Sean Nolan and Joe Struble outline how the introduction of the new Corporate Transparency Act will impact Irish companies operating in the US Irish companies with business ties to the United States are now subject to new regulatory requirements under the US Corporate Transparency Act (CTA) 2021, which took effect on 1 January this year. This new legislation imposes stringent reporting obligations on both US and foreign companies, including those from Ireland, as part of a broader effort to combat financial crimes such as money laundering and terrorist financing. The legislation, while US-based, has significant implications for Irish businesses due to the global nature of modern commerce and close economic ties between Ireland and the US. The CTA also applies to individuals who own investment properties in the US through investment companies. What is required? The CTA mandates that all companies, including foreign entities registered to do business in the US, file a beneficial ownership information report with the Financial Crimes Enforcement Network's (FinCEN) new Beneficial Ownership Secure System (BOSS). This system is designed to increase transparency by disclosing the identities of the beneficial owners of companies, thereby reducing the potential for illicit activities facilitated through corporate anonymity. We are seeing a surge in requests for compliance assistance from Irish businesses uncertain about their obligations under the new US law. This emphasises the importance of compliance given the severe penalties for non-compliance, which include a daily default penalty of US$500 and potential imprisonment. Compliance burden The legislation reflects a strong commitment by law enforcement agencies in both Ireland and the US to tackle financial crime. It also introduces a significant compliance burden for legitimate businesses, however, which must now ensure they are fully prepared to meet these new requirements. For entities formed in 2024, the deadline to file their BOI reports is within 90 days of formation. Entities formed before 2024 have until 1 January 2025 to file. The required information includes detailed personal data about the beneficial owners, such as names, addresses, dates of birth and identifying numbers from documents like passport or driver’s licence. The BOSS database will be accessible to various US agencies, including those involved in national security, intelligence and law enforcement, as well as to state and local and enforcement agencies with court authorisation. This broad access aims to enhance the US government's capabilities in preventing, detecting and prosecuting international crime and terrorism. CTA filing requirements For Irish-owned companies operating in the US, analysing the CTA filing requirements and preparing an initial filing for a foreign-owned company can be complex. This is because of the limited availability of exemptions and the challenges in documenting beneficial ownership. The new Corporate Transparency Act aligns with several aspects of the European Union’s directives aimed at preventing money laundering and terrorist financing, which have been part of Irish law since 2016. The Act represents a significant shift towards greater corporate transparency and could set a precedent for future legislation in other jurisdictions, impacting global business operations. The implications of non-compliance could extend beyond financial penalties, potentially complicating future business dealings in the US due to criminal records against company owners or principal shareholders. Sean Nolan is a partner with Clark Hill in Dublin and Joe Struble is a corporate attorney with Clark Hill in San Antonio in the US

Thought leadership can be highly effective in professional services marketing, especially for accountancy firms. By showcasing expertise, firms can enhance their reputation and attract clients. Mary Cloonan explains how In today's competitive business-to-business landscape, thought leadership has emerged as a vital marketing strategy, especially for the accountancy profession. By establishing themselves as industry experts, firms can differentiate their services, build trust and attract high-value clients. Outlined below are seven steps you can take to enhance your firm’s marketing offering through the medium of thought leadership. Establish authority: thought leadership positions firms as knowledgeable leaders in their field. By consistently sharing insights, research and expert opinions, they demonstrate their expertise and reliability. Enhance brand visibility: regular publication of thought-provoking content can help firms stay top-of-mind among potential clients and industry peers. This increased visibility can lead to greater brand recognition and credibility. Build trust and relationships: clients are more likely to trust and engage with firms that provide valuable, insightful content. Thought leadership can foster long-term relationships by demonstrating a deep understanding of industry challenges and solutions. Drive business growth: thought leadership content can generate leads by attracting professionals seeking expert advice. It helps in converting prospects into clients by showcasing the firm's ability to solve complex problems. Validate and engage: content published by thought leaders acts as a validation point, which can reinforce your firm's expertise. This content can be shared on social media and forwarded to clients and prospects, further extending its reach and impact. Differentiation: in a crowded market, thought leadership sets firms apart. By sharing unique perspectives and innovative solutions, firms can differentiate themselves from competitors. Continuing Professional Development (CPD): Hosting, or offering to participate in, CPD events and workshops can help to educate clients on industry trends and also demonstrate the firm's expertise, fostering a culture of continuous learning and professional growth. How to implement thought leadership content To implement your thought leadership content, consider the following: Content creation: publish whitepapers, blogs and research reports regularly and bear in mind that this can be more effective if the research is industry-specific. Speaking engagements: participate in industry conferences and webinars. Social media: leverage platforms like LinkedIn to share insights and engage with your audience. Client education: host CPD events to educate clients on industry trends. The power of thought leadership For accountancy and advisory firms, thought leadership can be more than just a marketing tactic. It can offer a strategic approach to building authority, fostering trust and driving growth. By consistently demonstrating expertise and providing value, firms can create lasting client relationships and achieve sustainable success. Moreover, leveraging published content as validation on social media and for client communications amplifies its effectiveness with a view to building credibility with prospective clients. Mary Cloonan is the founder of Marketing Clever.

Organisational practices and culture often drive workplace conflicts. Ian Brinkley examines the impact of conflict and how it can be resolved and prevented in the future The modern workplace is often a place of harmonious or at least tolerable relationships, but sometimes things go wrong. Ranging from one-off tiffs to more serious and systematic incidents, conflict can occur even in the best run workplace. In early 2024, the Chartered Institute for Personnel Development (CIPD) conducted a large-scale workplace survey in the UK focused on the incidence, impact and resolution of conflict. What is conflict? According to the survey, conflict included feeling humiliated or undermined at work, being shouted at or in a heated argument, verbal abuse, unfair allegations, sexual and physical harassment, intimidation and assault and discrimination for a protected characteristic such as race, gender, disability or age. (The survey question did not mention religion.) About 25 percent of the UK workforce reported at least one form of conflict in the preceding 12 months. The most common conflicts involved being humiliated or undermined at work, being shouted at, followed by verbal abuse and discrimination linked to a protected characteristic. The most serious incidents, such as sexual and physical assault were thankfully rare. Most attention focuses on formal processes such as industrial tribunals, grievances and mediation as a means to resolve disputes. However, in practice, very few reported conflicts ever make it to this stage – just one percent ended up in employment tribunals, for example. The most common reactions are informal. About half of those who reported conflict reported that they let it go. Involving managers and HR was the second most common way of resolving conflict. Unresolved conflict About two-thirds of conflicts are either fully or partially resolved. However, one-third are not resolved at all. Unresolved conflicts may not be escalated because they are not serious enough, especially “one-offs”, or because people fear the repercussions if they do. The survey does not tell us directly which is more likely, though evidence on the impact of the conflict suggests the former is more common. Most people who reported conflict also said they had good working relations with managers and colleagues. However, they were more negative when it came to specific actions – for example, whether they were always treated fairly. We think this apparent contradiction is down to people making a distinction between working relations in general and specific incidents. Conflict also had relatively little impact on voluntary effort. Those who reported conflict were almost as likely to say they were willing to work harder than they needed to in order to help their organisation and just as likely to say they would help colleagues under pressure or make innovative suggestions. However, we do find a clear negative association between conflict and a range of other indicators of the quality of work. For example, those who report conflict are much more likely to say work had adversely affected their mental health and that they experienced excessive workloads and work pressures most or all of the time. We cannot tell from the survey whether the conflict was the cause of these negative impacts or whether workplaces, where work quality was already poor, are more likely to suffer conflict. Both are likely to be true. A decrease in workplace conflict The survey asked about conflict in 2019 and since then there has been a significant decrease from 30 to 25 percent of the workforce. There are, however, two important caveats. First, the improvement was largely confined to older white males in permanent, higher-skill white-collar jobs without disabilities. There was little or no improvement for the young; those in temporary or zero-hours jobs and short-hour contracts or those with disabilities, ethnic minorities and women. Non-heterosexual workers also saw less conflict over this period, but it still remains at a high level. In 2024, the latter groups reported significantly higher levels of conflict than the former, and since 2019 that gap has widened. Second, the fall in conflict has also been greatest for those groups that saw the biggest rise in home-working. Those who work at home are less likely to report conflicts such as being shouted at or subject to verbal abuse. Reducing workplace conflict No strategy to improve the quality of work can fully succeed unless the incidence of conflict is reduced, especially among the “left behind” groups. Improving the relative bargaining power of those who are more likely to report conflict may help. Legislative change focusing on formal dispute resolution may be justified but is unlikely to make much difference to the overall incidence of workplace conflict. The biggest impact is going to be from organisational practice. Improving work quality in workplaces with below-average work quality is an obvious priority, but even well-run organisations can suffer conflict. In both cases, mitigating some of the underlying causes of conflict, such as excessive workload combined with helping line managers manage conflict better in the future, will be required if progress is to be made over the next five years. Ian Brinkley is a labour market economist

The Department of Enterprise Trade and Employment has announced that the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 (S.I. No. 301 of 2024) were signed into law on the 19 June and come into operation on the 1 July 2024. The purpose of the Regulations is to adjust company size thresholds in line with 25 per cent inflation, thereby reducing the regulatory and administrative burden on some companies, which would otherwise become subject to audit and additional financial reporting requirements.  The Regulations, which transpose delegated Directive 2023/2775/EU, amend the Companies Act 2014 increasing company size thresholds as set out below. These size thresholds are contained in sections 280A to 280I of the Companies Act 2014, with company size being typically determined based on the company meeting two out of the three size criteria (with other relevant factors also applying). The increased size criteria are as follows; micro company –a balance sheet total of not greater than €450,000, a net turnover of not greater than €900,000 and no more than 10 average employees. small company – a balance sheet total of not greater than €7.5 million, a net turnover of not greater than €15 million and no more than 50 average employees. medium sized company – a balance sheet total of not greater than €25 million, a net turnover of not greater than €50 million and no more than 250 average employees. large company –continues to be defined as a company that does not qualify as micro, small or medium (ie. balance sheet total of greater than €25 million, net turnover of greater than €50 million and more than 250 average employees). Group size thresholds have also increased as set out below; small group- group balance sheet total of no greater than €7.5 million net (or €9 million gross), group turnover no greater than €15 million net (or €18 million gross) and no more than 50 average employees of the group. medium group- group balance sheet total of no greater than €25 million net (or €30 million gross), group turnover no greater than €50 million net (or €60 million gross) and no more than 250 average employees of the group. The measures apply for financial years beginning on or after 1 January 2024, enabling companies to benefit from the adjusted thresholds immediately.  Companies may elect to apply the measures on or after 1 January 2023. Please see the DETE announcement. Chartered Accountants Ireland are delighted to see this regulation signed into law, giving clarity to companies on size thresholds, and their reporting requirements.      

Revenue has updated the Tax and Duty Manual which outlines procedures to make an application to pay Local Property Tax (LPT) by SEPA monthly direct debit. Paragraph 4 of the manual has been revised to include Andorra and the Vatican City in the list of countries in the SEPA area, and the screenshots to demonstrate online procedures in appendix 7 have been refreshed.

Revenue has updated the Stamp Duty Manual which provides guidance on the exemption from stamp duty on conveyances and transfers of property between associated companies. The exemption is provided under section 79 SDCA 1999 and is generally referred to as “associated companies relief”. The manual has been updated to clarify the treatment that may apply where the transferred property comprises shares in a company that is liquidated or dissolved within a two-year period following the transfer, resulting in the extinguishment of those shares (section 5.3.1).

Revenue has updated the Tax and Duty Manual regarding the confidentiality of taxpayer information. The updated guidance addresses the authorised disclosure of taxpayer information in the context of Joint Audits carried out by Revenue officials in conjunction with nominated officials from other EU Member States(paragraph 4.13). Section 891L TCA 1997, introduced by Finance (No. 2) Act 2023, implemented article 12a of DAC7. A joint audit is an administrative inquiry conducted by Revenue and the competent authority of another Member State when linked to a person of common or complimentary interest in both jurisdictions. At a recent meeting of the TALC Audit Sub-Committee, Revenue confirmed that the joint audit process is outside the scope of the Compliance Intervention Framework.

Revenue has updated the following guidance to reflect increases in the 2024 tax rate bands and tax credits in Finance (No.2) Act 2023: High Income Individuals' Restriction regarding income chargeable to tax at the standard rate in joint assessment cases; PAYE reviews where Week 53 applies; and Guidance on the income tax treatment of married persons and civil partners.

Revenue has updated the Tax and Duty Manual which provides guidance on tax relief for charitable donations to approved bodies. The amendments include: Examples of payments to "approved bodies" which are not considered a relevant donation for the purposes of the Charitable Donation Scheme (paragraph 3); Educational institutions defined in section 53(1)(a) of the Higher Education Authority Act 2022 and the Royal Irish Academy are added to the list of approved bodies (paragraph 6); and The increase to €250,000 in the minimum annual income limit for audited financial accounts (paragraph 8).

Revenue’s Economic Research Unit is running a survey of medium sized tax agents to further inform its understanding of the issues facing tax agents in order to improve the quality of the service it provides. Agents selected for the survey will receive an email inviting them to complete the online survey before Monday 8 July 2024. Revenue has confirmed that it will not ask for financial or personal information in this, or in any other survey, or email. The survey is not in any way connected with an agent’s individual tax affairs. Further information is available in Revenue’s press release.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the TALC Collections Sub-Committee. At the meeting, Revenue provided an update on the Debt Warehousing Scheme and the local property tax (LPT) and vacant home tax (VHT) compliance projects which it has commenced. Revenue confirmed that it is preparing updated guidance on 2023 income tax filing requirements for non-resident landlords and it has updated its system to allow agents to pay Relevant Tax on Share Options for pre-2024 liabilities. Debt Warehousing Scheme Revenue confirmed that if taxpayers have phased payment arrangements (PPAs) for both warehoused debt at 0 percent interest and other debt at the standard rate, PPA payments are automatically allocated against the oldest debt. Taxpayers cannot elect to allocate payments against debt with a higher interest rate if this did not precede the warehoused debt. However, it may be possible to reduce the interest charge if the taxpayer makes a payment outside the PPA towards current taxes.   Revenue explained that PPA compliance monitoring is fully automated once commenced. If there is a failed payment, the taxpayer is notified that Revenue will retry in 21 days. If there is a further failure, the taxpayer will lose the 0 percent interest rate and standard enforcement will commence.   Local Property Tax Revenue noted that some taxpayers who pay their LPT by deduction at source from pay or pension have failed to file an LPT return. Revenue advises that they file an LPT return as soon as possible in order to avoid issues at a later date. Revenue will write to this cohort of taxpayers in September to remind them to file the outstanding return; agents will not be copied. Vacant Homes Tax Revenue intends writing to persons that own 2 to 19 properties, asking them to declare whether the property is occupied or is vacant. Where vacant, and not already returned, a return and payment will be required to regularise their affairs. In September Revenue will issue 2024 reminder letters to those that previously declared a VHT liability. Non-resident Landlords A consequence of the commencement of the non-resident landlord withholding tax (NLWT) portal on 1 July 2023 is the requirement, in some cases, for two income tax returns for 2023. This arises in instances where a collecting agent was responsible for the non-resident landlord’s rental affairs for the period to 30 June 2023 then opted to utilise the NLWT portal from 1 July 2023 onwards. Revenue is preparing guidance to outline how a single return can be filed in such circumstances for 2023. Single filing will require the chargeable person (responsible for period 1 January 2023 to 30 June 2023) to cease registration and the non-resident landlord will file all rental details for the 2023 year. Letters will issue in the coming weeks to chargeable persons. If they want to retain registration, they must contact Revenue to do so. Revenue has confirmed that non-resident landlords should not include details of Irish rental income that is being returned by a chargeable person. Payment of RTSO As readers will be aware, from 1 January 2024, the taxation of a gain realised on the exercise, assignment, or release of share options no longer falls under individual self-assessment. Instead, employers are responsible for collecting income tax, USC, and PRSI from employees on share option gains and for remitting those taxes to Revenue as part of the payroll process. Revenue has updated its website for these changes and additional text has been added to screens to alert anyone trying to submit RTSO for 2024. The self-assessment regime continues to apply to gains arising on or before 31 December 2023, as does the obligation to register for RTSO. Revenue has confirmed that is has updated its system to allow an agent to make an RTSO payment for pre 1 January 2024 liabilities.

At the most recent meeting of the TALC Direct & Capital Taxes Sub-committee, Revenue announced that it is finally updating its practice surrounding the review of its Tax and Duty Manuals (TDMs), including a commitment to make historic TDMs available on its website. The plan over the summer months is to commence a two-stage process to enhance the availability of Revenue guidance in future. Stage one will see up to four previous versions of a manual made available on Revenue’s website. The TDM will bear a watermark conveying that the particular manual is “out of date” and so may not be relied upon. Revenue has committed to refreshing its website so that the four most recent previous versions of guidance are available (excluding the current version). Stage two will see a change to the annual TDM review process whereby the manual under review will remain available during the review process. The manual will bear a watermark conveying that the guidance is “out of date/under review” and so may not be relied upon. The Institute, under the auspices of the CCAB-I, raised this issue in April 2022 via the TALC Direct & Capital Taxes Sub-committee (see Item 3). In October of that year, a delegation of stakeholders met with Revenue to progress the matter further (see Item 3(c)). Although it has taken time to implement the recommendations arising from this earlier engagement, this change in practice will make a significant difference to practitioners and taxpayers in future. As such, we are grateful for the continued engagement of both Revenue and those representing CCAB-I through the TALC process as a key forum to raise pressure points arising on both sides of the tax administration divide.

Readers are aware of an ongoing issue where Revenue-initiated emails in MyEnquiries can be overlooked if the email has been sent to an unattended or inappropriate email address. In response to the Institute’s representations at the Tax Administration Liaison Committee (TALC), Revenue is now providing a facility in MyEnquiries for users to mark a designated email address as the priority email address for sending Revenue-initiated queries. This enables practice staff with permissions to access that email address to ensure correspondence is not overlooked. Revenue has provided instructions to assist practitioners in assigning a priority email address for MyEnquiries if they choose to do so. Revenue will issue a revised Tax and Duty Manual (37-00-36A) in due course.

As recommended by the NI Tax Committee in a letter last August to the Financial Secretary to the Treasury and subsequently in the Institute’s evidence submission to the House of Lords Finance Bill Sub-Committee, the draft Finance Bill clause which would have retrospectively applied the change to the geographical scope of agricultural property relief (“APR”) for Inheritance Tax (“IHT”) has been removed from the most recent Finance Act. From 6 April 2024, APR, and woodlands relief (“WR”) is only available in respect of UK assets.  In accordance with draft Clause 1(7)(b), this change would have applied “in relation to transfers of value made before 6 April 2024, for the purposes of any charge to tax, or to extra tax, which arises on or after that date”.   This would have meant that lifetime gifts in the seven years prior to 6 April 2024 would have been impacted by the removal of APR and WR for non-UK assets had the settlor died within seven years of the original lifetime gift or made a further lifetime gift into trust within seven years of one made in the seven-year window prior to 6 April 2024. The original APR and WR would longer be available resulting in a decrease in the available nil rate band and potentially a 40 per charge to IHT.  The Institute recommended that the draft Finance Bill clauses be rewritten in a way that removed any damaging retrospective impact, as this would have otherwise threatened the principle of legitimate expectation.   HMRC confirmed the change when it published an updated policy paper on the amended Finance Bill clauses. The change is now reflected in Section 11 of the Finance (No. 2) Act 2024 which received Royal Assent last month. 

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. 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 PAYE Settlement Agreement (“PSA”). The 2023/24 deadline to apply for a PAYE settlement agreement is 5 July 2024, with payments due by 22 October 2024 (19 October 2024 if not paying electronically).  HMRC is running a webinar later this week on 27 June on how to use the PAYE online service to submit forms P11D and P11D(b). The webinar will provide an overview of these forms, examine the benefits of submitting them online, and consider payrolling of expenses and benefits. However, it will not cover how to calculate the value of benefits. You can book onto the webinar here.  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 next month:  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. 

Our last update on HMRC services covered the announcement by the Financial Secretary to the Treasury before the dissolution of Parliament of an additional £51 million in funding for HMRC to help deal with the pressures on its phonelines and address declining service levels. Earlier this month, the Institute attended a bespoke meeting with HMRC during which HMRC advised that it is working to source additional resources using this £51 million.   This will take some time and we therefore remind you that HMRC previously advised that even if additional funding was received, quarters one and two of 2024/25 are likely to see a further decline in services. HMRC’s longer term strategy is still to move most taxpayers to digital services.   At the above bespoke meeting, the Institute and the other Professional Bodies discussed and highlighted a number of pain points in the UK tax system and in particular pointed out the lack of agent service for areas such as changes to tax codes.   The Institute will continue to monitor this issue and engage with HMRC and the new Government as it considers the way forward. We welcome your feedback at any time on HMRC services by email.  

Ahead of next month’s election, the Institute for Fiscal Studies recently published an article on reform of Inheritance Tax and an assessment of the previous government’s record on tax between 2010 and 2024. HMRC is currently conducting taxpayer education research and its latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. And finally, Belarus has unilaterally suspended its Double Tax Agreement with the UK, although the UK considers it to still be in force.  Institute for Fiscal Studies publications  The Institute for Fiscal Studies (“IFS”) has published an article on options to make inheritance tax (“IHT”) fairer which it says would also raise more revenue. In the article, the IFS notes that despite the highest rate being 40 percent, the availability of reliefs and exemptions means that the effective rate of IHT peaks at 25 percent for estates worth between £3 million and £7.5 million and declines to just 17 percent on estates worth £10 million or more.   The article also considers the potential impact of removing the special treatment of AIM shares, imposing a cap on agricultural and business property relief, and ending the tax-free passing-on of pension pots.  The IFS has also published an assessment of the government’s record on tax between 2010 and 2024. Not surprisingly, it notes that a common theme has been a move towards greater complexity. Since 2010, more than a dozen new taxes have been introduced and many existing taxes have been made more complicated. The IFS notes that, taken together, the changes have ‘made the tax system harder to understand and harder for taxpayers to navigate’.   HMRC taxpayer education research  HMRC has recently updated its guidance on genuine HMRC contact to flag that it is currently conducting a new research initiative. As a result, taxpayers may be contacted by HMRC or by People for Research with an invitation for them to take voluntarily participate in a focus group to understand how HMRC can improve education for taxpayers.   Belarus unilaterally suspends Double Taxation Agreement with the UK  Last month, HMRC confirmed in an update on GOV.UK that Belarus Council of Ministers has unilaterally suspended provisions of many of its Double Tax Agreements, including the 2017 UK-Belarus Double Taxation Convention. 27 countries have been impacted with provisions affected from 1 June 2024.   The Council Resolution has suspended provisions relating to dividends, interest, and capital gains. The same Resolution also introduces discriminatory taxes on dividends and other income in respect of businesses located in one of the 27 countries with effect from 1 April 2024. This means that Belarus is not honouring agreed limits on what it may tax at source and has placed other restrictions on the conduct of business by non-Belarusians in Belarus.  The UK-Belarus Convention does not permit this unilateral action. The UK Government views this action with utmost seriousness and has asked Belarus to reverse its action. It considers the treaty to remain in force and is continuing to comply with its terms. Next steps are being considered and more information will be provided in due course. 

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 and Cabinet Officer Borders bulletins are also available. The Windsor Framework Democratic Scrutiny Committee has published another report, this time on Regulation (EU) 2024/1252 which aims to establish a framework for ensuring a secure and sustainable supply of critical raw materials.  Windsor Framework Democratic Scrutiny Committee report  The most recent Brexit and Beyond Bulletin from the NI Assembly’s EU Affairs team features the Windsor Framework Democratic Scrutiny Committee's report on Regulation (EU) 2024/1252 that aims to establish a framework for ensuring a secure and sustainable supply of critical raw materials.  According to the Committee, most of the regulation does not fall within the scope of the Windsor Framework, although some articles of it do make technical amendments to a number of EU Regulations that do apply under it.   However, the Committee concluded that having considered its commissioned legal advice, the replacement EU act does not significantly differ, in whole or in part, from the content or scope of the regulations which it amends.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Submit a claim using the second-hand motor vehicle payment scheme if you do not have a UK business establishment;  Reference Document for The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023;  Check if you can pay less duty if your goods are imported into authorised use;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs ;Declaration Service;  Software developers providing entry summary declaration support;  Search the register of customs agents and fast parcel operators;  CDS Declaration Completion Instructions for Exports;  List of customs training providers;  Attending an inland border facility; and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service. 

We have compiled the latest updates to various HMRC VAT publications, briefs, and guidance. Pay the VAT due on your One Stop Shop VAT Return;  Updates on VAT appeals;  Help with VAT apportionment of consideration — GfC2 Guidelines for Compliance;  Food products (VAT Notice 701/14);  VAT on movements of goods between Northern Ireland and the EU;  VAT Assessments and Error Correction;  Revenue and Customs Brief 7 (2024): VAT Treatment of Voluntary Carbon Credits;  VAT Assessments and Error Correction;  Appoint a tax representative if you are a non-established taxable person registering for VAT in the UK;  Cancelling your VAT registration (VAT Notice 700/11);  Group and divisional registration (VAT Notice 700/2);  Draft regulations: amendments to the VAT (Refund of Tax to Museums and Galleries) Order 2001;  VAT Flat Rate Scheme;  VAT Registration;  Forms for claiming a VAT refund if your business is registered in a country outside the UK;  Get your postponed import VAT statement; and  VAT Assessments and Error Correction. 

Charities can reclaim a portion of their VAT costs based on non-public funding ahead of the 30 June deadline. Liam Farrell explains how to do it Charities are entitled to claim a refund of a proportion of their VAT costs based on the level of non-public funding they receive, but the deadline to submit the application – 30 June – is fast approaching. Making a claim Where the total amount of eligible claims from all charities in each year exceeds the capped amount, claims will be paid on a pro-rata basis. The cap on this has increased to €10 million from 1 January 2024. To qualify for this scheme, a charity must, at the date of claim and at the time the qualifying expenditure was incurred: be registered with Revenue and hold a charitable tax exemption (CHY) under section 207 Taxes Consolidation Act (TCA) 1997; and be registered with the Charities Regulatory Authority (CRA). For a charity to submit a claim, they must have: a tax registration number issued by Revenue; bank account details; and a registered Charity Number (issued by the Charities Regulatory Authority). A claimant must also hold a current tax clearance certificate when making a claim. Claims for VAT compensation must be submitted through e-Repayments on Revenue’s Online System (ROS). These claims, along with any supporting documentation, must adhere to the required format and meet the deadlines specified by Revenue. Claims can be submitted annually between 1 January and 30 June for eligible VAT paid in the previous calendar year. Claimants may amend their claims until 30 June of the submission year, but not thereafter. The maximum claim amount is €1,000,000, the minimum claim amount is €500, and the minimum repayment is €5. Additionally, claimants must declare and certify that all information provided is correct. To support a claim, detailed documentation is required, including a breakdown of total income, qualifying income and qualifying expenditure. VAT records, such as invoices and receipts, must be retained by charities for six years. There must be evidence that the goods and services claimed were used for charitable purposes, that the VAT was paid in the relevant year, and that the income used for calculations was received in that year. The most recent set of audited accounts, corresponding to the financial year of the claim or the claim submission year, is also necessary. Furthermore, claimants must provide evidence that the charity was not entitled to a VAT deduction or refund under other legislation and must show compliance with the VAT Consolidation Act 2010, the Taxes Consolidation Act 1997, the Stamp Duties Consolidation Act 1999, and related secondary legislation. Qualifying income The proportion of a charity’s income that is privately funded is known as ‘qualifying income’. This excludes publicly funded income and income already excluded from the total income calculation. To calculate qualifying income, a charity should deduct from its total income for the year to which the claim relates all non-qualifying income. Some examples of non-qualifying income are Charitable Donations Scheme repayments, Charities VAT Compensation Schemes refunds, county council grants and charity shop income, among others. Qualifying expenditure Expenditure in respect of which a VAT refund may be sought under this scheme is described as “qualifying expenditure”. Conditions apply to the calculation of qualifying expenditure are as follows: compensation may be sought in respect of VAT which was paid in the State on certain expenditures and in the year to which the claim relates; that expenditure must have been for goods or services used by the charity only for its charitable purpose; and if a charity is entitled to receive any relief, refund, repayment or deductibility under any other scheme or legislation administered by Revenue, it may not include that amount in the calculation of a claim. What next? Applications under the scheme should be submitted by 30 June 2024 in respect of calendar year 2023. It is important to note that claims submitted after the 30 June deadline will not be accepted under any circumstances. Liam Farrell is Director of Accounts & Business Advisory Services at Azets