Finance Bill 2025 was published last Thursday, containing the draft legislation to give effect to the various measures announced on Budget Day. The Institute will be engaging with Revenue and the Department of Finance and other stakeholders this week to discuss this year’s Bill through our participation in the Business Tax Stakeholder Forum and the Tax Administration Liaison Forum. We will be reporting back with a full analysis of Finance Bill 2025 in our Tax Newsletter next Tuesday 28 October. You can read  this year’s Finance Bill here and the accompanying explanatory memorandum here.  

Revenue has updated its dedicated agent and advisor e-linking webpage to provide enhanced guidance for taxpayers regarding the e-linking process for agent-link requests. A support video for myAccount users, along with an Agent e-linking FAQ document, are now available on the dedicated webpage.

Revenue has updated its guidance on payments arising on termination of an office or employment or removal from an office or employment to reflect the impact of unpaid leave on the calculation of the average taxable emoluments figure for the Standard Capital Superannuation Benefit (SCSB) exemption. The SCSB exemption is based on average salary for the last 36 months of employment and in some cases, an employee may have taken unpaid leave for a period during the 36-month period prior to employment termination. The guidance explains that salary details from beyond the last 36 months can be used in the SCSB calculation, to determine the average annual taxable emoluments, provided the person didn’t receive any other taxable pay during unpaid leave. If the individual continued to receive a contribution to a pension scheme and no other emoluments, that period is not treated as unpaid leave for the calculation. The guidance outlines that examples of periods of unpaid leave include unpaid maternity leave, unpaid paternity leave or unpaid parental leave.

Revenue has updated the Pensions Manual – Useful Contacts guidance to include contact details for the Department of Social Protection. It also clarifies that all queries regarding the operation and administration of the Automatic Enrolment Retirement Savings Scheme should be directed to that department.

The European Commission has published a report on the application of VAT rate derogations by Members States revealing an uneven distribution of derogations. The report highlights many disparities, including that Ireland is the only country to apply zero VAT rates to children’s clothing and maritime services.

The Council has adopted the European Commission’s proposal for a mandate to start negotiations with Norway to conclude an agreement on administrative cooperation in direct tax matters. It is intended to establish a cooperation framework between member states and Norway by extending certain provisions of the Directive on Administrative Cooperation. This should assist with cooperating on tax recovery and in the fight against tax fraud, evasion and avoidance.

The EU has amended automatic exchange of financial account information agreements with Andorra, Liechtenstein, Monaco and San Marino expanding the scope of reporting to include specific electronic money products and central bank digital currencies. The amendments are expected to come into force on 1 January 2026, thus strengthening the due diligence and reporting requirements which facilitates the use of information for tax administrations and limit burdens on financial institutions.

Last week, the Institute’s Northern Ireland Tax Committee wrote to the new Exchequer Secretary to the Treasury, Dan Tomlinson MP, to highlight a range of tax policy and tax administration recommendations and concerns ahead of the Budget on Wednesday 26 November. In our Pre-Budget submission, the Institute continues to press the Government to reframe the draft legislation on agricultural property relief and business property relief given the disproportionate impact the proposed changes will have on family owned farms and businesses in Northern Ireland (NI). The Institute’s UK Tax Manager, Leontia Doran, is scheduled to deliver oral evidence on this issue today to the House of Lords Finance Bill Sub-Committee as part of its inquiry into the draft Finance Bill 2025/26 clauses. In our submission, we continue to implore Government that it is not too late to reframe this policy ahead of April 2026. However, if the Government is not willing to do so, we continue to recommend that a specific carve out from the rules is included in the final legislation to protect NI. Given how deeply connected agricultural is throughout the island of Ireland, the unique circumstances of NI farmers cannot be ignored and must be addressed. The cross-border nature of NI’s agri-food industry, where Ireland is its largest export market, means that NI needs to remain competitive in order to be able to serve its largest market, particularly if its dual market access to the EU is to grow to its true potential. This will only be achieved via a coherent tool kit of economic policies, not the least of which should include pro-business and pro-family succession tax reliefs. It is for this reason that the Government should exclude NI from these changes. The Committee also highlighted a range of other issues in the submission as follows: The campaign to reduce the rate of corporation tax in NI, The tax burden and complexity arising from cross-border and remote/hybrid working on the island of Ireland, Tax simplification and the lack of progress in this area, Making Tax Digital for Income Tax and the need to delay the implementation of mandatory tax adviser registration from 1 April 2026, and The ongoing need for climate and environmental objectives to feature significantly in UK budgets, which includes a range of tax policy recommendations. We encourage you to read the full submission at the link above.

The latest UK tax tidbits features updated guidance and publications in a wide range of areas. Reporting poor R&D tax relief service standards, Rates and allowances: Inheritance Tax thresholds and interest rates, Inheritance Tax thresholds and interest rates, Annual Tax on Enveloped Dwellings: work out the value of your property, Annual Tax on Enveloped Dwellings: technical guidance, Annual Tax on Enveloped Dwellings, Check genuine HMRC contact that uses more than one communication method, List of approved professional organisations and learned societies (List 3), Income Tax personal allowances and reliefs, Tell HMRC about the end of a qualifying interest in possession because someone has died (IHT100b (death)), Regulations to update the UK’s automatic exchange of information agreements, Cryptoasset Reporting Framework, Negligible value claims and agreements, Compliance checks: tax advantaged shares schemes — CC/FS1f, Check genuine HMRC contact that uses more than one communication method, Find payroll software that is recognised by HMRC, Voice Identification Privacy Notice, Our governance, Submit your Soft Drinks Industry Levy return, List of community amateur sports clubs (CASC) registered with HMRC, Ask HMRC to transfer surplus Income Tax allowances, When National Insurance and PAYE is due on tips, gratuities and service charges (E24), Class 1A National Insurance contributions on benefits in kind (CWG5), and Tax-free savings newsletter 17.

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 a recent meeting of the Northern Ireland Joint Customs Consultative Committee, HMRC confirmed that the process is ongoing to deliver a permanent service beyond the end of 2025 which will provide the same services as the current Trader Support Service (TSS). For several years, Chartered Accountants Ireland lobbied the UK Government for a permanent solution to the TSS which would continue to provide  free support to help businesses move goods between Great Britain and Northern Ireland by facilitating customs and safety declarations.  Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, Reference document for authorised use: eligible goods and authorised uses, Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020, Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020, Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020, Customs, VAT and excise UK transition legislation from 1 January 2021, Apply for repayment of import duty and VAT (CHIEF), Importing sanitary and phytosanitary controlled goods into Great Britain that interact with the Border Trade Matching Service, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

In this week’s detailed miscellaneous updates which you can read more about below, a new digital process must now be followed to notify VAT error corrections and new evidence requirements must be met to satisfy all new PAYE claims for pensions tax relief. From 1 October 2025, agents are now able to reactivate Self-Assessment (SA) for their clients by calling the Agent Dedicated Line (ADL). In other news this week: The Institute for Fiscal Studies has published its Green Budget 2025 which sets out a range of potential options for tax increases in the next Budget, The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and Check HMRC’s online services availability page for details of planned downtime and the online services affected.  New online process for VAT error correction after withdrawal of VAT 652 In early September, HMRC withdrew VAT Form 652 for VAT corrections. A new process must now be followed to notify VAT error corrections. More detail on this change is set out in updated guidance. The process is essentially now digitalised, with a paper option available for anyone who is exempt from Making Tax Digital for VAT. According to HMRC, the aim of this change is to improve efficiency and accuracy. Errors should now be corrected online by businesses by logging in using their Government Gateway credentials and using the Check how to tell HMRC about VAT Return errors tool. HMRC has also confirmed that agents are able to submit corrections on behalf of clients through the same system.  Any business with a confirmed exemption from MTD for VAT should continue to notify HMRC about errors in their VAT returns in writing. Written notifications should be sent to the VAT error correction team either by post at BT VAT, HMRC, BX9 1WR, or by email at inbox.btcnevaterrorcorrection@hmrc.gov.uk. Agents can also write on behalf of clients using the same contact details to correct errors, however HMRC had asked that the online route be used by agents where possible. The online tool can also be accessed by agents on GOV.UK. This will take the agent to the landing page to submit the error correction notice or to the authorisation pages to support setting up authorisation via the required digital handshake.  On 5 September, guidance within VAT Notice 700/45 section 4 was updated with information on how and when to correct VAT errors using the new process. However, HMRC acknowledges that it was not clearly communicated that authorised agents can also use the online error correction tool. New evidence requirements for PAYE pensions tax relief claims From 1 September 2025, all PAYE claims for pension tax relief should be made online or by post but must also be supported by evidence from the pension provider or employer. Supporting evidence is needed for each tax year that a claim is made. Information on the new process and evidence requirements is set out in Newsletter 172: August 2025 of the Pension Schemes Newsletter. Anyone who is not in Self-Assessment (SA) is able to contact HMRC to claim tax relief in respect of pension contributions in certain scenarios. Successful claims are reflected via an adjustment to the taxpayer’s tax code. SA taxpayers should continue to claim relief via their SA tax return.  Broadly, the evidence required is a letter or statement from the pension provider or a payslip from the employer which should provide the following details: The claimant’s full name, Details of the pension contributions paid and the tax year they relate to, and If the claim relates to a workplace pension, that the claimant received 20 percent tax relief automatically from their employer. SA client reactivation From 1 October 2025, agents are now able to reactivate SA for their clients by calling HMRC on the ADL. Reactivation means that if that client was previously in SA and did not submit a tax return in 2023/24, they can be reactivated before submitting their 2024/25 tax return and do not need to register again, as they will already have a Unique Taxpayer Reference number.  More information on this will be shared by HMRC in the October Agent Update later this month. This new process follows recommendations and discussions between HMRC and Chartered Accountants Ireland and the other professional bodies at recent stakeholder forum meetings. The new service can only be accessed by selecting the relevant option from the ADL menu meaning it is not possible to be transferred to this from other HMRC helplines or to request this via web chat. HMRC have confirmed that it is possible to discuss up to five client reactivations in one single call. It should also be noted that this service is for reactivations only. If the client was not previously in SA, the normal SA registration process must be completed.  

This summer the Government published the revised National Development Plan (NDP) representing investment of €275.4 billion, the largest ever capital investment plan in the history of the State, to grow the Irish economy, protect jobs and enhance our competitiveness. It outlines how the Government will invest long term in the country’s development and infrastructure, both critical to Ireland’s competitiveness. 1 in 4 SMEs we surveyed reported that their business had lost employees or prospective employees due to the unavailability of affordable housing, and access to childcare is a persistent issue for many members, further impacting the supply of talent. Understanding how the revised NDP will impact businesses is critical for strategic planning, and we are delighted that Seán Fleming T.D., Chartered Accountant and Chair of the Oireachtas Committee on Infrastructure and NDP Delivery will join us for a free, in-person lunchtime event at 12.30 on Monday 3 November at Chartered Accountants House. This is the second in our “Trusted Business Leadership: The Chartered Roundtables” series, and it will be chaired by Pamela McCreedy, President, Chartered Accountants Ireland.