Readers, in particular employers, may find useful A &L Goodbody thoughts and insights after 18 months of the new whistleblowing regime | A&L Goodbody LLP (algoodbody.com) .It is written 18 months after Ireland transposed the EU Whistleblowing Directive through the Protected Disclosures (Amendment) Act 2022 (“2022 Act”). It notes for example a substantial increase in the number of whistleblowing claims and discusses the question most frequently asked by its international employer clients. This is whether the employer can retain its centralised reporting channel at parent company level with the introduction of the 2022 Act or whether each legal entity in a group has to have its own internal reporting channels and procedures. Readers are also reminded of the Institute resources in this area. The Institute pages on protected disclosures on the technical hub have a large volume of information and resources available on this topic. This information is provided as resources and information only and nothing in these pages 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 pages. 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 these pages, 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 in these pages.  

Completing the new Labour team in HM Treasury, the Exchequer Secretary to the Treasury (XST) role has been allocated to James Murray MP. Last week’s King’s Speech set out the new Government’s legislative agenda but did not give any further hints on what tax policy will look like. And the current parliamentary session has been extended from 23 July to 30 July, during which it is expected that the date for the new Government’s first fiscal event will be announced.     The XST is responsible for the UK tax system including:  Direct, indirect, business, property, and personal taxation   European and other international tax issues   Customs and VAT at the border   The Finance Bill and the National Insurance Bill   Departmental Minister for HMRC, the Valuation Office Agency, and the Government’s Actuary’s Department   Tax administration policy   Input to Investment Zones and Freeports focusing on tax and customs elements   Overall responsibility for retained EU Law and Brexit.  

HMRC has asked users to share their views on the new alcohol duty approvals, returns and payments digital service which due to launch in 2025 via a survey. According to HMRC, it will use feedback from the survey to “improve the quality and relevance of information in future”. The survey will take less than 5 minutes to complete. All responses will be kept confidential and anonymised when used in reporting.  

In this week’s miscellaneous updates, the latest Agent Update is available and the rules for reporting advances of pay have been relaxed. Construction industry scheme payment deduction statements should now only be requested by post and the UK and Gibraltar have signed an agreement on social security. HMRC guidance on genuine contact has been updated for new emails about child benefit and 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. HMRC has also published data on expected exchequer receipts from environmental taxes and finally, the VAT refund scheme for museums and galleries came into operation from 8 July 2024.   Latest Agent Update   Agent Update 121 is available now. Get the latest guidance and information including:   changes to form R40   more information on notifying HMRC of changes to VAT registration details   supporting your clients to claim refunds for PAYE tax overpayments   P11D and P11D(b) filing and payment deadlines.   Relaxation of rules for reporting pay advances    From 6 April 2024, any payment on account of salary which is a genuine advance and not a loan should be reported by employers via PAYE Real Time Information on or before what would have been the normal payday, as opposed to being reported on the date of payment of the advance. This applies even if the normal date of payment falls into a different tax year.   The Income Tax (Pay As You Earn) (Amendment) Regulations 2024) SI 2024/305 and the Social Security (Contributions) (Amendment No.3) Regulations 2024 SI 2024/306 are the underpinning legislation for this change.    Construction industry scheme payment deduction statements   HMRC has recently contacted us to advise that from 1 July 2024 it is now no longer possible for subcontractors in the Construction Industry Scheme (CIS) to request payment deduction statements from HMRC’s CIS helpline. Any such request should instead be made by post. HMRC has advised that this change has been made for security reasons and acknowledges that this may increase the admin burden for some taxpayers. More information on this is included in this month’s Agent Update.   Social security agreement with Gibraltar    An agreement between the UK and Gibraltar on social security coordination was implemented from 1 June 2024. HMRC’s view is that the agreement simply replaces retained EU law following the UK’s departure from the EU and works to protect the social security position of cross-border workers whilst also continuing to ensure access to the UK state pension. HMRC advises individuals from the UK who are working in Gibraltar to continue to follow the guidance on GOV.UK.   Genuine HMRC contact updated   HMRC has updated its guidance on genuine contact to provide information of how HMRC may contact child benefit applicants by email to acknowledge receipt of their claim and advise it is being progressed. In order to do so, HMRC will use the email address provided in the application and will use the subject line ‘Thank you — we’ve received your Child Benefit claim’ in the email title.   Environmental taxes   HMRC has published provisional 2023/24 data on exchequer receipts from a range of environmental taxes, including the climate change levy. Overall receipts for 2023/24 are expected to be lower than in 2022/23.   VAT refund scheme for museums and galleries    The Value Added Tax (Refund of Tax to Museums and Galleries) (Amendment) Order 2024 SI 2024/720 came into force on 8 July 2024. This adds additional museums and galleries which provide free public admission to the VAT refund scheme and removes those no longer eligible. A policy paper on the scheme is also available. This scheme supports the government’s policy of encouraging free admission to be offered by museums and galleries by enabling VAT refunds of certain purchases related to the provision of free admission.  

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.    Recently updated guidance and publications relevant to EU exit are set out below:   Notice to exporters 2024/14: customs declaration service (CDS) - exhaustion in error guidance   Customs Declaration Service error codes   Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service   Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS)   Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS)   Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service   External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service   Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS).  

Global regulations are increasingly driving a focus on sustainability reporting, requiring companies to disclose their environmental, social and governance practices, writes Miriam Donald When I became an accountant nearly 20 years ago, the intersection of business and sustainability was very different to what it has become today. I remember a university course touching on corporate social responsibility (CSR), but with more of an ethical and community lens than an environmental focus. At that time, CSR was positioned as something that was “nice to do”. Today, the landscape has changed considerably. Sustainability is becoming more and more intertwined with how businesses operate. This shift is being driven not just by voluntary sustainability reporting, but also increasingly by evolving regulatory frameworks. This evolution comes down to demand from international investors who understand that environmental risks can have a significant impact on the financial sustainability of businesses. This means that it is now necessary to upskill and find out what is required in your jurisdiction and report as needed. The International Financial Reporting Standards (IFRS) Foundation has had a busy few years. Its International Sustainability Standards Board (ISSB) released its first two sustainability standards in June 2023. The foundation has also been working hard to consolidate Sustainability Accounting Standards Board (SASB) standards and Integrated Reporting Framework and Climate Disclosure Standards Board into the organisation while also building interoperability with the Global Reporting Initiative and the European Sustainability Reporting Standards (ESRS). This consolidation drive is part of the IFRS Foundation’s goal to create one set of global standards with the aim of facilitating easy comparability of sustainability disclosures globally. Despite these efforts, reporting obligations still differ across the world. It is useful, then, to look to countries like New Zealand and Australia and draw inspiration from their sustainability reporting efforts. New Zealand was one of the first countries to legislate mandatory climate-related disclosures for about 200 businesses from 1 January 2023. These disclosure standards were developed by New Zealand’s External Reporting Board. The first 34 of these entities have now published their first climate statements, which can be viewed on New Zealand’s Companies Office register. These disclosures are mainly qualitative but encourage company boards to think differently about their strategy, with a newfound focus on how climate change might affect their operations and value chains. One of the main purposes of this reporting is to ensure that the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions. The hope is that, by bringing these effects to the forefront of board members’ minds, more climate-friendly decisions might be made in the future. Across the Tasman, Australia is also mandating climate-related disclosures for a much broader group of entities, with legislation now before parliament at the time of writing. The Australian Accounting Standards Board is developing these standards, which are expected to be closely aligned to the ISSB standards on climate-related disclosures. Reporting periods for the first entities will begin from 1 January 2025. With new regulations come opportunities. For reporting entities, responsibility for this reporting is increasingly sitting with their finance functions. They also need to be thinking strategically beyond compliance, however, to better respond to the risks and opportunities of climate-related matters. These disclosures will also be assured, and accounting practices will need to build their knowledge in this new and evolving area. As the driving force behind these disclosures and jurisdictions, the IFRS is signalling that while climate is the first focus area for disclosures, it is not the end game. Finding out what is coming down the track for your business will be important. Miriam Donald is Lower North Island Regional Manager with Chartered Accountants Australia and New Zealand

Attracting top graduate talent requires a strategic recruitment plan focused on strong employer branding, fostering internal relationships and academic partnerships, explains Mary Cloonan In today’s highly competitive job market, attracting top graduate talent is more challenging than ever. With a plethora of career opportunities at their fingertips, graduates seek firms that stand out through their values, culture and development opportunities. Organisations need a strategic and well-structured recruitment plan to engage this year’s graduate cohort. This strategy should holistically focus on brand building, celebrating the success of current graduates, nurturing strong internal relationships, establishing collaborations with academic institutions and communicating the recruitment process clearly and transparently. Building a compelling employer brand To attract top graduates, it is important that your organisation’s brand offers them what they are looking for in an employer. There are three elements to focus on in your employer brand: Corporate identity and values: Graduates gravitate towards firms that profess clear values and live by them. Firms must communicate their core values effectively, emphasising social responsibility, sustainability and ethical practices to resonate deeply with potential candidates. Employee testimonials and success stories: Showcasing current graduates’ real-life success stories of through social media, blogs and video testimonials can powerfully augment a firm’s brand. These narratives provide authentic proof of the professional growth and development facilitated by your company, making it an attractive place for ambitious graduates to start their careers. Interactive engagement: Proactive engagement through webinars, virtual career fairs and interactive Q&A sessions enables potential recruits to gain insights into the company’s culture and employee experiences. This level of interaction can significantly boost a firm’s appeal, drawing in candidates who are a good cultural and ethical fit. Fostering strong internal relationships Creating an environment that promotes growth and development is crucial in maintaining a dynamic and supportive workplace. This is achieved by understanding and responding to the current team’s needs and ambitions by: Mentorship and comprehensive training: By implementing robust mentorship programs and offering comprehensive technical and soft skills training, companies can equip graduates with the necessary tools to succeed and integrate seamlessly into the professional environment. Listening to learn: Regular feedback sessions help cultivate a culture of openness and ongoing development, which can be used to tailor training programs and career development initiatives to suit individual and organisational goals. Recognition and advancement opportunities: Publicly acknowledging and rewarding graduates’ achievements helps to foster a motivational workplace atmosphere and demonstrates the firm’s commitment to investing in its employees’ success. Collaborating with academic institutions Forming strategic alliances with universities and colleges is essential to accessing emerging talent and enhancing brand visibility among students. Collaborations that offer students practical experience and internship opportunities allow companies to assess potential employees in real-world contexts, benefiting both students and employers. By participating in educational programs and delivering workshops, companies provide valuable industry insights and help demystify the professional world for students, preparing them effectively for their future careers. Firms contributing their expertise to academic curricula ensure that the education provided is relevant and up to date, enhancing graduates’ employability and ensuring they are well-prepared for their professional journey. Transparently communicating the recruitment process Clear and proactive communication about the recruitment process is crucial for setting correct expectations and creating a positive candidate experience. The firm’s careers page should clearly detail each step of the recruitment process, from application to selection, explaining it and reducing applicant anxiety. A comprehensive FAQ section, along with supportive materials such as year-by-year training breakdowns and process videos, provides candidates with all the necessary information to navigate the application procedure confidently. Finally, videos, photography and tagged posts featuring current graduates talking about their experiences can give insights into the day-to-day realities of working at the firm and showcase the vibrant community and dynamic work environment. A proactive and transparent recruitment strategy is paramount in these competitive times. By effectively building a robust brand, fostering strong internal relationships, empowering graduates, forming educational partnerships and clearly articulating and showcasing the recruitment journey, firms can attract, engage and retain top talent, paving the way for sustained success. Mary Cloonan is the founder of Marketing Clever

Managing a new generation of workers and hybrid working effectively requires regular performance conversations, clear direction and strategic alignment with business goals, writes Seán McLoughney A new generation of workers requires a different approach to managing performance. Younger employees need and expect more frequent conversations about their performance and want clarity and direction in terms of their work and career progression. Another issue facing managers is how best to manage working from home. The debate over hybrid working arrangements is ongoing, but there is a lot of research on the benefits and pitfalls of remote working. While managers may prefer that their team works in the office, people often prefer the flexibility of working from home at least two days a week. This presents a problem when it comes to managing performance, however. Managers tend to manage performance based on what they see and hear and their interactions with their team. There is a lack of visibility when people work from home. This can lead to people feeling that their efforts are not being recognised and valued by management. Here are simple steps managers can take to overcome these issues. Give time and support Show you care about your team by giving them your time and real support. Setting aside at least one hour once a quarter to focus on performance and career progression is the minimum that talented people expect. This investment in your team is important in retaining your best people. On average, people will give you 1,900 hours of their time per year. How much one-to-one time do you give them as their manager? Regular performance conversations are about more than just discussing people’s key targets and objectives. These conversations also allow you to check in with people who work from home and keep up to date with what they are working on. Regular and meaningful conversations and feedback underpin a high-performance culture. Discuss the business plan Give context to your team’s performance by discussing your organisation’s business plan. Your role is to translate the business strategy at its highest level into what it means for the team and each individual within it. People are more engaged when they know that their work matters. Discussing the business plan will show them how they can make a positive contribution to the business. At a team meeting, outline the key areas of the plan and how it impacts the team. Describe what success looks like by the end of the year. Ask the team what they think needs to happen to achieve these expected results. You can also encourage everyone to set goals for themselves based on this discussion. This will increase personal responsibility by fostering a sense of ownership for their performance. Discuss strategy Always explain the business reason when goals change. Surviving in a dynamic business environment requires people to be flexible and agile because companies need to adapt to market conditions. Ensure that everyone’s priorities are aligned with current team goals to stay on top of your ever-changing demands. This will encourage your team to focus on what matters to your business in the present moment rather than spending time working on goals set at the start of the year, which are now outdated. Regular performance conversations will bring clarity and direction to your team. They provide managers with a great platform to communicate expectation levels and ensure that their efforts are focused on the current priorities that matter. Show real support If the achievement of your business goals is dependent on how you manage your team and new team members, then it is important to show real support. Set aside regular time for meaningful performance conversations regardless of where your team members are located, bring context to their efforts and ensure everyone is focused on current priorities. Seán McLoughney is the founder of LearningCurve and author of Time Management, Meaningful Performance Reviews and Slave to a Job, Master of your Career, all published by Chartered Accountants Ireland

Last week it was confirmed that Lord Livermore has been appointed to the role of Financial Secretary to the Treasury (FST) in the new Labour government. The FST is the Minister responsible for a range of areas, including HMRC and tax policy. Accountancy Daily sets out more on what might be expected from the new Minister and his previous roles and experience in government. As the dust begins to settle after the UK General Election with new Ministers sworn in last week, the Labour government began preparing for the opening of parliament which took place earlier this week.  This took place on Wednesday 17 July with the King’s Speech outlining the new Labour government’s legislative agenda for the next year. More on this will feature in Monday's edition of Chartered Accountants Tax News. The date for Labour’s first budget is also expected to be confirmed before MPs break up for summer recess at the end of next week. 

The second 2023/24 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment on or before midnight on Wednesday 31 July 2024. Each payment on account is half of the previous year’s tax bill. Information on time to pay arrangements and how to apply is available on GOV.UK.  Anyone who is self-employed is required to make two payments on account for 2023/24 unless:  Their 2022/23 Self-Assessment tax bill was less than £1,000, or  More than 80 percent of all the tax owed in 2022/23 was deducted at source, for example via PAYE.  If a taxpayer knows that their tax bill for 2023/24 is going to be lower than that in 2022/23, a claim can be made to HMRC to reduce payments on account.  Each payment on account made should be 50 percent of the person’s total income tax and Class 4 NICs liability for 2022/23. If the final tax liability in 2023/24 is greater than the total payments on account made, a balancing payment will be due on or before 31 January 2025.   

In this week’s miscellaneous updates, HMRC has launched a new VAT registration estimator tool, and it is also confirmed that from next month, VAT registration changes will only be able to be made by agents online. A webinar is being held later this week on the new additional information form for the creative sector reliefs and guidance has been published on the abolition of stamp duty land tax (SDLT) multiple dwellings relief (MDR). Scotland’s visitor levy legislation has completed the necessary legislative stages in the Scottish parliament and finally, in an update on GOV.UK, HMRC no longer automatically issue PAYE refunds.  HMRC launches VAT registration estimator tool  HMRC has now launched its new VAT registration estimator guidance tool. A Welsh version of the tool is also available. The tool is designed to help businesses estimate what registering for VAT may mean for them and has been developed after feedback from small businesses suggested that an online tool would be helpful to show when their turnover could require businesses to register for VAT and the potential effect on profits.  The estimator also links to further information about the registration process and aims to assist businesses when considering voluntary registration by allowing the business to experiment with different levels of inputs and outputs in the tool.   The accompanying Press Release confirming the tool’s launch also contains a helpful reminder of the UK’s VAT registration rules.  VAT registration changes online only by agents from 5 August  From Monday 5‌‌‌ August‌‌‌ 2024, any request by an agent to change a client’s VAT registration details should only be made using their online Agent Services Account, and not by using the VAT484 form or any other postal or electronic means. HMRC has set out more details on this upcoming change in an email.  Webinar on creative industry tax reliefs  HMRC is holding a webinar later this week on 18 July which is specifically covering the new  additional information form for creative industry tax reliefs. This new  online HMRC form must be used from 1 April 2024 by a company claiming creative industry tax relief by way of providing supporting evidence for the claim.  Abolition of SDLT MDR   As announced in the Spring Budget 2024, Finance (No. 2) Act 2024 contains the legislation which has abolished SDLT MDR. This applies to land transactions in England and Northern Ireland if the effective date is on or after 1 June 2024, subject to transitional arrangements. HMRC has therefore updated its SDLT manual to include guidance on this.   MDR is still available in Scotland under its land and buildings transactions tax regime. Wales is currently consulting on the potential abolition of its corresponding legislation within the land transactions tax regime.   Scottish visitor levy passed   The legislation which will implement Scotland’s new visitor levy has passed all stages in the Scottish parliament. The Visitor Levy (Scotland) bill will enable local authorities in Scotland to apply a levy on overnight stays. All revenue raised is to be reinvested in services and facilities largely used by tourists and business visitors. Councils that will be seeking to introduce the levy will only be able to do so after having consulted with local communities, businesses, and tourism organisations. It is expected that the earliest the levy could come into force is spring 2026.   HMRC no longer automatically issue PAYE cheque refunds  In an update on the GOV.UK page on tax overpayments and underpayments, HMRC has essentially confirmed that it no longer automatically issues PAYE refunds by cheque. Individual employees must instead register a claim online to ensure they receive any refund due. This change is another strand in HMRC’s ongoing strategy to drive services online usage.   Cheques are still available if requested, but these will take up to 42 days or six weeks to issue compared to five working days if the refund is instead claimed online.   The July 2024 Employer Bulletin was also recently published and sets out updates on a range of areas for employers. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Moving processed or repaired goods into free circulation or re-exporting them  Transit newsletters — HMRC updates  Declare your goods to authorised use and completing authorised use  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status  List of customs training providers  Search the register of customs agents and fast parcel operators 

Tax measures to be introduced in Budget 2025 must not add to the already heavy compliance burden facing SMEs and promote greater investment in domestic business. Kim Doyle explains why The Irish economy needs both domestic direct investment (DDI) and foreign direct investment (FDI) to grow and diversify while supporting a sustainable tax base. According to the CSO Business in Ireland 2021 report, small and medium enterprises (SMEs) accounted for 99.8 percent of all businesses and over 69 percent of persons employed in Ireland. This demonstrates the vital role SMEs play, acting as the “engine room” of the Irish economy. While there are numerous forces already driving a successful entrepreneurial landscape in Ireland – such as a skilled workforce, digitalisation and technological advances – our tax system is critical and should act coherently to drive domestic investment and support a strong SME ecosystem. Additional tax measures should be implemented to build stronger DDI and provide an attractive entrepreneurial landscape for SME growth and scale-up. Now is the time. Budget 2025 is a couple of months away. New tax policies and changes to current tax measures may be announced on budget day. I hope the following tax measures for SMEs are included. Capital gains tax retirement relief Age limits on retirement relief of €10 million for individuals aged between 55 years and 69 years and €3 million for individuals from 70 years, where the disposal is within the family and made on or after 1 January 2025. These limits will deters the transfer of family businesses during the lifetime of an entrepreneur and presents problems in the transfer of a family business to the next generation. While a business may be valuable and exceed these limits, there may not be liquid funds to discharge a tax liability arising on a transfer of that business. This would be for the benefit and longevity of the business. This may delay family successions until such time that the transfer occurs as part of an inheritance. Such an outcome is counterproductive, considering that the purpose and intent of retirement relief is to facilitate transfers of businesses to the next generation at an optimum time for the business rather than on the death of the owner. Stamp duty relief Currently, relief from CGT (e.g. retirement relief, revised entrepreneur relief) and Capital Acquisitions Tax (CAT) – e.g. business relief – may apply to the passing of a business to the next generation. Such transfers often include commercial property. There is no relief for the 7.5 percent stamp duty charge arising on the transfer of the property, however. Consanguinity relief should be extended to encourage and support lifetime transfers of business property to the next generation. Angel investor relief Angel investor relief could be simplified and conditions eased to provide the intended benefits to innovative SMEs. The reduced CGT rate of 16 percent (or 18 percent in the case of investment through a partnership) for angel investment in innovative start-ups is a positive measure and should open the door to much-needed investment. This may help the sector to grow and foster entrepreneurship in Ireland. Numerous conditions must be satisfied to qualify for this relief, however, and there are penalties for getting it wrong. Practically, this means this relief may be difficult to avail of and the flow of benefits to innovative SMEs may be hampered. The relief needs to be simplified and the conditions made less onerous in order for this relief to provide the intended benefits to innovative start-ups and their investors. Decarbonisation and digitalisation New decarbonisation digitalisation credits would assist in addressing the reality that SMEs are working to keep up to speed with mega trends in both areas. They may be doing this either by researching, developing and delivering products to address the impact of these trends or by implementing relevant technologies in the business. This could be modelled on the research and development (R&D) tax credit regime, such that a new decarbonisation credit would support businesses seeking to lower carbon emissions and accelerate the decarbonisation process.   Similarly, a new digitalisation tax credit could support businesses with their digital transformation. Simplification A review of the statutory corporation tax return (Form CT1) and the Irish tax legislation is needed.   The Form CT1 has become cumbersome in recent years, mainly due to the volume of significant tax policy changes requiring additions to Form CT1. There is an opportunity to simplify the Form CT1 and ease the administrative burden, particularly for SMEs not within scope of recent tax policy changes driven by international tax reform.   The establishment and ongoing work of the  Tax Administration Liaison Committee Sub-Committee on the Simplification and Modernisation of Business Reliefs for SMEs is an important forum for stakeholders to work together to identify opportunities to simplify and modernise the administration of business supports. Now, though, the government must review other areas of the Irish tax system. Irish tax legislation, particularly the Taxes Consolidation Act 1997, should be reviewed with a view to simplification as a matter of priority. The SME Test The Department of Enterprise, Trade and Employment’s SME Test is to help policymakers consider the potential impact of any new legislation or regulation in terms of the regulatory burden it places on SMEs. The SME Test should support the design of tax policies that reflect less stringent compliance requirements for SMEs. It is vital that new tax policies do not add to the already heavy compliance burden facing SMES, while also providing support, opportunities for growth and promoting greater domestic investment. Kim Doyle is Director of Tax Policy and Technical Services at Deloitte

As Ireland enters its third year of gender pay gap reporting, Andrew Egan and Aoife Newton outline legislative updates, bonus gap impacts and new reporting requirements As many employers in Ireland commence their third year of gender pay gap reporting, it is essential to understand the legislative changes and analyse bonus trends following the introduction of the Gender Pay Gap Information Act 2021, and identify important changes for employers to note as they begin this year’s gender pay gap reporting cycle. Bonus gap analysis A fundamental feature of the Gender Pay Gap Information Act 2021 reporting requirements relates to bonus gap calculations. These calculations are used to understand the disparity in bonus payments between genders within an organisation. Bonus payments can also considerably impact total remuneration (as bonus pay is built into ordinary pay results), affecting the overall pay gap within an organisation. As a result, the observation of a large bonus gap is often reflected in the overall pay gap. Pay gap trends More than 1,000 gender pay reports from 2022 and 2023 have been analysed by KPMG’s data team to identify key trends in Ireland across different industries: From 2022 to 2023, the average bonus gap in Ireland rose by 1.5 percent, up from 16.5 percent to 18 percent. In 2023, 87 percent of the employers analysed reported a bonus pay gap in favour of men. The most common reason cited by employers for their pay gap related to a higher proportion of men occupying senior roles. The bonus gaps are biggest in the insurance, real estate and construction, financial services and professional services industries. Senior roles are typically associated with higher bonus remuneration. We expect bonus and pay gaps to persist if women remain underrepresented at senior levels. Correctly determining the cause of an employer’s gender pay gap is critical in addressing the problem and improving the gap in future reporting cycles. We are seeing employers having to more clearly define their bonus pay models to ensure greater transparency and consistency of treatment of men and women to reduce or eliminate bonus pay gaps, which in turn will positively impact their overall gender pay gap. Gender Pay Gap Reporting in 2024 In late May 2024, the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 (the 2024 Regulations) were introduced. Following this, the Department of Children, Equality, Disability, Integration and Youth updated its Gender Pay Gap FAQs for employers document (the FAQs) and the associated Guidance Note document. The 2024 Regulations amend the original Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (the 2022 Regulations) to reflect the obligation of relevant employers with over 150 employees to report on their gender pay gap in 2024. This reporting threshold will expand to those with over 50 employees in 2025. The 2024 Regulations also provided an update on the definition of ‘basic pay’ to include payment when an employee is on certain types of statutory leave (adoptive leave, maternity leave, parents leave (or transferred parents leave) paternity leave (or transferred paternity leave), entitling them to a corresponding social welfare benefit. Employees entitled to the relevant benefit for each of these types of leave under the Social Welfare Consolidation Act 2005 shall now have these payments included as a component of their basic pay calculations. Employers should incorporate salary top-ups to employees on statutory leave as listed above when calculating employees’ pay. The FAQs guides employers who do not pay a top-up to employees to ‘report on the benefit the employee is paid where eligible.’ Online reporting We understand that the development of an online reporting system is underway. We expect this will consist of a central portal where all employer data will be uploaded. While we think it is unlikely this will be in place for 2024 reporting, we are awaiting further details on its implementation and whether its operation will move the reporting deadline from December to November in future years. This change would result in employers having five months from their June snapshot date to report on their gender pay gap, instead of the current six-month period. Gender pay gap and shares One of the most significant changes brought about by the 2024 Regulations was the shift in the approach to how share options and interests in shares are treated for gender pay gap calculations. After the 2022 Regulations were introduced, many employers struggled with the application of these elements as a part of bonus remuneration calculations. Share options and interests in shares are now included in the benefit-in-kind calculations rather than under bonus remuneration. The definition of benefit-in-kind now includes “any non-cash benefit of an estimated monetary value and, for the purposes of these regulations, includes share options and interests in shares.” Shares (distinct from share options and interests in shares) are still part of bonus pay and, as such, the value of shares issued during the reporting period should be included in bonus remuneration calculations. Andrew Egan is Director at KPMG and Aoife Newton is Director at KPMG Law

Geraldine Gallagher explains the challenges for people returning to work following maternity leave, and how HR managers and leaders can best support these employees When a person returns to work following maternity leave, everyone in the workplace may see her as the same person who went on maternity leave. However, she is no longer that same person, due to her new identity – a working parent with competing responsibilities. She may not know quite who she is anymore and this is part of the reason that transitioning back to work is more challenging for working parents than managers usually realise. However, we can do a lot about making it better. Supporting women returning to work following maternity leave is not just a matter of ‘the right thing to do’. It impacts the bottom line, makes good business sense and is a strategic opportunity for employers. Maternity leave is a short period in a woman’s overall career, which presents organisations with an opportunity to implement supportive policies and practices to retain top talent, enhance diversity, boost employee engagement and drive overall business success. Embracing these opportunities creates a win-win situation for employees and employers, leading to a more dynamic, inclusive and productive workplace. The impact of maternity leave HR managers and leaders need to be aware of the impact going on maternity leave and returning can have on women. By not being fully aware of the transition your employees are going through, you miss the opportunity to fully engage, retain and support them. There are several considerations you should be aware of for your returning employees. When the individual has returned, please remember they are still navigating a personal transition; not just physically but emotionally and psychologically. Re-assure them that what they are feeling is normal and it doesn’t change how you see them. The individual now has a new identity as a working parent. For first-time parents, this is a new identity to navigate. For parents who have expanded their family, they also have the new identity of a working parent to several children, which also comes with additional responsibility. The individual may also be experiencing a crisis of confidence because of being out of the workplace for a period. When they return, it will take time for the individual to gain a sense of belonging and to re-build their confidence. Transition into and out of maternity leave Performance reviews and the process of engaging with reviews while the individual is on maternity leave; Promotion opportunities while on maternity leave, and who will communicate these to the individual; Further career opportunities; How the individual prefers to keep up to date with company communications while on maternity leave; and The company policies and benefits/services available to them now, while on maternity leave and when they return, such as sleep consultants, breastfeeding support and maternity transition coaching support. When a member of staff is returning from maternity leave, the lines of communication should remain open to discuss: What the individual may need to ease their transition back. For example, some employers offer a phased return or flexibility. Ensure everything the individual needs has been set up and ready for their return, including a laptop, office access, log-in details, new system user set-up and system training. Be open and clear on the individual’s role and their objectives. This prevents the individual from questioning their place in the workplace. Re-boarding process: It can be useful to assign a “buddy” during this stage to support the individual both emotionally (especially if their buddy is a working parent) and administratively, such as helping them get up to speed with new systems or processes. Offer maternity transition workshops or one-to-one maternity transition coaching support with an expert who can guide and support them. Employers should consider Keeping in Touch days to maintain connections and ease transitions for employees. Ultimately, embracing these opportunities benefits both employees and employers, fostering a supportive organisational culture. Geraldine Gallagher is a Leadership and Transition Coach at Inspire Coaching

On July 5th 2024, Minister Peter Burke signed into law S.I. No. 336/2024 European Union (Corporate Sustainability Reporting) Regulations 2024. The Regulations bring the CSRD into Irish law and amend Irish legislation, including the Companies Act 2014. The CSRD entered into force on 5 January 2023, following approval at the European Parliament and EU Member States, including Ireland, were required to transpose this into local legislation within 18 months. Under the CSRD, certain companies are required to report on various sustainability matters in accordance with the European Sustainability Reporting Standards (ESRS). In addition to this, some companies who will not be required to report under the ESRS may have to provide sustainability information to companies in their value chain who are reporters under the standards. A key requirement of the CSRD is that assurance must be obtained in relation to sustainability information reported by an entity in scope. The Statutory Instrument amends Irish legislation, including the Companies Act 2014 and also introduces new sections into the Act. Amongst other things, the legislation addresses the following; The types of companies who will be subject to the CSRD, and the years in which they will have to report The requirement that companies within scope report their sustainability information in accordance with the European Sustainability Reporting Standards The introduction of new sections 1585 to 1648 to the Companies Act 2014 which address Sustainability Reporting The Companies who will be in scope for the CSRD in 2024, 2025, 2026 and 2028 Certain reporting exemptions for subsidiaries Consolidated sustainability reporting Electronic reporting format Additional documents to be annexed to applicable companies' annual returns Reporting obligations for certain branches of non-EU companies Transitional provisions which will apply until 6 January 2030 Provisions relating to how sustainability assurance engagements will be carried out, including the process for adopting assurance standards, reporting requirements and details of how opinions should be presented and signed Audit committee responsibilities for public interest entities relating to sustainability reporting Process for individuals or firms to apply for approval to act as a sustainability assurance service provider Transitional provisions available to certain persons which will exempt them from certain requirements to be approved as a sustainability assurance service provider Approval process for third country auditors or auditors from EU Member States to become sustainability assurance service providers in Ireland Oversight of the system of quality assurance by the Supervisory Authority and how the assurance of sustainability information will be supervised and regulated   The Institute's technical team is currently reviewing the legislation and liaising with members of their technical committees and will provide further detail in due course which will be available on the Institute's website.    

Members are reminded that all legal and natural persons are bound by the obligations in the sanctions. Since publication of the Guidance on Sanctions by CCAB and CCAB Ireland, we have received the following updates from the Department of Finance. This is summarised material and should be read in conjunction with the official lists and Statutory Instruments. The relevant Statutory Instruments are, or will shortly be, available on the Irish Statute Book. Further information on restrictive measures can be viewed also at: The Central Bank of Ireland D/Foreign Affairs – who also have domestic guidance on the implementation of sanctions at the bottom of that page The measures agreed at an EU level are also outlined on the EU Council website. Email Received 4 March 2022 from Department of Finance Please find below details of the most recent measures imposed on Belarus in response to its unprovoked and unjustified military aggression against Ukraine: An EU travel ban and asset freeze in respect of 22 persons associated with the Belarusian military and Ministry for Defence. These measures are imposed under the existing sanctions regime in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. Further restrictions on trade between the EU and Belarus, relating to the trade of goods used for the production or manufacturing of tobacco products, mineral fuels, bituminous substances and gaseous hydrocarbon products, potassium chloride (“potash”) products, wood products, cement products, iron and steel products and rubber products. Additional restrictions on exports of dual-use goods and technology and related services, as well as restrictions on exports of certain goods and technology which might contribute to Belarus’ military, technological, defence and security development, together with restrictions on related services. Email Received 2 March 2022 from Department of Finance Please find below details of additional measures imposed on the Russian Federation in response to its unprovoked and unjustified military aggression against Ukraine: A ban on the sale, supply, transfer or export of Euro banknotes to Russia or to any natural or legal person, entity or body in Russia is being introduced. This includes the Russian government and the Central Bank of Russia. The removal of 7 Russian banks from the SWIFT system with a 10 day lead in time. This includes any entity that the listed banks own 50% or more of. The banks affected are: Bank Otkritie Novikombank Promsvyazbank Bank Rossiya Sovcombank VNESHECONOMBANK (VEB) VTB Bank A prohibition on investing in, participating or otherwise contributing to projects co-financed by the Russian Direct Investment Fund. A prohibition on broadcasting or enabling the broadcast of state-owned media Russia Today or Sputnik in the EU.

Last week saw the Labour Party sweep to power in the UK’s general election. The Institute’s Tax team and Northern Ireland Tax Committee are now considering how we can engage with the new Labour government on key tax policy issues such as HMRC services, Making Tax Digital for income tax, tax complexity, and a lower rate of corporation tax for Northern Ireland. But what does the change in government mean for UK tax policy? Read on for what we might expect to see in the coming weeks and months. The former Shadow Chancellor of the Exchequer, Rachel Reeves, has been appointed to the role of Chancellor of the Exchequer. As the first ever woman Chancellor, she made her first speech to His Majesty’s Treasury staff on 5 July. And although not officially confirmed, it is expected that James Murray will take up the role of Financial Secretary to the Treasury (FST), having been shadow FST prior to the election.  Normally after a general election, the new government would hold an emergency budget shortly thereafter. That is not expected to happen this time around although there has been speculation that parliament’s summer recess might shortened. A new speaker is to be elected later this week on 9 July and parliament will open on 17 July with the King’s Speech followed by debates in the afternoon.   The Charter for Budget Responsibility, under normal circumstances, requires the Chancellor to give the Office for Budget Responsibility (OBR) at least ten weeks’ notice of a fiscal event and to formally commission a forecast. It is then up to the Chancellor to decide on the date of that fiscal event. Once the date is set, the signatories of the Memorandum of Understanding (OBR, HMT, HMRC, and the Department for Work and Pensions) agree a timetable for that fiscal event.   In a speech prior to the election and in her first speech as Chancellor on 8 July, the new Chancellor confirmed that Labour will not hold a budget without forecasts from the OBR. This means that the first budget under the new government will take place in the autumn hence an emergency budget shortly after last week’s election has been ruled out.   More details of Labour’s expected tax policies are set out in a news story from last month and it should also be noted that the new government has also committed to holding just one fiscal event per year, a departure from the bi-annual Autumn Statement and Spring Budget process of the last few years.  On the Northern Ireland front, over the weekend the newly appointed Secretary of State Hilary Benn MP made his first visit to Northern Ireland since taking up the role and met with the Assembly’s First and deputy First ministers. 

From 1 September 2024, the sale of voluntary carbon credits will be standard rated for VAT purposes if the place of supply is the UK. Revenue and Customs Brief: VAT treatment of voluntary carbon credits (VCCs) sets this out in change in treatment in more detail.  VCCs are tradable certificates that verify the reduction or removal of one metric tonne of carbon dioxide (or equivalent greenhouse gases) from the atmosphere. These differ from compliance market credits which are used within regulated emissions trading schemes.   This change in treatment reflects HMRC’s changed view that a secondary market for VCCs has emerged, and that businesses now incorporate VCCs into onward supplies.   As a result, from 1 September 2024, the sale of most VCCs will be treated as a taxable supply for VAT at the standard rate, if the place of supply is the UK. However, certain VCCs activities will continue to fall outside the scope of VAT. More detail is available in the Brief, and in the relevant HMRC manual.   

In this week’s miscellaneous updates, HMRC has advised that some 2022/23 self-assessment tax returns have yet to be processed and some taxpayers have had voluntary Class 2 National Insurance Contributions (NICs) incorrectly refunded. HMRC is also running a range of webinars over the next two weeks on various topics relevant to employers.   Delays in processing some 2022/23 self-assessment returns  HMRC has advised there is currently “a small backlog in processing returns for 2022/23”. Over the next few months “additional resource is to be brought in to help manage the existing backlog.” HMRC will advise in due course on how this may impact when filing 2023/24 returns if the taxpayer’s 2022/23 return has not been processed at that time.  Erroneous refunds of voluntary Class 2 NICs paid via Self-Assessment  HMRC has asked us to share the below message. We will update you on any further developments when details are available.  “We are aware some taxpayers with profits below the small profit threshold (voluntary payers) who have paid Class 2 NICs via SA may have had their Class 2 NICs refunded in error. Unfortunately, we are not able to identify how many, or which taxpayers are affected.   Background  An issue caused a payment file to be processed later than usual, which meant files which should have been processed on 02/02/2024 were not processed until 05/02/2024. We are now putting measures in place to make sure this does not happen again.  What this means for taxpayers  Affected taxpayers will have received a customer service message advising their payment has been paid too late and either:  Received a refund of Class 2 NICs  Not received a refund of Class 2 NICs with payment showing as a credit in SA or with payment allocated to an outstanding balance in SA, or   With payment allocated to a different SA debt.  We apologise for any inconvenience caused.   Taxpayers can check their account online or in the HMRC App to see if their Class 2 NICs are recorded on their NI record. If the year is not showing as full or they are unable to access their online accounts, they can ring the NI helpline for assistance. We have updated our advisor guidance accordingly.   The Agent Online Forum team will proceed to update the relevant thread.”  HMRC webinars for employers  HMRC is holding the following webinars over the next two weeks on a range of topics relevant to employers. Click each link below to book onto the webinar.  10 July: tax implications of an employee having more than one workplace   9 and 11 July: reimbursing employees for travel costs  16 July: tax treatment of phones, internet and homeworking.