letters reflect the outputs from the Institute’s Joint Tax Working Subgroup on Cross‑Border and Remote/Hybrid Working, established in 2024 and highlight the key obstacles and challenges currently hindering trade and the full realisation of a truly integrated all-island labour market. Amongst the issues raised were: The added administrative responsibilities for both employers and employees of operating a dual payroll. The administration burden and complexities arising when the social welfare obligations and benefits arise under a different jurisdiction than the country of employment. The uncertainty on the tax treatment of pension contributions and retirement income in the context of hybrid working arrangements for frontier workers. The need for education, training and better guidance from government bodies and the tax authorities. We will continue to advocate on this issue and welcome the opportunity to meet with the Ministers to present our findings in greater detail and to discuss potential solutions. We also intend raising these issues with the Irish Minister’s counterparts in Northern Ireland in the coming days.

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. In December last year, the European Commission announced a reinforcement of controls on products imported into the EU which you can read more about below. And last week in the House of Lords, Lord Newby moved a ‘Motion to take Note’ on the case for a UK-EU customs union and the impact of connections with the EU single market on the UK economy which was then debated in the House.   Update on reinforcement of controls on products imported into the EU In December the European Commission announced a reinforcement of controls on products imported into the EU. Within the measures listed, was an increase in the frequency of checks on consignments of goods of animal origin entering the EU. The Commission wrote to DEFRA stating that the frequency rates will now be updated every four months; previously this was reviewed every six months. The last series of rate changes was made on 1 October 2025, and the Commission has launched the next series of rate changes which took effect from 1 February 2026. More details are available in an email from the UK Government’s Borders Directorate Communications Team. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Find out what types of Authorised Economic Operator status you can apply for, Apply to operate a customs warehouse, How to use a customs warehouse, Importing sanitary and phytosanitary controlled goods into Great Britain that interact with the Border Trade Matching Service, and Simplified rates for bringing personal goods into the UK.  

In this week’s detailed updates which you can read more about below, the House of Lords Finance Bill Sub-Committee has published its report into the Finance Bill 2025/26 and the Government recently announced that indirect emissions associated with the production of Carbon Border Adjustment Mechanism (CBAM) goods will not be included in the scope of the UK CBAM at implementation on 1 January 2027. In other news this week: The Courts and Tribunals Judiciary has published a Practice Statement which gives guidance to the First Tier Tribunal Tax and Chancery Chamber on the procedure to adopt towards applications for extension of time, The House of Commons Library has published a research briefing ‘Income tax: freezing the personal allowance and the higher rate threshold’ and an updated briefing on the Autumn Budget and the Finance Bill 2025/26, and HMRC’s Guideline for Compliance (GfC) team has updated GfC7 ‘Help with Common Risks in Transfer pricing Approaches.’  Finance Bill Sub-Committee publishes report on Finance Bill 2025/26 The House of Lords Finance Bill Sub-Committee has published its report into the Finance Bill 2025/26 ‘Inheritance tax measures: unused pension funds and agricultural and business property reliefs’. Last October, the Institute submitted evidence to Committee as part of its inquiry into the Bill which set out our concerns in relation to the original draft legislation on the changes to the Inheritance Tax (IHT) reliefs agricultural property relief and business property relief and its impact on farms and family owned businesses in Northern Ireland. Subsequently, the Institute’s UK Tax Manager Leontia Doran gave evidence to the Committee last October. The report from the Committee welcomes the subsequent changes announced by the UK Government in both the Autumn Budget 2025 and on 23 December 2025 to the draft legislation. However, it highlights that the changes are not by themselves sufficient to resolve many of the Committee’s concerns about what the reforms will mean in practice. The Committee also highlighted how continued revision of these measures reflects underlying problems with the Government’s approach to tax policy making, in particular in relation to its approach to consultation. The report also sets out a range of recommendations in relation to both policy changes, many of which reflect recommendations previously made by the Institute. Update on UK CBAM Finance Bill 2025/26 includes the final CBAM primary legislation which contains a number of technical legislation changes including that indirect emissions associated with the production of CBAM goods will not be included in the scope of the UK CBAM at its implementation on 1 January 2027. This has been delayed until 2029 at the earliest which, according to an email from HMRC, reflects ‘continued support for the Energy Intensive Industries (EII) Compensation Scheme’.  HMRC has also published a CBAM Policy Update. Recognising that refineries play a role in energy security and the UK's industrial base, a Call for Evidence will be published at some point this year on the fuel sector. The Government is also considering the feasibility and impact of including refined products in the scope of the CBAM in the future.   A number of technical changes have also been made to the draft CBAM legislation following a consultation last April, the consultation outcome for which has now been published. These changes include:     the free allowance adjustment in the CBAM rate calculation will be based on a sectoral average of emissions covered by Free Allowances over a baseline period, which will be adjusted annually to reflect the phase out of Free Allowances under the UK Emissions Trading Scheme,  carbon price relief has been extended to enable recognition of carbon prices incurred under carbon border adjustment mechanisms, inclusion of an exemption for emissions embodied in UK-produced precursor goods, imported into the UK as part of a complex CBAM good. This aims to prevent a carbon price being paid twice on the same goods, and also aims to reduce the administrative burdens for businesses,  inclusion of an exemption for emissions embodied in CBAM goods under temporary admission in the UK, with full relief from customs duties which aims to ensure the CBAM only applies if goods enter the UK market and present a carbon leakage risk,  a time limit for repayment claims set at three years for taxpayers who have made an error on their return and overpaid the CBAM, and removal of the group treatment provision following feedback that this would provide limited benefits to businesses.    Anyone wishing to keep up to date with policy developments in this space should contact cbampolicyteam@hmrc.gov.uk. 

The 2025 Autumn Budget launched a Call for Evidence on tax supports for entrepreneurs to which the Institute is formulating a response. This is focusing on how UK tax policy can better support investment in innovative high growth companies. We’d like to hear your views on this issue before Monday 16 February 2026. Contact us by email to participate. In the Call for Evidence which is open until 28 February 2026, the Government’s view is that a shortfall in domestic scale-up capital is causing some of the UK’s most innovative companies and founders to move abroad. To address the issue, views are sought on: how effective existing tax supports are, any gaps in the tax system for founders and scaling companies, and options and ideas to improve, rebalance, and better target current supports that would allow the Government to fill these gaps where needed.  A number of changes were made to several of the UK’s tax advantaged venture capital schemes in the 2025 Autumn Budget which aim to enable larger and more established companies to continue to qualify to use the schemes. However, the Call for Evidence notes that these changes “take the existing schemes as far as possible within their current design”. As a result, the government is keen to consider how it could provide more targeted and effective support which also represents good value for money for the taxpayer. 

Making Tax Digital (MTD) for income tax commences in just over two months’ time from 6 April 2026 for sole traders and landlords with gross ‘qualifying income’ (combined income from trading and property before any deductible expenses) above £50,000. Are you ready for this change in UK tax administration? If not, now is the time to prepare. To assist you in your preparations, the Institute recently launched its MTD hub, a one stop shop of resources developed by the Institute to assist members and taxpayers in their preparations. The hub also contains the latest news and links to HMRC resources and guidance. You can also watch our video on the MTD hub here. Yesterday HMRC wrote to the Institute reiterating the importance of taking steps to prepare now ahead of the first tranche of mandation. It also asked us to share links to some important HMRC resources: MTD agent step by step guide, Register for specialist MTD support – these sessions provide agents with direct access to HMRC specialists that can provide tailored MTD readiness agent support, HMRC communications resources – these resources can be used to align your practice’s MTD messaging with what clients may see from HMRC and also provide ready-made products you can use to educate clients, and Sign up for a HMRC MTD webinar – these webinars cover planning steps, actions to take now, how to sign-up clients for April 2026 and answers to questions. The first webinar is scheduled for Wednesday 11 February 2026. Are you looking for the top tips on how to get ready? Check out HMRC’s new MTD agent toolkit. This aims to provide a practical aid to help guide agents through this journey in a logical order so that agents can be confident that they and their clients will be ready ahead of April 2026. The new toolkit includes help with understanding the changes, planning (including “segmenting clients”), preparing the practice (including the “service offer”), preparing clients (including a conversation checklist tool) and helpful resources including videos and webinars. Alongside this, the agent-specific content on HMRC’s MTD campaign page is also being updated to provide agents with a dedicated resource which will provide a clearer more streamlined journey and direct access to tailored guidance and resources. HMRC has also recently updated its guidance on the various MTD for income tax exemptions which are available as follows: Find out if you can get an exemption from Making Tax Digital for Income Tax – this page now contains the full list of exemptions from MTD for income tax, and Apply for an exemption from Making Tax Digital for Income Tax which explains the exemption applications process if a taxpayer is not automatically exempt. HMRC is keen to stress that as with all its MTD guidance, guidance will continue to be iterated ahead of April 2026 to ensure that policy and legislation are clearly reflected. As a result, we recommend that members bookmark these pages and regularly check for the latest updates which will also be covered in Chartered Accountants Tax news and on our MTD hub. For any taxpayers currently participating in MTD testing, HMRC is highlighting an issue with how payments on account (POAs) for 2025/26 and 2024/25 balancing payments of income tax and Class 4 NIC for self-assessment (SA) are treated. As the information for these taxpayers is split between different HMRC systems, any 2024/25 balancing SA payment remains within HMRC’s non-MTD system, whilst 2025/26 SA POAs are within the new MTD system. Because of this, some taxpayer statements show SA POAs as “transferred to digital” or “nil” and therefore do not show the full picture of any payments which were due on 31 January 2026. Taxpayers should access both the MTD service and the legacy SA service from within their Personal Tax Account (PTA) or Business Tax Account (BTA) to see the total balance which fell due. To address this, HMRC issued a letter explaining this issue to those affected which explained where to find their SA POAs information and how to work out what they still needed to pay. The letter also explained that POAs marked as “transferred to digital” were still due for payment by 31 January and what needed to be done if these did not appear in their MTD account. This is particularly important as interest will be charged on any amounts not paid by the 31 January 2026 due date. A message was also placed in the taxpayer’s MTD account advising them to check their SA online account. Agents should also ensure that they check both systems before advising clients. HMRC advises that work is already underway on longer term solutions for this issue for the future.

  In this week’s Sustainability/ESG Bulletin read about the Hamburg Declaration to bolster energy security across Europe, Northern Ireland’s first annual progress report on its Environmental Improvement Plan and a report arguing that natural capital should be formally recognized as Critical National Infrastructure (CNI) in the UK. Also covered is how renewables generated more power than fossil fuels in Europe in 2025, how corporate climate action momentum remains high globally, the ECB’s research into climate and nature risks, an OECD analysis of climate change mitigation policies, the new IPSAS standard for governments to account for tangible natural resources, and the latest articles, resources and upcoming events. IRELAND The Hamburg Declaration Ireland has signed a historic clean energy security pact – the ‘Hamburg Declaration of Energy Ministers’ – that aims to bolster energy security across Europe and the UK in an era of global instability. The deal – agreed at the Future of the North Seas Summit – sets out a commitment to a more regional approach to cross-border infrastructure planning, closer cooperation on the protection of offshore energy infrastructure, and the development of an Offshore Financing Framework to strengthen the business case for offshore wind in the North Seas. In the second half of this year, Ireland's EU Presidency will emphasise the need for accelerated deployment of renewable energy, particularly wind, solar and emerging offshore technologies, to deliver clean and affordable power for citizens and businesses. Increased renewable availability reduces exposure to volatile fossil fuel markets and strengthens Europe’s strategic autonomy. Parliamentary Budget Office publishes paper on Global Carbon Taxes 2025 The Parliamentary Budget Office (PBO) has published a new paper Global Carbon Taxes in 2025. Carbon pricing - through carbon taxes or emissions trading schemes (ETS) - is widely recognised as an effective tool for reducing emissions. The paper explains these two pricing mechanisms, outlines key design differences, and examines how they interact. The supporting note, Identifying Greenhouse Gas Emissions, aims to help readers understand emissions measurement methodologies and the challenges they present for carbon pricing policy. Calls for clear, consistent, and practical sustainable finance rules The Banking and Payments Federation Ireland (BPFI) is calling for clear, consistent, and practical sustainable finance rules to enable banks to channel capital effectively and efficiently into green investments without excessive burdens or ambiguities; this, it says, requires greater harmonisation of sustainability rules across the various pieces of EU legislation. Other recommendations it makes for Ireland’s EU Presidency 2026 are in the areas of retail participation in capital markets while safeguarding investor protection, creating a more proportionate & simplified regulatory framework, creating a fair, open and innovative digital infrastructure and ensuring the effective delivery of housing. €500m climate transition equity fund launched Aon plc, a global professional services firm, has announced the launch of a new climate transition fund in Ireland, with Irish-based, global asset management company Irish Life Investment Managers Limited (‘ILIM’). The €500m Climate Transition Equity Fund aims to enable investors in Ireland to support the transition to a low-carbon economy. The fund will tilt towards companies that are working to achieve the UN Sustainable Development Goals relating to climate action, resource scarcity, healthy ecosystems and basic social needs. NORTHERN IRELAND/UK Northern Ireland’s first annual progress report on Environmental Improvement Plan The Department of Agriculture, Environment and Rural Affairs (DAERA) has published Northern Ireland’s first Annual Progress Report on the Environmental Improvement Plan. The report provides the first assessment of what has been achieved by the Department and across government since Northern Ireland’s first Environmental Improvement Plan (EIP) was launched in September 2024. The report demonstrates progress across all six SEOs, while acknowledging the scale of the challenge and the need for accelerated action to meet a number of commitments, including a continued reduction in greenhouse gas emissions, with 2023 emissions falling by 7.1% compared with 2022, bringing overall emissions to 31.5% below 1990 levels. Global ecosystem degradation and collapse threaten UK national security and prosperity A policy paper from the Institute for Sustainability and Environmental Professionals (ISEP) has called for the protection, enhancement, and restoration of natural capital to be placed at the heart of the UK’s economic growth and national resilience strategy. The report, Natural Capital is Critical Infrastructure highlights that the UK’s economic success is fundamentally dependent on natural capital - the stocks of nature such as forests, rivers, biodiversity, land, and minerals - which provide essential ecosystem services vital for human well-being and economic stability, and argues that natural capital should be formally recognized as Critical National Infrastructure (CNI). More recently, the UK government’s Department for Environment, Food & Rural Affairs published an assessment of how global biodiversity loss and ecosystem collapse could affect UK national security. With high analytical certainty, it states that global ecosystem degradation and collapse threaten UK national security and prosperity, with cascading risks likely to include geopolitical instability, economic insecurity, conflict, migration and increased inter-state competition for resources.  The assessment, which aims to support long-term resilience planning, highlights opportunities for innovation, green finance and global partnerships that can drive growth while safeguarding the ecosystems that underpin our collective security and prosperity. EUROPE Report identifies ‘new milestone’ for EU’s electricity transition European Electricity Review 2026, the report from the independent, UK-based non-profit energy think tank Ember, has found that the EU’s electricity transition reached a new milestone in 2025 with wind and solar generating more power than fossil fuels. Renewables provided nearly half of EU power, gas generation rose by 8 percent compared to 2024, which pushed the EU power sector’s gas import bill up to €32 billion, and coal power fell to a new historic low of 9.2 percent. Battery deployment accelerated significantly in 2025, with grid-scale projects announced across the EU. The report called for member states and governing institutions to prioritise implementing rules for clean flexibility, boosting electrification through clear policy signals and support, and improving energy security. Overheated and underprepared: Europeans' experience of living with climate change A new joint report by the European Environment Agency (EEA) and Eurofound on implemented climate resilience measures – both at the household and local authority level has found that while most Europeans have already been directly affected by extreme weather and are highly concerned about future climate impacts, yet their preparedness remains limited. The report, which draws on data collected from over 27,000 respondents across EU-27 countries, will be launched on 4 February at a webinar: 'Overheated and underprepared: Europeans' experience of living with climate change'. Accountancy Europe Sustainability Update Accountancy Europe has published its January Sustainability Update with the following highlights: Commission announces members for the Platform on Sustainable Finance EU Deforestation Regulation postponed by one year ESMA outlines principles to follow to address greenwashing risks EFRAG shares first insights into VSME market acceptance (Also, see this Op-ed by Iryna de Smedt, Policy Manager Accountancy Europe: Omnibus won’t stop the climate clock: only sustainable businesses will compete tomorrow) WORLD CDP and SBTi 2025 figures show corporate climate action momentum building CDP – the environmental disclosure platform – has revealed its 2025 ‘A List’, the top performers among the companies disclosing sustainability information on the platform in 2025. Over 800 companies achieved the recognition this year, following a 70 percent year-on-year rise in companies achieving it across climate, forests and water security. According to the CDP’s press release, “the sustained global demand for high-quality environmental data from companies, cities, states and regions”, with markets continuing to signal the critical importance of reliable environmental information. 640 investors with US$127 trillion in assets called on companies to disclose through CDP while over 270 major buyers requested environmental data from approximately 45,000 suppliers via CDP’s Supply Chain program. Separately, the number of companies with science-based targets validated by the Science-Based Targets initiative (SBTi) globally has reached 10,000 worldwide, reflecting the growing scale of corporate climate action across sectors and regions. Headquartered across all continents and in more than 90 countries, the 10,000 companies represent more than 40 percent of global market capitalization and include many of the world’s leading businesses, spanning nearly every major sector, region, and company size. To be validated by SBTi Services—the SBTi’s validation arm—a company must set targets using the criteria laid out in the SBTi’s standards, tools, and guidance. Validation by SBTi Services confirms that a company’s targets are ambitious and aligned with SBTi-approved pathways to achieve net zero by 2050. ECB findings on higher borrowing costs for banks with higher exposure to transition risks and climate and nature plan 2024-2025 The European Central Bank (ECB) has published a paper which finds that banks with higher exposure to transition risk face significantly higher borrowing costs. The paper, Climate change, bank liquidity and systemic risk, examined the relevance of banks’ exposure to climate transition risk in the interbank lending market and identified this “transition premium” as “a combination of a risk premium, compensating lenders for increased credit risk, and an inconvenience premium”, reflecting the sustainability preferences of key dealer banks. It also found that the transition risk premium intensifies during periods of financial stress, indicating that climate-induced risks amplify existing vulnerabilities in financial markets. UN High Seas Treaty and AI for seafood supply chain companies Companies in seafood supply chains must now integrate treaty compliance and AI-enhanced traceability into sourcing strategies, after the United Nations High Seas Treaty became legally binding January 17. This landmark treaty aims to – among other things – strengthen the transparency and enforcement of marine biodiversity governance. The effectiveness of the measures will depend on the implementation of the Treaty, as enforcement gaps and inequalities in technology access could limit environmental outcomes. Analysing the international spillovers of climate change mitigation policies A new paper from the Organisation for Economic Co-operation and Development (OECD) has analysed ‘international spillovers’ from domestic climate mitigation policies - specifically economic, technology, and policy spillovers - and their impacts on global emissions and economic outcomes. These effects can be positive - such as accelerating low-carbon technology diffusion or the implementation of mitigation policy adoption abroad - or negative - such as shifting emissions across countries, i.e., carbon leakage, and fragmenting international markets. Advancing a shared understanding of international spillovers is essential to the Inclusive Forum on Carbon Mitigation Approaches (IFCMA)’s objective of enhancing the global effectiveness of mitigation efforts. To this end, the report provides a typology of spillover effects and transmission channels, reviews tools available to analyse them, synthesises the existing evidence, and explores policy design and responses to manage spillovers. This framework forms the analytical foundation for the upcoming IFCMA work to deepen the evidence base and support more co-ordinated international climate action. New IPSAS Standard Helps Governments Account for Tangible Natural Resources Held for Conservation The International Public Sector Accounting Standards Board (IPSASB) has issued a new standard to address the need for guidance on tangible natural resources held for conservation. IPSAS 51, Tangible Natural Resources Held for Conservation introduces new, public sector-specific accounting guidance on accounting for natural resources with physical substance, such as land, trees, and water, often held by governments to preserve or protect them. IPSAS 51 also highlights guidance in other standards that applies to natural resources that are held for other purposes. IN CASE YOU MISSED IT… Davos 2026: Special address by Mark Carney, Prime Minister of Canada (World Economic Forum) (Video: 33mins) TECHNICAL ROUNDUP (From our colleagues in Professional Accounting on 23 January) The European Securities and Markets Authority (ESMA) has published a second thematic note on sustainability-related claims focusing on ESG strategies. This publication offers practical guidance for making sustainability claims ensuring clear, fair and not misleading sustainability-related claims are made by market participants and also addressing greenwashing risks in support of sustainable investments.   The European Central Bank (ECB) announced that it has advanced its climate and nature work based on the 2024-2025 plan embedding climate and nature-related risks into its core work.  RESOURCES Recording & slides - webinar on latest Environmental, Social & Governance (ESG) landscape On 14 January 2026, the Ulster Society hosted a webinar on the latest Environmental, Social & Governance (ESG) landscape, and the challenges and opportunities this brings for chartered accountants in business. Speakers from NIE Networks Ltd, Encirc, Graham Group and Firmus Energy discussed the growing responsibilities of finance professionals, the skills required to navigate ESG effectively, and how chartered accountants can add value in an increasingly sustainability-focused business environment. A recording of this webinar is available to view, for free and on demand, HERE Global natural capital accounting standard: Why it matters for finance professionals In this article from ICEAW find out about ISO 14054, the first global standard for natural capital accounting, which recognises the role that nature plays in sustaining business value. Digital and emerging technologies and human rights This new content from the United Nations Global Compact explains how digital and emerging technologies create both opportunities and significant human rights risks. It provides definitions, examples, and human‑rights considerations relevant for companies. Science-based targets e-learning collection The United Nations Global Compact is offering five new and enhanced e-learning modules developed by the Science Based Targets initiative (SBTi)—guiding companies through every step of target setting and preparing for validation. Each course features interactive content, real-world examples and knowledge checks to help companies build credible decarbonization strategies in their journey to science-based targets. Guide: Procurement: A Catalyst for Sustainable Growth and Resilience With 40 practical tools and frameworks, plus global case studies and company insights, this publication from the United Nations Global Compact equips organizations to embed sustainability across the procurement lifecycle. It highlights how collaboration between buyers and suppliers, including SMEs, is central to success, and it explores the shifting landscape of regulatory demands, business risks, and market opportunities, positioning procurement as a strategic lever for advancing ESG priorities and sustainable growth. ARTICLES Small businesses’ big impact on sustainability reporting (Accountancy Ireland) Preparing for the new rules in pay transparency (Accountancy Ireland) Climate action plan delayed for second year despite emissions cuts falling behind target (Irish Times) New Research Warns Physical Climate Risk Can Drive Default (David Carlin’s Digest: Your Guide to a Changing World) Financial institutions are underestimating climate risks, actuaries warn (Sustainable Views FT – subscription needed) Smart boards incorporate climate and nature into their core strategy(Sustainable Views FT – subscription needed) Modern slavery is increasing, so too are its regulatory and reputational risks (Sustainable Views FT – subscription needed) How AI is helping to bring nature into the boardroom (Reuters) How will the new duty on electric cars work? (ICAEW Insights)   EVENTS UN Global Compact Network UK Webinar Series, The Business Role in Systems Change, Feb/Mar 2026 Businesses are facing escalating risks as the world approaches critical tipping points. Corporate resilience now depends on the transformation of markets, supply chains, and business models needed to steer the system towards stability. There is also potential for positive tipping points - moments when small, well-directed actions accelerate large-scale transitions towards sustainability. Businesses hold a unique capacity to create and amplify these dynamics of change. In these webinars, leading scholars and experts will discuss tipping points, climate risk, and systems change, how to respond to emerging climate realities and apply breakthrough frameworks such as the Positive Tipping Points Toolkit and Doughnut Economics to unlock change at multiple scales.   Webinar sessions: Understanding Tipping Points Risks, Feb 26  | 14:00 Systems Thinking in Business and Climate, Mar 5  | 14:00 Triggering Positive Tipping Points, Mar 12 | 14:00 Dublin Chamber, The Sustainability Academy: Green Public Procurement Training Join us on Wednesday the 4th of February for Half-day virtual workshop on Green Public Procurement as part of Sustainable Academy, sponsored by AIB. All companies now need to learn the green public procurement rules to bid and win new contracts with the public sector. Virtual, Wednesday 4 Feb 2026 | 9am - 12.30pm. Pentland Centre for Sustainability in Business - Lancaster University, Starting Your Journey with Tools and Frameworks Second in the series, this webinar explores tools and frameworks that support decision-making for nature and biodiversity, including the Natural Capital Protocol and TNFD. Learn how these approaches help businesses identify relevant priorities and communicate outcomes effectively. Virtual, Thursday 12 February, 8:00am – 9: 00am | 4.00pm – 5.00pm ICAEW, Putting nature on the balance sheet — Troubleshooting session Troubleshooting session to tackle common challenges on how to embed nature into the activities and processes of the finance function. Virtual, Wednesday, 18 February, 4 - 5pm CET Reuters Events, Practical Implications of the Omnibus A webinar hosted by Reuters Events in partnership with Professor Andreas Rasche, Associate Dean, Copenhagen Business School. The session will explore the practical implications of the EU Omnibus package and what these changes mean for organisations preparing their 2026 sustainability reporting strategy. Virtual | Thursday, 19 February 2026 | 10:00 am–11:00 am GMT / 11:00 am–12:00 pm CET Shift, EU Omnibus Webinar - Briefing for business on the revised CSDDD and performing due diligence This webinar will feature insights from the Shift team and leading businesses on practical, real‑world approaches to implementing due diligence aligned with good practice. The session will explore how due diligence requirements under the CSDDD and reporting obligations under the CSRD can be addressed in an integrated way, rather than treated as separate exercises. Companies in scope of the CSDDD or operating within their value chains are encouraged to attend. Virtual, Thursday, 26 February 2026 | 09:00 Shift, EU Omnibus Webinar - Briefing for business on the revised CSRD and reporting on sustainability issues The session will examine what recent changes to the CSRD and the ESRS mean in practice for how companies report on sustainability issues.  The webinar will feature insights from the Shift team, alongside leading businesses, on implementation approaches that reflect good practice, support companies in identifying and addressing key risks, and remain practical and workable in real-world contexts. The discussion will also explore how reporting obligations under the CSRD and due diligence requirements under the CSDDD should be considered together, rather than in isolation.  If your company is in scope of the CSRD, or part of the value chain of a company that is, we encourage you to join us. Virtual, 3 March 2026 | 15:00 Pentland Centre for Sustainability in Business - Lancaster University, What Does ‘Good’ Look Like in Corporate Reporting? The final session in the Pentland Centre’s free webinar series for SMEs explores what effective reporting on nature and biodiversity looks like. Drawing on global examples, this webinar highlights best practices and practical approaches for integrating nature and biodiversity into corporate reporting. Virtual, Thursday 12 March 2026, 8:00am – 9:00am | 4.00pm – 5.00pm   Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

From the Professional Accounting Team In October 2025, the eagerly awaited 2026 version of the Charity Statement of Recommended Practice (2026 SORP) was published. This update follows the publication of the September 2024 version of FRS 102 and a SORP consultation in mid-2025, which attracted over 100 responses. The 2026 SORP contains some significant changes to how charities will report on their activities compared to the requirements of the 2019 SORP. This article looks at some of the key changes that charities who apply the SORP will need to be aware of as they begin their journey of reporting under the new SORP. Why was the SORP updated? As the SORP provides guidance on how charities can apply FRS 102, the SORP-making body must always ensure that it remains consistent with FRS 102. As a result, an amendment made to FRS 102 will prompt the need for similar amendments to be made to the SORP. Following the publication of the September 2024 edition of FRS 102, the SORP making body has set about updating the SORP to incorporate the various changes contained in the new edition of FRS 102. The Charity SORP 2026 represents the most significant overhaul of financial reporting for charities in Ireland and the UK for many years (and certainly the most significant change since the introduction of FRS 102). It will reshape how charities explain their activities, report on their impacts, recognise income, and account for leases. Changes made to the Charity SORP 2026 A New Tiered Reporting Structure The previous edition of the Charity SORP included the concept of a “larger charity” (charities with gross income exceeding £/€500,000). For those charities classed as “larger”, there were additional mandatory disclosure requirements compared to their “smaller charity” counterparts, particularly in relation to the disclosures in their Trustees Annual Report. Charity SORP 2026 builds on this concept and introduces a three-tier system, designed to further scale disclosure requirements according to charity size. Depending on the tier in which they fall, charities will have increased or decreased reporting requirements across five specific modules. The new tiers are as follows: Tier 1: Gross income up to £/€500,000 Tier 2: Gross income more than £/€500,000 but less than £/€15 million Tier 3: Gross income of more than £/€15 million This new system will result in some charities requiring more details in their Trustee’s Annual Report. These requirements are intended to be proportionate to the size of the charity. A Refocused Trustee’s Annual Report One of the most visible differences between a set of financial statements which have prepared solely under FRS 102 compared to the Charity SORP is the presence of a Trustee’s Annual Report in the SORP. The Trustee’s Annual Report is a key component of a charity’s Annual Report and aims to provide a narrative account of what has happened in the charity during the year. In the 2026 SORP, The Module dealing with the Trustee’s Annual Report (Module 1) has been rewritten to improve clarity, narrative quality, and alignment with financial information. One of the key goals of the SORP-making body in doing this is to help charity trustees to understand the narrative reporting requirements placed on them and to encourage trustees to link the narrative information to the financial details in the accounts. The emphasis of the Trustee’s Annual Report is firmly on impact reporting — communicating not just what a charity does, but also the difference it makes. Some specific changes relating to the Trustee’s Annual Report contained in the updated SORP include. Prompt questions to encourage charities to explain the impact that they are making. Within Module 1, there are now some “prompt questions” which should help charities to tell their story in a meaningful way. The purpose of this is to ensure that the charity does not see the module as simply a compliance checklist but rather a means by which they can explain the difference they are making in a way that is unique to their specific charity. The questions focus on areas such as, objectives, activities undertaken, strategy, measurement of success and wider societal benefits. Sustainability Reporting. In recognition of the fact that stakeholders are increasingly interested in how charities are responding to environmental, social and governance issues, the 2026 SORP introduces some mandatory and encouraged disclosures which address how the charity is responding to, and managing, these issues. Only charities in tier 3 (i.e. gross income exceeding €/£15 million) are required to explain this, with charities in tiers 1 and 2 having the option to do so. Legacy income. Where a charity is in receipt of legacy income and this income has been recognised in the accounts prior to the resources being received, the impact of this must be disclosed. Disclosure of auditors and exemption from disclosing certain information. Under the 2026 SORP there is now a specific requirement to provide the name of the charity’s auditors, if applicable. Furthermore, where certain disclosure exemptions are availed of (such as omitting the names of the CEO, senior staff members etc) due to a risk to their personal safety, there is no longer a requirement to explain why such information has been omitted from the Trustee’s Annual Report. Where a charity is availing of this option, they should be aware of the relevant local legislative requirements and should consult their regulator where necessary prior to availing of this exemption. Reserves and Going Concern Modules 1 and 3 include some changes in relation to reserves and going concern. The 2026 SORP introduces further clarity regarding the treatment of reserves. First, there is now a specific definition of reserves included in the glossary. Consideration of reserves is also better incorporated into going concern assessments and where a charity has no (or negative) reserves, there is now a requirement to explain why it is still operating as a going concern. Furthermore, there is now a recommendation for charities to consider their reserves and going concern assessment when explaining their plans for the future. In order to align with the FRS 102 Periodic Review amendments, there are some amendments to going concern disclosures, including a requirement to disclose significant going concern judgements as well as confirmation that the charity has considered at least 12 months of information in making its going concern assessment. Some going concern disclosures which were a “should” disclosure under the 2019 SORP are now a “must” disclosure. Revenue Recognition In order to align the SORP with the updates to FRS 102, Module 5 (“Recognition of income including contract income and income from legacies and grants”) has been updated and restructured. The updated Module provides clarity on how to account for the various income streams from which charities benefit. Module 5 has been split into 2 sections. Section 1: Exchange transactions Section 2: Non-exchange transactions Most charities will be in receipt of income from either (or both) types of transactions, and it is important to identify these appropriately, as the resulting accounting treatment is fundamentally different for each income stream. Exchange transactions For exchange transactions, charities will be required to apply the five-step model of revenue recognition whereby the transactions will go through the new model which has been derived from IFRS 15 Revenue from Contracts with Customers. The SORP includes guidance at each step of the process to help charities in applying the requirements. The five-steps of revenue recognition are: Step 1- identify the presence of a contract with a third party Step 2- identify the performance obligations in the contract Step 3- determine the transaction price Step 4- allocate the transaction price to the performance obligations in the contract Step 5- recognise income when or as a charity satisfies a performance obligation Charities who receive income from exchange transactions will need to bring these sources of income on the 5-step “journey” to determine the appropriate accounting treatment. In many cases, this will be a very straightforward exercise, with a clear path through each step. In some cases, charities will require a deeper consideration of each step. This might include, for example; A charity considering how many performance obligations exist in a contract with a customer and whether the series of goods/services are distinct. Consider a charity providing residential care services to individuals. If the contract with the customer includes additional goods and services beyond residential care services (such as meals, classes, medical sessions etc) then charities will need to consider the number of performance obligations in the contract and how these should be treated under step 2 of the model. Where a charity determines that it has multiple performance obligations in a contract, it must then allocate the transaction price to the performance obligations in the contract. This might involve estimation techniques if there are no observable standalone prices for that performance obligation. A charity will need to consider whether it satisfies its performance obligations over time or at a point in time as this will impact on the timing of revenue recognition. Non-exchange transactions For non-exchange transactions, charities are not required to apply the five-step model and instead must recognise income based on when performance-related conditions are met. Under the SORP, Non-exchange transactions that don’t impose future performance-related conditions on the recipient are recognised in income when the resources are received or receivable Non-exchange transactions that impose future performance-related conditions on the recipient are recognised in income only when the performance-related conditions are satisfied When resources are received or receivable before the performance-related conditions are satisfied, a liability is recognised While it is written more generally for an FRS 102 audience, and not specifically for charities, the FRC’s Factsheet 10 – Revenue from Contracts with Customers is a useful source of further reading on revenue recognition and the five-step model. Leasing Another significant change in the Periodic Review of FRS 102, which now makes its way into the Charity SORP, is in relation to lease accounting, and specifically lessee accounting. The updated SORP removes the operating vs finance lease distinction for lessee accounting and instead requires that most leases (with some exemptions) will be required to be recognised as a right-of-use asset on the balance sheet, with a related liability also recognised for future lease payments. A new Module 10B has been added to the SORP to address this. While much of the theory in relation to the new lease accounting rules is addressed in FRS 102, the SORP provides guidance and commentary on what this might mean for charities and deals with some circumstances that might be more prevalent in charities. Some specific circumstances addressed in the SORP include: Peppercorn leases whereby a charity has leased an asset for nil or for a nominal amount Social donation leases where the lease payments are below market rent Rolling leases with no specified end date The appropriate interest rate that a charity should use to determine the present value of lease payments Special conditions imposed on a lease because the tenant is a charity The new module 10B includes a useful flow chart which should help users to navigate the rules and signpost readers to where they can find further information. Not all assets leased by charities will be required to be recognised as right-of use assets and there are two prominent exemptions which (if applicable to the charity) will allow the charity to expense the lease in the year it is incurred. The two exemptions are; Low value leases. While not providing monetary guidance on what constitutes a “low-value” lease, the SORP sets out some asset types which would not typically be expected to be “low-value”. Furthermore, the SORP also highlights some assets which might be expected to be classed as "low-value”. Short-term leases. Leases which have a term of 12 months or less at the commencement date may avail of the option to not recognise a right-of-use asset in relation to the lease and instead can expense the lease payments on a straight-line basis over the lease term. A lease containing a purchase option cannot be treated as a short-term lease. Charities applying the SORP who lease assets will need to familiarise themselves with the new requirements and how they might impact on their assets, liabilities and profitability. Some challenges which may be encountered include: Information gathering- can the charity locate all of its leases? Determining the lease term- is there a legally enforceable lease in place? Has the charity a lease in place which has simply “rolled forward”. Leases where the charity is not paying full market value- How should a charity account for the “donation” element of this? Systems for recording leases- Does the charity have a system in place which can capture and record the relevant information for lease accounting or is a new system required? How to present value the lease liability at the beginning of the lease term. The FRC’s Factsheet 11 – Lease accounting for lessees is a useful source of further reading on the new lease accounting rules in FRS 102. Statement of Cash Flows Under the previous version of the SORP, a charity was required to prepare a statement of cash flows when it had income in excess of £/€500,000. The 2026 SORP increases this threshold to £/€15 million (ie. a Tier 3 charity). This change means that only the very largest charities will be required by the SORP to prepare a cash flow statement, and this change is broadly consistent with the requirements placed on companies of a similar size under FRS 102. In making the change the SORP making body noted that the change will have a positive impact on charities as it will reduce the reporting requirements for smaller charities. However, it is important to note that the increased threshold does not override any existing requirement that a charity might have to prepare a statement of cash flows. So, for example, a charity who operates as a company may have income below £/€15 million but may still be required by company law to prepare a statement of cash flows because it does not meet the definition of a small entity. The exemption is also voluntary and a charity who is in tier 1 or 2 may choose not to avail of this and prepare a statement of cash flows. Get ready for implementation The 2026 Charity SORP is effective for reporting periods beginning on or after 1 January 2026, leaving charities with limited time to prepare. Charities who apply the SORP should act now to familiarise themselves with the new requirements, assess the impact on their reporting processes, and plan any updates needed for a smooth transition. By acting early, charities can ensure they are ready to implement the revised SORP and meet their reporting obligations.   This information is provided for information only and nothing in this article purports to provide professional advice or definitive legal/technical interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information 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 herein.      

In Irish news, today brings the deadline for several engagement and disclosure opportunities for businesses and Revenue has issued a press release following Storm Chandra. In UK news today, the Institute has presented the case for a lower corporation tax rate for Northern Ireland to two Northern Ireland Assembly committees, and it’s now just five days until the 2024/25 self-assessment online filing deadline. In International news, the OECD has published updated transfer pricing country profiles. Ireland 1. Read about the various submissions due today including the disclosure opportunity for businesses to regularise payroll obligations for 2024 and 2025 following the Karshan case, the joint public consultation on electronic withholding tax (eWHT) and the VAT modernisation survey. 2. Revenue has issued a press release offering guidance for those affected by Storm Chandra on meeting their tax compliance obligations. UK 3. Read about our meetings with the Northern Ireland Assembly’s Finance and Economy Committees to discuss the Institute’s continued advocacy for a reduced corporation tax rate in Northern Ireland. 4. We remind readers that the 2024/25 online self-assessment filing deadline is Saturday 31 January 2026. International 5. The OECD has issued a fourth batch of updated transfer pricing country profiles. 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 Cross-border developments and trading corner here.