Whiterock Finance CEO Paul Millar explains why innovative homegrown businesses have the creativity and drive to unleash Northern Ireland’s true potential. As his year-long stint as Chair of Chartered Accountants Ulster Society draws to a close, Paul Millar is reflecting on his key priority in the role to “embrace entrepreneurs and unleash Northern Ireland’s potential.” “Entrepreneurship is close to my heart,” Millar says. “I’ve come across a lot of entrepreneurs during my career in professional services, banking and now at Whiterock Finance. I have been inspired by them and I can see the challenges they face as well.” Millar believes it is important for Chartered Accountants, in particular, to have an entrepreneurial mindset. “Sometimes as accountants, we don’t recognise that so many of our members are entrepreneurs in their own right,” he says. “They are leading businesses and running their own practices, which are businesses as well, but they tend to see an entrepreneur as ‘someone else’ who is leading a tech start-up or something. If you are 30 years of age and working in one of the Big Four or in the finance function of a business, you need to have an entrepreneurial mindset because, one day, you could be leading that organisation yourself.” As Millar sees it, all Chartered Accountants should be thinking entrepreneurially both for their own career and for their clients. “They need to be able to go on a risk journey with their clients. They need to be able to go on the entrepreneurial journey either personally or with their clients,” he says. Path to accountancy The Whiterock Finance Chief Executive took the traditional route into his own career in accountancy. “I did an accounting diploma at Queen’s University Belfast and spent eight years with KPMG after that. I was Audit Director there when I moved on to Deloitte, working in audit and transaction services, and then spent seven years in corporate and business banking with Bank of Ireland.” Millar made the move to fund manager Whiterock Finance in 2012. “It was a start-up providing riskier finance to businesses in Northern Ireland and, since then, the management team has been successful in buying the business out from its original corporate owners,” he says. “Today, we provide loan finance of up to £2 million and, through our new Growth Capital Fund, equity finance of up to £5 million to businesses in Northern Ireland.” His role as Chief Executive of Whiterock Finance is, Millar says, “hugely positive.” “We have £225 million in funds under management and have deployed £125 million to over 150 companies. I get to meet lots of business owners who are pitching to us, but the impact is not just that amount of money. “Generally, we do deals alongside other funders. That cocktail of funding helps make things happen. It is great to see companies develop and grow and some of them move onto exits either through trade sales, funding events or IPOs on the Alternative Investment Market. Having a positive impact on the success of other businesses is the most enjoyable part of the job.” Whiterock Finance has just launched the £75 million Growth Capital Fund, which will focus on investments of between £1 million and £5 million in return for minority shareholdings in scaling companies. “We have a debt fund of £30 million and that will be topped up to £60 million in the near future. This fund provides loans of up to £2 million to businesses,” Millar says. “We saw a need for an equity fund and have been working on that for the past two years. The British Business Bank provided £45 million in funding and the rest of it came from us going around Northern Ireland to get funding from high net-worth individuals and others. “We got 18 others to make up the £30 million. We put in the hard yards. It is interesting being on the other side looking for money. There is a real opportunity to be a market mover. We will close out our first three investments in the summer.” Opportunities for Northern Ireland Millar is firmly focused on opportunities for Northern Ireland and believes it is “in a good place” at the moment. “The Executive is back up and running now. Its closure was a drag on the economy. We also have the advantage of having dual trading access to the British and EU markets,” he says. “In terms of sectors, some specialisms in areas like cybersecurity, IT and digitalisation, are doing very well. In advanced manufacturing and engineering, we have a hotbed in mid-Ulster, and fintech is also doing very well.” Promoting Northern Ireland as a location for inward investment is important and activity has been ramping on this front, Millar says. “The UK government hosted an investment summit last September. There were lots of businesses in the room along with a number of foreign investors, mainly from the US. That was followed by US Government Envoy Joe Kennedy hosting a trade summit.” In attracting inward investment, Millar says Northern Ireland should leverage the strength of its very well-educated workforce as well as its dual market access. “If there is one thing that could really help, it is having a corporation tax rate the same as the Republic of Ireland. It is currently 25 per cent here, double the 12.5 per cent rate for all but the very largest companies in the Republic of Ireland. That would be really impactful,” he says. Funding advice for entrepreneurs Drawing on his experience as an investor, Millar advises business owners seeking funding to engage early. “It takes longer to get to a funding decision now,” he explains. “You need to know your business, know your markets and where the growth opportunities lie – and you need to know your numbers. “Chartered Accountants play an important role there. When we see Chartered Accountants on the other side of the table presenting a business plan that hangs together, it gives the business a much better chance of funding. The drive and enthusiasm of the people pitching is important as well, of course.” Promoters seeking equity funding should also keep their future exit in mind. “It could be a sale to another company, another private equity investment or a floatation,” Millar says. “Investors want to see a growth and exit plan as that is how they will get a return on their investment. It is different if you are looking for a loan – in that instance, the lender will want to see hard evidence of your ability to repay.” Interview by Barry McCall.

Minister for Enterprise, Trade and Employment, Peter Burke TD, FCA, outlines his plans to ensure Ireland’s SMEs have the support they need to succeed and flourish. Just three weeks into his tenure as Minister for Enterprise, Trade and Employment, Peter Burke TD, FCA, had already hit the ground running, unveiling a pre-budget SME support package to provide a boost to Ireland’s small- and medium-sized businesses. This “sense of urgency” will, he says, continue to inform his work in the months ahead as he advocates on behalf of SMEs and traders up and down the country. “SMEs are vital to Ireland’s success and central to our ability to build a broad-based and successful economy,” says Burke. “While there has been some moderation in the rate of wholesale price inflation, and measures to date have helped many vulnerable but viable firms, these new measures will help SMEs’ long-term financial sustainability, and aid them to grow and thrive so as to sustain good jobs into the future.” The need to support and champion SMEs is a cause close to Burke’s heart. He grew up on a family farm close to Mullingar, Co. Westmeath, and went on to study commerce at NUI Galway, graduating in 2004. “We had a suckler farm, which is a bit unusual in that you only get paid once a year, and I would have watched my dad over the years managing cashflow around that one annual payment,” he says. “I was always very interested in figures at school – trying to plan into the future to meet cashflow demands – and I really enjoyed studying business for Junior Cert. That enticed me into accountancy and, when I went on to NUI Galway, I chose to major in the subject.” Early interest in business Burke also nurtured a wider interest in business and, in particular, “understanding the mechanics of business – looking under the bonnet and taking a deep dive.” “I wanted to understand where the revenue is generated and how to invest and spend in a sustainable manner that doesn’t leave you with the red light on at the end of the year,” he says. Following his graduation, Burke went on to train as a Chartered Accountant with Stephens Cooke & Associates in Mullingar, qualifying in 2009. “I didn’t apply to the Big Four firms because I felt that I had a better chance of gaining a solid understanding of everything in a medium-sized practice with a wide dispersal of clients,” he explains. “I would be working on a capital acquisitions tax return one day, dealing with an estate the next, then looking at stamp duty or advising a client on VAT and carrying out Revenue audits – it was complete exposure to everything – an A to a Z take on business, and that’s exactly what I wanted.” Political career Before his election to the Dáil in 2016, Burke served as a Councillor on Westmeath County Council. “I was elected to both Westmeath County Council and Mullingar Town Council in 2009, which gave me my first platform in elected politics and, at that time, Chartered Accountants Ireland agreed to defer my exams,” he says. “That allowed me to run in those elections and I wouldn’t be where I am today without it, so I really appreciated it. I continued post-qualification with Stephens Cooke & Associates right up until I got elected to The Dáil in 2016 as a TD for the Longford-Westmeath constituency. “It took a few attempts to get there but, if you really want to do something in life – if you feel it’s for you – and you don’t succeed the first time, you have to try again. Persistence and determination do pay off.” Leaving behind his career in practice came with a “tinge of sadness” for Burke, who had built strong working relationships with SMEs across the country through his work as a Chartered Accountant. “I really missed that, but getting elected to the Dáil also brought an exciting new horizon and a fresh challenge. I was delighted to be appointed to the Finance Committee and the Public Accounts Committee. Those roles gave me unbelievable insight into how government departments operate and how decisions are made.” Burke was appointed Minister of State for Housing, Local Government and Heritage in 2020 and served as Minister of State for both European Affairs and the Department of Defence from 2022 to April 2024, when he took up his current role as Minister for Enterprise, Trade and Employment. “It has been a priority of Taoiseach Simon Harris to support our small businesses since he took office. When I got the call from Simon and sat down face-to-face with him, one of the first things he said to me was, ‘I really want to get a package together to support our SMEs’. “We were both very much at one on this, because I fully understand from my work as a Chartered Accountant that SMEs employ 70 percent of people right across our country. They are central to economic activity in all our communities.” Key SME measures Key measures outlined in the pre-budget SME support package put forward by Minister Burke in May include reopening the Increased Cost of Business (ICOB) scheme for an additional 14 days, introducing a second ICOB payment for businesses in retail and hospitality, and doubling the lending limit for Microfinance Ireland loans from €25,000 to €50,000. The package also doubles the Innovation Grant Scheme to €10,000 and increases the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 while halving the business contribution rate to 25 percent. The employer PRSI threshold will rise from €441 to €496 with effect from 1 October 2024, ensuring that employers with employees earning the weekly equivalent of the national minimum wage will pay the lower rate of employer PRSI at 8.8 percent. Eligibility for both the Digital for Business Consultancy Scheme and Trading Online Voucher have also been extended to businesses in all sectors employing up to 50 employees while the value of the grant itself has been doubled to €5,000. “As a politician and policymaker, I have to look ahead and ask, ‘how am I going to make life easier for our businesses every single day in the future?’” Burke says. “We have approved capital schemes for upgrading infrastructure like LED lighting, refrigeration and kitchens, which could cut some companies’ monthly energy bill by up to €1,500. We are offering a €10,000 grant whereby the business has to put up just 25 percent of the total cost. “We are focusing on innovation and supporting investment in innovation among SMEs by various means, including collaboration with tertiary institutions, so that they can continue to adapt and remain competitive into the future.” An enhanced ‘SME Test’ has also been introduced by the Department of Enterprise, Trade and Employment in conjunction with the Department of An Taoiseach. “This means that when a statutory instrument or new regulation is under review, we think small first and ask, ‘how is this going to impact our SME sector?’ This test will be very important for policymaking into the future.” Burke has published the first ever Local Enterprise Offices (LEO) Policy Statement, which will run to 2030, providing “clarity and certainty” on the role of the nationwide network for 31 LEOs in administering measures outlined in his SME support package. “Over 370,000 businesses are eligible for some type of support from the LEOs, such as assistance in starting and growing a business, as well as expert guidance on how to save time, money and energy, mentoring, training and general business advice,” he says. “A number of these measures will be actioned by the LEOs – including increasing the Energy Efficiency Grant, opening up grants to help more businesses to digitalise, and launching Ireland’s Best Emerging Entrepreneur Programme to encourage entrepreneurship and start-ups in under-represented groups.” Outlook for Irish business The “sense of urgency” Burke describes at the beginning of this interview will, he says, continue to guide his work in the months ahead. “I’m very much aware of where we were in the government cycle when I got this job and that creates a sense of urgency that will underpin everything I do,” he says. “You will see a very strong impetus to ensure that businesses have all the supports they need to succeed and flourish and keep our economy growing and continuing to employ the 2.71 million people we have currently working in Ireland.” The latest figures from the Central Statistics Office, published in May, revealed continued growth in Ireland’s labour market. Some 50,500 jobs were created in the year to the end of March 2024 bringing employment to 2.71 million, up about 1.9 percent year-on-year. “I’ve talked about the sense of urgency I feel in this role, but equal to this is the importance I place on evidence,” Burke says. “I always base my decisions on evidence-driven data. You need to ensure that you’re fully informed and the Chartered Accountant qualification will help with that. Some of the things I love most about accountancy are very much aligned with my interest in politics. As a Chartered Accountant, I really enjoy working with people – going into a business, meeting the directors, the senior management team, and helping them to plan for the future. “The same applies in politics – you’re working with people, planning ahead and balancing different demands, trying to work out the viability of various plans and proposals and thinking ahead so you can deliver the best outcome.” The outlook for Ireland’s SME sector, business generally and the wider economy is broadly positive, Burke believes, but no measure of growth and success should, he warns, be taken for granted. “I am heartened to see employment continue to rise this year and I absolutely see a bright future for Ireland’s SMEs, particularly those that innovate and grab emerging opportunities – but you can’t take anything for granted,” he says. “No matter how healthy the economy, we must always be looking ahead, considering all the evidence and putting in place the guardrails and incentives to protect and support business in Ireland well into the future.”

Tackling systemic hurdles to the long-term economic health of Ireland’s SMEs will be a top priority for Barry Doyle, the new President of Chartered Accountants Ireland. As Investment Director with MASV, the entrepreneur-led investment firm, Doyle brings considerable experience in advising and scaling successful businesses. He took up the office of President on Friday, 17 May, following the Institute’s 136th AGM. At just 37, Doyle is the youngest President in the Institute’s 136-year history, but already he has gained deep expertise in the start-up environment in Ireland and overseas and continues to work with scaling businesses from their earliest stages through growth and exit. The need to support and champion these businesses is a cause close to his heart. “I’ve worked mainly with start-ups and early-stage companies throughout my career,” Doyle says. “I’m drawn to entrepreneurs – for me, it’s about building something from scratch and seeing it gain traction, grow and succeed. It excites me. The start-up environment can be tough but it is also incredibly rewarding.” In his role with MASV, Doyle supports ambitious start-ups scaling internationally. “I’ve gone from working in hands-on roles within these businesses to now guiding them as a board director, observer and advisor and investing in people’s ideas at MASV,” he says. “I really enjoy it. There is a lot of variety in working with international companies of different sizes and at different stages of development.” Shining a spotlight on SMEs During his term as President, Doyle is keen to focus on those members of the profession who own, support and advise Ireland’s SMEs in both the North and south. “Many of our members run SMEs. We have practitioners out there running their own businesses the length and breadth of the country,” he says. “Not only do they support other SMEs in their day-to-day work, but they are also business owners and entrepreneurs themselves. “They provide employment, often in regional towns and cities. It is important to me that we shine a light on the value these members are providing every day.” Although he believes Ireland offers a broadly supportive environment in which start-ups and SMEs can flourish, Doyle is also acutely aware of the challenges facing this crucial cohort of the Irish economy. “Record corporation tax receipts will not always be with us. There’s a strategic imperative to ensure economic health for SMEs long-term,” he says. Doyle believes this can only come from understanding the unique challenges they face, not simply by virtue of their size, but also related to the sector they operate in – and the supports they need. “We need to be very mindful of new initiatives that are being rolled out, such as pension auto-enrolment, increasing the minimum wage and PRSI costs, so we can ensure that they don’t give rise to prohibitive costs for business.” SMEs are also being impacted by wider infrastructural issues that must be addressed, such as the availability of both housing and childcare, Doyle warns. “The cost of doing business and these infrastructure issues are intrinsically linked and need to be considered in totality,” he says. “The question is: what can we reasonably expect businesses to cope with?” Blueprint for sustained growth Chartered Accountants Ireland has published a new thought leadership paper setting out measures to help achieve strategic, systemic improvements for SMEs in Ireland. These measures include: Further increases to the thresholds for Employer PRSI so all wages up to the minimum wage are exempt and wages up to the living wage are at the reduced rate of 8.8 percent. No extension to the Enhanced Reporting Requirements (ERR) for at least three years and not before an appropriate cost-benefit analysis of the current system has been completed. Reducing Capital Gains Tax from 33 percent to 25 percent to stimulate business and personal transactions that will bring additional funds into the Exchequer. Wider SME eligibility for grants to include more ‘traditional’ industries and the service sector. A more prominent role for the Strategic Banking Corporation of Ireland in encouraging banks to provide low-cost credit to SMEs, and to underwrite this credit. New opportunities for Credit Unions to increase SME lending by adapting Central Bank regulations – e.g. lending limits. Curbing high business costs “Broadly speaking, I think Ireland is pro-business and pro-entrepreneurship, but there are challenges. The cost of doing business in Ireland is rising and this is becoming quite a big issue for SMEs,” Doyle says. Chartered Accountants have first-hand experience of the cost and administrative burdens SMEs are encountering, Doyle adds, and the proposals outlined in the Institute’s new thought leadership paper are tailored to address these. The publication of the paper followed extensive engagement with members, two-thirds of whom work in business. “Government commitment to the SME sector in Budget 2025 is welcome, but this is a commitment that will need to endure even as we move towards a new Government next year,” Doyle says. “Our thought leadership paper offers a blueprint that in the long-term will effect change if implemented. We must ensure that a strategic lens is adopted in tackling what are stubborn, systemic hurdles for SMEs.” Successful career path Originally from Rosslare, Co. Wexford, Doyle studied accounting and finance at Dublin City University, interning with EY Ireland’s tax and audit divisions in his second year of studies. After graduating in 2006, he returned to EY to train in assurance and went on to join the National Geographic Channel in Sydney. He was Regional Finance Manager for National Geographic Channel in Australia and New Zealand for two years as it expanded to become Fox International Channels. In 2013, after returning to Ireland, Doyle joined Storyful in the role of Chief Financial Officer. The online news and content verification company founded by former journalist Mark Little was acquired in 2013 by News Corp for a reported $25 million. Doyle then went on to work with e-commerce start-up xSellco for two years, again in the role of CFO, followed by a two-year stint as Chief Operating Officer with recruitment firm Mason Alexander. He joined MASV in 2020 shortly after the entrepreneur-led investment firm had been established by Dan and Linda Kiely who sold Voxpro, their business process outsourcing firm, to Canadian company Telus International in 2017. Doyle is also currently a Director of Republic of Work and Board Observer for both OpenforVintage and Johnson Hana. “I think my own career is testament to the sheer range of roles open to Chartered Accountants – and to how far your qualification and training can take you from a relatively early stage,” he says. “The knowledge you have means you can add value from the get-go and this can propel your career along a very exciting path.” Vibrancy and diversity of profession During his year as President of Chartered Accountants Ireland, Doyle is keen to shine a spotlight on these opportunities and the vibrancy and diversity of a profession that continues to play such an integral role in all sectors on the island of Ireland and overseas. “It’s really important that we highlight the many opportunities our profession offers globally, but also increasingly here in Ireland. Every single business and organisation has an accountant at the heart of their decision-making,” he says. This reach means that the profession is also inherently valuable to the economy, as demonstrated by research carried out recently by Oxford Economics. A report published by Oxford Economics in January on behalf of the Consultative Committee of Accountancy Bodies, found that the Irish accountancy profession – comprising the accountancy sector and accountants working across the wider economy – contributed €19.8 billion to the Irish economy in 2022. The report further found that the profession generated €1.8 billion in tax revenues in 2022. In Ireland and Britain combined, the profession contributed €114 billion to both economies in 2022, generating €13.7 billion in tax revenues. Behind these headline figures, there are over 83,000 individuals employed by the accountancy profession in Ireland, driving and servicing business in all sectors. “One of our USPs as Chartered Accountants is the high ethical standard we are held to as professionals,” Doyle says. “People look to us as trusted advisors. We act in the public interest and I think this is very important in terms of driving the economy towards sustained growth in a well-thought out manner.” Engaging with members at grassroots In addition to championing and supporting SMEs, Doyle is keen to engage with as many members as possible at grassroots level at a time when membership is set to swell from 33,000 to 38,000. Members of Chartered Accountants Ireland and CPA Ireland voted in favour of a proposal to amalgamate the two Institutes earlier this year. This will see the creation of a single Institute, named Chartered Accountants Ireland, which will be the largest professional body on the island of Ireland. The proposal was endorsed by the Councils of both Institutes who believe it will better position the profession for the future, driving new growth opportunities while also being stronger to meet challenges. “As the Institute grows, it is more important than ever that what we offer is relevant to as many of our members as possible – and that it speaks to the reality of their professional lives, needs and priorities,” Doyle says. “The Institute exists to support and elevate the profession, to uphold our professional standards in the public interest and to continue to educate members and future members. Ultimately, everything we do begins and ends with our members.” Doyle has served as Deputy President of the Institute for the past year, supporting outgoing President Sinead Donovan alongside Vice (now Deputy) President Pamela McCreedy. “Sinead is an inspiration to so many and a fantastic leader,” he says. “I will be continuing her focus on the future of the profession and our ‘next gen’ during my own term as President and also picking up on our predecessor Pat O’Neill’s very valuable work during his time as President in calling for reform of the Leaving Cert accounting syllabus.” The power of connection Doyle has been a member of the Council of Chartered Accountants Ireland since 2015 and has chaired the Institute’s Digital Steering Group and Members Board as well as the Members in Business and Strategic Communications Committees. “I made the decision to go for Council when I was just 27. It goes back to my time in Australia and the power of the Australian society and sense of community I found there,” he explains. “We came together as Chartered Accountants and I always knew that there was a group there to support me. That sense of connection is really powerful when you’re so far away from home. “It’s not lost on me that I will be the youngest President in the history of the Institute, but I think that’s a good thing. “Sixty percent of our membership is now aged 44 and below. The profile of our membership is changing and I think it matters that our members can see this represented on our Council.”

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

At the most recent meeting of the Inclusive Framework on Base Erosion and Profit-Shifting, the OECD Secretary-General Mathias Cormann welcomed the commitment of the group to resolve the outstanding issues with Amount A of Pillar One which should enable the signing of the Multilateral Convention implementing the rule by the end of June 2024. The key concern is reaching agreement on a fair allocation of taxing rights across the 147 countries who make up the Inclusive Framework.

Revenue has published a new manual on the Flat-rate Farmers Refund Order. The new guidance outlines how VAT can be reclaimed, with commentary on the necessary conditions, the types of expenditure and information required to make a claim.

Readers may be aware of a minor update to the guidance on relief for investment in corporate trades (including the Employment Investment Incentive Scheme (EIIS)), whereby the date on the face of the Tax and Duty Manual (TDM) was changed from April 2023 to May 2024. This has caused some confusion as there had been no updates to the contents of the manual since the April 2023 release. Revenue has provided an update to the Institute through the TALC Direct & Capital Taxes Sub-committee confirming that the TDM is presently being updated to reflect the changes implemented by Finance (No. 2) Act 2023. Revenue’s update is as follows: “In the course of the last meeting of the TALC Direct and Capital Taxes Sub-Committee and subsequently, queries were raised regarding the updating of TDM Part 16-00-02 “Relief for Investment in Corporate Trades” and initial risk finance investment.    We wish to advise that the matter which delayed publication of the update of TDM Part 16-00-02 “Relief for in investment in corporate trades” is still under consideration and it remains the intention to circulate a draft of the updated TDM prior to publication as soon as we are in a position to do so.  We note that a version of the TDM was recently published on www.revenue.ie stating that it was last reviewed in May 2024.  This was an error that arose whereby the retention of the TDM last reviewed in April 2023 was extended which resulted in an incorrect date on the first page.  This has been rectified and we confirm that no changes have been made to the TDM.  We regret any confusion caused.   In relation to the queries raised on initial risk finance, and in light of the delay in publication of the TDM, please note the following clarification.   We wish to confirm that it remains possible to raise initial risk finance investment in tranches as has always been the case.  The position is unchanged from that as set out in the TDM which states “Many companies who seek to raise EII, SCI or SURE supported funding, do so in tranches. That is, they embark on a fundraising round over a number of months. Shares are usually issued at the end of the fundraising round, but there may be occasions where the shares are issued as the amounts are invested. The initial risk finance investment will be the initial round of fund raising, whether the shares are issued at the end, or throughout that fundraising round. It should be noted that the shares should be fully paid up at all times throughout the relevant period.”  The initial risk finance investment requirements must be set out in the business plan in line with the legislative requirements in that regard and as specified in the TDM.  Where a business plan identifies a need for State aid in the form of initial risk finance and those funds are subsequently raised in tranches, each tranche will form part of the initial risk finance investment and will not constitute follow-on investment until the initial risk finance investment as provided for in the business plan has been raised.    Where an investment is raised in tranches, it should be noted that the rate of relief that may be availed of on investment could differ over the course of an extended period i.e. a company may be part of a RICT group that is not operating in any market at the time of one tranche of investment and it may be a company that is part of a RICT group operating in a market at the date of a later investment tranche. The rate of relief to apply to the investment will depend on whether the company is part of a RICT group that is not operating in any market or part of a RICT group that is operating for less than 10 years post incorporation or less than 7 years following its first commercial sale at the time the eligible shares are issued in line with section 496(5) TCA.  For shares issued on or after 1 January 2024, the amount of a qualifying investment that may qualify for relief is as follows: In the case of initial risk finance investment in a RICT group which has not been operating in any market, pursuant to section 496(5), 125% of the investment may qualify for relief giving rise to a rate of relief of up to 50%. In the case of initial risk finance investment in a RICT group which has been operating in any market for less than 10 years post incorporation or less than 7 years following its first commercial sale, pursuant to section 496(5), 87.5% of the investment may qualify for relief giving rise to a rate of relief of up to 35%. In the case of expansion risk finance investment pursuant to section 496(6), 50% of the investment may qualify for relief giving rise to a rate of relief of up to 20%. In the case of follow-on risk finance investment pursuant to section 496(7), 50% of the investment may qualify for relief giving rise to a rate of relief of up to 20%. In the case of investments made indirectly via a qualifying investment fund, 75% of the investment may qualify for relief giving rise to a rate of relief of up to 30%. Accordingly, in the case of a company that is raising its initial risk finance investment in tranches throughout 2024 where it is part of a RICT group that makes its first commercial sale on 1 June 2024 for example, the rate of relief will be up to 50% where the eligible shares are issued prior to 1 June 2024 and it will be up to 35% where the eligible shares are issued on or after 1 June 2024.”

The Institute is represented on two HMRC VAT forums; the Joint Vat Consultative Committee (“JVCC”) and the VAT Registration Sub-Group forum. Recent updates from each are set out below. JVCC update   The JVCC is an HMRC forum to exchange views between HMRC and representative bodies and other organisations relating to the procedures and operations of VAT, and to consider and discuss VAT issues arising from member organisations with the aim of strengthening HMRC’s understanding of the needs of the business/taxpayer. The minutes from the 125th JVCC meeting have been published and are available on GOV.UK.   The JVCC has also been advised that the new VAT Tertiary Legislation manual is now available. Except for margin scheme content, nothing in the manual new as it has all been published previously on GOV.UK. The revised margin scheme tertiary legislation is available in the manual for the first time following the withdrawal of VAT Notice 718.  To date, HMRC has not removed any force of law content from VAT Notices and so, much of it is duplicated in both this manual and its original home on GOV.UK. In due course, HMRC aims to remove legal content from its VAT Notices and replace it with plain English, where appropriate.  In the new manual, HMRC has aimed to maintain a logical structure and has included heading numbers for ease of reference. As the manual is new, HMRC is seeking feedback using the buttons in the manual.   VAT registration Sub-Group forum  Details of action points and HMRC responses from the January 2024 meeting of this forum are set out below.  A member asked whether the guidance made it clear that customers might need multiple authorisations for VAT.   This has been investigated and a change to the wording of the guidance was required and has been instigated. The guidance will be updated.  Can the VAT50 and VAT51 forms be uploaded and added to the application at the end of the online VAT registration process?  The VAT 50/51 can be either attached at the point of submission of the VAT registration within the digital journey, or taxpayers can choose to send this to HMRC via post. HMRC’s preference is that these forms are uploaded via the Vat Registration Service (“VRS”) if the taxpayer or their agent is able to do so.  Can a review be carried out regarding virtual offices and the principal place of business?  A review has been instigated and is currently ongoing. Details will be shared when an update is available.  Were specified supplies included when the previous review was carried out on compulsory registration?  HMRC has updated the rules behind the VRS to take account of these. When a person applying under these circumstances enters the words ‘SPECIFIED SUPPLIES’ in the ‘Business Descriptions’ free text box, the application will not be rejected.  HMRC has updated section 2.7 of VAT Notice 700/1 to this effect and is considering the most appropriate place to include an update in the VRS itself to best support applications.   Does the registration team no longer send out confirmation of registration changes?  VAT registration and variation outputs are generated automatically and issued to the taxpayer when the application or variation has been processed; there is no manual process to issue an output to provide the same confirmation.  Other updates  HMRC provided an update regarding queries that have been made in relation to Parish Councils and Public Bodies as follows:-  “Applications for VAT registration from public bodies should be made on a paper VAT1 as per current guidance. When we can introduce a bespoke journey into the online VAT Registration Service, we will communicate this via the appropriate channels, but there are currently no plans for this.” 

Better long-term support for the SME sector was advocated for by Director of Advocacy and Voice, Cróna Clohisey, and Institute President Barry Doyle who both represented Chartered Accountants Ireland at the National Economic Dialogue (NED) last week. The NED provides a forum for public consultation and debate ahead of Budget 2025 and this year’s theme was challenges and opportunities in a more shock-prone world. The Institute representatives also emphasised to Ministers the importance of careful consideration around the timing of new regulations and their impact on businesses, the need to simplify the tax system, in addition to enhancing the supply of childcare places. Documents and speeches from the NED can be found on gov.ie.

In its response to the consultation “Raising standards in the tax advice market – strengthening the regulatory framework and improving registration” which examined three different approaches to regulate the UK tax agent market in future, the Institute’s Northern Ireland Tax Committee sets out that its preferred approach is mandatory membership of a recognised Professional Body. However, the Committee also tells HMRC that additional regulation of practising members of Chartered Accountants Ireland is not needed. The Committee’s full response can be read in the Tax Representations section of our website.  The Committee also recommended that there should be a minimum transition period of not less than five years to ensure that the change is properly implemented, and the market is able to fully prepare and adjust. It is also recommended that HMRC consider what transitional arrangements can be introduced once a decision has been made on the approach to be taken.  

The Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24), which reflects many of the tax measures announced as part of the Spring Budget, received Royal Assent last Tuesday 28 May just before Parliament was dissolved on 30 May. Finance (No.2) Act 2024 now has force of law as Royal Assent is the final stage of a bill's passage through Parliament.   Some of the measures included in the Act are as follows:-  the higher rate of capital gains tax on disposals of residential properties is reduced from 28 percent to 24 percent for disposals from 6 April 2024;   the thresholds for the high income child benefit charge increased from 2024/25 onwards from £50,000 to £60,000 (lower threshold) and £60,000 to £80,000 (higher threshold); and  multiple dwellings relief for stamp duty land tax is abolished where the effective date falls on or after 1 June 2024. This change is subject to transitional arrangements. 

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. And finally, we issue a final reminder that from today, Tuesday 4 June 2024, all export declarations must be made via the Customs Declarations Service, and not CHIEF.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  UK Trade Tariff: European Union and new member states;  UK Trade Tariff: preferential trade arrangements for countries outside the UK and EU;  UK Trade Tariff: relief from customs and excise duties and VAT;  UK Trade Tariff: end-use relief on goods used for a prescribed use;  UK Trade Tariff: VAT;  UK Trade Tariff: valuing goods;  UK Trade Tariff: appeals;  Managing your customs warehouse; and  Notices made under the Taxation (Cross-border Trade) Act 2018. 

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive A Technical Alert (TA) has been issued to provide assistance to members when drafting engagement letters in respect to limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) which has yet to be transposed into Irish legislation. Until this transposition occurs (expected July 2024), in the interim and to allow engagement planning to commence, these engagement letter terms may be used to implement a formal contract with the entity. Addendums and/or replacement engagement letter terms may be required where significant changes are necessary; members are advised to note the important caveats in the preface to this TA. The engagement letter terms have been drafted based on current guidance in issue which may change as the CSRD regulatory landscape changes. In addition the applicable standard used is the International Standard on Assurance Engagements (ISAE) 3000 (Revised) issued by the International Auditing and Assurance Standards Board (IAASB). This may be subject to change, depending on the assurance standard that is specified for use in Ireland for CSRD sustainability assurance engagements by the Irish Auditing and Accounting Supervisory Authority (IAASA). You can access the TA here.

The Financial Reporting Council (FRC) has published anonymised key findings and good practices reported by its Audit Quality Review (AQR) team in relation to their 2020/21 audit quality inspections at the seven largest audit firms. https://frc.org.uk/news/may-2022-(1)/frc-publishes-inspection-key-findings-and-good-(1)

Just 17% of Chartered Accountants in Northern Ireland believe that prospects for the NI economy in 2024 are good with over half (59%) seeing the economy as either stagnant or slowing, according to the Institute’s latest Financial Confidence Survey. Feedback from members working in business, practice and across the public sector have cited ongoing skills shortages, rising inflation and cutbacks in government spending as contributing to this dampened outlook. On a more positive note, an overwhelming majority of members (87%) view the dual-market access afforded to Northern Ireland post-Brexit as its biggest opportunity for growth over the next decade. Chartered Accountants Ulster Society is a district society of Chartered Accountants Ireland, Ireland’s oldest and largest professional body of accountants. Founded in 1906, the Ulster Society has over 5,000 members throughout Northern Ireland. Additional survey insights: Two-thirds of members support the Executive pursuing the introduction of a lower rate of corporation tax for Northern Ireland Over half of members cite the need to address public sector inefficiency as a top priority to make the public finances more sustainable Two-thirds of members believe that while Northern Ireland offers a clear investment proposition to attract foreign direct investment to the region, more government supports are needed to bolster this offering 8 in 10 members believe childcare in Northern Ireland is currently unaffordable with 3 in 5 respondents reporting they have had to reduce their working hours as a result. Commenting, Chair of Chartered Accountants Ireland Ulster Society Paul Millar said:  “Despite the economic headwinds facing the economy as a result of inflation, skills shortages and the rising cost of doing business, Northern Ireland ultimately has the opportunity to reverse these trends by fully taking advantage of our unique trading position post-Brexit. “In this survey, a significant majority of our members rightly point to the dual EU/UK market access afforded to Northern Ireland as our biggest opportunity for growth over the next decade. If we can combine this with the introduction of a competitive corporation tax rate and an improved package of business supports to attract FDI, the effect on the economy could be transformative”. Commenting, Barry Doyle, President of Chartered Accountants Ireland said: “Financial confidence, while still muted, is recovering on 2022 levels. There is a notable rise in those that believe the economy is growing, and a sharp drop in those who feel that financial distress is increasing. The accountancy profession is fundamental to economic prosperity right across the island of Ireland, with almost 28,000 members supporting businesses on these shores alone. We have played a critical role in helping businesses in every sector to navigate uncertainty over the last few years, and we are ready to engage with business and political partners with renewed vigour to ensure Northern Ireland can avail of this economic opportunity.”   ENDS

The Institute recently hosted a webinar on the Small Companies Administrative Rescue Process (SCARP) - Practical Issues. This discussion with David Swinburne and Philip Maher of Mazars included how to prepare for a SCARP, what to look out for and key matters to be aware of when considering the process. There was also discussion around some practical issues including how SCARP is working in practice, dealing with creditors and excludable creditors.  The recording is available here. 

Last month we updated readers on developments in this space ahead of HMRC’s plan to widen the beta trial in 2024/25, commencing from 22 April. As set out in that update, HMRC has now expanded the beta trial and recently sent an email to agents providing information on how to sign qualifying clients up to the Making Tax Digital (“MTD”) for income tax trial. Further updates are set out below.   Suspension of meetings  The Institute is currently considering how best to support members in their preparations for this change and we will continue to attend HMRC forums on MTD. However, it should be noted that due to the pre-election period (known as purdah), HMRC has now suspended some forum meetings, including meetings on MTD.  Technical consultation on new regulations  HMRC has launched a technical consultation on proposed new regulations (“The Penalties for Failure to Pay Tax (Assessments) Regulations 2024”), which is running until 10 June 2024.   These draft regulations relate to the reformed penalty system for late payment of tax, which is set out in Schedule 26 to the Finance Act 2021. Penalty reform began for VAT taxpayers from 1 January 2023, and from April 2024 for Income Tax Self-Assessment (“SA”) for those participating in the MTD for income tax beta trial. For all other Income Tax SA taxpayers, penalty reform will commence from April 2026 as MTD for income tax begins to be mandated  Current legislation allows HMRC to assess a second late payment penalty within a two-year assessment time limit, at the point the outstanding tax is paid in full. However, HMRC is not able to assess this penalty if the tax remains unpaid. The proposed legislative change will allow the second payment penalty to be assessed towards the end of the time limit, in circumstances where the outstanding tax has not yet been paid in full. This will mean taxpayers will not be able to intentionally avoid a second late payment penalty by not paying their outstanding tax before the end of the two-year time limit.   New MTD manual   A new manual on how to use MTD for income tax has now been published. Since our last update, the number of available software packages, which already includes some of the big players, has been expanded from five to seven, with a range of other software packages in development. 

Today we are issuing a final reminder that the deadline for employers to provide employees with their P60 for 2023/24, either on paper or electronically, is Friday 31 May 2024. The P60 summarises the employee’s total pay and deductions for the year.   By that date, employers must give a P60 to all employees on payroll who were working for them on the last day of the tax year (5 April 2024). If an employer is exempt from filing payroll online, copies of P60s can be ordered from HMRC. 

After the Spring Budget took place on Wednesday 6 March, the Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24) was published. The Bill reflects many of the tax measures announced as part of the Spring Budget. It is currently awaiting Royal Assent with many stages having taken place at speed last week due to the announcement of the General Election which will take place on Thursday 4 July. Parliament is to be dissolved later this week on Thursday 30 May.