On Wednesday, the Chancellor of the Exchequer, Rachel Reeves announced the Labour government’s first Autumn Statement. The government has set out to restore balance in the public finances, however businesses are concerned that they will bear the burden of this rebalancing act. While the need to balance public spending is key to the government’s decisions, the innovative tax policies needed to drive long-term growth and sustainability are not evident in the package announced this week. Chartered Accountants Ireland is particularly concerned that the increase in employers’ National Insurance will not be sustainable for many businesses. While the allowances may provide some protection for the most affected businesses, it is adding to businesses’ already bulging employment costs. You can read our coverage of this week’s Autumn Statement in our Special Tax Newsletter which issued on Wednesday evening. You can also read our press release which issued following the Budget announcement.

As businesses navigate a new landscape, the CSRD challenges them to comply, but also to seize the opportunity for growth through sustainability, writes Dave O’Shaughnessy Embarking on a new era of transparency and accountability, the European Corporate Sustainability Reporting Directive (CSRD) is set to revolutionise the way large and publicly listed companies disclose their environmental, social, and governance (ESG) practices. Phase 1 of the CSRD targets large companies meeting at least two of these criteria: over €50 million in net turnover, more than €25 million in balance sheet totals, or an average of 250 employees annually.   This directive unfolds progressively through to 2029, with the goal for entities to measure, understand, and communicate their ESG impacts in a transparent, consistent, and comparable way. The scope of the directive, in terms of the amount of data needed and the specific requirements, including presentation, digital tagging, comparative data analysis, and digital submission, is broad and detailed. There are more than 800 individual data points within CSRD, of which almost 200 are mandatory.  CSRD incorporates quantitative and qualitative metrics, to measure the impacts, risks, and opportunities of upstream, own-operations and downstream activities, based on a thorough double materiality assessment. Moving beyond compliance Companies now have the chance to extend their vision beyond mere compliance requirements by leveraging the wealth of data and analytics at their disposal to unlock a multitude of untapped opportunities. Preparation and presentation of comprehensive ESG reports provide organisations with actionable insights about their business that they did not previously have. Organisations are increasingly recognising that a well-defined sustainability strategy is essential for long-term success. As they develop and refine these strategies, the need for technology that not only supports but also enhances their sustainability goals becomes clear. These strategies should be adaptable and scalable, evolving in tandem with the organisation’s growth and sustainability ambitions. By integrating advanced data management systems, organisations not only meet their ESG reporting needs but also provide a platform for performance monitoring and management, as well as scenario modelling to shape future initiatives. The right technology is a catalyst, propelling organisations towards their sustainability objectives and unlocking new opportunities for responsible growth. For assurance, it’s essential to have systems in place that can accurately track and document ESG initiatives, allowing for third-party verification. This helps to confirm that the reported data is complete, accurate, and consistent with relevant standards and frameworks. Assurance processes also provide stakeholders with confidence that the organisation’s ESG disclosures are trustworthy and that it is committed to transparency and accountability. Delivering value through technology Scalable, adaptable, and flexible technology should provide the backbone of every organisation’s ESG strategy. Organisations require a technology solution that will streamline the data integration process and automate the collection, collation, analysis, and reporting of ESG data for relevant reporting frameworks. Implementation of a comprehensive data management system will not only help companies streamline data integration and automate ESG data handling for reporting frameworks but also meet their ESG reporting and assurance requirements.  A 2023 NASDAQ research report that interviewed 150 global sustainability, finance, and legal executives found that investment in ESG software is helping to improve organisational collaboration, mitigate risks, and meet ambitious ESG and sustainability goals. One of the predominant challenges that we are seeing for many organisations relates to value chain reporting. The need to share detailed, potentially sensitive, data between value chain partners, from raw material extraction to end-of-life disposal and recycling certainly brings an added level of complexity. Value chain reporting requirements for scope 3 emissions and on social areas, such as child labour and modern slavery, challenge the traditional definition of an organisation’s boundaries. As well as the processes and systems needed to capture accurate and reliable data, the related governance and cultural implications of this fundamental shift are complex and challenging.  To meet these challenges, companies need to leverage technology that is adaptable to different frameworks including all the necessary integration capabilities with internal systems. A future-proof solution that meets today’s reporting and ESG management needs, while also incorporating additional evolving regulatory requirements and others that may follow, is needed. Looking beyond reporting CSRD is in force and although the new sustainability reporting requirements may seem vast and onerous, the opportunity it provides to look beyond reporting and to explore new and innovative options is compelling. The need for an ESG reporting solution that is adaptable, scalable, and integrated is clear. Dave O’Shaughnessy is Sustainability Reporting Partner at EY

The introduction of Enhanced Reporting Requirements on 1 January 2024 has resulted in increased scrutiny of the taxability of employee benefits and expenses, writes Jillian O’Sullivan We have seen a shift in Revenue focus during PAYE interventions not only to matters within scope of Enhanced Reporting Requirements (ERR) reporting but also to staff entertainment. It is, therefore, critical that employers now consider whether they are required to submit a PAYE Settlement Agreement (PSA) application before the 31 December deadline. This process enables employers to account for income tax, Universal Social Charge (USC) and PRSI due on taxable employee benefits and expenses that have not been accounted for via the PAYE system during the year, to ensure payroll tax compliance is managed appropriately. What is a PAYE Settlement Agreement? Many employers provide benefits and expenses to employees, such as staff entertainment, vouchers and other gifts. Unless these benefits and expenses fall within the terms of specific tax exemptions or Revenue concessions, they are liable to payroll taxes on a real-time basis. PSAs are an administrative arrangement that allows employers to pay taxes on behalf of their employees on benefits and expenses that are ‘minor and irregular’ in nature in one annual settlement on a grossed-up basis. Deadlines A written application must be submitted to Revenue by 31 December 2024 for the PAYE year 2024. Taxes due under the agreement must then be paid over by 23 January 2025. Included PSA items The benefits or expenses to be included must be non-cash, minor in nature and amount, and irregular with regard to the frequency the benefits or expenses are provided. Examples of taxable items that could be included in a PSA are: Staff entertainment; Staff lunches/drinks/meals; Staff awards and prizes; and Staff gifts where the small benefit exemption has otherwise been utilised, e.g. wedding, birthday, baby, Easter and Christmas gifts. Get proactive With the increasing scrutiny by Revenue on payroll tax compliance, it is essential for employers to proactively assess their obligations regarding PSA. Ensuring that all taxable employee benefits and expenses, including staff entertainment and gifts, are accounted for can help avoid potential penalties and maintain good standing with Revenue. The 31 December deadline for PSA applications for the 2024 PAYE year is a critical date that employers should not overlook. By meeting these requirements and preparing well in advance, businesses can streamline their tax processes, reduce administrative burdens, and foster a compliant and transparent work environment. Jillian O’Sullivan is Corporate Compliance Partner at Grant Thornton

Professional Standards Department is pleased to publish its AML Supervision Report 2023/24. This Report summarises our AML supervisory activities in both jurisdictions, ROI and UK for the period April 2023 – April 2024.

The government has identified a significant ‘tax gap’ across the UK economy. The tax gap is the difference between what should be collected (based on taxpayer data) and what is actually collected. Over the next five years, the government is expanding HMRC’s resources in an aim to bring in an additional £6.5 billion per year in tax revenue. The plan to bridge the tax gap includes a commitment to overhauling HMRC’s IT system. It is proposed that this will improve HMRC’s debt management system by ensuring tax debt is settled faster, making the overall organisation more productive. The government announced that an additional 5,000 compliance staff will be recruited, while 1,800 debt management staff will be maintained and recruited. Taxpayers can also expect digitalisation to simplify interaction with HMRC allowing taxpayers to self-serve and manage their own tax affairs.

The government announced that it is capping the headline rate of corporation tax at 25 percent, the lowest across the G7. It has committed to maintaining the capital allowances system, preserving the R&D tax relief, and developing a new process for increasing tax certainty in advance of major investments. In our letter to the Exchequer Secretary to the Treasury ahead of today’s Budget, we raised the importance of certainty and stability for the R&D tax relief, given the myriad changes in recent years. As such, it is welcome to see a commitment to preserving the R&D tax relief. Offshore trusts The government announced that transitional arrangements will be introduced to tackle offshore trusts which are used to shelter assets from inheritance tax (IHT). The details of how these measures will operate will be discussed in due course once those details become available. Carried interest The tax treatment of carried interest will be reformed by increasing the capital gains tax (CGT) rate on such interest to 32 percent. From April 2026, a revised regime will apply which will have bespoke rules reflecting the characteristics of the relevant reward. VAT on private schools The government has maintained its commitment to introduce VAT on education and boarding services provided by private schools. From 1 January 2025, VAT of 20 percent will apply to charges for services provided by private schools in this regard.

The government has taken the decision to increase employers National Insurance contributions by 1.2 percent to 15 percent from 6 April 2025. The secondary threshold will reduce to £5,000 (previously £9,100). The secondary threshold is the level at which an employer is liable to pay National Insurance on each employee’s salary. The government has increased the Employment Allowance to £10,500 (previously £5,000). The allowance will also be extended to all eligible employers by removing the £100,000 cap. This means that businesses will be able to employ up to four workers on the National Living Wage on a full-time basis without a liability to employers’ National Insurance arising. The government has not raised employee National Insurance at this time. This will ensure that the tax burden on individual workers is not increased further (we note that the tax burden has increased due to lack of indexation of the tax bands relative to inflation). The income tax and National Insurance contributions thresholds will be unfrozen from 2028-29 onwards.

As expected, the government has increased the capital gains tax (CGT) rates and maintained the freeze on personal tax thresholds (although it has not been extended). There have been significant changes announced in inheritance tax (IHT) which will see IHT extended to death benefits payable from a pension into a deceased’s estate, as well as changes to both business property relief and agricultural relief. The government also announced the abolition of the non-domicile regime with effect from April 2025. The remittance basis of taxation for non-domiciled persons will be replaced with a residence-based regime. Personal tax thresholds The freeze on personal tax thresholds on income tax and national insurance will not be extended, meaning that from 2028/29 taxpayers can expect the thresholds to again increase in line with inflation. As the thresholds remain frozen, it means that the actual tax burden on workers is increasing because of the effect of inflation. Capital gains tax rate increases The lower rate of CGT is set to increase from 10 percent to 18 percent, with the higher rate increasing from 20 percent to 24 percent. These new rates will align with the residential property rates which remain unchanged. CGT Business Asset Disposal Relief In support of entrepreneurship, the government has announced an increase in Business Asset Disposal Relief (BADR) to 14 percent from 6 April 2025 and 18 percent from 6 April 2026. The lifetime limit for Business Asset Disposal Relief (BADR) will remain at £1 million. Inheritance tax changes The freeze on the IHT thresholds will be extended for a further two years until April 2030. According to the government this means that 90 percent of estates each year will not pay inheritance tax. In a significant move, the government will introduce legislation charging IHT on unused pension funds and death benefits payable from a pension into a person’s estate. This change will apply from April 2027. Agricultural property relief and business property relief The government has announced significant reforms of both agricultural property relief and business property relief. From April 2026, the first £1 million of combined agricultural and business assets will be entitled to 100 percent relief from IHT. The change will see the rate of relief reduced to 50 percent for amounts in excess of £1 million. Non-domicile residents The concept of non-domicile residents will be abolished from April 2025. The remittance basis of taxation for non-domiciled individuals is to be replaced with a residence-based regime.

Reacting to today’s Budget, Chartered Accountants Ireland says that small businesses have borne the heaviest burden in the attempt to repair the UK’s finances and the innovative tax policies needed to drive long-term growth and sustainability are not in evidence today. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee noted: “In a rush to repair the funding gap in public finances and keep pre-election promises not to raise tax on working people, the hike in employers’ national insurance contributions (NIC) as well as a rise in the minimum wage means small businesses, many of whom are already struggling, will face increased labour costs. Although some businesses will be partially protected by increased allowances, the 1.2% rise in employer NIC is unlikely to be sustainable for many. “Increasing the rates of CGT was anticipated but the concern remains; a higher rate brings with it the risk of deterring investment and is likely to lead to reduced economic activity across many sectors which could ultimately slow the tax take. “On the business tax side, maintaining the corporation tax rate of 25 percent gives much needed certainty to business leaders. Chartered Accountants Ireland continues to support a reduced rate of corporation tax for businesses operating in and from Northern Ireland and believe that this would raise productivity, increase incomes, and unlock the economic potential in the region.” Gillian Sadlier, Chair of Chartered Accountants Ireland Ulster Society, said: “The extent to which the various measures announced in today’s Budget will lead to real growth across the UK economy remains to be seen. Ultimately, businesses are the drivers of growth and what this Budget has done is increase their overheads. “There were some smaller innovative measures that the government could have announced which would have cost relatively little. For example, we would have liked to have seen an increase in the £90,000 VAT registration threshold to reduce the administrative burden on small businesses and to enable growth. In terms of innovation, a commitment to review the rules around the research and development credit to make it best in class internationally would also have been welcomed.    “The commitment to significantly increase HMRC’s headcount is positive but there must be a definitive drive to improve customer service levels, which have deteriorated in recent years.” ENDS

Institute recognised as one of the 25 most innovative organisations using AI and automation at UiPath AI25 Awards   Award comes as Institute becomes first Professional Accounting Body to roll out full Adaptive Learning for students  Chartered Accountants Ireland has been recognised for its use of robotic process automation (RPA) to enhance the student enrolment experience with an award at the UiPath AI25 Awards. The awards recognise organisations using AI and automation to increase productivity; transform customer experiences; deliver substantial return on investment; and support corporate, environmental, social, and governance (ESG) initiatives.  Chartered Accountants Ireland is the largest professional body on the island of Ireland, representing over 38,400 members and educating 6,600 students. Each year, from June to September, the Institute processes enrolment and exemption applications from over 2,000 students seeking to commence the ACA programme to become a chartered accountant. Chartered Accountants Ireland has the largest share of new student registrations in the Republic of Ireland and is the fastest growing professional accounting body in Ireland and the UK. The Institute’s automation solution has significantly reduced the processing time of applications from weeks at peak times, to only hours. This automation ensures that exemption approvals reach candidate students and their training firms faster than ever before. The award winners were selected by a panel of expert judges.  Ian Browne, Director of Education, Chartered Accountants Ireland said  “We are proud to receive this global recognition from UiPath for our integration of AI and automation into what are complex enrolment and exemption processes. This award demonstrates our continued dedication to delivering innovation and excellence to the accounting profession in Ireland, from the moment that aspiring chartered accountants engage with our team for the first time as student applicants.  “These technologies will continue to play a crucial role in shaping the future of accounting, and the work our members do in every area of the economies on this island and around the world, and we are committed to staying at the forefront of this transformation.” Bobby Patrick, Chief Marketing Officer at UiPath said “We are pleased by the overwhelming quality of AI25 entries we received from customers globally. These 25 companies exemplify the transformational impact of AI and automation, having effectively demonstrated and executed new opportunities to advance innovation and improve productivity.  “We are proud to support customers with their AI and automation journeys as they take full advantage of UiPath's platform to deliver transformational outcomes with fast time-to-value. We look forward to continue leading unprecedented innovation with the next chapter of automation which combines robots, AI agents, and humans.” This application of RPA is just one example of the Institute’s use of technology to reframe the delivery of education and assessment for the next generation of accountants. Seven years ago, Chartered Accountants Ireland commissioned extensive research into the future of the accountancy profession and the needs of employers. A future educational strategy was subsequently agreed.     Chartered Accountants Ireland’s early adoption of online education delivery, drawing on automation and AI as far back as 2019, enabled it to move delivery entirely online in March 2020, with minimum disruption to the student learning experience.  Just this month, the Institute's new learning platform was launched, introducing Adaptive Learning to students for the first time. Chartered Accountants Ireland is the first Professional Accounting Body to roll out full Adaptive Learning modules and one of the first educational institutes across any industry globally. A data-driven, personalised and participative learning journey, Adaptive Learning allows the learner to choose their level of proficiency at the start, and progress according to their assimilation of the material and resulting proficiency.           

In a letter to the Exchequer Secretary to the Treasury, the Institute took the opportunity to highlight a range of tax policy and tax administration recommendations and concerns ahead of next week’s Budget and the 2025 Spending Review. From business taxes to the need to invest in HMRC, the Institute also advocates for a lower rate of corporation tax for Northern Ireland.  The full range of areas covered in the letter are as follows: Business taxation and the need for stability, certainty, and supports for investment, How tax policy can support the transition to net zero, The fuel duty dilemma, The Trader Support Service and the customs intermediaries’ market in Northern Ireland, Potential Budget Day announcements on capital taxes, Investment in HMRC, Making Tax Digital for income tax, Tax simplification and policy making, and A lower rate of corporation tax for Northern Ireland.  

With speculation now reaching fever pitch about potential tax rises, the Labour Party’s first budget in nearly fifteen years is just 10 days away on Wednesday 30 October 2024. The Institute’s Tax Team will be analysing the budget as normal. On the day, we will be issuing a newsletter reporting on key tax announcements. Detailed analysis will follow in Chartered Accountants Tax News on Monday 4 November and subsequent weeks.  

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.