Chartered Accountants Ireland have responded to the consultation by IAASA on the adoption of a sustainability assurance standard in Ireland.    We believe that ISAE 3000 should be adopted for use for sustainability assurance reporting in Ireland as soon as is practical and that it remains in place until an EU standard is adopted. The first wave of reports will be required in early 2025 therefore it is imperative that a decision is taken quickly. We responded to the IAASB consultation on the proposed new standard ISSA 5000 in December 2023.  We are supportive of the development of this new assurance standard but the timeline for the finalisation and adoption of this standard in the EU means that an interim solution is needed for reporting.  

The Department of Finance held the third meeting of the Business Tax Stakeholder Forum at Government Buildings on Merrion Street last Friday morning. The meeting was chaired by Clare Costello (Acting Head of Tax for the Department of Finance). A delegation from the Institute, under the auspices of the CCAB-I, attended the meeting. Representatives from the American Chamber of Commerce, the Law Society, Enterprise Ireland, IBEC, and the Irish Tax Institute were also in attendance, as well as representatives from Revenue and the Department of Enterprise Trade and Employment. The agenda for these meetings is driven by the Department of Finance and the meetings are an opportunity to update stakeholders on the latest in tax policy on both the domestic and international fronts. Stakeholders in turn provide feedback to the Department of Finance on the matters raised. On the domestic front, the main topics of discussion were the first Participation Exemption Feedback Statement and the Strawman proposal, the review of interest deductibility (expected in Q3 this year), and the recent public consultation on share-based remuneration. The group was also informed that a report on the Funds Sector 2030 review and public consultation is expected by mid-summer. On the review of interest deductibility, the Department advised that this will be multi-year project. On the international front, the main areas discussed were the recent progress on Amounts A and B of Pillar One, the incoming OECD administrative guidance on Pillar Two, the UN Tax Cooperation initiative, and the latest developments with Ireland’s tax treaty network. Revenue’s Eugene Creighton (Assistant Secretary for International Tax) and John Bradley (Principal Officer – Transfer Pricing) gave a presentation on Ireland’s Competent Authority Function for Dispute Resolution under the Mutual Agreement Procedures (MAPs) and Advanced Pricing Arrangements (APAs).

The European Commission has signed an agreement with the OECD to provide financial support to the OECD’s Inclusive Forum on Carbon Mitigation Approaches (IFCMA). The IFCMA is a project which aims to optimise global emissions reduction efforts by better data and information sharing, evidence-based mutual learning, and inclusive multilateral discussions. The IFCMA was launched in February 2023 and has welcomed 58 members, including some from outside the OECD.

With the news that HMRC is aiming to expand the trial for Making Tax Digital for income tax Self-Assessment (“MTD for income”) from next Monday 22 April, we take a look at recent developments in this area. The Institute still has many reservations about this project and will continue to represent members views on MTD for income tax when in attendance at HMRC forum meetings in this space. Feedback can be sent at any time to tax@charteredaccountants.ie.  Amended MTD regulations  As previously announced, MTD for income tax will commence for unincorporated businesses and landlords with business and/or property income over £50,000 from April 2026. Those with income over £30,000 are mandated from April 2027. In December 2023, HMRC consulted on the amended draft MTD for income tax regulations which Chartered Accountants Ireland responded to.  Following this consultation, The Income Tax (Digital Requirements) (Amendment) Regulations 2024 have now been laid. These, alongside the earlier regulations which they amended, set out the requirements which must be complied with, including the use of MTD-compatible software to keep and preserve business records digitally and the sending of quarterly updates of these records to HMRC. Note that the deadline for submitting quarterly MTD for income tax returns will now be the 7th day of the month after the relevant tax year quarter end, amended as recommended in the Institute’s consultation response in order to align with the VAT return filing deadline for those within VAT Stagger 1.   An Update Notice has also been published which sets out the information which will need to be sent to HMRC quarterly using MTD-compatible software. The update information that must be provided in a quarterly update period is dependent on the relevant person’s business or businesses. HMRC will also publish the Software Notice and Notice for joint property owners in the Spring, alongside detailed guidance for each. More information is also still to be published on the digital record keeping and digital links requirements.   MTD trial  HMRC’s aim in 2024/25 is to expand the current MTD for income tax trial by encouraging agents to consider which clients can sign up and then to sign them up to participate in the expanded private beta testing trial in 2024/25. This month, HMRC will be sending further communications regarding the MTD for income tax trial to its entire agent mailing list. Overall, this involves a three-armed email campaign which will provide several opportunities for agents to learn more about the testing and how to sign up.   HMRC began sending these comms last month. The next email will then be sent at launch, which will signpost agents towards the updated GOV.UK pages on compatible software, eligibility criteria, and sign-up pages.   However, as of 10 April 2024, there still remains a very limited number of software packages that are available to participate in the trial with just five vendors confirmed, although many are in development, some of which may become available during 2024/25 or later. The Institute recommends that agents carefully consider the advantages and disadvantages of signing up clients to participate in the trial.  HMRC has also now published detailed guidance in respect of the penalty regime which will apply when trial participants testing MTD for income tax make late submissions. These changes to penalties only apply during the testing phase and must be agreed to before a taxpayer can be signed up to participate in the trial.  Broadly, agents who wish to develop a list of clients that are eligible to join the expanded trial in 2024/25 should follow the below steps when considering their options:  Step 1 - assess client suitability – this can be done by using an eligibility checker to triage/filter which clients are eligible to participate.  Step 2 - discuss this with the client and get their agreement before going back into the service to actually sign them up.  Note that full client approval is needed to then progress onwards and sign the client up to participate.  The cost of MTD  HMRC has also sent the following message about the cost of MTD:  “We have also published an updated Tax Information and Impact Note (TIIN), to accompany the Regulations. Among other impacts, this sets out the latest projected exchequer benefits, operational costs, and customer cost impacts of MTD ITSA. Since we published the last TIIN in September 2021, we have updated the assumptions within the customer costs model. We have also reviewed the methodology and cost assumptions with tax professional bodies and the Administrative Burdens Advisory Board (ABAB).   We recognise that there are transitional costs for business in moving to MTD. Both these, and the continuing costs will vary depending on factors such as size, complexity, and digital capability of the business.   Continuing costs     Once implemented, MTD expansion is estimated to increase the total net continuing costs of complying with the tax system for all mandated businesses by £196m per year - about £110 per year, per business. This compares to a previous net cost estimate in 2021 of £152m per year, or about £35 per year, per business. A range of assumptions have been updated since the last estimates, including uplifting costs and wage rates in line with inflation, re-examining time spent undertaking tasks, reviewing the price of software products, and using the latest evidence on record keeping practices.   Transitional costs     The decision to increase the previous £10,000 income threshold to £30,000 means there is a smaller, more digitally able population within scope. We have therefore reduced our per-business estimate for the transitional costs, in comparison to the estimates published in our last TIIN.   We estimate the transitional costs for all mandated businesses will total £561m, which equates to about £320 per business. This compares to £1,383m (about £330 per business) in our 2021 figures. Although the reduction in population size means transitional and continuing costs are lower overall than previously estimated, we recognise that the continuing customer costs per business are significantly higher. We are confident that these updated estimates in the TIIN present a more granular and informed position. These remain estimates, not a definitive statement of costs, but we have used the most robust methodology possible to estimate and set them out in a realistic and straightforward way. ABAB have also advised that they are comfortable with the revised assumptions.   We also know that, whilst there are costs in using MTD, we expect there to be benefits in the future. For example, using compatible software will reduce opportunities for error and help businesses and landlords get their tax affairs right first time. Evidence from MTD VAT also points to the use of compatible software encouraging businesses to digitalise other elements of their business due to productivity benefits. We are committed to extending these benefits to business, self-employed individuals and landlords who are registered for Self Assessment from April 2026. The government will continue to keep the decision on whether to mandate businesses and landlords with income below £30,000 to use MTD ITSA under review, although this group can still sign up voluntarily.”  Turnover less than £30,000 population  As announced at the 2023 Autumn Statement, for now, HMRC is not extending MTD for income tax to unincorporated business and landlords with turnover less than £30,000. In February 2024 HMRC published externally commissioned qualitative research conducted with small businesses with turnover between £10,000 and £30,000 per year. Key findings from the research are set out in detail at section 1.3 of the report.  Government response to November 2023 Public Accounts Committee ("PAC") report  In February, the Government published its response to the recommendations in the PAC’s report of November 2023 on Progress with Making Tax Digital.   The PAC’s findings were based on a report by the National Audit Office (NAO) in 2023, in addition to oral evidence provided in June 2023 by members of HMRC’s Executive Committee.   Both the NAO and PAC’s work on MTD provides important scrutiny and perspective on the programme, hence the Government’s response sets out how it is addressing each of the PAC’s recommendations.   According to HMRC, the response underlines the focus on having a clear and widely understood roadmap for delivery, further explains the position on a range of wider issues, including the assessment of HMRC’s view of its benefits, and provides details of its approach to working with the software industry.   Several of the PAC's recommendations are underpinned by evidence of work that has already been implemented or which is underway with the overall aim of accelerating towards expanding the testing programme in 2024/25, so that HMRC can fully test its IT functionality well ahead of April 2026. 

After the Spring Budget took place last month on Wednesday 6 March, the Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24) was published. The Bill reflects many of the tax measures announced as part of the Spring Budget. Second reading of the Bill has now been scheduled and will take place on Wednesday 17 April 2024.  Later this week on Thursday 18 April 2024, Tax Administration and Maintenance Day is due to take place. This now annual fiscal event is expected to contain details of the Government's work in simplifying administration of the tax system. Next Monday’s edition of Chartered Accountants Tax News will report on the announcements made in full. 

In the return of our weekly miscellaneous updates, read the latest news and information bulletin from HMRC and a new digital service is to be launched from March 2025 for alcohol duty approval, returns, and payments for UK producers. HMRC is writing to some taxpayers to confirm that boiler upgrades may qualify as repairs and details of common errors made in corporate interest restriction returns have been published. The Government has also published a Written Ministerial Statement on the addition of an anti-abuse rule to the UK’s Pillar Two rules and HMRC has published its framework for co-operative compliance, a set of principles that both large businesses and HMRC should apply to the way they work. And finally, the regulations which provide for offset of tax under the off-payroll working rules came into effect from 6 April 2024.  Correction to treatment of boiler upgrades  We understand that in 2023, HMRC sent letters to wealthy taxpayers and their appointed agents which said that boiler upgrades were capital and not revenue in nature and did not constitute a repair.   In recent weeks HMRC has been contacting the same taxpayers to advise that this was not correct. Note that the original letter asked those who received it to check the property pages of their 2021/22 Self-Assessment return. The letter sets out that anyone who amended their return to treat a boiler upgrade as not being a repair should email responseteam5@hmrc.gov.uk if they believe they are entitled to claim more tax relief on such expenses as a result of this incorrect advice.   Pillar Two - addition of anti-abuse rule   Last month, the UK Government published a Written Ministerial Statement setting out details of the addition of an anti-abuse rule to the UK’s Pillar Two rules. This will be legislated for in a future Finance Bill but will apply from 14 March 2024 and not from 15 December 2022 as recommended by the OECD.  The addition of this anti-abuse rule is in response to Administrative Guidance published by the OECD in December 2023 which includes anti-avoidance rules where multinational enterprises sought to enter into certain transactions or arrangements with the intention of exploiting the Transitional Country by Country Reporting safe harbours for the Pillar Two regime.   Off-payroll working tax offset now possible  The Income Tax (Pay As You Earn) (Amendment) (No. 2) Regulations 2024 came into effect from 6 April 2024. These regulations allow HMRC to offset taxes already paid by a worker and their intermediary on income from engagements under the off-payroll working (IR35) rules against a subsequent PAYE liability of the deemed employer in respect of the same income.  

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. Read the email from HMRC about the beginning of physical checks of imports from the EU of certain sanitary and phytosanitary (SPS) goods from 30 April 2024, which is effectively the next part of the UK’s Government’s implementation of its Border Target Operating Model and see below for some useful new resources in relation to the Windsor Framework.  Windsor Framework resources  The Northern Ireland Assembly’s EU Affairs Team recently published some new resources on the Windsor Framework which includes a summary of the UK and EU legislation required to implement it, information and flowcharts on the Stormont Brake, applicability motions, and the work of the Democratic Scrutiny Committee, and a timeline of the key events and milestones.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Importing SPS controlled goods that interact with ALVS;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020; and  Customs, VAT and excise UK transition legislation from 1 January 2021.   

Businesses can only grow if owners are able to give time and attention to new ideas. Moira Dunne outlines how you can win back time to put towards developing your business In most businesses, the primary focus is on customer satisfaction and delivering products and services to the highest standard. To stay competitive and evolve, however, businesses must also continuously develop and improve their offerings. Coming up with new ideas to innovate isn’t a problem for many business owners who are able to carve out time to work on them – but for others, doing so can be a challenge. So, what is the best way to prioritise business ideas within the cut and thrust of a busy day, often while juggling urgent requests from important stakeholders? We know that, if we don’t develop the business, it can stagnate. This can lead to anxiety that makes us want to do everything at once, resulting in decreased productivity and little business growth. Win back time To include longer-term development activities in your schedule, you need to start working smarter to free up some time each week. There are three simple steps that can help you take back time to focus on bigger projects that can ultimately move the dial for your business. 1. Think Think about what you need to do to develop the business. Do you need a strategy? Do you need to improve your products? How can you innovate in new areas? Start capturing those great ideas that swirl around your head on paper. Then, review the list, prioritise and make a plan to deliver. 2. Understand Before you can win back time, you first need to understand where time is currently wasted. By using a simple time log template or any task tracker app, you can gain insights into your time usage. Popular apps include ToDoist.com, Monday.com or Zapier.com. This exercise can reveal patterns and trends that allow you to adjust your focus and activities to win back time – this time can then be redirected into higher-value business activities. 3. Identify Winning back time each week may require some hard decisions. Consider the following: What is the best use of your skill, knowledge and experience? Do you spend too much time on tasks that could be delegated? Do you focus on the operational work because the more strategic projects are harder to think about or work on? Are you reluctant to delegate because you don’t think tasks will be done to your standard? These are all common challenges when a business wants to grow and develop. You may decide to let go of tasks you enjoy working on. You may have to trust others within the team to step up and do the job. Be prepared to train some team members to achieve the long-term gain that benefits the business. Changes you can make today Actions you can take to win back time today will vary from business to business. Here are some for your consideration: Complete high-value tasks early in the week to give you momentum and motivation, which will also minimise the odds of getting pulled off track. Spend less time on low-value tasks by batching them together to complete at set times in the day. Leave the low-focus tasks until your low-focus time of day. Give yourself permission to say no. Protect time for high-value work by establishing routines, such as days without meetings or time blocks when you do not look at emails. Delegate or outsource what you can. Include regular reviews and feedback to ensure success. Share a document with the whole team to capture new ideas on an ongoing basis. Review this document at a set time, list and prioritise, then select the key ideas to progress. Moira Dunne is Founder of beproductive.ie

The research and development tax credit encourages new ways of thinking… just not, as it seems, from everyone, writes Dr Brendan McCarthy The most recent Worldwide R&D Incentives Reference Guide from EY demonstrates how most of the 46 jurisdictions discussed in the guide give preferential tax treatment to business research and development (R&D) expenditure in broadly similar ways. Subject to maintaining detailed records, eligible companies can typically offset the credit against their other tax liabilities or claim a refund in the form of cold, hard cash. When we consider the amount of money large pharmaceutical, medical device and other similar companies are likely to invest in R&D on an ongoing basis, it should come as no surprise that this credit can often run into many hundreds of thousands of euros, facilitating even further investment in R&D by both multinational companies and SMEs year after year. Ireland remains an outlier, however, in two important respects. First, for accounting periods commencing on or after 1 January 2024, eligible companies in Ireland can now claim a credit of 30 percent (previously 25%) of qualifying R&D expenditure, payable in three annual instalments. This amount exceeds that offered by most Western countries (in some cases by double digits) and is twice that offered by New Zealand, a similarly sized economy. However, apart from the level of the credit itself, what sets the Irish regime even further apart from most other jurisdictions is the concept of ‘key employees’. Recognising the reality that it is not companies that have innovative ideas but rather the people working for them, eligible companies have a further option: they can choose to use the credit to reduce the income tax liabilities of their R&D workers. Not all workers are eligible. Irish legislation stipulates that they must spend at least half of their time working in R&D, cannot be company directors, and cannot hold more than a five percent stake in their company. In other words, they must be bona fide R&D workers and cannot have a vested interest in the idea's success. Opting to surrender the credit in this way presents a dual benefit – not only does the company stand to benefit from the R&D underway, but the wider workforce is also incentivised to continue their good work. Even the most well-meaning of provisions can have unfortunate consequences, however. Having satisfied the criteria of being a key employee, the legislation states that the individual’s effective tax rate, after claiming the credit, can be no lower than 23 percent. This stipulation inevitably favours those paying tax at the higher rates (predominantly, the more senior and thus higher-paid workers), effectively leaving those paying the lower rates (the lower-paid, junior staff) out in the cold. Research has shown that employee input, or ‘voice’, can make a positive contribution to an organisation through, amongst other things, increased innovation, the identification of new and more efficient work practices, and the early detection and prevention of problems. This is irrespective of the employee’s rank or tenure within the organisation. Yet, this same research has also shown that employees, particularly those at the most junior levels, frequently withhold their voice on a wide variety of matters. One of the primary reasons for this is an overwhelming sense of futility, fuelled by an awareness of their low rank or position and a sense of ‘it’s not my place’. The requirement that the R&D worker’s effective tax rate can be no lower than 23 percent arguably adds fuel to this fire. By favouring those on higher incomes, the message seems to be that innovative ideas from lower earners are not worth the company’s time or investment. This baffling provision is not only overtly managerially biased but is patently contra to the spirit of the legislation, the primary objective of which was the promotion of new ideas and new ways of thinking. Moreover, it is hopelessly out of date. The provisions governing the R&D tax credit were first introduced into Irish tax two decades ago. Together with one of the lowest corporation tax rates on trading profits in the world, it remains central to the country’s efforts in attracting foreign direct investment. By leading the way in championing the contribution of ‘key employees’ and recently increasing the amount of the credit from 25 to 30 percent, successive Irish governments have not only shown a continued commitment to the R&D tax credit regime but also a willingness to make adjustments to its provisions, in a more equitable pursuit of its overall objective. So, it is fair to say that the Irish R&D tax credit encourages new ways of thinking… just not, as it seems, from everyone. It’s time we gave this some thought. Dr Brendan McCarthy is Assistant Professor in Tax at the University of Limerick

Tax must be considered as part of the Corporate Sustainability Reporting Directive’s double materiality assessment, explains Aidan Lucey The aim of the EU’s Corporate Sustainability Reporting Directive (CSRD) is to drive accountability and transparency by mandating companies operating in the EU to disclose information on material sustainability topics publicly. Even if companies have reported non-financial data in the past, they will likely need to expand the nature and extent of their disclosures. For some companies, tax could be considered a material sustainability topic, given the significance of tax contributions to society and heightened investor scrutiny. This means they will need to disclose information on tax publicly, too. Therefore, companies must understand the specific tax disclosures that may be required under CSRD. CSRD and double materiality Companies within the scope of CSRD are required to make disclosures on material sustainability topics in accordance with the European Sustainability Reporting Standards (ESRS). The ESRS covers sustainability topics across environmental, social and governance pillars and prescribe specific disclosure requirements. To determine the sustainability topics to be disclosed, companies must carry out a double materiality assessment. This involves assessing a company’s impact on the environment and society (“impact materiality”) and an assessment of how sustainability topics may affect the future performance of the company (“financial materiality”). If a sustainability topic is material to a company, but is not addressed by the ESRS, the company must still disclose information about it to enable readers to understand its sustainability-related impacts, risks and opportunities. Tax as a material topic Interestingly, the European Financial Reporting Advisory Group (EFRAG), which developed the CSRD standards, explicitly calls out tax as one of the topics on which organisations could make disclosures. In determining what sustainability topics are material for a business and its stakeholders, companies must consider many factors. While materiality considerations will differ for every organisation based on their specific sustainability and stakeholder profile, a range of factors could make tax a material consideration. These are outlined below. Social impact Tax is not just a cost of doing business, it is also a social responsibility. The taxes paid by an organisation, including those that it collects on behalf of governments, can represent its biggest monetary contribution to society. Those taxes fund public services, green infrastructure and community projects. Consequently, tax can be seen as a powerful indicator of a company’s societal impact. To assess this impact, stakeholders are demanding a greater level of tax transparency. They want to understand a company’s approach to tax, how tax matters are governed, and how much taxes are paid. Investors Tax is being factored into investor considerations when assessing the sustainability of a business. An organisation’s approach to tax can pose significant risks that affect investment returns in the medium and long term. To address these concerns, investors are taking steps to influence companies to make more comprehensive tax disclosures that will allow them to evaluate not only financial aspects but also governance and reputational risks associated with their approach to tax. Some investors have released codes of conduct encouraging transparency on tax from investee companies. Others have filed shareholder motions mandating tax disclosures under GRI 207, a specific tax standard released by the Global Reporting Initiative (GRI) to enable companies to disclose tax as part of their sustainability reporting. Tax disclosures under the CSRD can provide companies with an opportunity to build trust with investors, customers and society. Even where a company concludes that tax is not a material topic in its own right—possibly because other sustainability topics are viewed as higher priorities—tax disclosures could be considered under an existing ESRS. Tax disclosures required Where an organisation deems tax a material topic, EFRAG has indicated that GRI 207 could be used as the basis for its tax disclosures. GRI 207 consists of four categories of disclosures: Disclosure 207-1: Approach to tax. This requires an organisation to disclose details on its tax strategy, who oversees it, and how it aligns with its broader sustainability strategy. Disclosure 207-2: Tax governance, control, and risk management. This requires the disclosure of information about an organisation’s tax governance structure and how tax risks are identified, managed and monitored. Disclosure 207-3: Stakeholder engagement and management of concerns related to tax. This disclosure considers how an organisation engages with its stakeholders on tax matters. Disclosure 207-4: Country-by-country reporting. This disclosure requires an organisation to report on quantitative data, including its revenue, tax, and business activities on a country-by-country basis. A double materiality assessment is an essential step towards CSRD compliance. Full engagement between tax departments and sustainability teams will ensure that tax impacts, risks and opportunities are identified and considered in the double materiality assessment. Aidan Lucey is Tax Leader for CSRD at PwC Ireland

What will tomorrow bring for the role of the Chartered Accountant and what changes are already taking hold today? Accountancy Ireland talks to four members of ACA Professionals about their experiences and expectations The role of the accountant is evolving and with it the expectations and perceptions of younger generations building careers in the profession. Here, four members of the Institute’s ACA Professionals Committee tell us about their hopes and aspirations for the future and career experiences today. Brendan Brophy I grew up in Perth, Australia, and studied business and accounting at Edith Cowan University, later obtaining a master’s in finance from University College Dublin. I qualified as a Chartered Accountant in 2016 and have since worked in both accounting and taxation. I am currently Senior Cost Accountant with Square and Chair of the ACA Professionals Committee of Chartered Accountants Ireland. I started my university journey in 2010 with a general interest in business, carrying a nascent curiosity about companies and their financial workings. My exact career direction was unknown until I encountered my first accounting lecture, however. That introduction to the foundational principles of accounting really resonated. It was during my first year at university that I had the privilege of attending a presentation by Chartered Accountants Australia. The session explored the prestigious career path offered by the ACA qualification, highlighting its value as an international career passport. Continuous learning The journey to becoming a Chartered Accountant, while enjoyable, has also posed distinct challenges. It requires extensive commitment to ongoing study and capacity to get to grips with deep knowledge across all facets of the discipline. What has surprised me most hasn’t been the rigour of the qualification process, but the ongoing need for continuous learning and adaptation post-qualification. The field of accounting is continuously evolving across standards, business practices, regulatory frameworks and technology. Expertise considered cutting-edge five years ago may no longer suffice today, so staying ahead of the curve is not merely an option, but a necessity for Chartered Accountants. Right now, technology is one of the most significant drivers of change in our field, redefining the boundaries of what’s possible. Advances in technology are outpacing existing regulatory frameworks, presenting both challenges and opportunities,and requiring us to anticipate and adapt to changes rather than respond to them retrospectively. Prime examples include artificial intelligence and cryptocurrency. The imperative for accountants today is to have a proactive mindset, enabling us to foresee emerging trends and incorporate them into our practices. Agents of change Becoming a Chartered Accountant is not just about mastering the intricacies of finance and accounting; it is about earning a pivotal seat at the decision-making table within any organisation. This privileged position allows Chartered Accountants to influence key business decisions directly, facilitating change that extends beyond the confines of a single company to impact the broader industry and regulatory environment. The role we play in guiding financial strategy, ethical standards and sustainable practices enables us to be agents of change, influencing economic outcomes and contributing to the shaping of regulatory frameworks that govern our profession and the business world at large. Anne Carter I studied business and accountancy at Galway-Mayo Institute of Technology and went on to qualify as a Chartered Accountant with DHKN in Galway in 2017. In between, I worked in retail banking, travelled to Australia and New Zealand on a Working Holiday Visa and moved to London for two years, where I earned a diploma in sound engineering. My journey to becoming a Chartered Accountant was triggered by my curiosity to understand the nuts and bolts of how businesses operate, and by my interest in maths and accounting from a young age. The opportunities for professional development associated with the ACA qualification really attracted me; the scope for continued learning and career advancement. The qualification opens doors. I saw it as a pathway to hone my skills, gain valuable experience and continue to develop. During my training contract with DHKN, I worked across audit, accounts preparation, income tax and corporation tax and, after qualifying, I moved to Dublin to join the internal audit function at GameStop. I have been with CRH plc now since 2018 and currently work on our Strategic Projects Team. Potential of technology I think technology has a lot of potential to allow our profession to develop broader skillsets and move more into advisory work, strategic decision-making and the actual interpretation of financial data. Artificial intelligence, automation and data analytics are all transforming the way accountants work and the services we provide. This will only increase over the next decade as more of the time-consuming or manual tasks we do today become automated. My career advice to younger members and students is to be open to change and to exploring different areas or opportunity within the field of accounting – adopt a growth mindset, set career goals, take ownership of your professional development and seek out advice and feedback from managers and peers. Claire Doyle I grew up in a small village called Leitrim in Co. Down and studied accounting at Queen’s University Belfast. I am also currently studying for a post-graduate diploma in sustainable financial technology and innovation at Maynooth University. I qualified as a Chartered Accountant in 2019 with KPMG in Belfast and I am currently International Tax Manager with PTC Therapeutics at its international headquarters in Dublin. At 17, I really struggled to understand what I should do for my career. My mother was a teacher, my father had set up his own business and my older brothers either worked, or were pursuing careers, in construction. Having watched them having to emigrate during the recession, I knew I wanted to pursue a qualification that would deliver high-quality jobs, global reach and allow me to carve my own path. Turning point During my second year at university, tragedy struck our family when we lost my brother Ryan in Australia. This really became the turning point in my life and the direction of my career. In the following months, I decided to apply for a year-long work placement with KPMG in Dublin so I would have the experience to know that becoming a Chartered Accountant was definitely the right path for me. It was a real eye-opener and ultimately brought me one step closer to starting my training contract with KPMG in Belfast. After my training contract ended, I decided to move into industry and take up a position that would allow me to gain more practical in-depth experience in the life science sector. Childcare reform Right now, I think childcare reform is needed across the island of Ireland to support working parents and reduce the financial burden and stress associated with finding a place for children and keeping parents in the workforce. Key to the retention of working parents in our profession and others is ensuring that there are adequate provisions in place to allow for reduced working hours. If a working parent decides to reduce their hours, I don’t believe this should mean that they have to condense five days of work into four. Transformative role I believe that accounting as a profession has the power to promote financial transparency, accountability and sustainability. Chartered Accountants are seen as trusted advisors. We can help our companies to understand their impact and reporting obligations across the three pillars of environmental, social and governance (ESG) and educate them on important matters, such as the UN’s Sustainable Development Goals (SDGs). Our ability to influence policy and advocate on behalf of the public is vitally important to supporting the Government in determining realistic targets in support of Ireland’s Climate Action Plan. The Institute’s collaboration with Chartered Accountants Worldwide allows us to amplify our impact and drive progress towards the achievement of the SDGs. Sinéad Nolan I studied both business and accounting and finance at undergraduate level and then did a master’s in accounting at Maynooth University. I qualified as a Chartered Accountant in 2017 with RSM Farrell Grant Sparks, which merged with Grant Thornton during my training contract. I then worked with the National Transport Authority as a Rural Transport Finance and Governance Accountant for one year before joining AXA Insurance in the role of Financial Accountant and, for a time, worked on the planning and analysis team and on secondment to the strategy team. I knew from an early age that I wanted to become a Chartered Accountant. I gained invaluable experience during Transition Year through work experience with O’Brien & Co. in Rathmines. I will be forever grateful for the accounting experience Tom O’Brien gave me back then at just 16 years of age. From day one at college, it was communicated to us how highly regarded the Chartered Accountant qualification is. The international recognition and respect the ACA qualification is held in really appealed to me. The work opportunities that come with it are endless. Welcome change ESG and, in particular, sustainability are becoming more important, especially among younger generations starting their career. Chartered Accountants and companies today are actively working to achieve their sustainability goals. I believe Chartered Accountants can bring about powerful change, especially with regards to sustainability, by encouraging social responsibility and the adoption of sustainable practices among entities of all sizes. I also see positive change with regards to gender equality in our profession and beyond, which is very welcome, and I believe we will see more women in senior positions in the future. I am lucky enough to see this in action at AXA Ireland, where there is a culture that fosters inclusion and a better working world for women.

Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Introduction to members of the Insolvency Committee Welcome to another edition of the series which will introduce members of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Insolvency Committee over the coming months. We hope to provide information on the work of the Insolvency Committee and insights into the careers and experience of our Committee members. Today we will hear from Shane McAleer. Shane is a Director in Insolvency at Somers Murphy & Earl with over 15 years of experience of advising on a variety of formal and informal restructurings. Shane jointed the CCAB-I Insolvency Committee in 2018. Tell us about your career to date and your route to being an Insolvency Practitioner I grew up in Belfast and from a young age worked with my Dad in the family business. I learned a lot of my good and bad business habits from Dad. As my wife would say “Shane has never paid full price for anything.” Accountancy, never mind Insolvency, was far from radar growing up. Sitting in a lecture theatre in St. Malachy’s College at 17 years old deciding what University courses I should apply for on my UCAS Form was a daunting thought. For some reason Accountancy was my decision. And, I have to say I have never looked back. During a summer term in University, I did some work experience in BDO Belfast where I was given my first taste of insolvency having worked on a few liquidations. Roll forward to 2000, I joined BDO Simpson Xavier where that piece of work experience landed me in the Restructuring department where my insolvency journey began. After qualifying as a Chartered Accountant in BDO, and a short stint in BDO Sydney, I moved to Moore Stephens Caplin Meehan and then Farrell Grant Sparks, finally ending up in Somers Murphy & Earl with Derek Earl. I took over the Insolvency practice in 2019 and business has been continually growing and developing.        Are you where you expected to be in your career? I can say that I am very happy with where I am in my career today. If anything, I have learned in my 24-year career to date is, to always expect the unexpected! What was the best career advice you got along the way? In two words “Stop” and “Listen.” Throughout my career I have been lucky to have worked in several practices and in each one got the benefit of working and learning alongside some of the most experienced insolvency practitioners in the country. Based on your own experience, what advice do you have for young professionals looking to build a career in corporate insolvency? In my experience working in Corporate Insolvency, no two days are the same. If you want to challenge yourself and develop new and broader skills, then Insolvency is a path worth considering. There are many paths to working in Corporate Insolvency you should consider a professional qualification which will give you a strong knowledge and basic skills base but more importantly the ability to grow and develop professionally. In today’s market many firms are looking for enthusiastic and energetic young professionals keen on building a career in corporate insolvency. How would you define your work style, and how has this evolved over the years? I am not sure I know what my style is! I am at heart a people person. Unfortunately, in our world of insolvency I come across a lot of difficult and emotional stories which has had an impact on my approach to dealing with people. Notwithstanding the emotional side of insolvency, it is important to have a structure and plan in place of what you need to do along with a realistic period of achieving your plan. In terms of managing teams and individuals, what are your insights and views? In Insolvency, everyone must ‘roll up their sleeves.’ In any assignment, it is important that there is clear delegation to the team and each person knows what their role is and reasons for what they are doing. Promoting and encouraging personal and professional development is essential. This should be worked one with each person on an individual basis to ensure that the best path forward is agreed upon. A person’s growth will not only benefit them personally but will provide additional skills to the team. What about communication and negotiating the typical ups and downs of working life? Effective communication is always important. Do not assume that someone knows or should know something. Whether you are communicating with someone or waiting on a response from someone be clear at all times of what your point is or what you require. Has networking played an important part in your career? Your reputation is key to any future success and building a career. Effective networking with the right contacts and people allows you access to the ability to get work and refer work and developing your reputation. Networking has been an essential part of my 24-year career, I am still in contact with many friends and colleagues who I trained and worked with along my career because you just never know where the next referral will come from. What is the current position with regards to the level of insolvencies in Ireland? If only I had a crystal ball! Covid, an energy crisis, interest rate increases, increased minimum wage, increased costs and €1.7bn of warehouse debt to be repaid. The current level of insolvencies based on the current climate appear low. From chatting with other insolvency practitioners there is an expectation that there will be more insolvencies, the question is when?   Disclaimer: The views of contributors to this series of articles may differ from official Institute and Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) policies and are not necessarily endorsed by the Institute of Chartered Accountants in Ireland, its Council, its committees or any other person or entity associated with the Institute. The publishers, editor, and authors accept no responsibility for any errors or omissions or any loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in this publication.

Over the course of the last few weeks, we have examined two of the proposals in HMRC’s long planned consultation “Raising standards in the tax advice market” which contains three potential options to regulate the UK tax agent market. This week we are seeking your feedback on option three, regulation by a separate statutory government body, in addition to approaches to strengthen the controls on access to HMRC’s services for tax practitioners. HMRC is also seeking to draft a legislative definition of a tax practitioner to support implementation and sets out the categories of who should be regulated in Chapter 8. Please share your views on this consultation by Tuesday 7 May 2024.   Regulation by a separate statutory government body   More information on this option is set out in Chapter 6. This option would see the introduction of a new independent regulator or expansion of the remit of an existing regulator to regulate tax practitioners. According to the consultation, “a single independent regulator would provide consistency across the market. Having an arm’s length body would avoid potential conflicts of interest arising from HMRC acting as a regulator and avoid a potential race to the bottom.”  The government regulator would set standards, carry out checks on tax practitioners seeking to be regulated, and ensure they meet the required criteria. This could include conducting an annual renewals process to ensure all information is up to date and correct. As is common with professional regulators, this body could have a role in supervising tax practitioners including inspections of tax practitioners on a risk-assessed basis to check they continue to meet expected standards, investigating issues and complaints, and enforcing sanctions.  This regulatory body could introduce “customer support routes” including establishing a complaints process, ensuring transparency, and supporting redress claims. The regulator could be responsible for providing support and guidance to the profession and ensuring tax practitioners receive updates on the latest changes in the tax system.  Within this model there are options about how the regulator could be set up and the role that current professional bodies could play. Current professional body members could be automatically registered with the regulator as they have already undergone a series of checks and professional bodies could retain their role as providers of qualifications and ongoing practice support for their members.  The consultation considers that establishing a new regulator in this way “would provide the opportunity to create a tailored regulatory solution for the market which is adaptable for future needs.”  However, potential problems with this model include that adding a new regulator to an already complicated regulatory landscape for tax and accountancy may cause confusion, and this is likely to be the most expensive of the potential approaches, as it would involve costs for the government and for all tax practitioners. The government sees this approach as a fallback option if the professional body lead approach is not practical or effective. Questions 8-10 specifically seek feedback on this approach.  Access to HMRC’s services for tax practitioners   This aspect of the consultation examines the first step of mandating registration with HMRC for tax practitioners who wish to interact with HMRC on behalf of their clients, and the requirements that HMRC should establish to enable registration.  Alongside the broader proposals on raising standards, the government wants to improve the way that tax practitioners register with HMRC and intends to mandate registration for all tax practitioners who wish to interact with HMRC.   Together with mandated registration, HMRC would automate and streamline the existing registration routes for tax practitioners, with the aim of providing a better service. At the point of registration, HMRC would check that the tax practitioner is compliant with requirements to register for anti-money laundering supervision and is up to date with their tax affairs. HMRC would then periodically reconfirm ongoing compliance with these requirements.   This would aim to provide assurance that registered tax practitioners continue to meet basic standards while interacting with HMRC on behalf of a client.  The government therefore intends to improve registration now, assuring that basic standards are in place for all agent services and is asking for views on the proposal to mandate registration, alongside providing an automated, streamlined way for tax practitioners to register with HMRC.   The consultation recognises that whilst this step by itself is unlikely to fundamentally raise standards in the tax advice market, it would be an essential enabler for a strengthened regulatory framework. It could also be implemented if the broader proposals for a strengthened regulatory framework are not taken forward.  Legislative definition of tax practitioner   As part of this project, the Government also intends to draft a legislative definition of a tax practitioner “as a provider of tax advice and services.” This aspect will be subject to further consultation however the definition will include the following provisions:-  it will cover the full range of business entities operating in the market, that is, individuals, firms, and sole practitioners;  the advice or assistance caught will be  given by way of business, so that friends and family are not inadvertently captured;   provided in relation to UK taxation; and  provided directly, indirectly, or at the request of someone other than the client.  The definition will also set out what is meant by advice or assistance. This will include acting on behalf of a client in their dealings with HMRC or another UK tax authority in relation to tax. Depending on the scope of the regulatory framework, it may also include advising a client in relation to tax. Questions 25 and 26 of the current consultation specifically deal with this aspect.   

In recent weeks we have issued several reminders that 30 April 2024 is the deadline for the end of the VAT margin scheme for second hand vehicles moved to Northern Ireland from Great Britain prior to 1 May 2023. If these vehicles are sold after 30 April 2024, VAT will therefore be chargeable on the full selling price and not on the margin made. At the request of HMRC, Chartered Accountants Ireland gathered evidence recently from local car dealers which demonstrates that many dealers are still experiencing delays in selling these vehicles for a range of reasons, including the economic environment and delays in MOT testing. Click read more for an update on our recent meeting with HMRC on this issue. The Institute met at the end of last month at the request of HMRC with their VAT policy team to discuss and present the evidence gathered from local dealers. The Institute also explored the potential for either removal of the deadline, a type of amnesty, or another extension.  Readers are advised that HMRC is insistent that the deadline remains 30 April 2024 and that there will not be a further extension. According to HMRC, a deadline is required for “legal certainty”. Despite presenting evidence of the ongoing difficulties being experienced in selling these vehicles, it is disappointing that the cliff edge deadline of 30 April 2024 remains in place.    

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Officer Borders bulletins are also available. Readers are advised that this bulletin contains important information on the next phase in the implementation of the UK’s new import controls, known as the Border Target Operating Model, which commences from 30 April 2024 when  documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin imported from the from the EU will begin.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs Declaration Service: service availability and issues;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS);  CDS Declaration Completion Instructions for Imports;  Customs declaration completion requirements for Great Britain;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS);  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service;  Data Element 2/3 Documents and Other Reference Codes (National) of the CustomsDeclaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020; and  Customs, VAT and excise UK transition legislation from 1 January 2021. 

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted from 12-16 April 2024. Check the relevant page for information on planned downtime.   In particular, we have been advised that as part of regular maintenance, the following services will be unavailable between the stated times below. The HMRC Service Availability pages will be updated to reflect the affected services.  Services unavailable from 5.30pm Friday 12 April 2024 to 9am 16 April 2024:-  Trusts and Estates;  The Annual Tax on Enveloped Dwellings;  CGT Property Disposal;   EPAYE;  VAT Registration Service;    Claim VAT Enrolment;   VAT View and Change;   Plastic Packaging Tax; and  The Agent Services Account. 

Navigating the complexities of sustainability leadership demands a multifaceted approach, writes Catherine Duggan More companies are grappling with a rising regulatory burden and heightened stakeholder expectations regarding sustainability, presenting the need for a captain to lead the team. Here is a selection of the components that can help make this role successful. 1. Knowledge of the business The impacts, risks and opportunities sustainability presents for each business are unique. Understanding sustainability, along with intimate knowledge of your business operations, stakeholders and future strategic plans, is critical to ensuring the successful integration of the sustainability agenda. 2. Commercial mindset Perhaps more than other disciplines, sustainability tends to attract people who are passionate about the topic and driven by the need to be change-makers. While enthusiasm is certainly necessary, particularly on more challenging days, the ability to consider and incorporate commercial aspects into the wider conversation can prove more effective than passion alone. 3. Risk management While sustainability may be a developing area of expertise in companies, risk management is not. The risk posed by the transition – or failure to transition – to a more sustainable economy can and should be considered through existing risk management processes, enhanced skill sets and frameworks. Being familiar with the vocabulary and the approach that is being taken can help with the incorporation of sustainability considerations. 4. Communication management Many of the sustainability regulations that are being introduced focus on disclosing sustainability-related information to facilitate stakeholder decision-making. The implications of these disclosures must be understood in the wider context of any supervisory oversight. In addition, consistency of investor messaging and alignment with previous external disclosures, public commitments and marketing campaigns are crucial factors for the effective management of external communications. 5. Stakeholder management Getting internal stakeholders onside is the most fundamental skill required to develop and deliver a credible sustainability programme. The ultimate goal of a sustainability function is that it should become business as usual, part of everyone’s day job. Until that point, support is required from all parts of the business at a time when resources are often already at capacity. The ability to tailor messaging to specific functions, outlining the drivers, risks, opportunities and executive support, is critical. 6. Change management All parts of the business will eventually feel the impact of sustainability through the implementation of a new strategy, regulation, processes or responsibilities. Agnostic of sustainability, change management is required to embed this level of transformation and support into the culture of an organisation. 7. Resilience While sustainability aims to deliver long-term resilience for people, the planet and profit, a degree of personal resilience is required to chart the path. In a fluid regulatory environment, an organised and curious mind is needed to develop best practices. A support network is also important to ensure the workload is shared. Building a sustainable future together While the above list may seem unrealistic, it’s important to emphasise sustainability’s ‘team’ nature and the need for support from across the organisation. Identifying a resource proficient in all of the skills outlined above is a challenge. Securing someone with working knowledge of some or all of these areas – and who can upskill – is more achievable. Few people today began their career with the intention of becoming a sustainability professional, but there is now a growing community forging a new path for their companies, with the aim of highlighting the reality that we are all in the same boat and the water is rising. Catherine Duggan is Director of Sustainability at Grant Thornton

Ireland’s CFOs continue to prioritise cost control and efficiency over investment in AI but will they pay the price further down the road? asks Derarca Dennis As Ireland’s Chief Financial Officers (CFOs) step up to future-proof the finance function, their role in leveraging technology to improve efficiencies is becoming increasingly pivotal. According to the EY Ireland CFO Survey 2024, finance leaders are not just looking to elevate business performance, they are also actively seeking to tap into the potential of technology while simultaneously strengthening their collaborative alignment with Chief Technology Officers (CTOs). The continued focus on technology investment is unsurprising, considering that 47 percent of respondents identified manual processes and controls as an area where time is used least efficiently in the finance function. It is perplexing that such a high number of respondents continue to cite manual processes and controls as an area for improvement in the finance function. This suggests that organisations have some way to go in their automation efforts, and significant further investment in technology will be required over the coming years. AI and the finance function Despite the investment in technology, the survey results for artificial intelligence (AI) indicate that it is a low priority for organisations right now. Finance leaders in Ireland are still at the very early stages of Generative AI (GenAI) adoption and are firmly focused on using cost reduction and efficiency gains to realise growth. AI use remains modest, with just 26 percent claiming to have leveraged it for enhanced efficiency, automating manual tasks and risk detection, among other use cases. The uptake of GenAI is even lower at just 15 percent. This may come as a surprise to some. While GenAI has been commanding the headlines over the past 15 months, the technology is still not at the stage where it can be employed to carry out advanced functions in finance departments. CFOs are naturally exercising caution until they see some applications proving that GenAI can be trusted in terms of output and security. Just six percent of respondents say they will leverage advanced AI to enhance the finance function or acquire AI skills in the next two years. The figure for a longer five-year span is only moderately higher, with nine percent saying they will integrate AI and advanced AI into the finance function in that timeframe. The results of the survey indicate that organisations are still at the discovery and use case definition stage in relation to AI. Automation It is surprising that greater use has not been made of the technology for automation purposes, given the continued inefficiencies created by manual processes and controls in finance functions. Interestingly, the survey shows a fairly significant budget increase is anticipated, albeit from a low base, for advanced AI (including GenAI) from one to 3.2 percent in the next two years. This suggests an openness to applying the technology as soon as use cases are identified and better understood. Not all AI solutions are expensive or require custom development. To get their organisations to accelerate the AI journey, CFOs can recommend adopting pre-built AI solutions that drive cost efficiency. Cybersecurity In their role as strategic business partners, CFOs must do more than just comprehend the organisation’s risk tolerance; they are also responsible for steering the budget towards areas that need more attention. Just 39 percent of the respondents in the EY Ireland survey say they have ramped up investment in security tools, compared with 60 percent in 2023. This may indicate a degree of complacency regarding cybersecurity, or it could be that investments have begun to plateau following significant increases in recent years. In a very welcome finding, 31 percent of the respondents say they instituted a cybersecurity task force compared with the eight percent in 2023. CFOs’ north star The relatively low priority given to technology-driven transformation and the low rate of AI adoption in finance functions is surprising given current talent shortages. Right now, cost control and efficiency remain the north star for finance leaders in Ireland. Derarca Denis is Assurance Partner and Sustainability Services Lead at EY Ireland