Revenue has updated the Tax and Duty Manual which provides guidance on accelerated capital allowances available for gas vehicles and refuelling equipment under section 285C TCA 1997. The scheme is available in respect of capital expenditure incurred on gas and hydrogen vehicles and refuelling equipment used for the purposes of carrying on a trade. The manual has been updated to reflect the extension of the scheme to 31 December 2025.

Revenue has published a new Tax and Duty Manual to provide guidance on the application of the leasing ringfence in sections 403 and 404 TCA 1997. The ringfence is intended to prevent the creation of tax advantages using leasing structures by restricting how excess capital allowances arising from leased machinery and plant may be used by a leasing company or group. Section 403 TCA 1997 places a ringfence around the leasing of machinery or plant generally such that capital allowances on leased machinery or plant can be set off only against leasing income, or amounts arising from “lease-adjacent” activities and not against any other income or gains of the company or wider group.  Section 404 TCA 1997 places additional restrictions on “balloon leases.” These are leases that are structured to give rise to accelerated allowances while deferring the taxation of lease receipts to the end of the lease. This ringfence may also apply to certain restructuring and sale and leaseback arrangements.  It is to be noted that these ringfences are independent of one another, apply to different types of leases, and have different rules regarding the usage of restricted allowances.

Revenue has updated the Tax and Duty Manual which provides guidance on the anti-hybrid rules. The amendments are as follows: Section 1: Introduction to hybrid mismatches, to clarify that OECD guidance on hybrid mismatches cannot be relied upon to disapply the hybrid mismatch rules in ATAD2, as transposed into Part 35C. Section 2: Mismatch outcomes, updated to introduce the concept of primary and defensive anti-hybrid rules. Section 3: Interpretation (Section 853Z), updated to include definitions of ‘deduction’ and ‘structured arrangement’. Section 4.2.1 Section 835Z(1)(a), updated to include an example of a territory that applies tax to some, but not all, entities. Section 5.1 Worldwide system of taxation, updated to include guidance on how to deal with loss making branches with trapped losses Section 7.1.1 Associated enterprises, updated to clarify scenarios where a 50 per cent Associated Enterprise Test Applies instead of a 25 per cent test.

Revenue has updated several Tax and Duty Manuals (TDMs) following amendments introduced by Finance Act 2024. The updated manuals are as follows: Sea-Going Naval Personnel Tax Credit has been extended to the 2029 year of assessment. Incapacitated Child Tax Credit has been increased to €3,800, from €3,500, with effect from 1 January 2025. Employee (PAYE) Tax Credit has been increased to €2,000, from €1,875 for 2025 and subsequent years. Earned Income Tax Credit has been increased to €2,000, from €1,875 for 2025 and subsequent years.

Revenue has updated the Tax and Duty Manual which provides guidance on the Help to Buy scheme to reflect the extension of the scheme to 31 December 2029. In addition, following a technical amendment to the definition of “Qualifying Residence” introduced in Finance Act 2024. The amendment ensures that a newly constructed property purchased by a Local Authority for onward sale to an affordable purchaser under the Local Authority Affordable Purchase Scheme is eligible for Help to Buy.

certain payments received under the Brexit Voluntary Permanent Cessation Scheme (the Decommissioning Scheme). The Decommissioning Scheme provided for compensation payments to certain fishing vessel owners in exchange for the permanent withdrawal of vessels from the polyvalent and beam trawl segments of the Irish fishing fleet and their removal from the EU register of sea fishing vessels.  The manual has been updated to reflect that a licence holder who availed of the Decommissioning Scheme may elect to have a deduction of up to 50 percent of the Temporary Tie Up Payment (TTUP) taken into account in the chargeable period in which the TTUP is chargeable to tax.  

Revenue has updated the Tax and Duty Manual which provides guidance on the relief from corporation tax to new start-up companies under section 486C TCA 1997. The relief is computed by reference to Employer's PRSI contributions paid by the company during the year. The updated guidance reflects changes introduced by Finance Act 2024, whereby relief can also be computed by reference to Class S PRSI contributions paid by certain company directors/owners for accounting periods beginning on or after 1 January 2025. The guidance has also been amended to provide new and updated examples and information on the operation of the relief, as well as a restructuring of the content for ease of reading.

Revenue has updated the Tax and Duty Manual regarding the Charitable Donation Scheme for tax relief for donations to approved bodies. The updated guidance confirms that, with effect from 1 January 2025, the two-year waiting period for eligibility for the scheme no longer applies (paragraph 7). Also, where a charity has merged or restructured into another entity, the condition that the predecessor entity must have been approved for two years before the "successor body" is eligible for the no longer applies.

Revenue has updated the Stamp Duty Manuals that provide guidance on relief from stamp duty in respect of transfers of agricultural land to young trained farmers and in respect of certain leases of farmland executed on or after 1 July 2018. Relief from stamp duty in respect of transfers of agricultural land to young trained farmers is provided under section 81AA SDCA 1999. The updated manual reflects the Finance Act 2024 amendments whereby: the active farmer condition may be met where the land is farmed through a company, where certain conditions are satisfied; a clawback will apply where the transferee fails to comply with the condition to farm the land for 50 percent of their normal working time. Stamp duty relief in respect of certain leases of farmland executed on or after 1 July 2018 is provided under section 81D SDCA 1999. It applies in respect of a lease for a term of 6 to 35 years of any lands which are used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. The updated manual reflects the Finance Act 2024 amendments whereby: the legislation states that this relief, being a State aid, is granted in accordance with Commission Regulation (EU) No 1408/2013 of 18 December 2013; the relief may be claimed where the lessee is a company, where certain conditions are met.

Revenue has updated the Tax and Duty Manual which provides guidance on a tax deduction for farmers for increases in stock values, which is known as "stock relief" under section 666 TCA 1997 to reflect the extension of the relief to 31 December 2027.

Revenue has updated the Tax and Duty Manual which provides guidance on accelerated capital allowances for farm safety equipment under section 285D TCA 1997 to reflect amendments in Finance Act 2024. The list of items qualifying for accelerated capital allowances for farm safety equipment has been expanded to include certain equipment that qualifies for Targeted Agricultural Modernisation Scheme grants including calving gates, livestock monitors, floodlights for farmyards and slider/roller doors for agricultural buildings.

Revenue has published an overview of the EU VAT SME Scheme. Current provisions allow Member States to set their national VAT registration thresholds within EU rules whereby, in general, a business operating below these thresholds and making domestic supplies of goods and services is not required to register and account for VAT. However, no de minimis threshold applies where an Irish business makes supplies in another Member State. They must immediately register and account for VAT in the Member State where the supply takes place. From 1 January 2025, the EU VAT SME Scheme will allow eligible small traders the option to avail of thresholds in the other Member State and not register for VAT when supplying goods and services there.  The scheme is optional and Irish businesses wishing to register to use the scheme in other Member States must make a formal application to Revenue. The eligibility requirements include that the business must: be established for VAT purposes in Ireland only; not exceed the domestic turnover threshold(s) of the other Member State(s) where supplies are made; not exceed the Union turnover threshold of €100,000; be registered in Ireland to use the scheme (separate registration process); and       file quarterly reports once registered. Further information in available in eBrief No. 315/24.

Revenue has updated the Tax and Duty Manual which provides guidance on the Residential Premises Rental Income Relief (RPRIR) available under section 480C TCA 1997. The updated manual reflects amendments introduced by Finance Act 2024. The key changes are as follows: Relief is not available where a landlord has an overall Case V rental loss or where the landlord's overall rental profit is lower than the amount of the RPRIR (paragraph 2). The death of a landlord will not trigger a claw-back of RPRIR (paragraph 4). Where an individual is no longer entitled to the relief, the amount of relief clawed back will be the same as the amount of relief claimed.

Revenue has published a new Tax and Duty Manual regarding scenarios where section 299(1) TCA 1997 applies to the leasing of machinery and plant. This section provides that where the burden of wear and tear of a leased asset falls on the lessee, they may be entitled to claim capital allowances on the leased asset. The manual sets out when section 299(1) applies to a lease and outlines the tax implications for both lessors and lessees.

Revenue has published its opening arrangements for the holiday period. Revenue will generally provide normal services apart from on 25 and 26 December 2024 and 1 January 2025. Revenue’s public offices will remain closed from 25 December 2024 to 1 January 2025. The ROS helpdesk, Local Property Tax (LPT) and Vacant Homes Tax (VHT) line and Collector General's credit card lines will operate as normal with certain exceptions. Wednesday 25 December to Monday 30 December: The Stamp Duty Helpline will be closed from Wednesday 25 December to Monday 30 December inclusive and on 1 January 2025. Tuesday 24 December and Tuesday 31 December 2024: The ROS Helpdesk will open from 9.00 to 13.00. LPT and VHT lines will open from 9.30 to 13.30. Collector General's credit card lines will open from 9.30 to 13.30. 

With some organisations initiating a return-to-office mandate, what impact will this have on workers’ productivity and work quality? Ian Brinkley explores Few recent changes in the labour market have been so dramatic over such a short period as the rise in working at home during the pandemic. And much of that change has persisted in the post-pandemic period. In 2019, just four percent of employees in Ireland usually worked at home, while just over 11 percent reported doing some work remotely. By 2023, these figures had risen to 19 percent and 15 percent respectively, meaning about a third of all employees were involved in remote work, according to Eurostat. These percentages are relatively high compared to the overall standards in the EU. It is often argued that home-working makes workers more productive, improves job retention and increases job quality, such as work-life balance. It has certainly proved popular with workers, and there is some unmet demand from people who would like to work at home but cannot. However, the evidence to support these claims is not as clear-cut as we would like. Productivity While some studies have confirmed a positive impact on productivity, others have suggested it has no impact either way, and some find negative impacts. A 2023 survey from the CIPD found that while more employers reported a positive impact than a negative one, nearly half reported no impact one way or the other. Unsurprisingly, employers were much more enthusiastic about the potential positive impact on retention and recruitment than productivity. Many studies rely on self-assessment by individuals and employers as to whether they think employees are more productive at home, but do not measure actual output when working in the office versus remote work. We should not dismiss self-assessments, but they do make it hard to know just how big any positive or negative impact might be. What we can say is that in both Ireland and the UK, the rise in homeworking is not associated with better productivity performance across the whole economy. According to the Central Statistics Office, productivity performance since 2019 has been poor in both countries. It might be that any positive impacts of home working are being swamped by other changes in the economy, hampering productivity growth. Home working and work quality Homeworking may deliver more significant benefits as a flexible work option which employees value. However, the CIPD’s large-scale Good Work Index survey of workers in the UK does not show much change in most indicators of job quality between 2019 and 2024, despite the big rise in home working.  This is a bit of a puzzle. It could be that many of the people who shifted to homeworking since 2019 – mostly those in managerial, professional and technical occupations –already had good jobs, so moving to a different location did not greatly change their response.  For example, those who did work at home occasionally reported much higher levels of autonomy over how they did their work than those who did not, but it is likely that they would have said the same even if they had been working in the office.  These headline comparisons are instructive but not conclusive. We need to look at reported work quality for workers in similar jobs, with a mix of some working at home and some working in the office. It may also be that the standard work quality questions do not fully capture all the benefits of home-working to employees. The future of home-working There have been high-profile reports that some major employers – often in the US – are either insisting their workers return to the office or limit the number of days they can work at home. In the UK, civil servants working at home have also attracted criticism, albeit without much evidence of any detrimental impacts. The 2023 CIPD survey found that senior managers expressed concern about home working in about 40 percent of all employers surveyed. However, concerns about getting people back into the office when needed, managing teams, and reduced opportunities for communication, collaboration and innovation were more common than concerns that employees either could not be trusted or were less productive at home. On balance, home-working probably does have positive impacts on both productivity and work quality, but to date they have been modest. The shift to homeworking is here to stay despite attempts in some organisations to reign it back. The CIPD 2023 survey found that 20 percent of employers were putting in active steps for more hybrid working over the next 12 months. For many organisations, a better option will be to manage home-working more effectively rather than risk making themselves less competitive in labour markets by limiting a flexible work option that many employees have come to see as an expected and valued part of the work offer. As more organisations learn how to get the best out of home-working employees, perhaps homeworking will eventually start to move the dial on aggregate labour productivity. Ian Brinkley is a labour market economist and commentator

CFOs in Ireland are cautious about the year ahead but remain focused on balanced investment in business growth and innovation, writes Tom Hynes The biggest priorities for Ireland’s Chief Financial Officers (CFOs) in the 12 months ahead will include digitalisation and technological transformation, supply chain efficiencies, organic growth and the introduction of new products and services. Our Autumn Deloitte European CFO Survey has found a decline in business sentiment among CFOs in Ireland, however, with just 19 percent feeling more optimistic about the financial prospects of their companies compared with 61 percent in the Spring of this year. The figure is down from 63 percent in Autumn 2023 and comes as the proportion of CFOs who now feel less optimistic about their companies’ financial outlook has tripled, from eight percent in Spring 2024 to 28 percent in Autumn 2024.  Our survey results clearly show an increased wariness among CFOs in Ireland when it comes to financial risk.  Several factors are likely contributing to this, including the uncertain economic outlook and tight financing conditions. Geopolitical uncertainties, with fears over protectionism, trade disruption and high costs around labour and energy will also add to this.  Asked to select the factors likely to pose a significant risk to their business in 2025, 89 percent cited retaining and attracting skilled and qualified talent, with 76 percent raising concerns about the economic outlook and growth risks. A total of 76 percent identified cybersecurity risks, and 74 percent selected increasing regulations. The data for our Autumn Deloitte European CFO Survey was collected in September and October 2024 and reflects responses from 1,893 CFOs in 27 countries, including 54 in Ireland. The survey shows that the outlook for capital expenditure (CAPEX) among CFOs in Ireland remains positive, with 42 percent planning to increase their CAPEX over the next 12 months, reflecting a measured investment approach.  CFOs are acknowledging that they need to adapt to evolving regulations by maintaining robust compliance systems and proactively managing regulatory risks. A balanced approach is being applied to the business priorities identified by CFOs. Asked about the priorities for their business in 2025, 48 percent of the CFOs surveyed selected digitalisation and technological transformation. A total of 44 percent said they planned to review supply chain efficiencies, 37 percent selected organic growth, and 35 percent cited the introduction of new products and services. It is encouraging to see Ireland’s CFOs combining defensive strategies, such as reviewing supply chain efficiencies and fostering economic growth, with expansionary strategies, such as digitalisation and technological transformation.  Leveraging advanced technologies, like generative artificial intelligence, can assist companies in driving efficiency and innovation, providing them with a competitive advantage.  Combining investment in this area with enhanced operational resilience and sustainable development is a prudent approach that should position companies well for future success. The number of Irish CFOs planning to increase hiring has dropped significantly by almost half in the last year, down from 58 percent in Autumn 2023 to 31 percent in Autumn 2024.  The majority (81%) believe it is not an opportune time to take on greater risk on their balance sheet, up from 71 percent in Spring 2024. The proportion of CFOs anticipating revenue growth over the next 12 months has also fallen from 74 percent in Spring 2024 to 59 percent in Autumn 2024.  The proportion of those optimistic about an increase in operating margins has fallen from 53 percent in Spring to 37 percent in Autumn.  While they are right to be cautious, it is positive that the majority remain hopeful about revenue growth over the next 12 months and over a third still expect an increase in operating margins.  Tom Hynes is a Partner with Deloitte Ireland

Revenue has contacted us via email advising that because the Capital Gains Tax (CGT) payment deadline for disposals made between 1 January 2024 and 30 November 2024 falls on Sunday 15 December 2024, they are extending the payment deadline to Monday 16 December 2024. This means that Revenue will accept payments for that period on Monday as if the payment was received on Sunday. In their email they noted the following: “It is noted that the Sunday deadline is a payment deadline rather than a return filing deadline. As a once-off concession, payments received on Monday 16 December 2024 will be treated as if they were made by the Sunday deadline.” The Institute, under the auspices of the CCAB-I, requested this extension at the most recent Tax Administration Liaison Committee (TALC) Collections meeting and as well at the most recent Main TALC meeting. We are pleased to announce this vital extension which we hope will ease the compliance burden on our members at this time.

With research revealing strong demand for accountants in Ireland, now could be the time to make your next career move supported by a careful exit strategy, writes Sinéad Brady Accountants were the second most sought-after professionals in the Irish market in 2024, according to new findings published by IrishJobs.  Based on data from TalentBank, the hiring platform’s CV database of over 1.4 million job candidates, this year’s findings ranked accountants as the second most in-demand professionals in the Irish market, behind site managers in the top spot and site engineers in third.  This is good news for accountants preparing to progress their careers in 2025, but if you are considering a move to a fresh role with a different organisation, remember that the decision to quit your current job will likely bring mixed emotions. This is where a clear and carefully crafted exit strategy can help you move on positively and without burning bridges.  Here are five recommended steps to strategically managing your move to a new role: 1. Get clear – why are you leaving your job? Clearly, understanding why you want to leave your current role is the first step in creating your exit strategy. You need this clarity for yourself – this is your career, and it is up to you to take the lead. These prompts should help you get a better handle on why you are choosing to leave your job. Are you happy in your job but feel the need to leave to grow professionally, learn a new aspect of your role or get the promotion you want? Would you like to work at an international organisation with global or European headquarters in Ireland offering opportunities to travel? Do you want to move to an organisation with a comprehensive remote working policy that might allow you to relocate? Do you want more money or the same money with less responsibility? Is there a cultural or environmental issue with your current job you feel uncomfortable with? This might include a toxic work environment, biased treatment, bullying or other forms of workplace ill-treatment. Do you dislike your boss, colleagues, your work, organisation or the sector you work in? As you answer these questions, you are likely to think of other reasons for leaving your current role. The priority here is to identify the reason or reasons why you are making this decision, as this will inform the rest of your exit strategy. 2. Establish your exit timeline Your reason for leaving will impact the duration of your exit timeline. For example, if you are leaving because of a toxic work environment or poor workplace behaviour, your timeline should be much shorter than if you are leaving but still enjoy your role.  If the former is the reason, seek support and advice – no job is worth your health. Otherwise, your timeline can span anything from weeks to several months or a year. 3. Allocate time to your job search Each week, allocate a block of time across the course of your timeline for functional tasks. Break your time allowance into weekly slots to tackle tasks, both short- and long-term.  Basic short-term tasks might include: Updating your CV; Developing your interview technique; Getting to grips with the job market; Setting up job alerts and professional profiles on job sites; and Researching companies and sectors with potential opportunities for you. More complex, long-term tasks might include: Preparing for job interviews by learning to tell the story of your career; Starting or intensifying your networking within your industry or professional bodies; and Connecting with people who may be in a position to open doors for you. These more evidence-focused aspects of your job search are very important. Ideally, each of the short-term tasks should be completed before you start to submit applications or make contact with recruiters. The more complex long-term tasks should be started and remain ongoing throughout your job search. 4. Remain focused in your current role It is very easy to take your eye off the ball in your current role when searching for a new job, but this is a big mistake. Staying motivated and engaged despite your intention to leave will be much better for you in the long run. You can do this by looking for opportunities in your current role you may not have considered before. Do you need/want to upskill, reskill or retrain and is this possible to do in your current workplace? What opportunities are open to you? Are there ways to build your professional profile you may not have thought about before? Can you put yourself forward for speaking opportunities, begin to coach or mentor or attend networking events? You may need help refining this part of your plan. If you do, don’t be afraid to ask for help. Getting this part right is vital as it will help to keep you motivated. You might also consider creating a handover file of what you do and how you do it, including workflows etc. This will make a massive difference to the person taking over in your role and most employers really appreciate it. 5. Decide who to tell you are quitting and when The timing here really depends on the reason you are leaving your role. If you are leaving due to unresolved issues at work, you may decide to only work your notice and tell your boss first (assuming the issue does not lie with your boss). If you are open to staying and happy to explore potential opportunities in your current organisation, the best time to talk is at the start. This helps keep lines of communication open, clear and transparent.  It will give you and your employer a chance to look at all options, and if you do decide to leave for another role elsewhere, it will give your employer sufficient time to replace you with minimum disruption. The benefits of an exit strategy Thinking carefully about your exit strategy is very important if you are in the market for a new job, but it is also important even when you are not currently looking for a new role.  A work exit strategy can help you avoid the trap of staying in a job that no longer serves you and may well be the key to setting you on a better career path in 2025. After all, that is the very least you deserve. Sinéad Brady is founder of The Career Psychologist

Chartered Accountants Ireland has today circulated the Institute's Key Policy Priorities, based on member engagement, as discussions commence on the formation of the next Government. Focused on supporting small business and improving childcare provision for working parents, we will continue to amplify our members' voices as the negotiating process continues.