The National Crime Agency has issued a new Amber Alert which highlights the sanctions evasion and money laundering risks presented to UK industries linked to the art storage sector, and to serve as a reminder on due diligence checks and reporting obligations. This Alert focuses on UK artwork storage facilities, the UK specialist service providers that are linked to the art storage sector and the clients that utilise these art storage facilities.

The National Crime Agency has issued a new Red Alert providing information on the common techniques sanctioned individuals and entities, and their enablers, are suspected to be using to evade sanctions relating to gold.

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. HMRC has published updated guidance around the tax deductibility of training costs for sole traders and the self-employed. And the government is also extending the Energy Profits Levy by an additional year to March 2029, which should raise £1.5 billion. HMRC are also to establish an expert panel to assist in the administration of R&D tax reliefs. In a meeting on Budget Day with HMRC, Chartered Accountants Ireland requested more details on this and was advised that this will be provided in due course. 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. Tax relief for training costs 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.

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 from 6 April 2025 with a new residence based regime 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. 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. Residential 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 current unfairness 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 from £50,000 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 (up from £60,000). 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. This will operate broadly 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. Further information on these changes can be found in a technical note published by HMRC. 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. Savings The 0 percent starting rate band for savings income will remain at £5,000 in 2024/25.

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 taxes in what is most likely an election year, Chancellor Jeremy Hunt delivered the UK’s Spring Budget 2024 last Wednesday. According to the Chancellor, the main announcements centred around “more investment, more jobs, and lower taxes”. Read the Institute’s reaction to the Budget. The VAT registration threshold will increase to £90,000 from April 2024 and full expensing which provides 100 percent capital allowances for investments in new plant and machinery by companies will be extended to leased assets, when affordable. The higher 28 percent rate of Capital Gains Tax on residential property disposals will be reduced to 24 percent from 6 April 2024. From April 2025 the remittance basis regime for non-UK domiciled individuals and the furnished holiday lets regime will both be abolished. However, the big ticket announcement was the 2 percent reduction in the rate of National Insurance Contributions for both employees and the self-employed, which will take effect 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, as announced as part of the package to restore the Northern Ireland Executive, the government will establish an Enhanced Investment Zone in Northern Ireland using £150 million in funding, which will “be able to be used flexibly across spending and tax levers”. Details on the Northern Ireland Enhanced Investment Zone will be published “soon”. The government also committed £2 million “to boost global investment and trade opportunities for Northern Ireland.” 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, including 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. The Spring Finance Bill 2024 is expected to be published later this week, in the meantime supporting documents are available, as is the Spring Budget 2024 overview of the tax legislation and rates. A further set of tax administration and maintenance announcements will also be made on “Tax Administration and Maintenance Day” on Thursday 18 April.

After the closure of the Office of Tax Simplification in 2023, HM Treasury and HMRC were set a mandate to focus “on simplifying the tax code”. In January of this year, the government published an update on progress made towards tax simplification. The Spring Budget 2024 contained further details of this work by setting out specific metrics which will be used to track progress being made, especially for small businesses and individuals.   From HMRC’s annual customer survey, a new survey, the government will track the views of small businesses and individuals on the ease of dealing with tax issues, and the ease of finding information. The government will also measure how easy taxpayers find it to deal with HMRC from a survey offered after using HMRC’s telephony or digital services. Lastly, the government will monitor HMRC’s estimate of the net change in cost to businesses of meeting tax obligations from fiscal event measures. These metrics will be kept under review and enhanced, taking into account feedback from stakeholders.  The Spring Budget 2024’s main red book publication also sets out several measures which deliver “further administrative reforms to make it easier for individuals and sole traders to meet their tax obligations by”. In summary, these are as follows:  Easing the payment of inheritance tax before probate or confirmation - from 1 April 2024, personal representatives of estates will no longer need to have sought commercial loans to pay inheritance tax before applying to obtain a “grant on credit” from HMRC; and   Investment in digital services - simplifying access for those who want to pay in instalments in advance via a Budget Payment Plan, or in arrears via a Time to Pay Arrangement from September 2025.  The government also badged the following Spring Budget 2024 measures as simplifying underlying tax rules:  Abolishing the current tax regime for non-UK domiciled individuals;  Announcing the end of the Alcohol Duty Stamps scheme;   Abolishing the furnished holiday lets tax regime from 6 April 2025; and  The forthcoming consultation on reform of Class 2 NIC. 

Freezes in both fuel and alcohol duty, a new duty on vaping and increased tobacco duty, and the abolition of stamp duty land tax multiple dwellings relief feature in this section together with the news of additional investment in HMRC to tackle collection of tax debt and a range of other measures.   Fuel duty  The current levels of fuel will be maintained for a further 12 months via extending the temporary 5p fuel duty cut and cancelling the planned inflation-linked increase for 2024/25. Following a review, the government will maintain the difference between road fuel gas and diesel duty rates until 2032.  Alcohol duty  Alcohol duty is being frozen from 1 August 2024 until 1 February 2025. This extends the six-month freeze announced at Autumn Statement 2023 and will result in 2p less duty on an average pint of beer, 1p less duty on an average pint of cider, 10p less duty on an average bottle of wine, and 33p less duty on an average bottle of spirits than if the planned duty increases had gone ahead.  Vaping and tobacco duty  The government will introduce a new duty on vaping products from 1 October 2026, with registrations for the duty expected to open from 1 April 2026. The rates will be £1 per 10ml for nicotine free liquids, £2 per 10ml on liquids that contain 0.1-10.9 mg nicotine per ml, and £3 per 10ml on liquids that contain 11mg or more per ml. A 12-week consultation has been launched on the policy design and technical details. The government will also introduce a one-off tobacco duty increase of £2 per 100 cigarettes or 50 grams of tobacco from 1 October 2026.  Stamp duty land tax   From 1 June 2024, the government is abolishing stamp duty land tax (“SDLT”) Multiple Dwellings Relief (“MDR”). MDR is a bulk purchase relief where the rate of SDLT is normally determined by the total consideration given for land and it is currently available to any purchaser buying two or more dwellings in a single transaction, or linked transactions. It allows the purchaser to calculate the SDLT payable based on the average value of the dwellings purchased as opposed to their aggregate value.  Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before 1 June 2024. The government will also engage with the agricultural industry to determine if there are any particular impacts that should be considered further.  Legislation will be updated to ensure that from 6 March 2024, registered providers of social housing in England and Northern Ireland are not liable for SDLT when purchasing property with a public subsidy and public bodies will be exempted from the 15 percent anti-avoidance rate of SDLT for high value residential properties.   From 6 March 2024, the rules for claiming SDLT first-time buyers’ relief will be amended so that individuals buying a leasehold residential property through a nominee or bare trustee will be able to claim the relief, including victims of domestic abuse.  Investment in HMRC  The government is investing £140 million “to improve HMRC’s ability to manage tax debts.” The aim is to expand HMRC’s debt management capacity “to support both individual and business taxpayers out of debt faster and collect tax that is due.”   Air Passenger Duty (“APD”)   The 2025/26 APD rates for economy passengers will increase in line with forecast inflation. Rates for those flying premium economy, business and first class and for private jet passengers will also increase by forecast inflation and will be further adjusted for recent high inflation.  Landfill tax rates  Landfill tax rates for the year 2025/26 will be adjusted to better reflect actual inflation and ensure that the tax continues to incentivise investment in more sustainable waste management infrastructure. The standard rate of landfill tax will increase to £126.15 per tonne and the lower rate will increase to £4.05 per tonne.  VAT    The government referenced the Office for Budget Responsibility’s recent review of the VAT Retail Export Scheme and specifically the original costing of the removal of tax-free shopping. The government will consider these findings alongside industry representations and broader data, and welcomes any further submissions in response to these findings.  The government will launch a consultation on the impacts of the July 2023 High Court decision in Uber Britannia Ltd v Sefton MBC next month. A range of viable options will be explored to ensure that this case’s ruling does not have any undue adverse effects on the private hire vehicle sector and its passengers. In this case, The High Court considered the regulation of Uber's business model outside of London, and specifically whether the private hire vehicle operator is acting as a principal when entering into a contractual obligation with the passenger to provide the journey. This in turn has potential VAT consequences in terms of whether the private hire vehicle operator is acting as a principal or an agent, and therefore may impact on the tax base on which VAT should be charged.  Gift Aid legislation  The Digital Markets, Competition, and Consumers Bill is introducing new protections for consumers who take out subscription contracts. The government will amend existing gift aid legislation so that charities can continue to claim gift aid while complying with these new protections. The government’s intention is that these amendments will be in place by the time the relevant provisions of the Bill come into force.  Crypto-Asset Reporting Framework   The government has launched a consultation which seeks views on how best to implement the Crypto-Asset Reporting Framework and amendments to the Common Reporting Standard. As previously announced in November 2023, these changes will be made in time to ensure that information exchanges take place from 2027.  Transfer of Assets Abroad   The government will legislate in the Spring Finance Bill 2024 to ensure individuals cannot use a company to bypass this anti-avoidance legislation, Transfer of Assets Abroad, in order to avoid UK income tax. The changes will take effect for income arising to a person abroad from 6 April 2024.   The Umbrella Company Market    The government will provide an update on the recent consultation on tackling non-compliance in the umbrella company market at Tax Administration and Maintenance Day next month. In summer 2024 the government will also publish new guidance relevant to workers and other businesses who use umbrella companies.  Economic Crime Levy adjustment   From 1 April 2024, the rate at which entities with UK annual revenue greater than £1 billion, and which are regulated for Anti- Money Laundering purposes, will pay the Economic Crime (anti-money laundering) Levy will increase from £250,000 to £500,000 per annum.   Environmental land management and ecosystem service markets   Following consultation, the government will extend the existing scope of agricultural property relief from 6 April 2025 to land managed under an environmental agreement with, or on behalf of, the UK government, Devolved Administrations, public bodies, local authorities, or approved responsible bodies. The government will also establish a joint HM Treasury and HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets. 

Managing cyber security and other technology-related risks is becoming an increasingly complex business. Sara McCallister explains why. With a growing need for technology assurance—from cyber security and transformation programmes to the use of AI, cloud services and third parties—what do internal audit and technology risk professionals need to know to protect organisations today? Cyber security Cyber security continues to be a critical business risk for organisations in Ireland and globally. While data loss and service disruption continue to be two biggest risks associated with a cyber-attack, ransomware attacks are also significant. According to a 2023 Sophos report, 66 percent of organisations globally have been hit by a ransomware attack in the last year. Cybercriminals succeeded in encrypting data in just over three-quarters (76%) of these attacks. Third-party management To manage service continuity risks, information privacy and security, organisations need an effective framework of third party controls. IT and technology teams are among the most active users of third-party products, such as tools, software-as-a-service (SaaS) solutions and the direct outsourcing of business activities. This gives organisations access to a much wider range of skills and greater flexibility to scale up or down with demand. Outsourcing the responsibility for these services doesn't outsource the associated risks, however. Organisations need to expand their range of assurance activities to cover third-party providers. Generative AI The risks associated with generative AI are critical due to its widespread adoption. Concerns include the potential for biased outputs, security vulnerabilities and misuse of generated content for malicious purposes. Deep fakes, misinformation and ethical dilemmas also pose challenges. As generative AI becomes integral to different sectors, understanding and mitigating these risks is essential to maintaining trust, safeguarding privacy and ensuring responsible deployment. Timely attention to these concerns is crucial in preventing unintended consequences, protecting against malicious uses and establishing robust frameworks for the ethical and secure implementation of generative AI. Transformation programmes Organisations are adopting and experimenting with leaner and faster approaches to delivering transformation. Many are dealing with the challenge of legacy IT, outdated infrastructure and applications that are still in use and prevent more modern practices, exposing them to availability risks and cyber security vulnerabilities. Cloud assurance In recent years, the use of cloud solutions has increased rapidly. Organisations use cloud solutions to host their critical systems, such as enterprise resource planning (ERP) and customer-facing applications, or sensitive data, such as personal or intellectual property. The proposed changes to the UK Corporate Governance Code (the Code) have heightened the focus on organisations’ financial and IT control frameworks ahead of the 2025 deadline. This would include controls in cloud environments. Organisations still face challenges around cloud controls and assurance, inconsistent approaches across assurance teams, cloud concentration risks and lock-in with vendors. There is also a shortage of cloud-risk specialists who can help organisations to determine whether practices are aligned with recommendations from the Cloud Security Alliance and cloud service providers. Identity and access management One of the foundational pillars of securing your organisation's data is ensuring you are adequately managing access to this information. This includes authenticating access, authorising access based on genuine business needs and monitoring and reviewing access to data. Organisations need robust frameworks in place to manage access to their information and reduce the risk of inappropriate or unauthorised access, which could cause significant loss. Technology resilience In a technology-dependent world, it is often critical that an organisation's IT infrastructure and applications are resilient and continue to operate at acceptable levels during unexpected events or when elements of its technology environment are compromised. Data management and quality The risks associated with data management and quality are paramount as they directly impact decision-making, business operations and regulatory compliance. Robust data management mitigates cyber security risks, safeguarding sensitive information from breaches. Compliance with data protection regulations, such as GDPR, hinges on accurate data handling. Addressing these risks ensures organisations can trust their data, supporting decision-making, maintaining customer trust and complying with legal requirements in a data-driven business landscape. Sara McCallister is Partner, Business Risk Operations, Grant Thornton

Beyond a digital resume, your LinkedIn profile reflects your priorities, connections, values and unique professional brand, writes Donal Whelan In recent years, LinkedIn has become a vital career-enhancing tool for all career professionals looking to network and seek out new opportunities. According to LinkedIn, over 75 percent of people who have changed jobs have used the platform to inform their career decision. Furthermore, social professional networks are the number one source for quality hires. Given these statistics, treating LinkedIn as another social media platform is insufficient when managing your career. Here are four things your LinkedIn profile says about you and how you can leverage each of these elements to improve your career presence. 1. Establishes your priorities How you present yourself in your LinkedIn headline and summary, and the way in which you list your current and previous experience gives employers valuable clues on your priorities. The way you highlight your professional duties and accomplishments offers recruiters the opportunity to estimate how you would set priorities in a new position. Every decision you make and every sentence you write should be made with this consideration in mind. Highlight the aspects you would like to pursue further, and employers will notice. 2.  Highlights proof of performance LinkedIn goes beyond static resumes, which is the social aspect of the platform. Your past co-workers and supervisors can leave recommendations on each of your prior work experiences or endorse your individual professional skills. Recruiters will look for this type of information when assessing if you’re right for a role. We are psychologically inclined to believe social proof, treating it as independent, third-party confirmation of potentially biased claims. A statement of success in your current position is significantly more valuable if your current supervisor confirms your accomplishments in a single sentence or two. 3. Spotlights your values Influencers you have decided to follow and past posts you have written on LinkedIn are all ways of expressing your personality, perspective, and values. These elements of your profile inform other users of what you care about and can shape the personality you want to portray to a potential employer. It’s essential to demonstrate professionalism to ensure your profile expresses interest in the career you wish to pursue. 4. Showcases your professional brand It goes without saying that your profile is your professional brand and you are attempting to give the best impression of yourself. But your profile also shows how much you allow your current role to influence your brand. For instance, some users create their profile solely around their current job, while others make their profiles all about their career path. Every branding decision is a choice, and you get to choose which works best for your career journey. More than a CV Your LinkedIn profile is much more than just a digitised version of your resume or CV. It is an opportunity to present yourself to employers in the best light possible. Recruiters are always on the lookout for talent, so it is important you continue to update your profile to optimise your chances of advancing in your career and making new professional connections. Donal Whelan is Managing Director of Lincoln Recruitment Specialists

Reforms to High Income Child Benefit Charge and National Insurance in the UK’s Budget aim to provide relief to struggling families amidst the cost-of-living crisis, writes Lee Melling UK Chancellor of the Exchequer Jeremy Hunt’s recent Budget announcement could have an impact on families struggling financially amid the cost-of-living crisis. Some reforms could provide relief and reshape the landscape of financial stability for households. High Income Child Benefit Charge The recent announcement regarding changes to the High Income Child Benefit Charge (HICBC) in the UK's Budget is poised to substantially impact financially struggling families, offering relief amid the ongoing cost-of-living challenges. Despite the rise in wages attributed to inflation, the perceived inequity of HICBC across various household types and income levels has been a concern. The Chancellor's reform decision, transitioning HICBC from an individual to a household system by April 2026, helps address this issue. Under the current system, if one parent earns more than £50,000, child benefit starts to reduce, and those who earn £60,000 receive no child benefit at all. This means two parents earning £50,000 a year or less would each receive child benefit in full, but a household with one working parent or a single-income household earning more than £50,000 would see the benefit cut. The change creates a fairer system and takes into consideration that people’s wages have risen in line with inflation. Furthermore, the decision to increase the threshold—especially at a time when many employees have had their salary adjustments in line with inflation—ensures more families retain more of the Child Benefit they receive. It also assures those worried about pay increases affecting their Child Benefit entitlement. National Insurance Amid record-high energy bills, rising food costs and mortgage payments, the reduction of the National Insurance by 2p can help ease the financial burden during a period of stretched budgets.   Nevertheless, while these measures offer some relief, additional measures are still required to provide support for households grappling with the escalating cost-of-living. Despite assurances of a decline in inflation, Chancellor Hunt’s cautious approach in this latest Budget might leave many feeling disappointed that the changes haven’t gone far enough.  As people navigate the adjustments to their finances in response to these changes, it is crucial to recognise the potential stress and anxiety associated with such transitions. Acknowledging the scale of the situation and seeking assistance, whether through understanding the broad cost-of-living crisis or knowing that others share similar experiences, can help manage the stress associated with an individual’s financial situation.  For those concerned about their financial situation, reaching out for help is important. Equipping oneself with a range of tools and seeking advice can go a long way towards supporting your everyday financial health. Lee Melling is a Financial Wellbeing expert at Caba, the occupational charity supporting The Institute of Chartered Accountants in England and Wales

  Speaking with many Qualified members in the last month I have noted a common theme that is one of sudden confusion. Many recent qualifiers find themselves in the position where they have just burned the books, finishing their contract and are immediately available to start a new job. You are trying to decide between going to Australia for a year, staying with your training practice for another six months or trying to find a job out in the wider world of FS and the industry. It's a lot to take in. It's a lot to try and figure out very quickly! Sometimes you can feel overwhelmed and feel like you have to make all these big decisions very quickly.  That's certainly not the case in the current market which is very buoyant you are in the driving seat as a newly qualified or a recent qual' and you also hold the top business qualification in the country so don't feel rushed. Don’t feel paralyzed by the expanse of choice and multiple decisions to consider.  As a tip, sometimes a ‘short term contract’ can be a clever option to allow you to tread water while you figure yourself out. Many newly qualified ACA’s don't know what they're supposed to do next! You always knew you had to go to college and then going into accountancy was probably the obvious next step but now as your contract ends you find yourself in unchartered territory with far broader options and a whole new landscape. All I can say is that you are at the start of a whole new exciting career-build with Irelands top professional brand in your back pocket. For me, the journey starts with ‘self analysis’. You need to sit down, brainstorm, mind map and SWOT analyze yourself. Get a few mentors to help you understand what you're good at and what you enjoy with regards to work and career and then you can assess your next steps based on those elements. I would advise setting up a spreadsheet as a hub to record all of your research, all of your market mapping and all of your target employer details and treat it as an exciting project. When it comes to building a career, nobody has a crystal ball. Your job is a big slice of the ‘pie chart of life’ and you do have to take a leap of faith with any new job decision. However just be brave. It’s a long journey to retirement at 65! This is only your first baby step into a professional career and you are allowed a misstep. You should be mindful that you're building a path, however, and that each decision to start a new contract or permanent job is a paragraph on your CV leading to the ultimate vision for your career. So, do have some sort of a five year plan in mind, a 10 year plan even! You may have to pivot and alter course along the way as life dictates but that's part of the fun. If I've learned anything as an ACA recruiter in the last 15 years it's that employers hire ‘the person’, ‘the energy’, ‘the individual’, ‘the communicator’, ‘the leader’, not just the accountant, so make sure you are developing your life skills, your communication skills, your leadership skills, and growing as a person as much as anything else.  Enjoy the journey and as always get in touch with your Careers Team and / or your Thrive team as needed in 2024. Dave Riordan (ACA) - Recruitment Specialist & Career Coach | Careers Team – Chartered Accountants Ireland dave.riordan@charteredaccountants.ie 

The Regulatory fee invoices for 2024 are available online at the Myaccount portal of the website.  Remittance should be made by 31 March 2024. If you require a copy invoice to be emailed, please email Sandra Smiley, quoting your individual/firm ID.  Need assistance? Please email Sandra Smiley with your name and member/firm ID along with the query or changes required. We will issue a revised invoice if this is appropriate.

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.