Balancing the recent news that the UK tipped into recession at the end of 2023 with calls from politicians in his own party to reduce the tax burden in what is most likely an election year, Jeremy Hunt delivered the UK’s Spring Budget 2024 today. According to the Chancellor, the main announcements centred around “more investment, more jobs, and lower taxes”.   The VAT registration threshold will increase to £90,000 from April 2024, the first increase since 2017.  Full expensing which provides 100 percent tax relief for investments in new plant and machinery by companies will be extended to leased assets, when affordable. And the higher 28 percent rate of Capital Gains Tax on residential property disposals will be reduced to 24 percent from 6 April 2024. According to the Chancellor’s speech, the Northern Ireland Executive will receive an additional £100 million under the Barnett Consequential (which compensates devolved administrations with funding where Budget measures do not apply UK-wide) and from April 2025 both the regime for non-UK domiciled individuals and furnished holiday lets will be abolished with a new residence-based regime to be introduced for non-UK domiciles. However, the big ticket announcement was the 2 percent reductions in the rates of National Insurance Contributions for employees and the self-employed, both of which will take effect from 6 April 2024. Members will also be interested to hear that HMRC’s long planned consultation on “Raising standards in the tax advice market” has been launched and essentially examines options to strengthen the tax agent regulatory framework in the tax advice market, and on requiring tax advisers to register with HMRC if they wish to interact with HMRC on a client’s behalf. The Institute will be responding to this consultation and engaging with members on this important issue. The analysis in this and subsequent stories is based on the Spring Budget 2024 publications of HMRC and HM Treasury and specifically the main red book publication. Monday’s edition of Chartered Accountants Tax News will feature the tax announcements in more detail. The Spring Finance Bill 2024 is expected to be published next week, in the meantime supporting documents are available, as is the Spring Budget 2024 overview of the tax legislation and rates. You can also read the Institute’s reaction to today’s Budget.

Further reductions in National Insurance Contributions (“NICs”) for employees and the self-employed and a reduction in the higher rate of Capital Gains Tax (“CGT”) for residential properties disposals featured under the personal taxes banner. Amendments will also be made to the high income child benefit charge thresholds ahead of more sweeping changes in 2026. The remittance basis regime for non-UK domiciled individuals is to be abolished and replaced with a new residence based regime from 6 April 2025 and a new residence based regime will also be introduced for Inheritance Tax. And finally, the furnished holiday letting regime is to be completely abolished from 6 April 2025. NICs reductions From 6 April 2024, the main rate of employee NICs is being reduced from 10 percent to 8 percent from 6 April 2024. Combined with the 2 percent reduction from 12 percent to 10 percent which was announced at Autumn Statement 2023 and took effect from 6 January 2024, according to the Budget publication this will save the average worker on £35,400 over £900 a year. From the same date, a 2 percent reduction is also being made in the main rate of Class 4 self-employed NICs which will now reduce from 9 percent to 6 percent from 6 April 2024 (a 1 percent reduction from 9 percent to 8 percent from 6 April 2024 had previously been announced at Autumn Statement 2023). When taken together with the abolition of the requirement to pay Class 2 NICs from 6 April 2024, this should save the average self-employed individual on £28,000 around £650 a year. CGT on residential property disposals From 6 April 2024, the higher rate of CGT for residential property gains will be reduced from 28 percent to 24 percent. Resident property gains in the basic rate band will continue to be taxed at 18 percent. High income child benefit charge (“HICBC”) In order to end the unfairness for single earner families in the Child Benefit system, the Chancellor announced that from April 2026 the HICBC will move to be assessed on the overall household, rather than on an individual basis. The Government will consult on this in due course. In the meantime, from April 2024 the HICBC income threshold where the tax commences will be increased to adjusted net income of £60,000, and the rate at which the HICBC is charged will be halved so that Child Benefit is not withdrawn in full until individuals earn £80,000. This essentially means that from 6 April 2024, every £100 of income over £60,000 will result in a 0.5 percent tax charge on the child benefit received. Abolition of remittance basis for non-UK domiciled individuals The remittance basis for non-UK domiciled individuals is to be abolished from 6 April 2025 and replaced with a UK wide residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence, provided they have been non-UK tax resident for the last 10 years. Transitional arrangements will be introduced for existing non-UK domiciled individuals claiming the remittance basis as follows:- There will be an option to rebase the value of CGT assets to 5 April 2019; A temporary 50 percent exemption for the taxation of foreign income will be available in 2025/26 only; and A two-year temporary repatriation facility will be available to bring previously accrued foreign income and gains into the UK at a 12 percent tax rate of tax. Inheritance tax (“IHT”) The Government also announced its intention to move to a residence-based regime for IHT and will consult in due course on the best way to achieve this, including consulting on a 10-year exemption period for new arrivals and a 10-year ‘tail-provision’ for those who leave the UK and become non-resident. However, no changes to IHT will take effect before 6 April 2025.  

The first increase in seven years to the VAT registration threshold, further enhancements to the various creative sector reliefs and the inclusion of leased assets in the full expensing regime (when fiscal conditions allow) were the key business taxes announcements. As previously announced, HMRC has also published updated guidance around the tax deductibility of training costs for sole traders and the self-employed. This guidance aims to ensure that updating existing skills, maintaining pace with technological advancements, or changes in industry practices, are allowable costs when calculating taxable profits. HMRC are also to establish an expert panel to assist in the administration of R&D tax reliefs. VAT thresholds From 1 April 2024, the current £85,000 VAT registration threshold will increase to £90,000, the first increase since April 2017. The Chancellor’s aim here is to ensure that the UK continues to have one of the highest thresholds in the OECD. According to the main budget publication, over 28,000 businesses will benefit in 2024/25 from no longer being VAT registered. The de-registration threshold will also increase from £83,000 to £88,000 from 1 April 2024. Full expensing to be extended to leased assets Full expensing for companies was made permanent in the Autumn Statement 2023. These capital allowances are currently only available to companies incurring expenditure on new plant and machinery (with some exclusions). The Chancellor announced today that full expensing will be extended to leasing when fiscal conditions allow. Draft legislation on this extension will be published shortly. Creative sector tax reliefs A UK independent film tax credit will be introduced at a rate of 53 percent on qualifying film production expenditure. This enhanced audio-visual expenditure credit will be available for films with budgets under £15 million that meet the requirements of a new British Film Institute test. Productions will be able to make claims from 1 April 2025, in respect of expenditure incurred from 1 April 2024 onwards provided that films started principal photography from 1 April 2024. Following a call for evidence at Autumn Statement 2023, the credit rate for visual effects costs in film and high-end TV will be increased to 39 percent from April 2025, and the 80 percent cap will be removed for qualifying expenditure for visual effects costs. The government will also consult on the types of expenditure that will be in scope for the additional tax relief which will be implemented via a future Finance Bill. And finally, from 1 April 2025, the rates of theatre tax relief, orchestra tax relief, and museums and galleries exhibitions tax relief (“MGETR) will be permanently set at 40 percent (for non-touring productions) and 45 percent for touring productions and all orchestra productions. The sunset clause for MGETR is also being removed meaning relief will not end on 31 March 2026 as announced at Spring Budget 2023.    

Companies House has recently hosted a webinar titled ‘Get ready for changes to UK Company Law’. This webinar is a summary of upcoming changes introduced by the Economic Crime and Corporate Transparency Act 2023 (legislation.gov.uk) Click Companies House webinars - GOV.UK (www.gov.uk)  and scroll down to register to access the recording. Summary of key changes Changes will be introduced in a phased approach over the next few years. The first set of changes are effective 4 March 2024 and include: New rules for registered office addresses PO Box may not be used as an appropriate address. New requirement to provide a registered email address: New companies will be asked to provide this upon incorporation. Existing companies will need to provide their registered email address when they file their next confirmation statement. Lawful purpose statement Shareholders of new companies will be required to make this statement upon incorporation. Existing companies will make their lawful purpose statement in next confirmation statement. Companies House Registrars will have greater powers to query and challenge information. Future Changes Companies House Fees will increase from 1st May 2024. Streamlining accounts filing options for small and micro entity companies Software only filing. Making limited partnership information more accessible and transparent Enhance protection for personal information to protect individuals. Guidance The UK Government has developed a website providing helpful information on the various changes to UK company law being introduced over the next few years. Changes to UK company law - Changes to UK company law

The OECD Secretary-General Tax Report sets out the latest developments in international tax reform since October 2023. This latest report includes updates on the Two-Pillar International Tax Package, implementation of BEPS Actions (including actions on harmful tax practices and tax treaty abuse), and an update on the inequality and progressivity of tax systems.

HMRC held its Annual Stakeholder Conference last week in London which the Institute was represented at. Under the conference’s theme of “Today, Tomorrow, Together”, attendees heard from HMRC’s Chief Executive Jim Harra about various ongoing challenges, “tough choices about resources” and how HMRC is forging ahead with plans to reduce traditional phone and post contact by moving more taxpayers to “self-serve online”. Mr Harra also reiterated that Making Tax Digital for income tax remains a key part of HMRC’s strategy, citing that 52 per cent of the Tax Gap comes from small businesses.    Four major challenges were highlighted as follows:  Pressures on HMRC services;  Accelerating the move to online self-serve;  Developing easy to use services; and  Simplification.  Deputy Chief Executive Angela MacDonald (speech from 26 minutes on) spoke in more detail about HMRC’s plans whilst recognising that the move to self-serve online is complicated because not every taxpayer is at the same starting point, however “status quo is not an option”. Generative Artificial Intelligence also got a mention and in particular the need to consider the ethics and risk management of this in tax administration work.  HMRC is expected to share details of the specific actions identified at the conference’s workshops and progress made in the coming weeks and months.  

On 22 February 2024, the Autumn Finance Bill, which was published after the 2023 Autumn Statement, completed its passage through the UK parliamentary process when it received Royal Assent and became Finance Act 2024.  Finance Act 2024 reflects key pieces of tax legislation announced at the Autumn Statement, including ‘full expensing’ for companies being made permanent, the merged R&D tax relief regime which will commence from 1 April 2024 and amendments to the various creative sector tax reliefs.   The “sunset” clause of April 2025 for shares issued to qualify for tax reliefs under the Enterprise Investment Scheme and Venture Capital Trust scheme has been extended to April 2035. Amendments have also been made to the cash basis which becomes compulsory for unincorporated businesses from 6 April 2024, unless the sole trade or partnership opts to apply the accruals basis. 

In just two days’ time on Wednesday 6 March, Chancellor Jeremy Hunt will deliver the Spring Budget 2024 at approximately 12.30. The Institute will be analysing the Budget’s tax measures and will issue a newsletter to members on Wednesday afternoon with the key tax highlights. This will be followed by more detailed analysis in Chartered Accountants Tax News next Monday 11 March.  As the Budget is taking place in an election year, there are rumours that some tax cuts may feature. However, as the UK is now in recession, questions remain over whether there is enough “fiscal headroom” to do so. 

This week HMRC has published the fuel advisory rates which took effect from 1 March 2024 and the notes of the most recent HMRC Guidance Strategy Forum are available on GOV.UK. HMRC has also sent details of an update to guidance for businesses applying to register for UK VAT because they make specified supplies of finance and as previously announced, from 26 February 2024, print and post claims for employment expenses and marriage allowance include a new nomination section which, if not completed correctly by a paid agent, will mean that any repayment will be made directly to the taxpayer.   VAT registration for businesses making specified supplies of finance  HMRC has confirmed that it has updated VAT Notice 700/1 which applies to certain businesses seeking to register for VAT in the UK where the business makes specified supplies of finance, insurance services or investment gold to customers in countries outside the UK.   The update confirms that the business must clearly state ‘SPECIFIED SUPPLIES’ in the free-text box when asked to describe business activities during the VAT registration application process.  Forms updated with new nomination section  As previously advised in Chartered Accountants Tax News, HMRC has updated the marriage allowance and employment expenses “print and post” forms for those not claiming online to include a new nomination section.   This means from 26 February 2024, paid agents making such repayment claims on behalf of a client must be registered with HMRC and have an Agent Services Account (“ASA”). The agent must also include their details in the nomination section of the claim form, including their Agent Reference Number which can be sourced from the ASA. If all of these details are not provided in the nomination section, the repayment will be made directly to the taxpayer.  For all claims received from 26 February 2024, HMRC will begin enforcing the use of updated versions of these forms.   The updated forms which contain the new nomination section are as follows:  form P87 - tax relief for employment expenses postal applications; and   form MATCF – apply for marriage allowance by post.   HMRC has advised that a form received after 26 February 2024 which is not in the new format will not be processed. It is expected that from the end of April 2024, HMRC will make a similar update to form R40 (refund of tax deducted from savings and investments).  

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 Office Borders bulletins are also available. HMRC has contacted us with another reminder that from 1 March 2024, the Import One Stop Shop opened for businesses in Northern Ireland and the newly established Windsor Framework Democratic Scrutiny Committee has begun hearing evidence. And finally, the Department of the Environment and Rural Affairs has sent an email setting out common errors found by sample health certificate checks undertaken since the first phase of the UK’s new border controls were implemented from 31 January.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Official customs seals and trader sealing;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Moving qualifying goods from Northern Ireland to the rest of the UK;  Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference document for authorised use: eligible goods and authorised uses;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; and  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020. 

Welcome to the latest edition of Technical Roundup. In developments since the last edition, IAASA has published a consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024. The Chartered Institute of Public Finance and Accountancy (CIPFA) has announced the appointment of Owen Mapley as its new Chief Executive Officer as the current CEO, Rob Whiteman, prepares for retirement. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, is inviting feedback on the Post-Implementation Review of IFRS 16 Leases via a survey which remains open until 15 April 2024. EFRAG’s survey on the IASB Exposure Draft on Financial Instruments with Characteristics of Equity remains open until 8 March 2024. The Financial Reporting Council (FRC) has published a consultation on proposed revisions to Technical Actuarial Standard 200 (TAS 200).  The proposed revisions include changes to support practitioners in considering the implications for actuarial work of the FCA’s Consumer Duty principle and the removal of provisions that are already sufficiently addressed in the FRC’s General Actuarial Standards. The FRC has announced the successful signatories to the UK Stewardship Code following the latest round of applications. There are now 273 signatories to the Code, representing £43.3 trillion assets under management. With the publication of the revised Corporate Governance Code, the FRC is undertaking a fundamental review of the UK Stewardship Code 2020 (the Code) to ensure it supports growth and the UK’s competitiveness. The IFRS Foundation has published a summary of evidence gathered by national standards-setters on the effects of guidance on materiality judgements in IFRS Accounting Standards. The International Sustainability Standards Board (ISSB) has published a webcast which highlights the importance of industry-specific disclosures to investors. In addition to this, educational material which is designed to help companies using the SASB Standards meet the requirements of IFRS S1, has also been published. Accountancy Europe has issued its February 2024 Newsletter detailing publications, updates and topical items in the month. Anti–money laundering and sanctions The headquarters of AMLA, the EU’s new Anti-Money Laundering Authority, has been awarded to Frankfurt. The new authority is the centrepiece of an anti-money laundering package from the European Commission that aims to protect communities across Europe from criminal and terrorist activities by denying them access to the financial system. Click here for an Irish government statement on the selection. There has been a recent change in the law in relation to UK domestic politically exposed persons (PEPs). New regulations which took effect on 10 January 2024, provide that for the purpose of assessing risk, the starting point is that domestic (i.e.UK) PEPs present a lower level of risk than non-domestic PEPs. If no enhanced risk factors are present, the extent of enhanced customer due diligence measures to be applied in relation to that customer or potential customer is less than the extent to be applied in the case of a non-domestic PEP. Please click here for an article with links to the new regulation. On the sanctions front, the UK government has recently published its UK first sanctions strategy (22 February 2024). The strategy addresses how it uses sanctions as a foreign and security policy tool. It sets out the continued investment, partnerships and structures that support UK government sanctions and the cross-government architecture built to deliver sanctions. It outlines the partnerships developed with the private sector, NGOs, and international partners, and the steps being taking to strengthen sanctions implementation and enforcement. Sustainability EFRAG has launched three educational videos which are dedicated to the ESRS Listed SME and Voluntary SME Exposure drafts, which were released for public consultation in January. IAASA has published a Consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024.  IAASA has identified three possible options for a sustainability assurance standard in Ireland and is seeking stakeholders’ views on the appropriate choice. The International Sustainability Standards Board (ISSB) has released its February 2024 update and podcast, which reflects on topical matters in the month. Around 1,000 companies, investors and regulators met on 22 February at the IFRS Sustainability Symposium in New York City to exchange insights on the introduction of the ISSB. To support regulators as they plan their journey to adopt the Standards the IFRS Foundation has published the Preview of the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards. The International Federation of Accountants (IFAC), in conjunction with AICPA & CIMA, has published an updated report entitled “The State of Play: Sustainability Disclosure and Assurance 2019-2022, Trends & Analysis”. The report notes some positive trends in 2022 in relation to sustainability reporting, it also highlighted the need for companies worldwide to move toward a global system of sustainability disclosure requirements. Legislation recently enacted and draft The Irish Digital Services Act 2024 was passed into law on 11 February 2024 and came into force from 17 February 2024. Read more about this legislation and the European regulation commonly also referred to as the Digital Services Act which applies in full in all Member States from 17 February 2024 in our recent news item on the digital services legislation. The Credit Union (Amendment) Act 2023 which amends the Credit Union Act 1997 was signed into law in December 2023. Statutory instrument No. 57 of 2024 was issued on 21 February 2024 and commences the 2023 Act in phases, the first two of which are 22 February and 8 April 2024. Please click the link for a recent news item which outlines some of the provisions of the 2023 amending legislation which may be of interest to our members, including provisions relating to the accounts, board of directors and corporate credit unions. With European lawmakers reaching provisional agreement on the final text of a new Artificial Intelligence Act (AI Act) in December 2023, this article by KPMG analyses what the proposed new framework could mean for developers and users of AI systems. The authors write that businesses are now in a position to consider the role AI plays in their organisation and how to mitigate potential risks that may arise as a result of this new legislative advancement. Click here to read the full article. Following on from the information we brought readers in the last couple of editions of round up on the Economic Crime and Corporate Transparency Act 2023, please click to go to an article written by Maeve Hunt Grant Thornton (NI ) LLP on the next steps (which article was originally published in Practice News February 2024). Other news In February 2024 DETE issued inward investment screening draft guidance setting out information about the responsibilities and obligations arising for third country investors because of the Screening of Third Country Transactions Act 2023 which will introduce a screening mechanism in Ireland for the first time. The legislation was signed into law on 31 October 2023 and readers can click here for an Institute news item on the legislation. The legislation is expected to commence in Q2 of this year. The Chartered Institute of Public Finance and Accountancy (CIPFA) has announced the appointment of Owen Mapley as its new Chief Executive Officer (CEO) as the current CEO, Rob Whiteman, prepares for retirement. Members of the Professional Accounting Team will join the Chartered Accountants Ireland Cork Society on Wednesday March 6th at the Members in Practice Conference: Connecting colleagues where we will present some technical updates to members. You can book your place here for the event. Here are the links to register: one member or Early Bird 3 for 2. The material from a webinar on responsible business initiatives held by the Dept. of Enterprise Trade and Employment on 14 February 2024 has now been made available. Click here to access the presentations on the Corporate Sustainability Reporting Directive, the OECD guidelines for Multinational Enterprises on Responsible Business Conduct and on Eco design for Sustainable Products Regulation. Readers can also click here for the DETE webpage on responsible business which houses a range of publications on Responsible Business obligations in development or underway that businesses must take heed of. 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.  

Louise Molloy explores the pivotal role employee resource groups can play in fostering a diverse, inclusive and transformative work culture As a leadership development expert, I have worked with many employee resource groups (ERGs). An ERG is a voluntary, employee-led diversity and inclusion initiative formally supported by the company. ERGs are generally organised on the basis of common identities or interests and support employees by providing frameworks for learning, discussion and networking with the aim of creating a more inclusive workplace. When done right, ERGs can transform people’s work experience and contribution, driving company performance. When done wrong, however, ERGs can damage trust and inclusion. It pays to invest the time and resources into getting it right. An ERG’s impact will be determined by the shared commitment of both the company and its individual employees. Steps for ERG success Having often partnered with ERGs on initiatives to drive allyship, self-empowerment and career advancement, successful ERGs have a clear agenda aligned with the company mission and an activity plan agreed with senior leadership. ERG leaders who are committed and empowered to devote the necessary time and resources to deliver on the ERG priorities are also crucial. Stakeholder engagement is a key component of ERGs, both internally and externally. Participation in an ERG cannot be considered an extracurricular if companies are to avoid damaging trust or goodwill. Some practical steps for ERG success include: Documenting the ERG goal and how it aligns to your Diversity, Equity & Inclusion (DEI) strategy; Surveying staff to establish baseline priorities for the ERG; Developing an annual plan to deliver on the priorities identified; Clarifying ERG leaders, allies and member roles; Considering the skills required to deliver and budgeting accordingly; Agreeing on how to measure ERG impact and getting feedback on initiatives; Supporting alignment between ERG groups; Being ambitious – aim for allyship, career advancement and leadership connection; Communicating ERG scope, capacity and resourcing for shared understanding of what can be delivered; Offering professional development for ERG leaders – e.g. access to company leaders; and Formal support and recognition for ERG contributions. Think bigger If your organisation doesn’t have an ERG, start one. If it does, ask yourself: is it ambitious enough? Don’t stop there, though: continue asking yourself this question every time there is a new initiative to create a more inclusive workplace culture.   Remember that there’s always more that can be done to create an inclusive workplace. Louise Molloy is Managing Director at Luminosity Consulting Limited, a leadership advisory business

Men can proactively contribute to dismantling gender barriers at work and challenging stereotypes. Dawn Leane explains how While much of the conversation concerning gender balance focuses on supporting women, men have a pivotal role to play in dismantling barriers, challenging stereotypes and reshaping organisational culture. Gender balance is not a zero-sum game. Men are also negatively impacted by outdated workplace environments – family-friendly policies aimed solely at women, for example. The active involvement of male allies can be an agent for positive change and can have a profound impact by raising awareness about gender bias, sexism and other forms of discrimination facing women in the workplace and wider society. Yet it can prove very challenging for men to confront the issues encountered by their female colleagues. The subject is complex and organisational culture and norms of behaviour often don’t support their intervention. Take, for example, the issue of everyday sexism at work. A report by Catalyst, an organisation committed to advancing the representation of women in the workplace, suggests that not only is it difficult to recognise sexism in the first place or deem it inappropriate, but men are often unsure of how to address the behaviour when they do recognise it. The report suggests that men’s willingness to intervene depends on two factors: personal agency and organisational climate. Men who are committed to dismantling sexism are more likely to take action. They are confident in their ability to interrupt and aware of the positive benefits of doing so for the common good. An unwillingness to interrupt a sexist event in their workplace is also influenced by organisational climate. Environments perceived by men to be more silencing, combative and futile are associated with a lack of response to sexism at work. As Peter Drucker famously said, ‘Culture eats strategy for breakfast’. How, then, can men help to create a workplace culture where everyone, regardless of gender, can thrive and succeed? Understand the issues: Men can start by informing themselves about the challenges women face in their workplace, bearing in mind that cultural issues can differ from team to team and from one organisation to the next. Challenge sexism and stereotypes: Actively challenging and questioning gender stereotypes involves avoiding assumptions about roles and capabilities based on gender. Use language that is neutral and avoids reinforcing gender stereotypes. Amplify the voices of women in the workplace: Create an environment that is psychologically safe for women to contribute. For example, give credit where it's due, acknowledge achievements and ensure that success is rewarded. Mentorship and sponsorship: Men can play a vital role in mentoring and sponsoring women within organisations. This involves offering guidance, providing opportunities for skill development and advocating for women in leadership positions. Advocate for equal opportunities: Men can use their positions of influence to advocate for equal opportunities. This includes pushing for fair selection practices, equal pay and creating policies that support work-life balance for all employees. Set an example: Demonstrating a commitment to gender balance through their own actions might involve actively participating in gender balance initiatives, acknowledging and rectifying biased behaviour and setting an example for others to follow. Speak up against discrimination: When men witness gender discrimination or inappropriate behaviour, it is crucial to speak up. Being an ally means actively confronting and addressing instances of discrimination, both direct and indirect. By embracing these actions, men can help create a more level playing field for their female counterparts – this can only be good for all involved. Dawn Leane is Chief Learning and Development Officer at Advancia

Rachel Kileen explores how women can harness the power of networking, mentoring and camaraderie to transform organisations for the better In the 1930s, revolutionary women such as Hanna Sheehy Skeffington, Esther Roper and Mary Kettle campaigned vigorously against the constraints imposed on married women in Ireland with reference to the barring of women from working in the civil service after marriage and the Irish Constitution’s ‘women in the home’ clause, which is currently subject to referendum.  It is less well-documented that professional women’s organisations continued to campaign, both in Ireland and internationally, for women’s equality from the 1930s to the 1960s. International networking by the Irish Housewives Association and the Association of Business and Professional Women led to the establishment of the first Commission on the Status of Women in Ireland in 1970, which strongly advocated for equal pay and better conditions of employment for women. Women’s advocacy was at its peak during the second-wave feminist era and campaigning for female political representation by organisations such as the Women’s Political Association yielded results. Without the support of women’s groups, Gemma Hussey may not have become the first female Minister for Education in 1982.  Mary Robinson credits the support of Mná na hEireann as critical to her election as the first female President of Ireland. Yvonne Scannell campaigned against the punitive tax regime for married women who paid up to 80 percent of their salary in tax during the 1970s.  Throughout Irish history, there are many other examples of the power and influence of female advocates working together to improve the lives of women. International Women’s Day provides the opportunity for us to consider the broader picture and how, as women, we can become change-makers through networking, mentoring and camaraderie. Networking Academic research shows that the greatest inhibitor to professional women’s networking opportunities is time. This lack of time is often due to the ‘second shift’, a term coined by Arlie Hochschild in 1989 to describe the fact that the bulk of household management and childcare is undertaken by women and not men, even when women work full-time. This long-hours culture is a patriarchal ritual that professionals are expected to subscribe to, even though it is proven to be counter-productive. Divesting elements of the second shift and reducing work hours to make time for networking requires planning and negotiation. However, the value of networking in a supportive and encouraging environment can pay significant dividends in terms of shared experience, creativity, and a pooling of skills and resources.  Historically, this is how women co-operated in the private sphere. Mentoring Contemporary accountancy training underscores the value of business relationships as key to success and there is a tendency to focus on client development as a priority.  But what about mentoring within our organisations with the objective of helping others to advance?  Women should look upwards to find suitable mentors to guide us through our careers, look behind us at the challenges younger women face and support them in achieving their goals. In a world that can sometimes seem increasingly misogynistic, the counteractive defence system must be led by women and their male allies. Camaraderie Camaraderie is a collaborative approach that is closely associated with solidarity and comradeship. It is particularly valuable at a time when many professional women work from home and spend less time engaging with colleagues and business associates in person.  My research into the lives of successful professional women reveals that when women are actively involved in progressive organisations, they become part of that network and drivers of change. Aristotle’s adage that ‘the whole is greater than the sum of its parts’ makes sense when women (and men) support and encourage each other’s efforts to realise their ambitions and collaborate on improving work culture. Transforming organisations Throughout Ireland, professional organisations can be transformed from their reliance on the much-maligned but highly lucrative ‘old boys’ style networks to include a compelling cache of competent and capable female change-makers who advocate for new ways to handle traditional gender roles.  Networking, mentoring and camaraderie amongst women (and men) can help to forge a third way out of highly gendered rituals such as the second shift, long-hours culture and all of their complexities, for everyone’s benefit. Rachel Killeen is a PhD student at Trinity College Dublin working on a project entitled: Professional Married Women and their Work in Ireland (1970–1985).

The National Crime Agency has issued a new Red Alert warning UK businesses on the common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. These ‘high-risk goods’ refers to Western items critical to Russian weapons systems and its military development. The Red Alert lists the common risk indicators in this area that the regulated sector should be aware of.

The Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.   The research shows that companies are grasping the spirit of the Wates Principles in their governance reporting. They are using the principles as a tool for self-reflection and improvement, and seeing the yearly governance reporting as an opportunity, not a burden. This research also includes examples of good reporting and acknowledges that it is too early to draw too many conclusions as most companies were in their first cycle of reporting. The financial sector was the biggest adopter of the Wates Principles.

IAASA has published a Consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024.  This is required by the European Corporate Sustainability Directive (CSRD). The European Commission has indicated that it intends to adopt a European assurance standard by October 2026, at which time that standard will apply in Ireland. In the absence of a mandatory standard in Ireland, assurance providers could voluntarily perform their work in accordance with an assurance standard such as ISSA 5000 or ISAE 3000. IAASA considers that it is in the public interest that it adopts a single sustainability assurance standard, to promote consistency in approach by assurance providers, provide clarity to users as to the level of assurance being provided, ensure an adequate standard of assurance work and assist IAASA and the recognised accountancy bodies in their regulatory approaches. IAASA has identified three possible options for a sustainability assurance standard in Ireland and is now seeking stakeholders’ views on the appropriate standard for sustainability assurance in Ireland.  These are: the proposed International Standard on Sustainability Assurance 5000 (ISSA 5000),  the extant International Standard on Assurance Engagements 3000 (ISAE 3000) or a local standard. Each of these options is set out in the consultation paper. The consultation paper is available here. Stakeholders and interested parties are invited to provide your response using the response template available on this link or email your response to submissions@iaasa.ie by 19 April 2024.

The Credit Union (Amendment) Act 2023 ("2023 Act") was signed into law in December 2023 and is being commenced in phases. See statutory instrument No. 57 of 2024. Below we set out some provisions of the amending legislation which may be of interest to our members. Provisions relating to the accounts. The requirement that the annual accounts be signed by a member of the board oversight committee is removed and they are to be signed by the manager of the credit union and member of the board of directors acting on behalf of the board (commences 8 April 2024). Section 6 of Credit Union Act 1997 ("1997 Act") is amended in relation to common bond provisions. It now provides that where a credit union has no website, the credit union must include in its annual accounts a description of the common bond or where the common bond is or includes “residing or being employed in a particular locality “a map on which the locality concerned is marked (commences 8 April 2024). Some changes are made to allow for electronic delivery of information including a provision permitting electronic delivery of notice of general meetings to the auditor and a new provision 188A has been added allowing distribution, subject to the conditions in the new section, of information including annual accounts by electronic means (both commence 22 February 2024). Board of directors Changes are made in relation to the board of directors of a credit union including one whereby a credit union manager can be appointed to the board of directors (new section 63A added to 1997 Act and commences 8 April 2024). Environmental social and governance policy has now been included as a policy for the board to approve, review and update at least every 3 years. This is by virtue of an amendment to section 55 of the 1997 Act where the board has obligations to approve review and update plans policies and procedures. These obligations were annual but with the commencement of the 2023 Act the obligation will be every 3 years (no commencement date yet). There will be a requirement for the credit union to consider gender in the identification of prospective candidates for appointment to the board of directors (commences 8 April 2024). The provision for approval of expenses is changed from requiring approval of a majority of the board of directors to approval by at least 2 directors (excluding a director whose expenses are to be included) (commences 8 April 2024). In section 32 of the 1997 Act which deals with restrictions on withdrawal of shares/deposits, a change is made whereby a decision (about withdrawing savings) does not have to be mandatorily approved by the board (commences 8 April 2024). There are changes to the provisions on approval of loans in section 36 of the 1997 Act. The approval of two thirds of the special committee is deleted and approval of the board of directors is substituted (commences 8 April 2024).   Corporate credit unions The 2023 Act provides for existence of corporate credit unions. New provisions have amended section 6 of the 1997 Act. A new schedule 6 is now included in 1997 Act setting out matters to be provided for in the rules of a corporate credit union including provision for the audit of accounts by one or more auditors appointed by the credit union. This is consistent with the requirements for non-corporate credit unions. By amendment of section 81 of the 1997 Act, the quorum for general meetings of corporate credit unions is two members. There is no commencement date yet for the provisions for corporate credit unions. Other changes Section 35 of the 1997 Act is amended so that a credit union can now agree to participate in a loan to a member of another credit union (the amendments are partially commenced on 8 April 2024). Section 38 of the 1997 Act is amended so that on commencement of the provisions of the 2023 Act, the maximum interest rate that may be charged on loans made by a credit union to its members will be set by the Minister (for Finance) (commences 8 April 2024). Under the 2023 Act, the form of the annual compliance statement a credit union has to make to the Central Bank of Ireland (CBI) can be prescribed by CBI (commences 8 April 2024). 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.             

Next week on Wednesday 6 March, Chancellor Jeremy Hunt will deliver the Spring Budget 2024. The Institute will be conducting its usual analysis of the tax measures contained in the Budget and will issue a newsletter to members on Wednesday afternoon with the key tax highlights. This will be followed by more detailed analysis in Chartered Accountants Tax News on Monday 11 March.  As the Budget is taking place in an election year, it is expected that some tax cuts will feature, however this is likely to be tempered by the recent news that the UK tipped into recession in the last quarter of 2023. 

Since we reported last week on HMRC changing the income tax treatment of certain double cab pick-ups from 1 July 2024, the UK Government has announced that after listening to the views of farmers and the motoring industry, there will be no change in treatment, hence HMRC has withdrawn the revised guidance. This week updated guidance has been published on the marriage allowance with changes made to the sections on ‘how to apply’ and ‘how to cancel’.   HMRC is consulting on updated guidance for R&D tax relief and is holding a series of webinars on the relief. The 2024/25 rates and thresholds for employers have been published and the members of HMRC’s Joint Vat Consultative Committee have received notification that Revenue and Customs Brief 2/23 is being withdrawn. And finally, the latest Agent update: issue 117 is available as is the most recent News and Information Bulletin from HMRC.   R&D tax relief   HMRC has published draft guidance for consultation on the changes to R&D tax relief in relation to overseas expenditure and contracted-out R&D both of which take effect from 1 April 2024. The consultation closes on 1 March 2024. Readers are reminded that the new merged R&D tax relief regime also commences from 1 April 2024.  HMRC is also running a series of webinars on R&D tax relief which will cover the following:-  what qualifies as R&D;  how to claim correctly; and  what the new merged scheme entails.   The webinars will also include information on the enhanced support available for R&D intensive companies via the higher payable tax credit.  Register for the first webinar which takes place tomorrow, Tuesday 27 February, at: https://register.gotowebinar.com/rt/2324882589787388000?source=February-HMRC-External.  Withdrawal of Revenue and Customs Brief 2/23   Revenue and Customs Brief 2/23 “VAT and value shifting consultation update – apportionment of consideration” which was published in March 2023, is being withdrawn as HMRC now consider that the most effective way to address valuation concerns is to provide improved guidance, rather than legislative change. Amendments have therefore been made to the relevant guidance at section 31 of Notice 700 and HMRC manual section VATVAL3000.  In addition, a new Guideline for Compliance (2/2023) has been published which outlines HMRCs’ recommended approach to apportionment of consideration and approaches that in HMRC’s opinion increase or lower tax compliance risk. Guideline for Compliance 2/2023 can be accessed via the link in HMRC manual at VATVAL3700.   Latest Agent Update  Agent Update: issue 117 is available now. Get the latest guidance and information including:-  National Insurance contributions rates reminder;  HMRC and the Border Force are publishing a new Illicit Tobacco Strategy;  HMRC’s Agent Forum – important information for all users;  Registering for the new digital system that manages 'Union goods'; and  The Corporate Interest Restriction – an update from HMRC.