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

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

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

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

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

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

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

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

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service Appendix 1: DE 1/10: Requested and Previous Procedure Codes  Making an export declaration using a pre-shipment advice  4-digit to 3-digit procedure to additional procedure code correlation matrix for imports;  Making an export supplementary declaration  Making a full export declaration  Notice to exporters 2024/12: export declarations move from CHIEF to CDS from 4 June 2024  Report a problem using the Customs Declaration Service  Notices made under the Customs (Export) (EU Exit) Regulations 2019  Appendix 2 C21i: DE 1/11: Additional Procedure Codes  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status. 

Companies integrating tax disclosures into sustainability efforts face a complex transparency challenge. David McGee explains why Tax is becoming an increasingly important aspect of a company’s social responsibility and overall values. This is evident in its inclusion in sustainability reporting frameworks, such as the Corporate Sustainability Reporting Directive (CSRD). The trend towards integrating tax disclosures into sustainability efforts indicates that companies face a complex and ongoing challenge regarding tax transparency and sustainability. PwC’s 2024 Tax Transparency Report analysed the tax disclosures of all 20 companies listed on the main market of the Irish Stock Exchange (Euronext Dublin) to see how prepared they are for tax disclosures under the CSRD and how it affects their tax approach. Tax policy approach We found that companies primarily make tax disclosures through a tax strategy, also known as a company's approach to tax or tax policy. We discovered that 80 percent of companies mentioned tax in their broader sustainability reports, up 14 percent on last year. This indicates that companies recognise the importance of tax as an environmental, social, and governance (ESG) metric in which their stakeholders are interested. Additionally, one more company reported on tax with reference to the Global Reporting Initiative (GRI) 207 standard compared to last year. However, few companies describe how their approach to tax links to their sustainability strategy. This may be due to simply not connecting the dots between tax and sustainability efforts. The CSRD is still in its relative infancy and, as such, the number of companies reporting a link between their tax and sustainability strategy is expected to rise in the years ahead. Broader implications Integrating economic and social impacts into tax strategy reflects an organisation’s commitment to considering the broader implications of its actions beyond mere financial gains, including its impact on communities and the environment. Here are some key steps businesses can take today: Engage the board: Increasing investor pressure on tax means tax transparency is now a board-level issue. It is essential for your board, tax function and ESG teams to fully engage with this issue and to align tax practices with sustainability strategy. Engage with your sustainability teams: Tax and sustainability teams should work closely to ensure that double materiality assessments carried out under the CSRD consider tax-related impact, risks and opportunities. This will contribute to informed decisions on the materiality of tax. Prioritise your tax strategy: Prioritise creating a formal tax strategy to guide disclosures and to control the narrative regarding your company’s tax practices and transparency efforts. Consider what, and to whom, you are reporting: Understand the material tax matters your stakeholders want to know about and why. Review your current disclosures to see if they align with stakeholder expectations and/or regulatory requirements. Consider clarity and context in communications to help your target audience understand what’s at stake. Establish optimal reporting framework: Choose a reporting framework that aligns with your company's values and stakeholder interests. If you are using an existing framework like GRI for sustainability, align your tax disclosures accordingly. Set up tax disclosure processes: Implement formal procedures and governance to uphold the integrity of both qualitative and quantitative tax disclosures. This helps to ensure accountability and consistency. David McGee is Environmental, Social and Governance Leader with PwC Ireland

Aoife Hughes outlines what life-work balance is and the steps you can take to break unhealthy habits and achieve equilibrium Life-work balance often feels unattainable as we have a lot of time competitors, all champing at the bit to claim time and energy from us. Life-work balance can be defined as a series of habit changes, powered by a permission mindset, vision, strategies and systems. The metric of success is time to invest into your self-care. Here, I outline some key steps you can take to achieve the ultimate life-work balance. Permission to embrace self-care First, build a permission mindset to invest time into your self-care. This is a term that often incurs frustration as we feel we ‘don’t have time’ to invest into self-care. Self-care can be seen across three lenses: physical, emotional and social health. They can be interlinked. Self-care is a strategy to manage emotional stress to ‘find calm in the chaos’. We all experience chaos in life. ‘Big’ chaos can involve life-changing events such as moving house, having children or falling ill. ‘Small’ chaos is the day-to-day stress from getting to work on time, deadlines and cooking dinner. Building boundaries and prioritisation are critical components to managing self-care and stress. To deal with the chaos, and care for yourself, identify when you are stressed by noticing when your heart starts racing and you can’t concentrate. Manage this by inhaling for four seconds, holding your breath for seven seconds and exhaling for eight seconds. Future vision Design your ideal life-work balance by visualising what you want. Then, define your core values. These values are the deeply-held beliefs that guide your behaviours and decisions. Building awareness about limiting beliefs that impact your thoughts, emotions and habits is key to implementing change. Creating your goals involves change – something that is not easy as we are not conditioned for change. We are wired to stay within our comfort zone as we don’t have any emotional connection with something that we have not yet experienced. To achieve your goals to reach your vision, you need to break old habits and start building new ones. You can do this by identifying one goal to help you reach your vision. Change one limiting belief to build or break a habit to reach your goal. And if you need extra help, the How to Run Your Home Like a Business Framework supports habit changes with strategies and systems to manage the physical and mental load that comes with home and family life to make room for self-care. Building strategies Building a strategy to manage your home and family life involves identifying your ‘partner in the business’. This can be your roommate, family member or life partner. Create a plan for the work associated with the home and family. Look at the projects and tasks that need to be completed on a daily, weekly, monthly, quarterly and annual basis – just like how you would approach project management in the workplace. Next, look at your internal team, which could be your immediate family, and identify who your ‘village’ are. Leadership and asking for help are key to achieving success with implementing your strategies. Finally, identify what projects you would like to complete in your home. Manage when you would like to have these projects completed by creating a prioritisation plan. Systems management Now that you have your strategies and team in place, building systems and delegation are the final components. Identify what your key pain points are in terms of managing the physical and mental load that comes with home and family life. Give yourself permission to set a budget and invest in solving problems by expanding your team with external suppliers. For example, hiring a cleaner to manage weekly tasks will lighten the physical and mental load that comes with the home. The key cyclical tasks related to the home are cooking, laundry and dishes. They come with a heavy workload as they need to be managed regularly. Delegate ownership around these tasks by playing to the strengths of each partner. Delegation can be challenging. Working with the ‘progress over perfection’ mantra and accepting that tasks may be approached in a different manner, can help to overcome some of the challenges. Leverage planning tools and applications to streamline the systems you create to save time. Identify who owns a task that needs to be managed weekly, then create a system and schedule this task with an online calendar or app. Begin at the start Life-work balance is a fitness – you decide how far you want to take it. The hardest part is starting. Once you build your permission mindset and vision, however, you’ll soon find that the rest will fall into place. Aoife Hughes is the founder of FRAZZLE

Small businesses can sometimes feel left out of the conversation on neurodiversity, believing such initiatives are reserved solely for large businesses. Mark Scully explains why it is so important for small businesses to embrace neurodiversity and how  Neurodiversity is the idea that all people experience and interact with the world around them in many ways. There is no one "right" way of thinking, learning, and behaving. Under the neurodiversity lens, differences arising from neurodivergences, such as dyslexia, dyspraxia, autism or ADHD, are not viewed as deficits. Instead, these differences can give rise to certain strengths as well as unique perspectives. The importance of neurodiversity in the workplace has gained significant attention internationally and Irish workplaces are finally beginning to embrace this, such as Bank of Ireland’s roll out of its Neuroinclusion Policy. The commentary around neurodiversity initiatives can make it seem that they are the preserve of large organisations, however, leaving smaller businesses feeling that they don’t have the scale, resources or time to deal with such matters. Neurodiversity initiatives in small businesses Based on the most recent available CSO (2021) statistics, 69 percent of people are employed by SMEs. Importantly, almost 50 percent of all employees in Ireland are employed in businesses which employ less than 50 people, being small enterprises (22%) or micro enterprises (28%). So, it is paramount to emphasise the important role small businesses can play in embracing neurodiversity, as well as to challenge misconceptions and barriers that may stand in the way. “We will cross that bridge when we come to it” Some businesses may see neurodiversity as something to be dealt with in the future when they are forced to react to it, e.g. when a new employee is neurodivergent. However, businesses may be surprised by the likelihood that they may already have neurodivergent employees. Research published in the British Medical Bulletin in 2020 estimates between 15 percent and 20 percent of the population is neurodivergent, with the current view being that it is the higher end of this range. Taking this 20 percent rate, and by using the most recent European Disability Forum’s employment rate for disabled people in Ireland of 32.6 percent as a proxy (which likely understates the employment rate for all neurodivergent people, excluding autistic adults who face significant barriers to employment), we can estimate the probability of at least one neurodivergent person working in a business of a particular size. Based on those assumptions, we can arrive at conservative probability figures: In a business employing more than 10 people, there is a more than 50 percent chance that at least one person in that business is neurodivergent. In a smaller business with five people, this probability is 25 percent. In a larger business with 35 people, this probability increases to 90 percent. While rough, this calculation is intended to illustrate a key point: the probability that you already have a neurodivergent employee is much higher than you think. If your business is larger than a micro enterprise, there is no point waiting to cross the bridge – you likely already crossed it without even realising it. “We don’t have a budget for this.” If financial cost is significant constraint, there are numerous free or low/subsidised cost resources available to help: There are excellent not-for-profits/charities in Ireland that provide support, advice and resources on supporting adults with more common neurodivergences such as autism, ADHD, dyslexia and dyspraxia (DCD). Some organisations that were previously solely autism-focused have now broadened their remit to wider neurodiversity, such as Specialisterne Ireland. There are government-backed information and support programmes such as Employers for Change to assist employers in recruiting and retaining disabled employees. Specialisterne Ireland has recently collaborated with international organisations across the EU to roll out neurodiversity resources aimed at SMEs which are freely available to use. The Department of Social Protection will shortly roll out a revised scheme to replace the existing Reasonable Accommodation Fund and Disability Awareness Support Schemes. This revised scheme should hopefully make funding more easily available to subsidise costs of disability (including neurodiversity) awareness trainings for employers. Often, the most beneficial workplace adjustments for neurodivergent employees do not involve financial outlay. Instead, an understanding and willingness on the part of the employer to adopt a different way of working or communication to best suit that person’s cognitive style or sensory needs can be incredibly helpful. Any such adjustment depends entirely on what works for that individual and their needs but can include: flexible working arrangements; asynchronous communication to allow time to process information; being permitted to use noise cancelling headphones; taking movement breaks; being provided more prescriptive instructions to facilitate task breakdown; chunking work to minimise transitions, etc. But even where financial cost is involved for reasonable accommodations e.g. text-to-speech software, there are government supports available. “We don’t have the time for this.” Every business should embed diversity, equality and inclusion (DEI) initiatives, including neurodiversity, as part of its long-term strategy. This can involve reviewing the recruitment process, reviewing the physical environment for accessibility and updating policies and procedures. Smaller businesses can feel that a such an undertaking is beyond their capacity, however, and therefore avoid taking any steps at all. Inclusion is a continuing journey – there is no finish line. The key is to take one step and then another. Here are some small practical steps you can take today: Let your people know that neurodiversity is something you want the business to embrace. Invite them to provide feedback and help. Often, you will be surprised to find that people are more than willing to help, particularly where they or a family member is neurodivergent. Make your people aware. Online neurodiversity awareness trainings suitable for all employees generally range from 60 to 90 minutes in length. Train your leaders and managers. Typically, more in-depth neuro-inclusion training aimed at leadership and human resources range from two to three hours. It is important that neurodivergent employees have some way of making their voice heard, especially if they do not feel comfortable yet to share their neurodivergence. An anonymous survey to request feedback on neurodiversity in your workplace can be generated and circulated (via a third-party intermediary, if necessary, to ensure confidentiality and anonymity of feedback). Conclusion Neurodiversity is not just the domain of large businesses and multinationals – small businesses must readily embark on the neuro-inclusion journey if we are going to foster an inclusive workplace for all employees in Ireland. Mark Scully ACA is the founder of Braver Coaching and Consulting, an executive coaching and neurodiversity consultancy.

As people across the world condemn the attack by Russia on Ukraine, they also want to show their support through donations and using their influence for humanitarian intervention. Professional accountants will find themselves in positions of influence with many stakeholders including clients, employers, employees, and local communities.  Níall Fitzgerald, Head of Ethics and Governance outlines some practical considerations for accountants and business leaders in this context:    Fundraising for humanitarian or other reliefs People and organisations are looking to help the millions of Ukrainians displaced by the invasion by donating directly or running fundraiser events. Be aware of fraud risk and recommend controls that ensure the safeguard of any monies raised and that they are used for the purpose for which they were raised. Ensure the necessary licences are obtained for any public fundraising activity. Be clear on the purpose for the funds and how they will be channelled to the beneficiaries. Ensure compliance with national charity law and check that charitable donations are only made to a properly registered charity in your jurisdiction. Social media Understandably, many people and corporates are sharing their views on Russia's  invasion of Ukraine via social media. The distinction between when a view is a personal view or that of the organisation where a person works is not always clear. If you are an officer of a company, e.g. a director, chief executive, or the public relations officer, and you are commenting on a matter related to your area of responsibility, then it is very difficult to separate your view from the corporate view. For this reason, many organisations will have clear corporate social media policies in place and that is the first reference point if in doubt. However, before reacting to a colleague's personal post, it is important to also consider their right to hold and express an opinion. There can be a cultural aspect to this within an organisation, especially where respect, tolerance, diversity and inclusion, and psychological safety are highly valued. The specific circumstances of the person expressing the view might also be taken into account, for example their emotional proximity to the issue.  Developing corporate positions Many organisations are using their influence for good by publicly denouncing the invasion of Ukraine, with some going further to withdraw from investments and business operations in Russia, and any dealings with Russian state-owned entities. These decisions are not always the most straightforward to implement. Legal and other expert advice should be sought to consider how an organisation can address contractual obligations, restructure, and relocate operations. Many Russian citizens are against the actions of the Russian Government, and Russian employees, contractors, etc., should receive fair treatment and not be discriminated against. Reporting progress and being transparent on these positions, including any setbacks, is very important as corporates will be held to account by stakeholders and members of the public to honour their commitments. Careful thought should be given before making any wide-sweeping statements. The global economy, with its complex interconnected markets, creates practical difficulties when seeking to divest of everything connected to Russia.   Whistleblowing and speaking up Clearly defined and well-communicated whistleblowing and speaking-up policies and procedures can increase an organisation’s awareness of any weaknesses in it’s internal controls and practices relating to sanctions, anti-money and anti-bribery and corruption compliance. Communicating to employees the organisation’s position in relation to this crisis and reminding them about whistleblowing and speaking-up policies and procedures, promotes a safe environment in which individuals feel comfortable to raise any concerns about the organisation’s actions, or inactions. Corporate reporting While the scale of the impact of this crisis on organisations will differ, it will dwarfed by the impact on millions of Ukrainians. Organisations have important social obligations and responsibilities to corporate stakeholders. Accountants should ensure transparency and accountability in corporate reporting by highlighting the impact of the crisis on the organisation’s operations, asset valuations and exposure to liabilities. Examples of the sources of this impact include: supply-chain disruption; the cost of ceasing operations in Russia or the conflict/invasion zones; rising commodity prices; inaccessibility of certain markets due to trade or travel restrictions; difficulty maintaining required levels of capital reserves; and loss of key customers. Accountants will have a central role in collecting, measuring, and reporting the necessary information and ensuring it is reported in accordance with legal and regulatory requirements and relevant reporting frameworks. They should also understand the limitations to their expertise and call for the involvement of experts where necessary. Directors and senior management will need to consider expert advice when making highly judgemental decisions on values and estimates and in determining the future implications for the organisation.    Boundaries between personal life and professional life Negative emotions, such as anger and fear, increase the risk of self-defeating behaviours. The developing situation in Ukraine will understandably evoke such emotions in many. In this context, it is useful to refer to guidance issued by the CCAB bodies, in July 2021, to help accountants consider and distinguish if their personal behaviour could be viewed as conduct that might discredit the profession. While the facts and circumstances of every situation will differ, the CCAB guidance provides some examples of such behaviours, including the use of seriously offensive or threatening language causing distress, or threatening behaviour, towards a client or a member of the public outside of the work environment.  This non-exhaustive list of considerations may need to be reconsidered as the crisis in Ukraine develops. In many situations, increasing ethical awareness or the ability to address an ethical dilemma requires reflection. Professional accountants may find it useful to refer to, or circulate to professional accountancy staff, the Chartered Accountants Ireland Ethics Quick Reference Guide available from our Ethics Resource Centre. This article was adapted for members overseas from an article written by Níall Fitzgerald on the Institute’s Ethics Resource Centre.

Ahead of the UK’s general election on Thursday 4 July, we take a look at the tax policies of the two largest parties in Northern Ireland.  The DUP’s tax policies and promises  The Democratic Unionist Party (DUP) published its full manifesto last week. The party continues to argue that further work is needed on the Windsor Framework and “we will continue to argue the case for the full primacy of the United Kingdom internal market, and we will continue to reject the undermining of its integrity………..In October, as part of the NI Assembly vote on the current arrangements, we will not hesitate to vote against their continued application and, drawing upon the new mechanisms at our disposal, we will continue our quest through the inbuilt review.”  A lower rate of corporation tax for Northern Ireland also featured, something which the Institute has been campaigning on for many years. The Institute is currently developing a briefing paper on the benefits, challenges, and potential mitigations to any challenges of a lower rate of corporation tax for Northern Ireland which it plans to use as a mechanism to drive this issue forward.   The DUP’s analysis of a lower rate of corporation tax for Northern Ireland features on page 29 of their manifesto and reads as follows:  “Lowering the rate of corporation tax in Northern Ireland has been a longstanding DUP policy. This would boost Northern Ireland as an attractive investment opportunity, building on the strength, skill and ingenuity of our workforce. The minimum effective 15% rate in the Irish Republic places firms in Northern Ireland at a competitive disadvantage and we want to see this addressed. We continue to advocate for a reduction in corporate tax across the United Kingdom and DUP MPs opposed the increase in the main UK corporation tax rate from 19% to 25% in 2023.   The DUP believes there are a number of fundamental issues that require resolution with the Treasury before the powers to vary corporation tax rates - which are already provided for in law - can be enacted. We are clear that progress must be based on solid foundations. That means ensuring a process of implementation that protects spending on public services in the short to medium-term.”  DUP MPs will also campaign to:   Oppose the freeze on the personal tax allowance and higher rate income tax threshold  Seek further reductions in national insurance  Support an increase in the starting age for employee national insurance  Encourage the government to explore the merits of moving to single tax on all income, replacing income tax and national insurance  Freeze vehicle excise duty  Abolish VAT on domestic electricity bills  Maintain the freeze on fuel duty  Oppose any increase in insurance premium tax   Increase the tax-free childcare allowance from 20 percent to 35 percent  Remove the cap on tax free childcare above £2,000  Scrap VAT on school uniforms  Support the triple lock on state pensions   Support the personal allowance for pensioners always being above the amount of the state pension  Increase the VAT registration threshold for SMEs to £100,000 and then uprate it in line with inflation  Drive up the number of SMEs benefiting from tax reliefs  Ensure the national insurance liability for small businesses is fair: the Employment Allowance should be uprated in line with increases to the national living wage  Promote greater awareness of capital allowances and R&D tax reliefs among local businesses  Explore the potential introduction of an online sales tax targeting online corporates and marketplaces  Support robust efforts to crack down on global tax evading corporations  Aim for the VAT system to be better utilised to incentivise investments that promote improved productivity through low-carbon and green technologies  Continue to campaign for a reduction in VAT for hospitality across the UK, and   Expand UK research & development tax relief for small and medium sized enterprises to include capital expenditure.  In its 2022 Assembly Election manifesto, the DUP also argued that the necessary capacity did not exist for Northern Ireland to devolve additional fiscal powers. That remains its position at this time.   Sinn Fein’s tax policies  Sinn Fein published its full manifesto in mid-June, a 10 page document which did not contain any detail on tax pledges. However publicly, the party has taken a slightly different position to the DUP on the devolution of more fiscal powers arguing that although there are "important considerations" about the political and administrative capacity for Stormont to take on new responsibilities, the experiences of Scotland and Wales demonstrate that this capacity can be developed over time which "it is not a reason in itself to not consider devolution". 

The latest Tax Gap publications for 2022/23 were published last month by HMRC and set out how the tax gap has increased by £1.7 billion to £39.8 billion in absolute terms. In percentage terms the tax gap is 4.8 percent (5.2 percent 2021/22) of the £823.8 billion total theoretical tax liabilities for 2022/23. The tax gap is the difference between what HMRC expects the total tax take for 2022/23 to be, and the actual tax received. According to the statistics in the publications which are linked below, small businesses accounted for nearly two thirds of unpaid tax.   The largest components of the tax gap by tax type are the Corporation Tax gap and the Income Tax, National Insurance Contributions and Capital Gains Tax gap, both at a 34 percent share, followed by the VAT gap with a 20 percent share. As in previous years, the tax gap from small businesses is the largest component of the tax gap by taxpayer group which was a 60 percent share in 2022/23.   There was also strong year-on-year growth in HMRC’s tax receipts in these two years, most likely due to fiscal drag. You can read the published receipts figures on GOV.UK.  The 2022/23 Tax Gap publications are as follows:  Measuring tax gaps tables  Quality report: Measuring tax gaps, and  Measuring tax gaps 2024 edition: tax gap estimates for 2022 to 2023.   

Do you complete expenses and benefits returns? Or do you complete online filing for employment related securities? If so, you have a key role to play in ensuring returns are submitted by the 2023/24 filing deadline of 6 July 2024 and payments are made on time. The 2023/24 deadline to apply for a PAYE settlement agreement (PSA) is 5 July 2024, with payments due by 22 October 2024 (19 October 2024 if not paying electronically).  By way of reminder, from 6 April 2023, forms P11D and P11D(b) can only be submitted online by employers (except for the digitally excluded). Also, since 6 April 2023, an online service is available for employers and their agents to apply for a PSA.   It should also be noted that where Enterprise Management Incentive (EMI) options are granted on or after 6 April 2024, although the statutory reporting deadline is 6 July following the end of the tax year, some plan rules require the employer to notify HMRC within 92 days of grant. If this is the case, failure to report within the deadline can lead to the option lapsing or becoming non-tax advantaged. We recommend that employers check any EMI plans urgently to ensure this deadline is not missed.     Here’s a reminder of the key deadlines:  6 July 2024 - deadline for submitting all 2023/24 P11D(b) and P11D forms, and the employee must receive their copy of the P11D  6 July 2024 – deadline for online reporting of the 2023/24 annual return in respect of employment related securities  19 July 2024 - deadline for non-electronic payment of Class 1A National Insurance Contributions (NIC) for 2023/24, and   22 July 2024 - deadline for electronic payment of Class 1A NIC for 2023/24.   Looking ahead to the future, we also remind you that from April 2026, the reporting and payment of income tax and Class 1A National Insurance Contributions on benefits in kind must be done via payroll software.  

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 HMRC is warning about issues with license data flows between the Customs Declarations Service (“CDS”) and the Department for Business and Trade's (DBT) electronic licensing systems.   CDS licensing issues  HMRC has become aware of issues with licence data flows between the CDS and the DBT’s electronic licensing systems (also known as SPIRE/LITE). According to HMRC, these are temporary issues which happen if a CDS export declaration contains errors that impact the licence. If this occurs, the declaration cannot progress to cleared. HMRC has published guidance for declarants on how to deal with the issue and is currently working on a resolution with the DBT. An update will be provided in due course.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Known error workarounds for the Customs Declaration Service (CDS)  Claim repayment or remission of charges on rejected imports  How to claim a repayment of import duty and VAT if you've overpaid  Transit newsletters — HMRC updates  Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, and  Apply for release of a private vessel on payment of Customs Duty and VAT.   

The Institute has issued revised CPD Regulations with effect from 1 July 2024.  The minor changes to the CPD Regulations facilitate a planned simplification of the Institute's Individual Annual Return process for members. To access these regulations, please click on the link provided.

The Companies Registration Office have recently issued a guidance note in relation to The Do’s & Don’ts when filing B10 forms. The guidance note highlights some of the common issues that occur with filing B10 forms and assist presenters to avoid making mistakes when filing B10 forms. This is a very useful document and following the guidance should assist in ensuring that B10s are not rejected. Please note that the guide is not legal advice and should not be taken as such. If you have any further queries, please email the relevant CRO section at: companyofficers@cro.ie

On 19 June, continuing with the Legal Series with A&L Goodbody, the Ulster Society hosted a webinar on 'When contracts go wrong - remedies, termination and heads of loss'. James Flanagan, Partner in A&L Goodbody’s Litigation team presented on when contracts go wrong, including managing disputes, how to prepare for termination and what constitutes loss, such as indirect or consequential loss. When Contracts Go Wrong - June 2024 slidedeck