The Institute has revised its Air Travel Organisers Licence (ATOL) Reporting Regulations with effect from 15 June 2025.  The revisions at this time are conforming amendments to align with the Institute’s suite of Regulations generally.  In particular, the ATOL Reporting Regulations are revised to reflect a simplification of the Institute’s affiliate regime across all Institute Regulations.  The simplification of the affiliate regime includes the following: A single category of ‘affiliate’ is now being used across all Institute Regulations.  Therefore, the revised ATOL Reporting Regulations refer to ‘affiliates’ where appropriate rather than ‘ATOL Registered Firm affiliate’. Across all Institute Regulations, it is a requirement that each principal at a firm regulated by the Institute should be either a member of the Institute or an affiliate - there is no longer an exemption from affiliate status for members of other professional accountancy bodies for example.  Therefore, the ATOL Reporting Regulations require each principal at an ATOL Registered Firm to be either a member of the Institute or an affiliate of the Institute. The obligations of all affiliates are be set out in a single place in Institute Regulations – that is chapter 7 of the Public Practice Regulations .  Therefore chapter 4 of the Institute’s ATOL Reporting Regulations is simplified as regards affiliate requirements and reference is made instead to the Public Practice Regulations. Institute firms can direct any queries in relation to the Institute’s Air Travel Organisers Licence (ATOL) Reporting Regulations to professionalstandards@charteredaccountants.ie.

On 20 May 2025 the EU adopted its 17th package of sanctions against Russia. The European Council writes that the package is part of an even broader set of EU measures also targeting Russia’s hybrid activities, domestic violations of human rights and the use of riot control agents by Russian forces in Ukraine, under three other sanctions regimes. The measures agreed cover Russia’s shadow fleet, energy, military, and occupied territories. You can read more details on the 17th Package on the European Council webpage which has links to the various legal acts to bring the 17th package into force.   This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. The outcomes from the latest meeting of the HMRC forum, the Northern Ireland Joint Customs Consultative Committee (NI JCCC), which the Institute participates in, are now available to read. And finally, UK steel and aluminium exports have been temporarily spared from the US administration’s decision to double tariffs on these goods.   Latest NI JCCC meeting   The most recent meeting of the NI JCCC has taken place. Minutes from the meeting and the accompanying slides are available to read.  Miscellaneous guidance updates and publications  This week’s miscellaneous guidance updates and publications are as follows: Appendix 2 C21i: DE 1/11: Additional Procedure Codes,  Making an entry summary declaration,  Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS),  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service,  Safety and security declarations,  Safety and security import requirements: entry summary declarations,  Notices made under The Customs (Export) (EU Exit) Regulations 2019,  Notices made under The Customs (Import Duty) (EU Exit) Regulations 2018,  Register to use the Import Control System 2,  Make an entry summary declaration using the Import Control System 2,  Data requirements for express operators who move consumer parcels from Great Britain to Northern Ireland,  How to send parcels from a business in Great Britain to a private individual or a business in Northern Ireland,  Sending parcels from Great Britain to Northern Ireland between private individuals,  Create a goods movement reference,  Sending parcels between Great Britain and Northern Ireland under the Windsor Framework, and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service. 

In this week’s miscellaneous updates: HMRC has published the company car advisory fuel rates applicable from 1 June 2025,   The latest HMRC Stakeholder Digest is available, and   The Government has announced that the UK and Isle of Man will work together to “explore ways to further enhance information flows” to combat tax avoidance and evasion.   

Ahead of the publication of its annual report and accounts which usually takes place in July, last week HMRC published a provisional update on its phone performance. The update was published just the day before HMRC experienced a major phone outage on Wednesday 4 June. The outage happened on the same day that HMRC senior officials appeared before the House of Commons Treasury Committee.   According to the provisional update, in March 2025, HMRC handled 80.2 percent of calls, up from 71.5 percent for the year to 31 March 2025. The Department took 14 minutes and 44 seconds on average to answer a call, down from 18 minutes and 38 seconds for the year to 31 March 2025.  At HMRC’s Treasury Committee hearing, it was stressed that the phone outage on Wednesday was not related to the announcement of the loss of £47 million as a result of phishing attacks and that the lines themselves were not down but had instead been closed because the system used to handle incoming calls had experienced an outage. According to the appearance, the phone line set up for recipients of the phishing fraud letter was unaffected.  The news of the recent phishing scam and HMRC’s customer service levels were discussed at the Treasury Committee hearing in addition to:  HMRC's priorities for the next three to five years,  HMRC’s collection of taxes from wealthy individuals following the recent publication of a National Audit Office Report,  The exodus of wealthy taxpayers from the UK, and  HMRC delays in processing refunds.   HMRC’s new Permanent Secretary and CEO JP Marks appeared in front of Committee for the first time last week. A full transcript from the hearing has not yet been published but will be available here. 

The European Commission recently published reports looking at each Member State’s economic and social developments and challenges, and assessing the extent to which these are addressed by national policies. In the report on Ireland, the Commission highlighted the solid growth and resilience of the Irish economy, noting that public finances are in a strong headline position. In terms of current barriers to private and public investment, the report highlights infrastructure deficits, labour and skill shortages, and high costs of doing business as the main challenges.

Last week, the European Commission set the EU budget at €193.26 billion for 2026. The budget is aimed at supporting strategic objectives, including support for Ukraine, competitiveness, migration management, security and defence, and strategic investments, while maintaining momentum on green and digital priorities. The budget is complemented by approximately €105.32 billion in disbursements under NextGenerationEU,which is a fund to help repair the immediate economic and social damage caused by the coronavirus pandemic and make the EU fit for the future.

Last week HMRC contacted the Institute ahead of the announcement that taxpayers have been targeted by criminals creating and/or accessing their online HMRC accounts to set out what had happened and what action it was taking. HMRC’s security systems detected unauthorised access to some online accounts (particularly inactive accounts), and the creation of new credentials, which has ultimately resulted in approximately £47 million in fraudulent tax repayments being paid out. This loss has been directly suffered by HMRC and not individual taxpayers.  Between 4 and 25 June 2025, HMRC is contacting affected individuals by letter to explain the incident, including how they can restore access to their online accounts if necessary. The full briefing received by the Institute from HMRC is available here. In discussions with HMRC we were also made aware that a much larger sum of over double the amount lost in fraudulent repayments was stopped by HMRC during this incident.    The letters being sent also explain how the person can contact HMRC if they have any concerns. Only those individuals with affected accounts are being contacted. Anyone receiving contact from HMRC can check if the letter is genuine on GOV.UK.   According to HMRC, it has protected the affected accounts by deleting the associated log-in credentials i.e. the government gateway user ID and password. Any incorrect information has also been removed from the individuals’ tax records, and a check has been performed that no other details were changed.   HMRC provided more information on this incident during an evidence hearing of the House of Commons Treasury Committee last week. According to this, the criminals involved used information obtained from non-HMRC sources via phishing attacks on individuals as opposed to this being a cyber breach of HMRC systems. The attack has impacted on around 100,000 individuals, mostly in PAYE, at a cost of £47 million in fraudulent repayments. Overall, in its evidence to the Committee, HMRC says that it protected the loss of nearly £2 billion in criminal attacks in 2024/25.  Often the taxpayer did not have an active online tax account hence the criminals set up new accounts and credentials. HMRC has also said that work on this issue has been ongoing for some time, with some arrests made in 2024. Discussions with HMRC also highlighted that the majority of the taxpayers involved are not represented by an agent and comprise 0.22 percent of all online tax accounts.  

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the CCAB-I Insolvency Committee has published a new Creditors Voluntary Liquidation Statutory Meeting Handbook. The purpose of the Handbook is to aid directors in the pre-appointment period and insolvency professionals in the post appointment period. The Financial Reporting Council (FRC) is hosting a series of roundtables to discuss their Future of Audit Supervision Strategy (FASS). The first roundtable takes place on Monday 9th June with additional dates scheduled throughout the summer. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) is hosting a series of roundtables to discuss their Future of Audit Supervision Strategy (FASS). The first roundtable takes place on Monday 9th June with additional dates scheduled throughout the summer. The European Financial Reporting Advisory Group (EFRAG) has published its draft endorsement advice on IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’. The draft advice recommends that IFRS 19 should be endorsed in the EU. The invitation to comment which accompanies the draft endorsement advice is open for public comment until of 3 September 2025. EFRAG has published its Annual Review 2024. This review provides a comprehensive overview of its activities, milestones, and strategic developments over the past year. EFRAG has also published its April 2025 update. This summarises the public technical discussions held and decisions taken over the past month. The IFRS Foundation has published a two-part webcast series which explain the main changes to the IFRS Taxonomy following the introduction of IFRS 18 Presentation and Disclosure in Financial Statements. The FRC has published the UK Stewardship Code 2026 which presents a framework for reporting that demonstrates high quality stewardship to support economic growth and investment. Auditing and Assurance The Financial Reporting Council (FRC) has issued a consultation on a proposed UK version of the International Standard on Sustainability Assurance (ISSA) 5000, “General Requirements for Sustainability Assurance Engagements”. The consultation proposes ISSA (UK) 5000 for use on a voluntary basis by assurance providers and comments are requested by 31 July 2025.  As part of its campaign to support small and medium-sized enterprises (SMEs) access audit services, the Financial Reporting Council (FRC) has issued additional material to help SMEs effectively engage with the annual audit process. The Irish Auditing and Accounting Supervisory Authority (IAASA) recently published its 2024 Annual Audit Programme and Activity Report. The report details IAASA's oversight of the audit profession during 2024, providing valuable transparency into how audit quality is regulated in Ireland. IAASA mentions its key highlights in 2024 which includes completion of supervisory reviews of accountancy bodies' investigation and disciplinary systems and support for implementation of the Corporate Sustainability Reporting Directive (CSRD) in Ireland. Insolvency The CCAB-I Insolvency Committee has published a new Creditors Voluntary Liquidation Statutory Meeting Handbook. The purpose of the Creditors Voluntary Liquidation (CVL) Statutory Meeting Handbook is to aid directors in the pre-appointment period and insolvency professionals in the post appointment period. This document provides a compendium of statutory meeting templates and guidance around the various meetings during the course of a CVL. It also assists Liquidators in complying with legislative and SIP requirements when conducting statutory meetings, reporting to creditors and approval of remuneration. On 11 June, Derek Wilson, a licensed insolvency practitioner and experienced insolvency monitor, and Sarah-Jane O’Keeffe, director at Azets, along with Chartered Accountants Ireland, are hosting a free webinar which will provide an overview of best practice and introduce the new Creditor Voluntary Liquidation workbook. The workbook has been produced to assist Liquidators in complying with legislative and SIP requirements when conducting statutory meetings, reporting to creditors and approval of remuneration. Click here to register for this free webinar. Sustainability Wim Bartels, Chair of Accountancy Europe’s Sustainability Policy Group and member of EFRAG’s Sustainability Reporting Board, spoke on behalf of Accountancy Europe at the European Parliament (EP) Legal Affairs Committee hearing on sustainability reporting obligations on 13 May. During this, he shared some of the early insights of the CSRD and ESRD based on the first year of implementation. The International Sustainability Standards Board (ISSB) May 2025 update and podcast have been published. The International Sustainability Standards Board (ISSB) has published the recording of its tenth 'Perspectives on sustainability disclosure' webinar. The webinar is titled ‘Governance of sustainability-related risks and opportunities’. Artificial intelligence Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation Niamh Smyth made a high-profile visit to Singapore at the end of May at the invitation of the Singaporean Government to participate in Asia Tech x Singapore (ATxSG) 2025. Anti-money laundering and sanctions The Central Bank of Ireland has announced that Derville Rowland, Deputy Governor Consumer and Investor Protection, will join the newly established Anti-Money Laundering Authority (AMLA). Central Bank of Ireland (CBI) The Central Bank of Ireland published its Annual Report and Annual Performance Statement for 2024 on 29 May. Click to read the Governor’s blog on the CBI 2024 Annual Report. We reported in our last edition on the passing into law of the Finance (Provision of Access to Cash Infrastructure) Act 2025. CBI recently welcomed the enactment of the legislation saying that CBI is committed to ensuring that cash is readily available as a means of payment and it warmly welcomes the signing into law of this significant legislation. CBI has published its May 2025 Investment Firm and Intermediary Newsletter. It is a twice-yearly publication by supervision teams within the Investment Firms & Retail Intermediary Supervision Division of the Capital Markets & Funds Directorate. While the newsletter main focus is on new items on its website and regulatory issues that MiFID investment firms need to be aware of, the information on DORA Digital Operational Resilience and the EU Accessibility Act may be of general interest to readers. Click to read comments of the CBI Director, Capital Markets and Funds at the recent Blockchain Ireland Summit 2025 including some insights on the implementation of the Markets in Crypto-Assets Regulation (MiCAR) regime. Other news The Financial Reporting Council (FRC) has published the UK Stewardship Code 2026, an updated set of principles which offers a framework for reporting that demonstrates high quality stewardship to support economic growth and investment. The new Code takes effect from 1 January 2026 and aims to support long-term sustainable value creation while significantly reducing the reporting burden for signatories. The European Securities and Markets Authority (ESMA) has issued a Call for Evidence (CfE) on the retail investor journey under MiFID II in order to assemble feedback from stakeholders to better understand how retail investors engage with investment services and whether regulatory or non-regulatory barriers may be discouraging participation in capital markets. The Minister for Enterprise, Tourism and Employment, Peter Burke, TD, has announced the establishment of a dedicated Small Business Unit, based in the Department of Enterprise, Trade and Employment. Accountancy Europe has published its May 2025 update which discusses many matters of relevance to accountants across Europe including AML and sustainability. The Irish Pensions Authority recently published the text of an address in March 2025 by the Pensions Regulator to the Irish Association of Pension Funds’ Spring Conference. The address was about the Pensions Authority’s recent supervisory review activities, its plans for the rest of 2025 and its longer-term priorities. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Green Pearse Street group of nearly 20 businesses calling for thoughtful planning 10 days after traffic changes present new opportunities for major thoroughfare     Thursday 5 June 2025 – A local group, Green Pearse Street, comprising nearly 20 businesses, is calling on Dublin City Council and local stakeholders to make Pearse Street greener, more vibrant and more engaging for street users - and to take meaningful action on the climate and biodiversity crises. The call comes on World Environment Day, just ten days after new traffic management changes were introduced on the street, allowing only public transport, taxis and cyclists to turn left onto Pearse Street from Westland Row. In support of the initiative, Lord Mayor of Dublin, Emma Blain, and Green Party leader Roderic O’Gorman TD were in attendance, underlining the importance of collaboration between civic leaders and local communities to reimagine urban space. To demonstrate how a section of Pearse Street can be transformed into a more social and eco-friendly space, the group showcased potential areas for urban planting and seating, bringing greenery onto the pavement in front of Trinity’s Biomedical Sciences Institute. This simple intervention illustrates how public areas can become more welcoming while supporting biodiversity. Members of the group also highlighted spaces - including basements and railed-off areas in front of buildings - where Dublin City Council and private businesses could introduce planting to foster microhabitats and attract pollinators. Green Pearse Street is calling on the Council to take further action to prioritise urban seating and greening - measures that would benefit not only the local environment, but also the economy and community wellbeing.   Lord Mayor of Dublin, Emma Blain said: “Dublin City is more than a network of roads, it’s a living, breathing community. It is crucial that our streets be accessible to cyclists, pedestrians, and public transport as well as to cars and other road users. Clean air and space for nature are equally vital. Together, we can create a healthier, more vibrant city where nature and community flourish, inspiring everyone to live and move in harmony”. Susan Rossney, Sustainability Advocacy Manager with Chartered Accountants Ireland said: “Businesses are integral to the wellbeing of our society, economy and environment, but nature and biodiversity are equally vital for the survival of businesses. 55% of the world’s GDP – equivalent to an estimated US$58 trillion – is dependent on nature and biodiversity.” “At a time when climate and biodiversity action is threatened, the public and private sectors need to work harder than ever to protect it. Getting started can be daunting, but groups like Green Pearse Street can share practical tips on how to set up and maintain green teams, what plants are good for pollinating insects and even how to connect with Dublin Simon to donate bottles and cans under the Deposit Return scheme.” Commenting, Dr Miriam Fitzpatrick, lecturer and researcher in architecture and urban design, said: “If Dubliners dream of a safer, greener, more civic city life, the street is where that dream begins. Green Pearse Street is hoping to lead the way. Pearse Street reflects the broader condition of Dublin’s city centre, shaped more by traffic flow than care for health or hospitality. Progress has come from local efforts, with many local businesses introducing planting. However, individual gestures are not enough. Four lanes of traffic, inadequate lighting, barriers to access, actively hostile edges and a lack of places to sit continue to define the street.” “Streets and parks are low-intensity battlegrounds. Without leadership, residents and businesses must guide themselves. This is not a celebration; it is a call to action. Pearse Street could be a vital link from the thriving docklands to the city’s historic heart; it deserves to be more liveable and green.” ENDS About Green Pearse Street Green Pearse Street is a diverse group of local businesses and organisations on and near Pearse Street, one of Dublin’s longest streets, stretching from Ringsend to College Green. It's aims are to ‘green’ the street, improve the air quality, create a health and biodiversity corridor, reduce traffic to support walking and cycling, and create a more social space for people.   Members of Green Pearse Street include Allies and Morrison, Chartered Accountants Ireland, Cloud Picker Coffee, Dublin Chamber, Grant Thornton, Henry J Lyons, Hibernia, Honey Truffle, IPUT Real Estate, Jobcare, McCanns, O'Neills Victorian Pub and Townhouse, Pearse Street Management, PLM Group, St Andrews Resource Centre, The Lombard Pub & Townhouse Accommodation, The Podcast Studios, Travel Lodge, Trinity College Dublin, and William Fry.   Working in two parallel streams, the Green Pearse Street group includes action at individual organisation level, and on the collective level to create street-wide change for businesses, local communities, tourists, and other street users. In the longer-term, the group will campaign for the optimisation of this significant streetscape to make greater provision for Dubliners and visitors to the city to stop and enjoy the surroundings, helping urban areas like Pearse Street achieve a 30% biodiversity net gain by 2030.   Coordinated work by businesses along the street has already commenced. Measures include planters at ground and roof/balcony level to provide food for pollinating insects; the construction of living walls/green roofs; the installation of bird boxes/feeders to provide space for nesting and foraging; and a programme of local community engagement.  UCD Masters students in an urban design module have carried out two consecutive studies on the quality of street life and street edges. Their analysis points to challenges and changes that can make the street a more welcoming place to be.   Key facts In 2023, Green Pearse Street surveyed over 750 users of Pearse Street to generate insights into their perceptions of visiting, as well as living and working on Pearse Street. 96% of those approached on the street identified a need for change (of some variety, ranging from small to larger scale). Only 6% rated the current street layout as very good or excellent, with 24% rating it as poor. Popular recommendations on changes to the street include addition of more greenery (91%) more social spaces (benches and tables) (77%), and a safe cycle lane (64%).       

The Financial Reporting Council (FRC) has issued a consultation on a proposed UK version of the International Standard on Sustainability Assurance (ISSA) 5000, “General Requirements for Sustainability Assurance Engagements”. The consultation proposes ISSA (UK) 5000 for use on a voluntary basis by assurance providers. The FRC proposes alignment with the international standard in order to minimise burdens for firms carrying out assurance engagements across multiple jurisdictions. The profession-agnostic Standard supports application by both professional accountants and other assurance practitioners, provided they meet the relevant quality management and ethical requirements. During its recent study of the UK sustainability assurance market, stakeholders expressed support for an assurance framework that provides a clear and internationally consistent approach to sustainability assurance. Stakeholders are invited to comment until 31 July 2025 on the appropriate adoption of ISSA 5000 for the UK market by emailing AAT@frc.org.uk. Read the consultation Read the summary of findings from the FRC’s market study on the UK’s sustainability assurance market Read the IAASB’s ISSA 5000 Implementation Guide providing practical non-authoritative guidance intended to assist practitioners in implementing ISSA 5000

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. We update you on initial thoughts from the UK Government on the new partnership agreement between the UK and the EU. And finally, the Department for Environment, Food & Rural Affairs (DEFRA) has published new guidance aimed at businesses exporting animal products from Great Britain to the EU which you can read more about in an email from DEFRA. Update on new UK and EU partnership agreement At a meeting last week of the HMRC forum, the Northern Joint Customs Consultative Committee which the Institute is represented on, HMRC advised that there will be no immediate changes to customs procedures as a result of the announcement of the new partnership agreement between the UK and the EU. Any changes and updated guidance will be shared in due course. The overall sense from the UK Government is that the agreement will impact positively on Northern Ireland, particularly in the context of sanitary and phytosanitary checks.                                                                                              Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Additional Procedure Codes, Find customs authorisations for importing and exporting goods, CDS Declaration and Customs Clearance Request Instructions (UK Trade Tariff: volume 3 for CDS), Internal Market Movements from Great Britain to Northern Ireland, Apply for authorisation for the UK Internal Market Scheme if you bring goods into Northern Ireland, Making an import declaration in your records, Apply to claim a repayment or remission of import duty on ‘at risk’ goods brought into Northern Ireland, Submitting the Internal Market Movement Information, Apply for the UK Carrier Scheme, Apply to make an entry declaration in your records under the UK Internal Market Scheme, Apply for a Notification of Presentation waiver for goods moving from Great Britain into Northern Ireland, Check if you can apply for the UK Carrier Scheme, Categorising goods for Internal Market Movements from Great Britain to Northern Ireland, and Using entry in declarant's records for goods moved from Great Britain to Northern Ireland.

In this week’s detailed miscellaneous updates which you can read more about below, HMRC has published a new Spotlight which examines the use of a capital gains tax (CGT) avoidance scheme, and, the VAT Regulations 1995 have been amended to formalise a longstanding administrative concession regarding the due date for final VAT returns. In other news this week: HMRC is reminding parents of teens to go online to extend their child benefit claim, As US tax reform continues, KPMG has published a useful article explaining how the Bill could impact on UK corporates with US operations, and Fancy yourself as a budding Chancellor of the Exchequer? Ahead of the 2025 Spending Review, the Institute for Fiscal Studies (IFS) has launched a new ‘Be the Chancellor' tool, which illustrates the key choices and fiscal challenges faced by the current Chancellor, Rachel Reeves. New CGT Spotlight In Spotlight 69, HMRC is warning that individuals who transfer a property business to a LLP which is subsequently put into MVL are involved in a CGT avoidance scheme. Such schemes aim to reduce/avoid a range of taxes as follows: CGT on the disposal of the properties to the LLP which enables a tax-free uplift to be achieved for the CGT base cost of the properties when subsequently disposed by the LLP, stamp duty land tax on the transfer of the properties to the LLP due to the rules for partnerships, and inheritance tax via potential access to business property relief. However, it is HMRC’s view that the scheme does not work as intended therefore HMRC is advising those involved to withdraw and settle their tax affairs by emailing the relevant HMRC team. Administrative concession for final VAT returns enshrined in law HMRC recently amended the VAT Regulations 1995 to formalise a longstanding administrative concession regarding the due date for final VAT returns. You can find the legislation and documents here: The Value Added Tax (Amendment) Regulations 2025 and Amendment to the Value Added Tax Regulations 2025. This amendment will take effect from 13 June 2025. The new legislation explicitly gives HMRC the power to provide businesses with additional time to submit their final return when deregistering from VAT. Currently, the regulations required most businesses to submit a final return within one month and seven days from their effective date of deregistration. However, it has been HMRC practice to provide businesses with one month and seven days from the date it makes the final return available for completion. This allows for any administrative delay during deregistration and gives consistency of treatment by ensuring all businesses have the same amount of time to submit their final return and pay their final VAT bill. HMRC will publish a ‘Direction’ under the amended regulations after it comes into force on 13 June. Although this will only apply in respect of businesses whose effective date of deregistration is on or after 14 June 2025, businesses with a deregistration date prior to this will effectively be treated the same under the current concession.

As previously outlined in Chartered Accountants Tax News, HMRC is consulting on potential reforms to its behavioural penalty regime. The consultation is open until 18 June 2025 and seeks views on options to ‘simplify and strengthen’ the behavioural penalty regime for inaccuracies and failures to notify. The Institute will be responding to the consultation and is seeking your views on the proposals. Contact us by email before Monday 9 June to share your feedback. HMRC has been holding workshops on the proposed changes and has also provided a useful document summarising the proposals an overview of which is set out below. For failure to notify penalties, HMRC is proposing to remove the timing of disclosure as a factor in determining the relevant penalty ranges and to remove the narrower penalty ranges. There are also proposals to combine consideration of the type and quality of disclosure into one step, so that there is one set of headline rates. ‘Telling’ and ‘helping’ would be combined into one category to reduce overlap. For deliberate and repeated non-compliance, the potential changes are: increased penalty rates for all deliberate behaviour (e.g. same level as category 2 offshore penalties), a new higher tier of penalty rates for repeated deliberate non-compliance (e.g. at the same level as category 3 offshore penalties) and the potential for higher rates to be 'reset' for new occurrences in the future, the merger of ‘deliberate but not concealed’ and ‘deliberate and concealed’ into a single ‘deliberate’ category, and to codify ‘deliberate’ in penalty legislation, e.g. regarding intent, blind-eye knowledge, and, potentially, recklessness. There are also proposals for offshore penalties and penalty suspension. Alternative approaches are also considered as are a range of potential new non-financial penalties, many of which are very concerning.  

1 in 4 SMEs surveyed by Chartered Accountants Ireland in April reported that their business has lost employees or seen prospective employees unable to take a role due to the unavailability of affordable housing. This is evidence of the economic impact the housing crisis is now having according to the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I), the umbrella group for professional accountants, as it published its 2026 Pre-Budget submission today.   The OECD has noted that Ireland’s housing stock lacks the flexibility to meet the increasing demand for housing, and only last Tuesday, the Economic and Social Research Institute (ESRI) told the Oireachtas Committee on Housing that there will be no major uptick in housing supply in 2025 and 2026. CCAB-I notes this market failure, and calls for a targeted, time bound and regularly reviewed tax intervention to correct it.   Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland said  “Viability of certain construction projects, namely apartments, student accommodation, and independent living facilities has been cast into sharp focus in recent months, with knock on impacts on the costs of rent, availability of student accommodation and the lack of options for downsizers. Recent data from the CSO shows that there was a drop of 24% in apartment completions from 2023 to 2024.   “October’s Budget should include tax measures to stimulate the development of such dwellings, but they need to be targeted, time-limited, and regularly reviewed to ensure that they are cost effective and do not repeat the mistakes of the past. We welcome the opportunity to discuss with government how tax might work as a lever in this regard.”    Regulatory burden  57% of SMEs surveyed by Chartered Accountants Ireland last month cited regulatory compliance as the area they most need help from the government in tackling (rising to 75% amongst small practices). In its Pre-Budget submission, CCAB-I identifies key areas where the intersection of tax law and administration are loading uncertainty and burden onto businesses, and calls for the following measures to be considered in Budget 2026:  Key proposed simplification measures   Simplify tax filing by introducing a single pay-and-file date for capital gains tax aligned with the annual income tax return.   Simplify the reporting of tax-free small benefits and expenses (the Enhanced Reporting Requirements rules) by replacing real-time reporting with monthly or quarterly returns. CCAB-I also recommends that penalties of €4,000 that are potentially chargeable where a reportable item is missed are made proportionate with the fact that the payments are non-taxable.   Introduce legislation enabling businesses to provide their staff with reasonable levels of hospitality while working without having to apply a benefit-in-kind tax charge. This would provide much needed certainty to business as to what they can provide in terms of lunches and teas and coffees and would critically support the local economy and hospitality sector. As we operate within a self-assessment tax system, employers should be empowered to determine what is a reasonable accommodation.  Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland said  “A single pay-and-file date for capital gains tax aligned with the annual income tax return would alleviate the administrative burden of what is a low-yielding tax. 2024 Exchequer receipts from CGT accounted for approximately €1.7 billion, only 1.6% of the total tax receipts in that year.   “There is similar scope to ease administrative burdens for SMEs when it comes to the reporting of tax-free small benefits and travel expenses. The requirement to report these benefits “on or before” the time they are made or paid is excessive and should be replaced by monthly or even quarterly reporting. For example, in order to reduce the number of returns and the administrative headache of this requirement, many businesses now only reimburse travel expenses to workers on the same day as payroll. This means workers can be out of pocket for longer.  “Our research also shows that the regulatory compliance burden is particularly acute for SMEs with fewer than 50 staff; 35% have sought advice on how to reduce this burden, and they are the least likely to be able to shoulder it.”  Measures to support SMEs   The Programme for Government 2025 committed to rigorously implement the SME test to scrutinise every new piece of legislation and regulation for its impact on SMEs and examine the regularity of SME reporting and filing requirements.  CCAB-I calls for consideration to be given to enhancing the R&D tax credit regime for SMEs which has played an important role in promoting innovation and job creation in Ireland. The existing regime is limiting for the SME sector due to the restrictions on relief available for third party costs, and the use of third parties to carry out research and development on behalf of the SME is an indispensable option for Ireland’s SMEs. The automatic qualification for the R&D tax credit for SMEs in receipt of RD&I funding from Enterprise Ireland would also benefit the sector and remove complexity and uncertainty in this area.   Businesses are facing substantially higher employment costs, so CCAB-I is also asking that Government commits to no further increases in the rate of Employers’ PRSI for the next four years. Incremental increases across all classes of PRSI are planned up to 2028. Consideration should also be given to reducing the rate of Employers’ PRSI on minimum wage workers by 1.5% to help with the initial costs of pension auto enrolment which will likely come in next year.   Clohisey concluded:  “According to research we conducted last month among SMEs, 3 in 4 (77%) said that business costs have increased in the past six months, with staff costs the biggest challenge. There is anecdotal evidence that increases in minimum wage are causing employers to reduce hours to offset the increased costs, so committing to no further increases in the rate of Employers’ PRSI for a set period of time would go some way in trying to stem increasing labour costs.”  ENDS  Pre-Budget Submission 2026: Addressing the ongoing housing shortage

The Institute’s UK Audit Regulations have been revised with effect from 1 June 2025.  The revision introduces a requirement for a sole practitioner firm with UK audit registration to put in place alternate arrangements.   Such arrangements enable a person/firm appointed as alternate to step in promptly where a sole practitioner is incapacitated by illness or other major event that would disrupt and disadvantage the service to their clients. The appointed alternate can be a member of any UK Recognised Supervisory Body (RSB) including the Institute and does not have to be a registered auditor.    In April 2022 the Institute’s Audit Regulations for Ireland introduced the requirement for sole practitioner audit firms in Ireland to put in place alternate arrangements.   Therefore, sole practitioner audit firms with audit registration in both Ireland and the UK should already be compliant with this mandatory alternate requirement now in the UK Audit Regulations. A transitional period of six month is allowed before the obligation becomes compulsory in the UK context. FAQs for Sole Practitioner Auditors (alternate arrangements) are available on the Institute’s website.

In this week’s miscellaneous updates: The controversy and disquiet over the Government’s plans to restrict the availability of 100 percent agricultural property relief (APR)/business property relief (BPR) for inheritance tax (IHT) continues to rumble on, The National Audit Office (NAO) has published a report on collecting the right tax from wealthy individuals, HMRC has been busy issuing further communications regarding the UK’s Pillar Two rules, HMRC is seeking feedback on the Senior Accounting Officer (SAO) notification and certificate submission process, A new online interactive tool has been launched to help businesses and individuals understand HMRC compliance checks, Read an article from KPMG summarising the tax implications of the UK’s recent trade deals with India and the US, and HMRC has confirmed that Measuring Tax Gaps 2025, which will provide an estimated tax gap for 2023/24, will be published next month on 19 June. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents is also available for booking. Spaces are limited, so take a look now and save your place, And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. Government Committee of MPs says delay IHT reforms  A report by the cross-party Environment, Food and Rural Affairs Committee is calling for the Government to delay announcing its final APR and BPR reforms until October 2026, to come into effect in April 2027, saying a pause in the implementation of the reforms “would allow for better formulation of tax policy and provide the Government with an opportunity to convey a positive long-term vision for farming.” It would also protect vulnerable farmers who would have “more time to seek appropriate professional advice”.  In April, the Institute’s NI Tax Committee wrote to the Government on the same issue and also told the Government that the reforms need to be postponed in order to consult wider and reframe this policy change in a way that it is more effectively targeted. If reform is not an option, a range of potential mitigations were suggested in the letter which would curtail the impact.   The Institute also responded in April to the related consultation ‘Reforms to Inheritance Tax agricultural property relief and business property relief: application in relation to trusts.’  National Audit Office report on collecting the right tax from wealthy individuals  The NAO has published its report on collecting the right tax from wealthy individuals which examines the extent to which HMRC is well placed to support wealthy individuals to pay the right tax and intervene in good time if people get things wrong.   The report concludes that although wealthy people contribute significant amounts of tax revenue to the Exchequer, the complexity of their affairs makes it more difficult to get their taxes right and presents more opportunities to deliberately not pay enough.   In response to this concern, HMRC now publishes annual estimates of the tax gap for wealthy individuals, which it estimates to have been stable and low. According to the NAO, “HMRC deserves credit for increasing the amount of compliance yield. Its move towards more upstream casework has been an important innovation and has resulted in improved returns.” However, the scale of the increase in compliance yield from the wealthy raises questions about whether underlying levels of wealthy non-compliance are higher than HMRC previously thought.  “There is too much uncertainty around the tax gap estimate for this group, notably for offshore wealth, to be confident that non-compliance is not far higher than HMRC has detected. HMRC is working to improve its estimate of the wealthy tax gap.”  Pillar Two letters  HMRC recently wrote on Pillar Two to businesses who do not have a Customer Compliance Manager (CCM). The letter contains information on Pillar Two registration and reporting requirements, OECD standardisation, and updated HMRC guidance.  SAO notification and certification – feedback wanted  HMRC is seeking feedback on its SAO notification and certificate submission process as it working on a project to build a new digital service for this via a short survey. According to HMRC, responses to the survey are confidential and will only be used for internal HMRC research purposes. 

The latest UK tax tidbits features recent HMRC bulletins and newsletters in several areas. Employment related securities bulletin 60 (April 2025), Send an Employer Payment Summary using Basic PAYE Tools, Responsibilities for employment businesses working with umbrella companies, Working through an umbrella company, Preparing for the Multinational Top-up Tax and the Domestic Top-up Tax, Multinational Top-up Tax and Domestic Top-up Tax, Our governance, HMRC email updates, videos and webinars for Self Assessment, Compliance checks: Automatic Exchange of Information obligations — CC/FS46, Check if a business is registered for money laundering supervision, Insolvency practitioner bulletin 5 (2025): excise and insolvency, HMRC email updates, videos and webinars for tax agents and advisers, HMRC email updates, videos and webinars for the Construction Industry Scheme, Factsheet: Carbon border adjustment mechanism (CBAM), Apply for healthcare cover in the EU, Iceland, Liechtenstein, Norway or Switzerland (CA8454), Customs civil penalties, Check the status of tax policy consultations, Inheritance Tax: domicile outside the United Kingdom (IHT401), Pensions schemes newsletter 169 — April 2025, Help to avoid errors in claims for plant and machinery allowances — GfC5, List of community amateur sports clubs (CASC) registered with HMRC, HMRC email updates, videos and webinars if you’re self-employed, Register with HMRC for an agent services account, Residence, domicile and the remittance basis: RDR1, Changes in your annual allowance following the public service pensions remedy, Recognised stock exchanges, Changes to lifetime allowance charges following the public service pensions remedy, Check how your lifetime allowance is affected by the public service pensions remedy, How voluntary contributions are affected by the public service pensions remedy, Find payroll software that is recognised by HMRC, Complaint Handling Guidance, and Detailed tax guidance for charities.  

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available. The latest Brexit and Beyond newsletter received last week from the Northern Ireland Assembly EU Affairs team contains a useful summary of the key takeaways from the new partnership agreement announced during the UK and EU summit in London. The newsletter will be published here in due course. As part of this, the UK and EU have “agreed to work towards a deal that could significantly reduce checks on goods moving from Britain to Northern Ireland”. The Northern Ireland Office has also issued a press release reacting to the new partnership agreement and recent trade deals.  Miscellaneous guidance updates and publications  Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Procedure Code to Additional Procedure Code correlation matrix, Authorisation type codes for Data Element 3/39 of the Customs Declaration Service, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: terms and conditions, Simplified Process for Internal Market Movements (SPIMM): Category of goods guidance, Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS), Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Navigate the Customs Declaration Service Declaration Instructions, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Declaration Category Data Sets, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Declaration Category Data Sets, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Customs Simplified Procedures Guidance, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Procedure Codes, and Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: CDS Declaration and Customs Clearance Request Instructions. 

Whether employees are working from home or away, find out how to deal with reimbursed expense payments and benefits paid by attending a HMRC webinar in the coming weeks. Phones, internet and homeworking  For information about homeworking expenses, register for HMRC’s webinar, which provides an overview of the tax and national insurance treatment when an employer: provides a mobile phone or reimburses for business use of a personal mobile phone, provides broadband in an employee’s home, or pays towards it, and provides homeworking expenses to its employees. Travel Register for HMRC’s webinar to find out about the tax treatment of:  travel and subsistence payments to employees, mileage payments for employees using their own vehicle, benchmark and bespoke scale rates, and keeping records and sending reports to HMRC. For information about 'PAYE Settlement Agreements (PSAs)' choose from HMRC’s playlist of short videos available on HMRC’s YouTube channel.