In this week’s miscellaneous updates, we bring you news of updated guidance from HMRC on VAT on private school fees and HMRC has made a new direction impacting R&D tax relief claims. The latest schedule of HMRC live and recorded webinars for tax agents is also available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.  Updated guidance - VAT on private school fees  HMRC has published updated guidance for private schools on if, when and how they must register for VAT on private school fees. It is still expected that the change will commence from 1 January 2025. Further guidance is available on GOV.UK. According to the updated guidance this is based on the legislation and technical note published on 29 July 2024 but will be updated if any policy or legislative changes are announced on Budget Day on 30 October 2024.  The guidance explains:   Who must register for VAT.   The normal tests apply meaning that the educational provider must register for VAT if total taxable turnover exceeds £90,000 for the last 12 months or is expected to exceed £90,000 in the next 30 days.  Guidance is provided on how to apply the tests, and it will also be possible to register for VAT voluntarily.   When to register for VAT.   Education providers will be able to register from 30 October 2024. However, the precise date of when they will need to register is dependent on the value of school fee payments they receive and when they receive them. VAT should not be charged, nor VAT invoices produced until the education provider has registered.   How to register for VAT.  The education provider should follow the normal process for registering for VAT entering ‘private education provider’ in the ‘business activity’ section of the application and selecting the correct standard industry classification code.  How to determine if VAT is chargeable on goods, services and payments.   Guidance is provided on a wide range of circumstances, including where education services include other elements such as school meals and the treatment of grant payments, and  How to reclaim VAT on supplies.   Once registered for VAT, the educational provider may reclaim VAT incurred on the goods and services used to make its taxable supplies. Guidance is again provided on a number of areas, including partial exemption and how to recover VAT incurred pre-registration.   R&D direction and recent R&D Tribunal decisions  HMRC made a new direction on R&D earlier this month. This direction specifies how information and notifications required under both R&D schemes should be made and authenticated and updates the rules to align with recent changes to the reliefs. The direction is available at: HMRC Directions regarding claim notifications and additional information made 1 October 2024.  HMRC has also highlighted to us a range of First Tier Tribunal cases on R&D-related decisions:  Tribunal finding for the company: H&H Contract Scaffolding Ltd v HMRC TC/2023/08212 (a penalty case), and Get Onbord Ltd (in liquidation) v HMRC TC/2022/13281,  Tribunal finding for HMRC: Assembly Global Networks Ltd v HMRC TC/2023/08328, Flame Tree Publishing Ltd v HMRC TC/2022/13745, Tills Plus Ltd v HMRC TC/2022/11982 and Strictly Money Ltd v HMRC TC/2022/02573.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. 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. The Department for Environment, Food and Rural affairs has also sent emails on exporting honey and apiculture products to the EU from 29 November 2024 and export health certificates for composite products.  Miscellaneous guidance updates and publications  Taking a vehicle out of the UK,  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS),  Search the register of customs agents and express operators,  Notices made under the Cash Controls (Amendment) (EU Exit) Regulations 2019,  CDS BIRDS Declarations and Customs Clearance Request completion instructions,  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020,  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, and  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020. 

Neil Hughes explains how mastering emotional intelligence can empower leaders to build trust, improve communication and enhance team performance One of the most critical factors shaping leadership today is the capacity to manage one’s own emotions while also understanding and responding to the emotions of others – also known as emotional intelligence (EI). Daniel Goleman, one of the pioneers of the concept of EI at work states: “technical skills will only take you so far. EI will take you farther”. Goleman identifies five components of EI that can help individuals navigate and maximise their personal and professional relationships effectively:  Self-awareness refers to the ability to recognise and understand your emotions and how they affect others.  Self-regulation is the ability to manage or redirect disruptive emotions and adapt to change. Motivation is about a leader’s drive to achieve meaningful goals for reasons beyond external rewards.  Empathy is the ability to understand the feelings of others by recognising and considering others’ perspectives. Social skills refer to proficiency in managing relationships and having the ability to inspire and influence others positively. Much has been written about Satya Nadella’s success as the CEO of Microsoft. His approach to leadership is grounded in EI, with a strong emphasis on empathy, building relationships and developing a collaborative work culture. With his leadership, Microsoft has experienced a profound transformation with its share price growing an impressive 969 percent since Nadella took over. So, what can leaders learn from this? By fostering EI in themselves and their organisations, leaders can cultivate a deeper understanding of themselves and their teams. An emotionally intelligent leader can build trust within their teams by applying behaviours and practices which are rooted in Goleman’s components of emotional intelligence.  Leaders who possess social skills, practice empathy and understand motivational drivers can set a foundation for building strong relationships. These qualities enable leaders to understand, connect and support their employees. Emotionally intelligent leaders who are effective at managing their emotions and understanding the emotions of others excel in areas such as communication and decision-making. They are adept at expressing themselves clearly and tailoring their communication styles to suit individuals and situations, which cultivates open dialogue and reduces misunderstandings. They remain calm under pressure and take a holistic view of situations, leading to rational and empathetic decision-making.  Leaders with high levels of emotional intelligence also tend to practice self-regulation, which means they avoid impulse reactions, making them better equipped to manage conflict. By remaining composed during disputes, they fully understand different perspectives and lead their teams towards constructive solutions and growth opportunities.  By focusing on these components of EI, leaders can establish lasting trust within their teams driving higher performance. The Journal of Organisational Behaviour has found that high levels of trust can increase team performance by up to 20 percent.  Leaders who invest in understanding and developing their emotional intelligence are much better equipped to handle their own emotions and those of others, which makes them more capable of leading their teams to success.  What steps will you take to harness the power of EI to transform your leadership, build trust and increase performance within your team? Neil Hughes is Director of People and Change Consulting at Grant Thornton

Dr Claire Guy explores how Irish companies can reduce costs, boost reputation, and gain market share through eco-friendly practices Being environmentally friendly is not only good for the planet, but also for the bottom line. Businesses that adopt sustainable practices can reduce their costs, improve their reputation, and gain a competitive edge in the market. Additionally, sustainability is increasingly becoming a legal requirement, as both Ireland and the EU have set ambitious targets and regulations to combat climate change and environmental degradation. Regulatory framework Ireland’s Climate Action Plan 2024 outlines Ireland’s commitment to achieving a 51 percent reduction in greenhouse gas emissions by 2030, compared to 2018 levels. The European Green Deal commits to delivering net-zero GHG emissions at EU level by 2050; with Ireland committed to achieving net-zero emissions no later than 2050. These ambitious targets require significant investment and changes across various sectors, including energy, agriculture, and transport. For businesses, this means adapting to stricter environmental regulations and investing in sustainable practices. Companies now need to innovate and adopt greener technologies to meet these targets, which may initially increase operational costs but also present new opportunities for growth and competitiveness in a low-carbon economy.  The transition to a more sustainable business model is not just a regulatory requirement but also a strategic move to future-proof businesses against the impacts of climate change. To meet the 51 percent reduction in greenhouse gas emissions by 2030, Ireland has agreed to several specific sectoral targets, including: Electricity: 75 percent greenhouse gas reduction by 2030; Transport: 50 percent greenhouse gas reduction by 2030; Industry/enterprise: 35 percent greenhouse gas reduction by 2030; and Agriculture: 25 percent greenhouse gas reduction by 2030. Meeting these target reductions is a journey which presents challenges and opportunities for Irish businesses.  Businesses are now encouraged to set science-based targets (SBTs) and develop comprehensive company-specific climate action plans, covering everything from resource efficiency to supply chain, to achieve these goals and transition to a low-carbon, circular economy.  These targets involve measuring and reducing emissions across all scopes (Scope 1 relates to direct emissions from an organisation’s facilities, Scope 2 relates to emissions from energy purchased by the organisation, and Scope 3 relates to other indirect emissions, such as those from suppliers and the use of the organisation’s products), investing in renewable energy, improving energy efficiency, and innovating sustainable practices. Benefits to Irish businesses Going green offers several benefits to Irish businesses, both economically and environmentally. Here are some key advantages: Economic resilience: The need to reduce our reliance on fossil fuels was especially highlighted by global events like the war in Ukraine. By investing in green technologies and practices, Ireland aims to build a more resilient and self-sufficient economy. Circular economy: Ireland is promoting a circular economy, which involves reusing and recycling materials to minimise waste. This approach not only benefits the environment but also offers significant cost savings for businesses. Companies like IKEA are now transitioning towards a circular business, aiming to give products and materials a longer life through reuse, refurbishment, remanufacturing, and recycling. The company designs products with circular capabilities and uses renewable or recycled materials. Their sustainability strategy includes becoming a fully circular business by 2030. Cost savings: Implementing sustainable practices can lead to significant cost reductions. For example, energy-efficient technologies and waste-reduction strategies can lower utility and disposal costs. Attracting talent: A survey by IBM showed that 67 percent of people are more willing to apply for jobs from organisations they consider to be environmentally sustainable and environmentally responsible. By going green, businesses can attract and retain top talent who value sustainability. Customer demand: 75 percent of Irish consumers think that climate change and its consequences are the biggest challenges for humanity in the 21st century, and have turned to sustainable products and services. Meeting these demands can help businesses win new customers and increase loyalty. Investment and funding: Sustainable businesses are more likely to attract investment and funding. There are various grants and supports available for businesses that commit to green practices in Ireland. Compliance and futureproofing: As regulations around environmental impact become stricter, businesses that adopt green practices early will be better prepared to comply with future laws and standards. Reputation and brand image: Being known as a sustainable business can enhance a company’s reputation and brand image, making it more appealing to both customers and partners. For example, Kellogg’s aims to use 100 percent recyclable, reusable or compostable packaging by the end of 2025 to align its business with circular economy principles, as well as strengthen its green reputation and brand. Global market access: Many international supply chains now require sustainability from their partners. Going green can open new markets and opportunities for Irish businesses. Whether a business is furthering its journey towards sustainability or just beginning to take serious steps in that direction, various aids are available from Ireland and the EU. These supports facilitate progression towards more eco-friendly operations and foster employee participation in these initiatives. Dr Clare Guy is a Senior Consultant at KPMG

As some companies pivot back to full-time office work, Mark Fallon examines the sustainability of remote work and its impact on business culture and talent retention The first few months of the year changed the landscape of the professional working week. From the onset of the COVID-19 pandemic up until 2022, office workers were predominantly ‘working from home’ (WFH). Then came the shift to a hybrid working model, with professionals working part-time in the office and part-time at home. Today, in thew fourth quarter (Q4) of 2024 and trending into 2025, the dynamic is changing once again with many companies doing a U-turn on their WFH policies, demanding their employees to return to the office five days a week. Resurfacing culture concerns In 2020, Coopman Search and Selection ran a survey of more than 400 professionals in Ireland about working from home in the first winter of COVID-19. Out of several interesting findings in this survey, the biggest fear from corporations at this time was the ‘lack of collaboration’ and ‘loss of culture’ with employees not being present in the office environment. Fast-forward to Q4 2024 and this concern has come to fruition, with business leaders ‘feeling’ that employees need to be in the office more , as stated by Andy Jassy, CEO of Amazon, in September 2024, “to be better set up to invent, collaborate and be connected to each other”. There is mixed data on the advantages and disadvantages of WFH. Some claim productivity has dropped since its introduction, while employees who benefit from hybrid working feel more empowered, better at balancing personal and professional responsibilities. Flexibility remains key to talent attraction Flexible remote work policies can significantly impact the quality of talent they attract. Companies based in major cities might miss out on top talent by requiring full-time office attendance, as many skilled workers are located outside of the commuter area. Offering hybrid or remote work options can help businesses remain competitive in the talent market. While studies have shown mixed results on productivity, some report up to a 13 percent increase in output from remote workers, though others suggest a drop in collaboration and engagement. Looking ahead to 2025, many large companies are expected to increase mandatory office days, while smaller businesses may stick to hybrid models. Employees unhappy with stricter office requirements will likely seek more flexible employers, giving those companies a chance to secure top talent. Fully remote workers may face more challenges securing roles as the trend shifts toward in-office work. A future of retention and growth As the debate over remote work continues, companies that balance flexibility with in-office collaboration will likely be best positioned to attract top talent and meet employee needs in Ireland for talent attraction and retention. Organisations must carefully assess their policies to foster environments that encourage both individual efficiency and collective creativity, ensuring a sustainable future in the evolving work landscape. Mark Fallon is Director and Co-Founder at Coopman Search and Selection

Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. In developments since the last edition, IAASA has issued its annual Observations paper highlighting matters that management, audit committees and auditors should consider when preparing, approving and auditing financial statements for 2024 year-end dates. The European Securities and Markets Authority has published Clearing the smog: Accounting for Carbon Allowances in Financial Statements which aims at improving financial reporting for issuers engaging in carbon allowance programmes. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has released its September 2024 Update. This report summarises the public technical discussions held and decisions taken by EFRAG in September. EFRAG is seeking feedback on its assessment of the Annual Improvements to IFRS Accounting Standards-Volume 11. This assessment is based on the EU's technical endorsement criteria and their alignment with the European public good. The Deadline for comments is 22 November 2024. EFRAG has submitted its Endorsement Advice on Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) to the European Commission. In its submission, EFRAG has assessed that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends endorsement of the Amendments. EFRAG has published its Feedback Statement on the International Accounting Standards Board’s (IASB) Exposure Draft ED/2024/1 Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3 and IAS 36) The FRC are hosting an upcoming webinar on the key changes in the revised UK Corporate Governance Code ahead of its first reporting cycle (beginning 1 January 2025). The event takes place on 24 October 2024. The Q3 2024 IFRS Interpretations Committee podcast is now available. This podcast focusses on guarantees issued on obligations from other entities and recognition of revenue from tuition fees in accordance with IFRS 15 Revenue from contracts with customers. The IASB is consulting on proposed amendments aimed at helping companies to account for their investments in associates and joint ventures.  A webcast series has been launched to take a detailed look into these proposed amendments. The Financial Reporting Council (FRC) has published revised Technical Actuarial Guidance: Models, to support the growing use of Artificial Intelligence and Machine Learning (AI/ML) techniques in actuarial work. Assurance and Auditing IAASA has published its annual Observations paper highlighting matters that management, audit committees and auditors should consider when preparing, approving and auditing financial statements for 2024 year end dates. The FRC have announced that all four big firms in the UK have met the 2024 deadline set by the FRC to implement the principles of operational separation. Sustainability The European Securities and Markets Authority (ESMA) has published 'Clearing the smog: Accounting for Carbon Allowances in Financial Statements' which aims at improving financial reporting for issuers engaging in carbon allowance programmes. ESMA has also recently issued the 2024 EU Carbon Markets report.  The fourth episode of the IFRS Sustainability webinar series, ‘Perspectives on Sustainability Disclosure’, took place on 17 October 2024 with a focus on the Pan-African approach to sustainability disclosure. The Financial Reporting Council has published initial feedback on its market study into assurance of sustainability reporting. Amongst other findings, the study found that “while currently most UK companies reported having sufficient choice of provider of assurance, some raised concerns that the market may begin to consolidate around the largest UK audit firms”. Other The annual reporting deadline for NI charities is coming up at the end of the month.  The Charity Commission for Northern Ireland is encouraging anyone with a query around reporting to get in touch. The Minister for Enterprise, Trade and Employment is seeking nominees as representatives of expert, technical, legal, government and regulatory bodies. Also sought are expressions of interest from suitably qualified candidates for appointment to one of the six Ministerial nominations to the Employment Law Review Group (ELRG).  Mark Koziel, CPA, CGMA has been named to succeed Barry Melancon in January 2025 as Chief Executive Officer of the AICPA & CIMA.   This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of 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.

31 October 2024 is the self-assessment paper filing deadline for 2023/24 to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (see GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2023/24 paper filing deadline is extended to 31 January 2025. A reasonable excuse claim should accompany such returns.

From Monday 14 October 2024, claims for relief for employment expenses should only be made by post using form P87. The claim must now also be backed up by supporting evidence which should also be sent by post. According to HMRC, this change in process is being made as a response to a “growing tax risk driven by ineligible claims for employment expenses”. HMRC says they “are working at pace to reinstate the digital process as soon as possible”. Guidance on the new evidence requirements has also been published. From Monday 14 October, HMRC requires the taxpayer claiming relief for employment expenses to use the P87 form and provide supporting evidence to prove eligibility before the claim will be any further progressed. Some examples of acceptable evidence include receipts and copies of mileage logs which should accompany the P87 in the post. The following publications provide more detail on this: HMRC issue briefing: Evidence required to claim PAYE (P87) employment expenses, Claim tax relief for your job expenses, and Claim tax relief for your job expenses by post.

HMRC has recently been working on tidying up agent registrations and on 4 October 2024 emailed all agents asking them to provide details of their agent codes for self-assessment, VAT and corporation tax. Responses must be made by 8 November 2024 by completing the online form even if the agent/firm only has one code. We are aware that this email has caused some confusion with some believing it to be a scam/phishing attempt. The email is a legitimate email from HMRC and should not be ignored in order to ensure that an agent/firm’s continued access to online services for their clients is not interrupted or cancelled. This email has been sent to all agents who have signed up to receive HMRC agent emails and is not addressed to agent firms.  HMRC is conducting this exercise to identify codes which are no longer needed, or which are linked to entities that no longer exist due to mergers, takeovers or other changes. If this is the case, the correct legal entity will be required to obtain new authority from its clients.  Only one response is required for each legal entity. After 8 November 2024, HMRC will commence contacting firms who did not reply. It is important to note that failure to reply could lead to an agent code being cancelled by HMRC if there is no response. An agent code is the code that issued by HMRC when an agent firm first contacts them to obtain access to HMRC's self-assessment, corporation tax or VAT online services. It is used to enrol for the relevant service and may also need to be used in commercial filing software. The agent code is not the agent’s Government Gateway ID nor is it the Agent Services Account agent reference number.   Agents will have a different code for each service and may have several, for example for different branches of the same firm. Firms may also have codes to access other services; these are not to be provided as part of this exercise. For each code, you should identify if it is: still being used, not in use but is still needed, or no longer needed.   Once the response has been submitted, HMRC will send an acknowledgement which should be retained. Thereafter, HMRC will review the information submitted and make any updates necessary to its systems or it will contact the agent/firm if more information is required. 

In this week’s miscellaneous updates, we bring you news that the Court of Justice of the European Union (CJEU) has overturned a European Commission decision that the UK’s controlled foreign company (CFC) rules were state aid. From this month HMRC has begun replacing some of its texts and SMS messages with what it refers to as “branded messages” and the latest issue of HMRC’s Public Service pensions Remedy newsletter has been published. Two new non-executive directors have also joined HMRC’s board, one of whom includes the former director of the Office of Tax Simplification, Bill Dodwell. And finally, HMRC has published more information ahead of the commencement of VAT being charged on private school fees from 1 January 2025. CJEU decision says UK CFC finance company rules were not state aid The CJEU recently ruled that the UK’s CFC rules were compatible with the internal market and set aside the judgment of the General Court, ordering the European Commission to pay the court costs for those involved in the appeal. The case centred around whether the UK’s finance company exemption on the taxation of the non-trade finance profits of CFCs was tantamount to artificial diversion of profits and constituted state aid. HMRC branded messages From October 2024 HMRC has begun to replace some of the texts and SMS messages it sends to taxpayers with what it refers to as  “branded messages”. These “branded messages” use some of the features of rich communications services, in order to “modernises and improves SMS messaging”. Although HMRC says that “branded message are more secure”, it continues to advise taxpayers to follow the published guidance on identifying suspicious contact. VAT on private school fees HMRC has published more information ahead of the commencement of VAT being charged on private school fees from 1 January 2025. This confirms that education providers will be able to register for VAT from 30 October 2024. More details are available in the following publications: Check if you must register for VAT if you receive private school fees, and Charging and reclaiming VAT on goods and services related to private school fees.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs Team. HMRC has sent two attachments containing key information on the latest release for the Customs Declarations Service (CDS). Finally, last week it was announced by email that the new safety and security declarations for imports into Great Britain which were due to commence from the end of this month under the next stage of the Border Target Operating Model (BTOM) have been further delayed and will now commence from 31 January 2025. CDS latest release HMRC has asked us to share two attachments containing key elements of CDS release 4.6.0. The first attachment is an update on CDS release 4.6.0.  The second attachment is an annex which makes clear what codes traders should not be using. Delayed to introduction of safety and security declarations for imports HMRC has updated its guidance to reflect the decision to delay the new import requirements for goods from the EU (and other territories that did not have requirements before 1 January 2021) which were expected to be implemented from 31 October 2024 under the next phase of the BTOM. The waiver has now been extended until 31 January 2025. HMRC will publish further information in the coming weeks and will reach out to key stakeholders to start arranging more detailed engagement sessions, including support for readiness activity Miscellaneous guidance updates and publications Safety and security requirements on imports and exports, Making an entry summary declaration, Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS), Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020, Reference document for authorised use: eligible goods and authorised uses, Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, Flexible Accounting System for imports (Customs Notice 100), Appendix 2 C21e: Data Element 1/11: Additional Procedure Codes, and Method of payment (MOP) codes for Data Element 4/8 of the Customs Declaration Service.

The latest edition of our tidbits features guidance updates in a range of areas and HMRC’s latest organisation chart and governance arrangements are also available. Apply as an individual to receive UK rental income without UK tax deducted, Named tax avoidance schemes, promoters, enablers and suppliers, Work out and claim relief from Corporation Tax trading losses, Disguised remuneration: settling your tax affairs, Disguised remuneration settlement terms 2020, Register a limited company as a subcontractor with payment under deduction by post, Register a partnership as a subcontractor with payment under deduction by post, HM Revenue & Customs – Our governance, Declare no return of Class 1A National Insurance contributions, Check the recognised overseas pension schemes notification list, Self Assessment: tax calculation summary (SA110) , How to apply for a certificate of residence to claim tax relief abroad, Completing your Company Tax Return, HMRC email updates, videos and webinars for VAT, HMRC email updates, videos and webinars for company directors, Public service pensions remedy newsletter — October 2023, HMRC email updates, videos and webinars for tax agents and advisers, HMRC email updates, videos and webinars for employing people, Approved offshore reporting funds, Correction of pension contributions following the public service pensions remedy, Glossary of terms for tax and National Insurance contributions for employee travel (490: Employee travel), Pension schemes: report of relevant benefit crystallisation events or transferring relieved relevant non-UK scheme assets (APSS 252), International Tax — UK Real Estate Investment Trusts (form UK-REIT DT-Company), Tell HMRC about who is dealing with the estate when someone dies, Claim a tax refund when you've flexibly accessed all of your pension (P53Z), Claim back Income Tax on a pension death benefit lump sum P53Z(DB), Claim a tax refund if you've stopped work and flexibly accessed all of your pension (P50Z), Class 1A National Insurance contributions on benefits in kind (CWG5), Penalties for a failure to correct certain offshore tax non-compliance, Details of deliberate tax defaulters, Submit information to support your claim for R&D Corporation Tax reliefs, Named tax avoidance schemes, promoters, enablers and suppliers, HM Revenue and Customs' organisation chart, How HMRC resolves civil tax disputes, HMRC Code of Governance for Resolving Tax Disputes, Dispute resolution governance board remits, HMRC Accounting Officer Assessments, How HMRC consults with Large Businesses, Inheritance Tax: reduced rate of Inheritance Tax (IHT430), Help with common risks in transfer pricing approaches — GfC7, Using the Non-resident Landlords Scheme if you’re a letting agent or tenant, Penalties for a failure to correct certain offshore tax non-compliance, People involved in transactions connected with VAT fraud, Details of deliberate tax defaulters, Inheritance Tax account (IHT400) , Claim a refund of Income Tax deducted from savings and investments (R40) , Register an unincorporated association for Corporation Tax, Corporation Tax for non-UK incorporated companies, Register an offshore property developer for Corporation Tax, Register a non-UK incorporated company for Corporation Tax if you're a UK resident, Register a non-resident company who disposed of UK property or land for Corporation Tax, Apply as a company to receive UK rental income with no UK tax deducted, Register for Corporation Tax through a dependent agent permanent establishment, Pensions schemes newsletter 162 — September 2024, How to apply for clearance or approval of a transaction from HMRC, Software developers providing customs declaration software, Admit tax fraud to HMRC using the Contractual Disclosure Facility, Pay a penalty charge for not registering or maintaining a trust, Pay Plastic Packaging Tax, Pay duty on biofuels or road fuel gas, Pay your Economic Crime Levy, and Pay the Soft Drinks Industry Levy (notice 5).

AI is reshaping the workforce, blending human creativity with technology. Tim Bergin explores how organisations can leverage generative AI to unlock potential and drive transformation Generative artificial intelligence (Gen AI) may be perceived as a risk to human employment, but it can also be viewed as a catalyst for redefining the contribution of individuals in the professional environment. Increased access to Gen AI is allowing workers to fill capability gaps in creativity, team dynamics and content generation with a new technology-driven assistant. The challenge now lies in encouraging our organisations to embrace the advantages while unlocking the potential for workforce workplace restructuring. Unlocking human potential Gen AI provides the ability to rethink how work is organised at operating model, functional level an team level. How can employers unlock the full potential of their workforce at these levels? Team AI is a proven catalyst for better communication, how we interact with colleagues and customers, and how we collaborate and get work done. For example, virtual and augmented reality allow real-time collaboration with people across the globe, facilitating richer conversations, skill sharing and exposure to other areas of the organisation. According to the EY Workforce Reimaged 2023 survey, there is a 33 percent net positive sentiment of employers and employees who believe Gen AI will boost productivity and new ways of working, and an even greater 44 percent net positive of those who expect the technology to enable greater flexible working. Aside from additional capacity, AI systems can provide insights into team performance, sentiment and connection by tracking and analysing data. This could give employers insight into how their team is feeling through survey feedback. This can help promote a more productive, collaborative environment, enabling employers to proactively address employee issues. Organisation The adoption of AI at an organisational level can revolutionise current ways of working from front-line customer-facing functions, to operations and corporate functions such as finance and HR. The transformative impact can be seen on all fronts, demonstrating the potential to improve not only efficiency and effectiveness but also employee experience. For example, using Gen AI to predict consumer needs can help organisations refine their stock systems and supply chain to ensure products are ready at the point of need, rather than stockpiling and incurring unnecessary storage costs. This use case can also free up time for consumer-facing staff to have more considered conversations with their customers about potential future purchasing needs, and demonstrates the rounded positive impact we can expect to see if Gen AI is used responsibly, and thoughtful consideration is given to the workforce impact and opportunity. It is clear from a team and organisational perspective that AI’s role is pivotal in the evolution of the workforce and the increasing requirement for upskilling and reskilling. Success lies in the coming together of emerging technologies and vital human interventions; releasing the power of technology while emphasising the importance of what makes work human. Collaborative partnership While AI's rapid proliferation might trigger fear of unprecedented changes in the working environment, organisations must remember that by embracing AI and investing in the upskilling of their workforce, they are fostering a collaborative partnership between human creativity and artificial intelligence. Tim Bergin is Partner of People Consulting at EY 

When an employee resigns, handling the process smoothly is crucial. Moira Grassick outlines key steps to manage both formal resignations and sudden departures in your business Occasionally, employees resign. In doing so, they usually give full contractual notice of their resignation. However, an employee sometimes resigns in the heat of the moment. As you can imagine, quitting a job with no notice given doesn’t exactly follow the typical resignation process. Regardless of whether an employee submits a resignation letter or rage quits their job, you need to handle the situation properly.   What is resignation? Resignation is when an employee informs their employer that they’re quitting. The employment relationships can end in various ways, including: An employee gives you their notice of resignation by speaking with you or handing in a letter of resignation; The business ends the contract of employment; or An employee reaches a justifiable contractual retirement age. Once an employee has notified you of their intention to resign, they must complete a notice period. The length of this notice period can be found in the employee’s employment contract. During this period, you can begin your search to find a replacement for the role. It’s also worth noting that you can pay the employee to not work through their notice period. Notice periods in Ireland Notice periods in Ireland vary by each employee’s employment contract and often their length of service. There are, however, two common types of notice to keep in mind: Contractual notice: You can decide the amount of contractual notice an employee must give. For instance, two months’ notice may be required for an employee who has worked with your business for two years. Statutory notice: This is the length of notice an employee is legally required to give. This will depend on their length of service. If an employee has worked with your business for at least 13 weeks, they must give you at least one week’s notice. However, one week’s notice is generally too little time to arrange a replacement. This underlines the value of an appropriate contractual notice period that works for your business. Next steps When an employee of yours decides to resign, it’s only natural that you may try to convince them to stay. After all, they could be one of your highest achievers. If instead you accept the resignation, there are some key steps to follow: Get the resignation in writing: Written confirmation of the resignation must include the employee’s name, the date, and a signature. Seek a resignation letter regardless of the length of employment. Respond to the resignation: Acknowledge your acceptance of the resignation. This can be a written or verbal response. You can also send a resignation email with the notice period confirmed. Decide on the notice period: Do you want the employee to work their full notice period? Confirm your decision with the departing employee. Prepare a handover pack: A handover pack for the departing employee’s replacement will come in handy when they arrive. Conduct an exit interview: This interview allows you to understand the employee’s reasons for resigning. You’ll also be able to make improvements to their role or management practises based on that feedback. Retrieve business property: Retrieve business property from the departing employee. These items could include computers, devices, or their uniform. You must also arrange the employee’s final wage payment. Failing to do so can result in a Workplace Relations Commission (WRC) claim. Finally, try to end the professional relationship on a positive note. After all, the departing employee may return to your business down the line. Moira Grassick is Chief Operating Officer at Peninsula

Finance Bill 2024 introduces key updates on tax reliefs for employers and private businesses. Pat Mahon breaks down the most significant changes From an employment and personal tax standpoint, the majority of the legislative actions contained in Finance Bill 2024 are aligned with announcements made on Budget Day. However, some newly announced measures in the Finance Bill are likely to be of interest to employers and private businesses. Employment Investment Incentive Finance (No. 2) Act 2023 brought several changes to Employment Investment Incentive (EII) relief to ensure the relief complied with amended EU state aid rules. The most fundamental change concerns the rate of tax relief. Finance (No. 2) Act 2023 restricted the maximum effective rate of EII relief for follow-on investments to 20 percent. This change was implemented based on an initial interpretation of EU state aid rules. However, on further developments, it appears that there is flexibility in the EU state aid rules for the 35 percent rate to apply to follow-on risk finance investments where the company has been in existence for less than ten years or within seven years of its first commercial sale. Finance Bill 2024 has recognised this rate of relief on a retrospective basis for shares issued on or after 1 January 2024. This is a welcomed change for the Irish scale-up sector. Other relevant changes to the regime were: An extension to the deadline for processing the relief from four months post-year-end to 31 December in the year following the year in which the shares were issued. The extension of the operation of the relief to 31 December 2026. The amount upon which an investor can claim tax relief under the scheme has increased from €500,000 to €1 million. Start-Up Refunds for Entrepreneurs The amount of Start-Up Refunds for Entrepreneurs (SURE) relief that an investor can claim annually has been increased from €100,000 to €140,000. This results in a total maximum of €980,000 over seven years. For SURE relief being claimed where a loan is converted to eligible shares, a business plan must be in place in advance of the date of the issue of the loan. The same change for the rate of relief from 20 to 3 precent for follow-on EII investments also applies to SURE claims.   Start-Up Relief S486C TCA 1997 For accounting periods beginning on or after 1 January 2025, in addition to providing the current relief relevant to the amount of employer’s PRSI borne by the company, relief will also be available by reference to the amount of Class S PRSI paid by a director of the company. This is subject to a maximum of €5,000 employer’s PRSI per employee, €1,000 Class S PRSI per company director and €40,000 overall. R&D tax credit  The amount of refundable R&D tax credits that can be paid to a company in a year has been increased from €50,000 to €75,000. CGT retirement relief Finance (No. 2) Act 2023 increased the age limits for CGT retirement relief purposes from 65 to 69 years. However, it also introduced a new maximum limit of €10 million on disposals of qualifying assets to children up to and including the age of 69 years. These changes were due to take effect from 1 January 2025. While the increased upper age limit will remain in place, amendments introduced in Finance Bill 2024 propose a clawback period of 12 years in relation to disposals of qualifying assets in excess of €10 million made by an individual between the ages of 55 and 69 years (inclusive) from 1 January 2025. The relief will operate to defer any CGT which would be due by the parent disposing of the asset to the earlier of: the date on which the shares are disposed of by the child; or the expiration of 12 years from the date of the disposal. Where a qualifying asset on which retirement relief is claimed is subsequently disposed of by the child within 12 years of the transfer, the child will be assessed on the deferred CGT in addition to any CGT arising in respect of the gain accruing to the child. However, if the qualifying asset is held by the child for at least 12 years, the CGT will be abated. This change is to be welcomed and will ensure that transfers of successful businesses to the next generation are not penalised subject to a number of requirements being satisfied. Angel investor CGT relief Angel investor CGT relief was introduced in Finance (No. 2) Act 2023. The relief provides a reduced CGT rate for qualifying investments made by a qualifying investor in a qualifying company. The reduced CGT rate is 16 percent for direct investments or 18 percent for investments made by a partnership. The relief was restricted to a lifetime limit of €3 million on gains. The new Finance Bill increased the lifetime limit on gains from €3 million to €10 million. The commencement of the relief is subject to Ministerial Order. Small benefit exemption Finance Bill 2024 confirms the increase in the small benefit exemption threshold to €1,500 per annum. There is also a very welcome increase in respect of the number of vouchers or benefits that qualify for the relief, with five gifts or vouchers now being eligible for relief providing the cumulative value does not exceed €1,500 per annum. Surprisingly, the Bill also states that the exemption will cease with effect from the year of assessment 2030 onwards. PAYE statute of limitations There is a provision to amend the time limits within which the Revenue Commissioners can raise PAYE assessments against employers for tax years 2025 et seq. However, there are some uncertainties in relation to the effect of the changes and further clarity will need to be provided once the draft provision is debated. Pat Mahon is Tax Partner at PwC

The Institute has published the Audit Regulations (incorporating assurance under CSRD) and Guidance, Ireland with effect from 11 October.   These regulations replace the existing Audit Regulations for Ireland and introduce the Institute’s regulatory framework for the authorisation and oversight of firms and individuals undertaking sustainability assurance engagements pursuant to Part 28 of the Companies Act 2014 (which reflects the EU’s Corporate Sustainability Reporting Directive (CSRD)). In Ireland only statutory auditors and statutory audit firms can undertake sustainability assurance engagements.  The regulatory regime builds on the existing regulatory regime for statutory auditors and audit firms and this is reflected in the Institute’s revised Audit Regulations (incorporating assurance under CSRD).  The Audit Regulations (incorporating assurance under CSRD) provide for the authorisation, quality assurance and regulatory enforcement of firms and individuals carrying out sustainability assurance engagements and sets out the ongoing regulatory obligations of those firms and individuals. Applications for approval to carry out sustainability assurance engagements The Institute is accepting applications from Institute firms and responsible individuals (RIs) registered for audit in Ireland for approval to carry out sustainability assurance engagements.  Given the urgency of providing authorisation for eligible firms and RIs who have clients reporting under the CSRD in respect of financial year 2024 the Institute will prioritise applications from audit firms and RIs who have clients in this ‘first wave’ of sustainability reporting.  Application forms are available from sasp-applications@charteredaccountants.ie.  The Institute FAQs regarding approval to carry out sustainability assurance engagements provide useful information for potential applicants. Eligibility for approval to carry out sustainability assurance engagements: An Irish registered audit firm is eligible for approval to carry out sustainability assurance engagements if the firm has at least one RI who has been approved as a sustainability assurance service provider (SASP).  An individual approved as RI in Ireland before 1 January 2026 can avail of transitional arrangements and therefore is eligible for approval as a SASP if that RI has demonstrated competence in sustainability assurance by undertaking the appropriate relevant CPD.  A detailed CPD template is submitted by the RI on application for SASP status.   An individual approved as RI in Ireland on or after 1 January 2026 will not be able to avail of those transitional arrangements and will have to undertake a programme of education, including examination, and 8 months of practical training in relevant work. Background note: The CRSD was transposed into Irish law in July 2024 by SI 336 of 2024 which amended the Companies Act 2014.  New Part 28 of the Companies Act 2014 requires certain companies to prepare sustainability reports disclosing information about the company’s environmental, social and governance (ESG) activities in line with the European Sustainability Reporting Standards (ESRSs).  It also requires third party assurance (limited assurance initially) on these ESG disclosures and provides for a regulatory regime for the education, training, authorisation and oversight of sustainability assurance providers.   In Ireland only statutory auditors and statutory audit firms can undertake sustainability assurance engagements. 

The Financial Reporting Council (FRC) has announced  that the four largest audit firms (Deloitte, EY, KPMG, PwC), have concluded the transition period of operational separation. Throughout the three-year transitional period, all four firms have made significant improvements to their governance to prioritise the delivery of audit quality. This includes the creation of independent audit boards chaired by Audit Non-Executives, improved transparency on financial transactions between the audit and non-audit business, and greater accountability at firm level for the delivery of operational separation outcomes. The firms have also developed audit specific cultures, with behaviours focussed on challenge, openness and professional scepticism. All four firms have met the 2024 deadline set by the FRC to implement the principles of operational separation. As set out in the Operational Separation Principles, the FRC will publish an assessment of the firms’ compliance each year, following the transition period.

IAASA has published its annual Observations paper highlighting matters that management, Audit Committees and auditors should consider when preparing, approving and auditing financial statements for 2024 year end dates. The Observations paper addresses financial reporting matters and, for the first time, sustainability reporting matters. The Corporate Sustainability Reporting Directive (CSRD) is in force for certain larger entities for the first time in 2024. IAASA has responsibility for examining issuers’ sustainability statements in much the same manner as it already has responsibility for examining issuer’s periodic financial reports. The paper sets out the approach IAASA will take in conducting sustainability statement examinations in 2025. Read the full paper here.

One of my direct reports manages a team of five. Nobody has complained about her, but there is a fairly high level of turnover on her team. She works incredibly hard to (mostly) very high standards. She sometimes spends too much time on unimportant issues and loses sight of the bigger picture. I have sat in on some of her team meetings: she is very task and deadline focused and quite tense. They are not bad meetings, but something is missing. She is very defensive around feedback and can get upset. A. It can be hard to help somebody who is well-intentioned, hard-working and, in their own eyes anyway, doing the right thing.  It sounds like she is quite anxious about her work or performance and the trick will be to find a balance between encouraging her (commitment, high standards, work rate) while ensuring that her singular focus does not hinder productivity or well-being.  While feedback may be part of the response, you may also need to broaden out her sense of what it is to be a manager, i.e. it’s not only about getting the work done, but also about motivating and developing people along the way.  It might also be useful to reflect on whether your direct report is clear on expectations, goals and priorities. It could be worth going back to first principles and discussing what else is important in their role (e.g. developing their direct reports).  You might also reflect on whether you keep them in the loop so they know what’s important for you. Weekly meetings where you (jointly) clarify priorities may be useful.  Assuming you have more than one direct report, and that you meet with this group from time to time, look at how you build connection and trust with them – creating a place where they can share challenges, reflect on learning (from failure as well as success), and discuss how they are working with their own reports, etc.  Each person’s real-life challenges can be a case study for the group to discuss. This encourages a growth-mindset and will help her, and her peers, reflect on what it means to be a leader. Share a resource on leadership (the book recommended below, maybe?) and discuss the ideas. You will probably also need to share feedback to encourage behavioural change. The success of this feedback will be dependent on three main factors:  Your relationship with the person – is there trust between you?   Their self-esteem – are they open to feedback and resilient?   Your skill in sharing feedback – ensuring feedback is balanced, using the right language, etc.  Building trust may allow you to find out what is driving her behaviour (e.g. perfectionism, anxiety, fear of failure, habit) which may open a deeper conversation. The BOFF model provides a useful framework for giving both positive and developmental feedback:  Behaviour: what have you observed? (heard, seen, experienced). This helps you describe rather than judge. Outcome: the impact of the behaviour Feelings: what you are happy about (or concerned about). Future: Next steps (for you, for them). It will be useful to approach the feedback with her, not from the point of ‘what’s not working’, but placing it in the context both of her career aspirations as well as developing her team.  Her development, her team’s development, her work-life balance, etc., should be standing items in your one-on-ones – and this will help you role model the type of behaviour you want from her. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie

Three Chartered Accountants weigh in on how the outcome of the US presidential election might impact the future of foreign direct investment in Ireland, exploring potential economic shifts and changes to the corporate tax regime Paraic Burke Head of Tax PwC Ireland Despite international uncertainties, Ireland’s economy continues to be one of the best-performing in Europe.  Employment remains at a historic high, our fiscal position is strong and inflation is easing. Global companies here continue to see the opportunities Ireland presents as a gateway to Europe and further afield, with a highly skilled workforce in a stable business environment.  The impact of the US election on Ireland’s FDI from a tax and business perspective is two-fold:   1. The US election should determine how the US responds to the stalled element of global tax reforms led by the Organisation for Economic Cooperation and Development. While Ireland and EU member states have enshrined Base Erosion and Profit Shifting Pillar Two into their domestic law, the US has not.  Depending on a complex series of political factors, we could see increasing tensions between the US and Europe, which could have big implications for Ireland. Under a clause in the Pillar Two agreement called the undertaxed profits rule (UTPR) – a way of ensuring that multinational companies pay the globally agreed 15 percent corporate tax rate on their profits – the Irish Government, like others across the EU, could find itself having to tax US profits.  This would not sit well with the US Government. If it is not dealt with, it could have serious trade implications for multinational companies exporting from Ireland. The outcome of the election will very likely have a significant impact on the US approach in this context. 2. This US election will also determine who deals with the potential expiration in 2025 of the individual tax rate cuts introduced by Donald Trump in 2017.  As part of the overall strategy in this context, Democratic candidate Kamala Harris has outlined a plan to raise the US corporation tax rate to 28 percent (currently at 21 percent), but this is likely to be politically impossible.  On the other hand, if elected as US President for a second term, Trump has mentioned a reduction in the US corporate tax rate to 15 percent – although, again, this is likely to be impossible given the overall US fiscal position.  In addition, Trump has regularly stated that he may adopt a policy of applying tariffs on all US imports, a move that could greatly disrupt global trade, including Irish exports.  Cormac Kelleher International Tax Partner Forvis Mazars The upcoming presidential election in the US, due to take place in November, is delaying US companies in making their foreign direct investment (FDI) decisions.  Uncertainty over upcoming trade policy is causing new and existing US businesses to pause decision-making. However, it has not stopped firms from exploring and readying themselves for investment decisions in 2025. If the US introduces or strengthens existing tax repatriation programs post-election, as seen in the Tax Cuts and Jobs Act of 2017, it could incentivise US companies to bring profits and operations back home, possibly reducing FDI in Ireland.  However, given Ireland’s low corporate tax rate (12.5%) and status as a key EU hub for the technology and pharmaceutical sectors, US firms might still find Ireland an attractive location for their European operations. It will be interesting to watch the level of US engagement with the OECD’s BEPS 2.0 tax proposals.  This year has delivered probably the most significant level of tax reform practitioners are likely to witness.  The effective 15 percent rate has caused multinational groups to grapple with a plethora of complex and challenging legislation. Despite initial positive soundings from the US Treasury, achieving sufficient political appetite for the introduction of BEPS 2.0 (Pillar Two) has proved elusive.  The rules, however, will result in US-headquartered groups being affected by the global minimum tax rules from 2026 onwards.  If Pillar Two plans continue to have momentum, commentators will watch with interest to see how the US will react and whether retaliatory measures will be introduced. While tax policy is an important feature of Ireland’s FDI offering, there are many other features that are equally attractive and important to organisations when seeking to establish an international presence.  This is particularly important for firms establishing their first presence outside the US.  Ireland will continue to be an important cog in the global international tax expansion plans of US-based multinational groups. Fundamentals – including making Ireland an attractive location for people to relocate to – will play a greater role in years to come. Catherine Drysdale Consultant Barden Ireland's job market is highly interconnected with global trends and events. There are a number of key factors impacting the employment industry in Ireland at present, including the upcoming US election and potential impact on FDI, geopolitical conflicts, climate initiatives, uncertainty regarding policy and regulatory changes and interest rates and inflationary impacts. How these directly impact talent looking for opportunities within US companies headquartered in Ireland will be sector dependent. Certain sectors, for example, will be impacted more significantly by policy and regulatory changes including technology, pharmaceutical and financial services industries.   The challenges for acquiring talent may include: Changes in visa policies and global mobility restrictions; Cautious spending that could result in longer, more complex hiring processes coupled with the risk that companies will prioritise hiring local talent in the US due to shifting labour policies or cost-saving measures; A shift to contract opportunities, a trend we have already witnessed, reflecting employers’ desire for flexibility and a cautious approach to permanent hires; and Increased competition among jobseekers for a reduced number of opportunities, potentially leading to longer lead time to secure new roles. The stance companies are taking on hybrid and remote working arrangements remains in flux. We saw the recent announcement from Amazon CEO Andy Jassy regarding a mandatory full-time return to office. Whether others follow suit remains to be seen.  Organisations could adopt permanent remote working policies. While this may open up opportunities for a broader talent pool and flexible working arrangements, professionals in the Irish market would likely face increased competition from the global talent pool, potentially leading to downward pressure on salaries as companies seek cost-effective labour. With potential changes in the US economic environment post-election, given their established presence in Ireland, US companies with operations here may need to adjust their salary structures to remain competitive in attracting top talent, particularly if remote work opportunities expand.  A focus on enhancing their existing localised talent acquisition strategies, coupled with a strong emphasis on employer branding to showcase corporate culture and values, will help to make positions more attractive in a competitive market.