Last month we highlighted the key aspects of how the 2025 Spending Review will specifically impact on HMRC. Overall, the Spending Review announced an additional settlement for HMRC of £0.5 billion in 2026/27 which will be used to “make HMRC a digital-first organisation”. The Department was also set two ambitious targets related to this; that by 2029/30, 90 percent of taxpayer interactions will be digital self-serve and HMRC will have reduced the number of letters it sends by 75 percent. The Institute recently met with HMRC to discuss this.    In the meeting we highlighted to HMRC how ambitious these targets are and expressed concern about the impact on current service levels as HMRC seeks to achieve these targets. The transition to a digital-first organisation must not result in a deterioration of service levels and HMRC will need to communicate clearly how it will deal with incoming post as it moves to becoming digital first.     We also asked when HMRC expects to publish both its digital roadmap and its broader transformation roadmap which will be critical elements in seeking to achieve these targets. HMRC noted that these are expected to be published over the summer and both will set out in more detail how HMRC intends to achieve the targets set by government. The Institute will continue to discuss this and service levels with HMRC; we welcome your feedback at any time on this by email to tax@charteredaccountants.ie.     The House of Lords Treasury Committee is currently conducting an inquiry into the Spending Review and continues to take oral evidence from experts.  

The Institute is pleased to advise that HMRC will be delivering a webinar for our members on Tuesday 16 September 2025 on Making Tax Digital for income tax. The webinar will cover key technical points and readiness tips ahead of the first phase of mandation from April 2026 for sole traders and landlords with gross income above £50,000. There will also be an opportunity to ask questions. More details, including a booking link, will be available in the coming weeks.  

Last week we highlighted a request from HMRC for agents to participate in phase two of testing the VAT Import One Stop Shop (IOSS) system in Northern Ireland, the system which allows business to report and pay VAT on imports of low value goods to consumers. As mentioned HMRC is now working on the phase of delivery of this which will allow agents to register and act on behalf of businesses. HMRC is seeking agent volunteers to participate in testing during phase two. Read more about how you can get involved in this unique opportunity and email tax@charteredaccountants.ie if you would like to participate or require more information.  

In this week’s detailed miscellaneous updates which you can read more about below, HMRC is seeking participants for a 12-month project aimed at improving corporation tax guidance, and a number of changes have been made to the personal tax query resolution service.   In other news this week:    The Institute for Fiscal Studies has published a paper which asks what role taxation can/might play in reducing inequality in low/middle-income countries,   HMRC has published a guidance collection page for taxpayers on setting up and running a small business, and   HMRC is holding webinars this week looking at statutory maternity and paternity pay and statutory sick pay.   Corporation tax guidance research project   HMRC’s Comms and Guidance team are currently conducting research as part of a 12-month project aimed at improving corporation tax guidance. According to HMRC, this initiative is being conducted in response to reports that there is a lack of understanding around certain tax principles.   The project will explore the following four phases:   wholly and exclusively,   capital v revenue,   record keeping, and   director’s loans.   The team is currently in the discovery phase for wholly and exclusively, the goal being to understand how organisations manage and submit expenses on their corporation tax return, and how well they grasp the relevant tax principles. HMRC’s team is keen to speak with:   Limited companies,   Foreign companies with a UK branch or office,   Clubs, co-operatives, or other unincorporated associations (for example: community groups, sports clubs), and   Agents and accountants acting on behalf of these taxpayers.    They are especially interested in micro-entities and small companies with:    An annual turnover of no more than £10.2 million, and   No more than 50 employees.    The research is being undertaken via a 60-minute MS Teams session and will require completion of a consent form and privacy notice in advance. As a thank you, participants will receive a £60 Love2Shop voucher, redeemable at a wide range of high street and online retailers.    If you or a client would be interested in participating, please contact customerengagementforums@hmrc.gov.uk.    Changes to the personal tax query resolution service for agents   Earlier in the year we highlighted the launch by HMRC of a new enquiry service for agents, the personal tax query resolution service which was launched on 31 March. HMRC has been analysing and improving the service since then to make it quicker and easier to access; this includes introducing interactive guidance and enabling agents to access the service using the 'Where's my reply' tool instead of emailing HMRC. These changes are now live.    The ‘Where’s my reply’ tool should first be used by agents to check that their query meets the eligibility criteria before the agent subsequently submits their query. Queries should therefore no longer be sent by email. The aim of this change is to enhance the user experience, save time, and increase HMRC’s efficiency so that the relevant teams can focus on dealing with eligible queries and responding within the relevant timeframes. The guidance in the ‘Tax agents handbook’ has since been updated to reflect this.    By way of reminder, this service is specifically for PAYE and Self-Assessment queries for individuals; it is not available for employer related queries. Before using the service, you must:    have checked the ‘Where’s my Reply’, and at least 20 working days must have passed from the reply date given by the tool,   have tried at least twice to resolve the query by contacting HMRC’s Agent Dedicated Line or Agent Webchat, and   not have already initiated a complaint with HMRC related to the query.    In response, HMRC aims to:    make contact with the agent within 48 hours to acknowledge their query,   provide an update every five working days by phone, and   resolve the query within 20 working days or make an action plan if this is not possible.    To help HMRC resolve queries within the set timeframe, agents are asked to:    provide all relevant information and documentation,   respond promptly if HMRC asks for clarification, or more information,   not to chase a query before the 20 working days have passed, and   not to use this service to chase repayments. 

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 most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC is seeing an increase in applications to the UK Internal Market Scheme and have developed a document setting out helpful hints and tips to help minimise errors when applying and speed up the authorisation process. And finally, the new UK-US Trade deal came into force last week.  Miscellaneous guidance updates and publications   This week’s miscellaneous guidance updates and publications are as follows:  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service,   Simplified procedures exclusion list of procedure and additional procedure codes for CDS,   Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS),   Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text,   Appendix 2: DE 1/11: Additional Procedure Codes,   Appendix 1: DE 1/10: Requested and Previous Procedure Codes,   Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020,   Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS),   Manage your import duties and VAT accounts,   Software developers providing customs declaration software,   Apply for repayment of import duty and VAT (CHIEF),   How to claim a repayment of import duty and VAT if you've overpaid,   Check if a business holds Authorised Economic Operator status,   Apply for a repayment of import duty and VAT in the Customs Declaration Service,   Check when you can account for import VAT on your VAT Return,   External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, and   Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service.

The Corporate Enforcement Authority (CEA) has today published its second Annual Report. The CEA writes that the Report details the CEA’s activities during 2024 in furthering its strategic objectives as set out in its Statement of Strategy 2022-2025. The Report features 22 case studies that highlight the wide-ranging impact of the CEA. Those case studies evidence a careful and tiered approach towards the utilisation of the CEA’s suite of enforcement powers. Please click the link to read the CEA press release with a summary of the highlights of the report and click to read the CEA 2nd Annual Report. 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.

From the Professional Accountancy team…... Update of 16 July 2025 :the High Court put a stay on the restriction order for four months to give the directors time to organise their affairs. It is not yet clear if the directors will appeal the decision to restrict them . Background In the  case of Downtul Limited (in liquidation ) Patrick O'Connell, Ciaran Butler and Colum Butler the liquidator of Downtul Limited (“Downtul”) sought to have two directors (the Respondents) restricted for a period of 5 years from acting as director or secretary of a company. Downtul entered a lease (“Lease”) with Stephen Court Limited (landlord) in respect of a property from which a Starbucks outlet was operated. A separate related company (Atercin Liffey Unlimited Company, “Atercin”) operated the Starbucks. Downtul did not occupy or use the leased property and had no income, or means to generate income, to discharge the liabilities arising under the Lease, including rent. There was also no evidence of any enforceable mechanism for Downtul to recover monies from Atercin to meet its liabilities. Restriction of director -acting honestly & responsibly The case established that Downtul bore the liability and burden of the Lease. The separate related company Atercin occupied and traded from the property and earned revenue from that trade. At all times since the Lease was entered, Atercin and not Downtul had occupied the Property and operated the coffee shop throughout the term of the Lease.  There was no evidence of any agreement or consideration being given to the rights of Downtul. In allowing Downtul to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which Downtul could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the Respondents failed to demonstrate responsible conduct with regard to the interests of Downtul as a separate legal entity within the Group. Mainly for the above reasons the judge was not satisfied the respondents has acted responsibly in conducting the affairs of Downtul. It was noted that a finding of illegality or unlawfulness is not required to restrict a director under S819. the fact that a transaction is not unlawful does not mean it is not relevant to assessing a director’s honesty or responsibility. The judge also said that the failure to keep proper accounting records, the omission of material disclosures from the financial statements and the failure to minute a single board meeting since 2017 are also – independently of her primary findings of irresponsibility – separate grounds on which she was not satisfied that the Respondents acted responsibly. As she was not satisfied that the Respondents acted responsibly with regard to the conduct of the affairs of Downtul the judge said she was mandated by section 819(2) to make the declaration of restriction sought by the Liquidator.   Accounting records and materiality/disclosure/corporate governance The judgement stated that there were no accounting records, disclosures in financial statements, or board minutes which even refer to the apparent arrangements between Downtul and Atercin. The financial statements make no reference to the Lease or to the receipt of monies from Atercin to pay the rent and other charges associated with the Starbucks property. This the court said underlines the lack of transparency in relation to the affairs of Downtul. Company accounts and records should contain a true and fair view of the company’s financial position. The case also considered the issue of disclosure of material transactions under FRS 102(1A) to ensure a “true and fair view” is given of the company’s financial position. The judge said that a responsible view of Downtul’s financial position would lead to the conclusion that the Lease and issues that arose with the landlord (rent suspension, legal proceedings) are matters that would be material for a user of the financial statements. The evidence and perspective of the Liquidator that these items collectively are material and significant for Downtul was accepted by the court. The judge found in the particular circumstances of Downtul, and the specific evidence adduced, the books that were kept were not sufficient to demonstrate a responsible approach by the Respondents to the maintenance of accounting records such as to enable compliance with section 282 of the Companies Act 2014. the fact that it is a small company or a company with limited activity does not provide an excuse or justification for not maintaining even a minimum record of Downtul’s transactions (quite apart from the more fundamental issues with Downtul’s interaction with Atercin). Finally, on the corporate governance side the judge noted that the Respondents chose to become directors of more than 170 and more than 200 companies respectively. Being a director of so many companies brings with it onerous and important responsibilities. She was not suggesting this is a light task when the Respondents are responsible for some 150- 200 companies, but it was the Respondents who made the decision to incorporate and direct the affairs of such a significant number of companies. The fact they have so burdened themselves cannot absolve them of the obligation to separately discharge the duties incumbent on them in each of those roles. The only question is whether they acted responsibly with regard to the affairs of Downtul. In the absence of any record of a meeting or decision with regard to Downtul from 2017 onwards, she simply could not be, and was not, satisfied in that respect. Conclusion The judgment contains an extensive examination of the grounds for restricting a director under section 819 of Companies Act 2014. There are other useful aspects to this judgment also, including for example an account of the relevant duties of expert witnesses. Readers should note that the judge found that the respondents discharged the burden of showing they acted honestly. However, because she found they had not acted responsibly this was enough to trigger the operation of the restriction provisions in section 819. It should also be noted that the directors have been restricted for 5 years, not disqualified. Restricted means that the person cannot act as a company director (or secretary) for 5 years unless the company of which they wish to be director has an allotted share capital of €100,000 (in the case of companies other than PLCs) with each allotted share to be paid for in cash. Readers can find out more about disqualification of directors in the Corporate Enforcement Authority’s very useful note on the subject CEA Information Note 2024/1 -Circumstances leading to disqualification under the Companies Act 2014 and the associated consequences. 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.                    

The Inspiring Excellence 2025 series continued on 26 June with the highly recommended Andy Fell – coach, speaker and business consultant. This session focused on how business leaders can make best use of their time.  Andy presented some simple, practical takeaways based around 11 key frameworks that help busy professionals to be less busy but more brilliant. There was great feedback from those who attended the webinar. You can see Andy's webinar slides here, and a recording of the webinar here.

Revenue has updated its guidance on Relevant Contracts Tax: Relevant Operations clarifying the treatment of RCT on contracts involving both the construction of property and the sale of land. The guidance also sets out how RCT applies to the deployment of a temporary installation on a site. The updated guidance states that where a contract includes both construction services and the supply of land, only the construction services’ element is subject to RCT. The construction services are also liable to VAT on a reverse charge basis. RCT and the VAT reverse charge do not apply to the consideration for the sale of the land. Where the contract provides for a single consideration covering both the construction services and the sale of the land, the consideration needs to be allocated proportionally by the principal.

Revenue has updated its guidance in Waiver of exemption: Transitional Measures following the High Court judgment in Killarney Consortium C v Revenue Commissioners [2024] IEHC 732. The guidance confirms that from 20 December 2024, any cancellation amount resulting from the cancellation of a waiver will not be collected by Revenue. Prior to the introduction of the new system for VAT on property (from 1 July 2008), leases were divided into short leases (those for a period of less than 10 years) and long leases (those for a period of 10 years or more). In general, short leases were exempt from VAT, but a landlord could waive this exemption. Although no new waivers could commence from 1 July 2008 onwards, pre-existing waivers remained valid for a property which had been acquired by the lessor before that date. Furthermore, if a waiver was subsequently cancelled, the legislation included a clawback mechanism requiring a repayment to Revenue of any input VAT claimed in excess of output VAT paid under the waiver. The waiver cancellation provisions were the focus of the Killarney Consortium case, whereby the consortium contended that EU VAT law does not impose a clawback solely because the level of input VAT deducted exceeds the output VAT paid. The High Court, in upholding the decision of the Tax Appeals Commission, held that the waiver cancellation in these circumstances was contrary to EU law and the principle of fiscal neutrality. The court affirmed that where a business is fully engaged in taxable supplies it is entitled to deduct input VAT on purchases made for the purposes of those taxable supplies.

The latest UK tax tidbits features updated guidance in a wide range of areas. Employment intermediaries reporting requirements, Check if you're an employment intermediary, How to get an agent code for Corporation Tax or Self-Assessment, Agent authorisation: apply using HMRC paper forms, Updating your tax agent contact details with HMRC, Claim a refund of Construction Industry Scheme deductions if you're a limited company or an agent, Help with the Apprenticeship Levy and Employment Allowance — connected entities — GfC10, Check genuine HMRC contact that uses more than one communication method, Change in bonus rates for Save As You Earn (SAYE) share option schemes, Tell HMRC about a transferor or settlor who is domiciled outside of the UK (D31), Tell HMRC about a transferor or settlor who is not a long-term UK resident (D31a), Tell HMRC about a transferor or settlor who is a long-term UK resident, when transitional provisions apply (D31b), Check employment status if you work in hair and beauty, Find software suppliers for the Construction Industry Scheme (CIS), Your responsibilities under money laundering supervision, Check genuine HMRC contact that uses more than one communication method, Extra Support Team, Compliance checks: The Human Rights Act and penalties — CC/FS9, CC/FS72 DSC1 Corresponding with HMRC by email, Check if an email you've received from HMRC is genuine, Named tax avoidance schemes, promoters, enablers and suppliers, Issue briefing: Loan charge letters, Help with charitable giving on your Self-Assessment tax return, List of approved professional organisations and learned societies (List 3), Payroll Giving agencies approved by HMRC, Air Passenger Duty and connected flights, Gilt-edged securities exempt from Capital Gains Tax, Check the status of tax policy consultations, Check if a business is registered for money laundering supervision, Appeals reviews and tribunals guidance, Alternative Dispute Resolution Guidance, Named tax avoidance schemes, promoters, enablers and suppliers, Check if a business is registered for money laundering supervision, Make a subject access request to HMRC, Inheritance Tax: return of estate information (C5 (OUK) (2006)), Set up a limited company: step by step, Warning for agency workers and contractors who are moved between umbrella companies (Spotlight 71), Tell HMRC about the end of a qualifying interest in possession (IHT100b), and Report Climate Change Levy subsidies to HMRC.  

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 most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also confirmed that the implementation of CERTEX has been delayed from 28 June 2025. Delay to the implementation of CERTEX  CERTEX, the system that will verify licence data on declarations for goods movements which will replace the Automatic Licence Verification System (ALVS) for Northern Ireland, was due to commence from 28 June 2025. Last week we were advised that it has not been implemented from that date and that a new implementation date has not yet been set. Any actions traders may need to take depends on whether they are moving goods from Great Britain to Northern Ireland or from the Rest of the World to Northern Ireland. However, they should continue to follow standard processes for controlled goods in Northern Ireland, including reporting for inspections where required to do so.   Moving goods from Great Britain to Northern Ireland  Note that this delay does not affect the use of the new Common Health Entry Document (CHED) reference format on traders’ declarations which must be used from 28 June 2025. The reference format is letters followed by numbers and includes the full stop character, for example, 'CHEDA.XI.2025.1234567'.  From 28 June 2025, declarations using the existing format (e.g. ‘GBCHD2025.1234567’) will not be rejected, however HMRC is encouraging traders to use the new format in readiness for the implementation of CERTEX at a later date.  Traders will not receive CERTEX specific messages for these movements in the Customs Declarations Service (CDS) so they must continue to monitor the Goods Vehicle Movement Service (GVMS) at GVMS locations or the respective inventory system at inventory locations. For detailed guidance, please visit GOV.UK.  Moving goods from Rest of World to Northern Ireland   This delay means traders must not use the new Common Health Entry Document (CHED) format on their declarations from 28 June 2025. They must continue to use the existing format found in Appendix 5a, for example, ‘GBCHD2025.1234567’.  If they have pre-lodged any declarations using the new format these must be changed before arrival on the CDS. Failure to use the correct CHED format will result in rejections or holds on goods once the goods arrive and potential delays in getting the goods released. Traders should continue to monitor CDS for any ‘ALVS’ messages.  HMRC will provide further information in due course and has confirmed that the processes for making a declaration or obtaining a licence remain unchanged. It has also been confirmed that HMRC’s guidance on C085 still stands; no changes are being made to this. For support for goods in movement, contact the Department of Agriculture and Rural Affairs on 0300 200 7852 or email daera.helpline@daera-ni.gov.uk. For general support with freight movements, traders can contact the Trader Support Service team, or call the HMRC Customs and International Trade helpline on‌‌‌ 0300‌‌‌ 322‌‌‌ 9434‌‌‌ (textphone 0300‌‌‌ 200‌‌‌ 3719).   For support with parcels movements, traders can contact their parcel express operator. Please note this change does not impact express operators moving consumer parcels under the UK Carrier Scheme.   Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Search the register of customs agents and express operators, Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Software developers providing customs declaration software, Known error workarounds for the Customs Declaration Service (CDS), Authorisation type codes for Data Element 3/39 of the Customs Declaration Service, Reading notes for Declaration Category Data Sets: CDS Declaration and Customs Clearance Request Instructions, CDS Declaration Completion Instructions for Exports, Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS), CDS Declaration Completion Instructions for Imports, Appendix 21: Import Declaration Category Data Sets, and 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports.

HMRC has provided a further update on the ongoing calculation issues with 2024/25 Class 2 National Insurance Contributions (Class 2 NICs) which you can read more about below. In other miscellaneous news this week: In a Press Release, HMRC is urging anyone with a side hustle to check if they are self-employed and need to register for self-assessment, The Institute for Fiscal Studies says the tax system is making net zero more costly than it has to be, The minutes from the most recent meeting of the HMRC forum, the Joint Vat Consultative Committee are available, As we reminded you last week, today, Monday 30 June 2025, is the deadline to register to report for Pillar Two in the UK. HMRC has recently updated its guidance on this, HMRC’s latest News and Information Bulletin is available on our website, The latest schedule of HMRC Talking Points live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place, and Check HMRC’s online services availability page for details of planned downtime and the online services affected. Update on Class 2 NICs issue Last week we updated you on the ongoing Class 2 NICs issue which has resulted in incorrect tax calculations being issued to some taxpayers for 2024/25. HMRC has asked us to share an update on this issue which confirms that agents who receive incorrect calculations for clients “should not need to take any further action” as HMRC continues to work on a fix. The full update from HMRC is as follows: “We’re working to resolve the issue which we became aware of on 9 May affecting some Self-Assessment taxpayers in relation to Class 2 National Insurance contributions for the last tax year. The nature of the error depends on individual circumstances, but in general, customers with self-employed profits above £12,570 have seen Class 2 NICs charge of £358.80 added to their accounts when they shouldn’t have been, although in some circumstances it will be less. We’ve already taken action to correct the Class 2 NICs figure in circumstances where the information we hold has allowed us. If this applies to your clients, they will have received a message to let them know. We will correct the records of other customers after the issue has been resolved and again, notify them when we have done so, so there is no need for customers to contact us.  We are expecting to have the issue resolved by the end of July at the latest and will be correcting records before any incorrect amounts due impact the tax owed for 2024–25.  While we understand this may be concerning, we want to reassure you that there should be no long-term impact. We’d also like to reassure you that customers who may have made a payment will either be refunded or have a credit added to their Self-Assessment statement.” We are also aware that some taxpayers may have received letters telling them to object to the computation within 30 days of receipt (which some agents may also be aware of) and that incorrect Class 2 NICs calculations are continuing to be sent by HMRC even though it is working on a fix. In addition, there are scenarios where agents have correctly filed 2024/25 returns showing no Class 2 NICs liability after which they have subsequently received a letter from HMRC to say they will be correcting this when in fact the correction too is showing no Class 2 NICs liability. In response to this HMRC says: “The 30-day limit can be ignored for impacted self-employed customers as they’ll be issued with a new SA302 tax calculation letter - which is when a new 30-day limit will commence.  Unfortunately, existing incorrect Class 2 letters will continue to be issued until the fix is in place, but we are pushing for this to be done earlier than the end of July estimate we’ve been given. We believe that this issue is also the cause of instances where a letter is received by an agent after they have filed a return correctly (showing ‘nil’ NICs), stating that their return has been ‘corrected’ to ‘nil’.  This requires a slightly different fix, but it will be carried out to the same July timescale. There won’t be any new letter issued following the fix in these circumstances as there’s no correction to be made, but we appreciate that it is confusing to receive a letter which confirms the NIC but is branded as a ‘correction’. The fix will stop these letters.”  

We take this opportunity to remind you of the forthcoming deadline for 2024/25 expenses and benefits returns/employment related securities which is this coming weekend on Sunday 6 July 2025. The 2024/25 online filing deadline to apply for a PAYE settlement agreement is Saturday 5 July 2025, with payments due by 22 October 2025 (19 October 2025 if not paying electronically). Here’s a reminder of the key deadlines next month:  6 July 2025: deadline for submitting all 2024/25 P11D(b) and P11D forms (if benefits not processed via payroll) and the employee must receive their copy of the P11D,  6 July 2025: deadline for online reporting of the 2024/25 annual return in respect of employment related securities, 19 July 2025: deadline for non-electronic payment of Class 1A National Insurance Contributions (NIC) for 2024/25, and  22 July 2025: deadline for electronic payment of Class 1A NIC for 2024/25.  HMRC are continuing to hold a series of webinars for employers and payroll providers on a range of related topics. The latest webinars available to register for will cover: Social functions and parties, Travel expenses, and Company cars and vans.

In March 2024 HMRC delivered the IT functionality which allows taxpayers to directly register for the VAT Import One Stop Shop (IOSS) system in Northern Ireland, the HMRC system which allows business to report and pay VAT on imports of low value goods to consumers in the EU, Northern Ireland, or both. HMRC is now working on the second phase of delivery of its IOSS system which will allow agents to register and act on behalf of businesses. HMRC is seeking agent volunteers to participate in testing during phase 2, a unique opportunity to help shape delivery in this phase. The role of a VAT IOSS agent/intermediary is to fulfil the VAT reporting and payment obligations on behalf of businesses who are involved in business to consumer imports of low value goods into the EU and Northern Ireland. HMRC is seeking support to develop its VAT IOSS intermediary service and would benefit from end-user feedback on the prototype designs. HMRC has provided a high-level overview of what would be expected from participants. HMRC is looking for Northern Ireland based agents/intermediaries. Volunteers will be participating in one to one moderated MS Teams sessions with HMRC’s implementation team. Sessions are expected to be one hour in length and timings will be flexible to suit participant availability. Participants will be required to sign a consent form to take part which will also include an agreement not to disclose any information relating to the project and their participation. The objective is to test and gather feedback on the digital prototypes of the VAT IOSS agent service including the registration, return filing, and payment journeys to ensure that these meet user’s needs. Sessions are expected to commence from this month onwards. The ask from HMRC is whether you would be willing to take part in this user research to support them with delivery of phase 2. Email tax@charteredaccountants.ie if you would like to participate or require more information.

HMRC has published the 2025 edition of the Tax Gap for 2023/24, the difference between the estimated amount of theoretical tax that should have been paid to HMRC and the amount that has actually been paid. According to the publication, this fell in real terms to 5.3 percent despite the cash figure of £46.8 billion being at a record high and comparing unfavourably to £46.4 billion in 2022/23. The key trends are that there is a continuing fall in the VAT gap, upward trends in both the small businesses tax gap and corporation tax, however avoidance is showing a small reduction the reasons for which are not clear. The information published represents the best estimate of the Tax Gap at the time of publication and is subject to revision by HMRC if more data becomes available. Since HMRC began to publish this information in 2005/06, the Tax Gap had fallen from 7.4 percent to 5.1 percent in 2017/18 but was broadly stable at circa 5.5 percent in more recent years. In the report’s introduction, HMRC compares the movement in percentage terms for each category of tax from the first year of reporting to 2023/24. The only tax head to show an increase is corporation tax which increased from 11.4 percent in 2005/06 to 15.8 percent in 2023/24; all other tax heads have reduced. The Tax Gap for small businesses remains the largest component by taxpayer group with a 60 percent share in 2023/24. The VAT gap has reduced from 13.8 percent of the theoretical VAT liability in 2005/06 (£11.6 billion) to 5.0 percent in 2023/24 (£8.9 billion). However, although the trend has been one of gradual decline, this has been more erratic in recent years which does not make sense in the context of Making Tax Digital for VAT being fully implemented from 1 April 2022. Avoidance has been revised down in the period 2019/20 to 2022/23 from 0.2 percent to 0.1 percent and according to the report was at an estimated record low in 2023/24 though the reasons for this are not clear and could be because some aspects have been reclassified to other behaviour categories. In its accompanying press release on the 2023/24 figures, the Government overtly references its objective of raising an additional £7.5 billion via measures announced in the 2024 Autumn Budget and Spring Statement to close the tax gap. The following publications and news releases all relate to the 2025 Tax Gap edition: https://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/tax-gap-estimated-at-5-dot-3-percent-3392916, Quality report: Measuring tax gaps, and Measuring tax gaps tables.

One of the measures set out in the UK Economic Crime and Corporate Transparency Act is one to improve transparency by making more company financial information available to the public.   Companies House has announced that over the coming days it will start to contact by email all the UK companies on their register to let them know that from 1 April 2027, all accounts filings must be made using commercial software. From then web and paper routes will be closed for accounts filings but will remain open for other statutory filings.   UK Accounts filing options will be also streamlined from April 2027 for small and micro-entity companies. From then micro-entities will be required to file a copy of their balance sheet and profit and loss account. Small companies will be required to file a copy of balance sheet, directors’ report, auditor’s report (unless exempt) and profit and loss account.  Companies will no longer be able to prepare and file ‘abridged’ accounts. Related changes include updates to audit exemptions and accounting reference periods. For more information on these planned changes readers can check out Changes to accounts article on Companies‘ House website. 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.

The Pensions Research Accountants Group (PRAG) has published an invitation to comment on its proposed amendments to the Statement of Recommended Practice, Financial Reports of Pension Schemes 2025 (Pension SORP). 2026 has been a busy year for the various bodies responsible for developing and maintaining SORPS, as they seek to align their SORPs to FRS 102, and the changes effective on 1 January 2026. PRAG is the Financial Reporting Council’s (FRC) designated SORP-making body for pension schemes. The Pensions SORP was last updated in 2018 and since then, the FRC has made amendments to its FRS 102 Standard. There have also been several industry developments which impact on pension scheme financial reporting as well as changes to pensions legislation and regulations. Some documents of interest issued as part of the invitation to comment include; PRAG consultation page  Copy of draft SORP Webinar on 18 July to discuss the draft SORP PRAG Press Release The Invitation to comment remains open until 17 September 2025.  

In Irish news this week, the administrative challenges of the Enhanced Reporting Requirement (ERR) were raised by Deputy Shay Brennan in the Dáil and we bring you an update from the recent TALC Collections sub-committee meeting. In UK news, members have been sharing their perspectives on the Institute’s refreshed campaign to reduce the corporation tax rate in Northern Ireland and the Institute is advocating for more broad ranging reform of the UK enquiry regime. In International news, the OECD has published a report on the use of technology by tax administrations globally. Irish 1. View the parliamentary question on ERR raised by Fianna Fáil finance spokesperson, Shay Brennan TD last week following our recent meeting with the Deputy.   2. Read about the representations made by the Institute, under the auspices of the CCAB-I, at the recent TALC Collections sub-committee meeting.   UK 3. In response to the Institute launching its refreshed campaign to reduce the corporation tax rate in Northern Ireland, members and the Institute’s senior management have been sharing their perspectives on the new campaign.   4. Read about the recommendations of the NI Tax Committee who are advocating for wider reform of the UK enquiry regime in their submission to the consultation on behavioural penalties.   International 5. The OECD has published a report outlining how technology is being leveraged by tax authorities around the world. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.

Professional Standards have published Issue 41 of the Regulatory Bulletin. Please click on the link provided to access this publication.