Real-Time PAYE has supported five years of streamlined tax compliance, but employers face expanding reporting demands in 2024. Olive O’Donoghue outlines key deadlines and requirements in 2024 Real-Time PAYE has been up and running for five years and many will agree that the real-time system has introduced tax compliance efficiencies for employers and employees alike. Employers still have significant reporting obligations that fall outside of the Real-Time PAYE, however. Further, the scope of real-time reporting is expanding with the introduction of Enhanced Reporting Requirements and there is an obligation for employers to operate PAYE on the exercise of stock options from the start of 2024. Below we outline key reporting deadlines and obligations employers need to put in this year’s calendar for timely action. 2023 Employer SARP return – February 2024 The deadline for employers to file a 2023 Employer SARP return is 23 February. The Special Assignee Relief Programme (SARP) provides personal income tax savings of up to 12 percent for employees who relocate to Ireland and meet certain conditions for up to five years. The return covers both local employees and expats and requires details of earnings and the value of the SARP deduction provided through payroll per employee. It also requires details of tax-free items, such as flights or school fees, which may not be readily available in the payroll data. Employers should factor in the time it takes to collate off-payroll information and information on employees who have relocated to other jurisdictions. It is essential to have a solid process for the timely collection of accurate information to avoid or minimise follow-up queries from Revenue. 2023 Employer Share Award Returns – March 2024 Employers are obligated to report details relating to various forms of share-based remuneration provided to employees in 2023 by 31 March this year. This includes all Revenue-approved schemes but also unapproved stock options, restricted stock units and various other direct share awards. Several different returns exist, so it is important for employers to report the right details on the right return. All matters relating to unapproved share options are reported in Form RSS1. However, the return with the widest application for employers is the Employer Share Award (ESA) return. The ESA is a catch-all return and covers all forms of share-based remuneration, including awards that are cash-settled and not specifically reportable on other share returns. Specific returns then exist for KEEP, an Approved Profit Share Scheme (APSS), and a save-as-you-earn (SAYE) scheme. Failure to comply with this mandatory filing obligation can result in a financial penalty for employers, so a timely review of share plans and cash-based incentive arrangements is crucial to determine if the employer has a reporting obligation. Enhanced Employer Reporting from 1 January 2024 2024 heralds the rollout of the Enhanced Reporting Requirements (ERR) which places an obligation on employers to file an additional electronic return with Revenue on or before any payment or reimbursement of in-scope reportable benefits to an employee. Reportable benefits include the remote working daily allowance of €3.20, certain categories of travel and subsistence payments, including vouched and unvouched payments, and benefits covered by the small benefits exemption. ERR will enable Revenue to undertake more targeted PAYE reviews into certain expenses and benefits provided to employees. Revenue has stated that it will not operate a compliance program or apply penalties for non-compliance with ERR until 30 June 2024. While employers must comply with ERR from 1 January 2024, they should use the respite period to the end of June to continue to review and align expense systems to establish a robust process for managing ERR. PAYE on stock options from 1 January 2024 Another significant change from the start of this year is the introduction of the requirement to operate PAYE when an employee exercises a stock option. This represents a significant shift from the previous tax collection system whereby income tax, USC and PRSI payable on stock options were settled by the employee directly with Revenue within 30 days of exercise. While the move to PAYE on the exercise of stock options will be welcomed by employees as it removes their obligation to settle their taxes, significant challenges may arise for employers who will be required to gather the necessary data to report the stock option gains via the payroll on a real-time basis. PAYE must be operated even where an option is exercised by a former employee, for example. This can give rise to practical challenges related to timing and the ability of the employer to collect taxes from the individual. Employers may also face challenges operating PAYE on stock options exercised by cross-border employees who worked in different countries throughout the vesting period. Employers will need to have access to accurate travel data to enable them to correctly determine the portion of any option gain that is taxable in Ireland. Olive O’Donoghue is a Tax Partner with KPMG’s People Services tax practice 

Welcome to this week’s Technical Roundup. In developments this week, the European Financial Reporting Advisory Group (EFRAG) has announced that it has completed its due process regarding amendments to IAS 21, the Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability and has submitted its Endorsement Advice Letter to the European Commission.  The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. Read more on these and other developments that may be of interest to members below. Auditing IAASA Consultation on ISA (Ireland) 505 IAASA has published a Consultation paper seeking views on their proposed revisions to International Standard on Auditing (ISA) (Ireland) 505 External Confirmations with related conforming amendments to ISA (Ireland) 600 (Revised February 2023) Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The proposed effective date of the revised standard is for audits of financial statements for periods beginning on or after 15 December 2024. Responses are requested by Friday 23 February 2024. The consultation paper and proposed revised standard can be found here along with the proposed conforming amendments and a response template. IAASB Consultation on publicly traded and public interest entities definitions The IAASB has launched a consultation process on proposed narrow scope amendments to ISQMs, ISAs AND ISRE 2400 (REVISED) to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). These proposed revisions have two key objectives: align definitions and requirements in IAASB standards with new definitions in the IESBA Code. the amendments would extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities (PIE). Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing such that they will be subject to: Engagement quality reviews; providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence, communicating key audit matters, and the engagement partner’s name; and communicating with those charged with governance to help them fulfil their responsibility overseeing the financial reporting process. Responses are requested by 8 April and the documents can be accessed here. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, has published its December 2023 update which summarises public technical discussions held and decisions taken during the month. EFRAG has announced that it has completed its due process regarding amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, and has submitted its Endorsement Advice Letter to the European Commission. EFRAG has published its draft comment letter on the International Accounting Standards Board’s (IASB) Exposure Draft ED/2023/5 Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1). Comments are welcomed by EFRAG by 20 March 2024. ESMA, the European Securities and Markets Authority, has published the latest edition of its newsletter. Anti – money laundering 10 January 2024 saw the commencement of the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 (Amending Regulations), which were laid in mid-December and provide for changes to the enhanced due diligence (EDD) requirements in relation to so-called domestic PEPs (i.e. a politically exposed person entrusted with prominent public functions by the UK).  The Economic Crime and Corporate Transparency Act (ECCTA) received royal assent on 26 October 2023. It includes a new much-debated failure to prevent fraud offences and new enhanced powers for UK Companies House bringing changes to the way it will conduct its business. Few of the provisions will apply immediately with secondary legislation and system development within Companies House required for many of the provisions. The Institute has produced a brochure outlining some of the changes which may be of interest to members which can be accessed here. One of the intentions of the ECCTA is to improve the accuracy and quality of the data of the registers of Companies House and to help tackle economic crime and drive confidence in the UK economy. Companies House have published a summary of steps that will be taken to  improve Companies House data and also outlines a new identity verification process that will be operational later in 2024. One of what the Serious Fraud Office in the UK describes as key provisions of the ECCTA came into force on 15 January 2024 with the extension of the Serious Fraud Office’s section 2A ‘pre-investigation’ powers. Prior to the extension the SFO writes (in a social media newsletter) that it could under section 2A obtain information from companies or individuals to support its intelligence work and to help determine whether to open an investigation.  From the 15 January SFO notes it has these powers across every intel operation - including fraud.  This means it can now obtain data such as banking records before a formal investigation even begins, which will also allow them to restrain assets more quickly where they identify they could be at risk - helping to speed up the early investigative stage of their cases and better protect victims’ money. Sustainability The IFRS Foundation and Global Reporting Initiative have published a summary of interoperability considerations for greenhouse gas (GHG) emissions. This illustrates the areas of interoperability a company should consider when measuring and disclosing Scope 1, Scope 2 and Scope 3 GHG emissions in accordance with both GRI 305: Emissions and IFRS S2 Climate-related Disclosures. IFAC, The International Federation of Accountants, has published “A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance”. This report discusses the new and existing competencies required of accountants to meet the sustainability-related disclosure, reporting and assurance challenges faced by stakeholders. Other news The Government recently approved guidance on the use of AI in the Public Service, brought to Cabinet in the wake of agreement on a new European AI Act reached between the European Parliament and the Council.  The Government has instructed that all AI tools used by the Irish Public Service should comply with seven requirements for ethical AI that have been developed by the European Commission’s High Level Expert Group. The European Banking Authority’s latest AML/CFT Newsletter is out. Take a look for the latest on consultations, new guidelines, risks and the EBA's work on tackling financial crime. The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. The Government Chief Whip, Minister Naughton, has published the Spring 2024 legislative programme with 46 priority bills due for progression. The AI Advisory Council, established by Minister of State with responsibility for Digital, Dara Calleary TD, to provide independent expert advice to government on artificial intelligence policy, met for the first time on 17 January. The Council will provide independent expert advice to government on artificial intelligence policy, with a specific focus on building public trust and promoting the development of trustworthy, person-centred AI. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

As previously reported, taxpayers have until 1 May 2024 to agree a Phased Payment Arrangement (PPA) with the Irish tax authorities to repay tax debt held within the Debt Warehousing Scheme.  However, some changes to the scheme are expected following comments last week from Minister for Finance, Michael McGrath TD, as he urged businesses to engage with Revenue. The remarks follow reports that businesses in certain sectors will face difficulties in repaying the warehoused debt. Revenue’s stated priority is to assist taxpayers in addressing the payment of their warehoused debts as flexibly as possible and are encouraging taxpayers to engage with officials now to address the debt position.  The Institute will keep members apprised of any updates via Tax News. The Debt Warehousing Scheme is currently in Period 3, running from 1 January 2023 to 1 May 2024, with interest accruing at 3 percent per annum on the unpaid debt. The 3 percent interest charge will be incorporated into the PPA for its duration. Where there is no PPA, the interest will be charged retrospectively.   Taxpayers are reminded that while they have until 1 May 2024 to agree a PPA with Revenue, they can make interim payments during this period, and also request for the offset of any refunds owing against the balance of tax warehoused.   Revenue has prepared a number of ‘How to” videos in relation to the PPA process which are now available on the Revenue website (link to videos).   The Institute will continue to keep members updated via Tax News.

In response to the consultation on the draft updated MTD for Income Tax legislation, the Institute took the opportunity to highlight its ongoing concerns in relation to this project, including the need to uplift the exemption limit. In addition, the lack of available software and small numbers currently participating in the trial are worrying. The Institute’s Northern Ireland Tax Committee was responding to the consultation opened last month into the draft legislation which has been updated to reflect the changes announced in December 2022 and as part of the Small Business Review in November 2023.  Key recommendations also featured in the Institute’s response include the following:- HMRC should seek to develop the detailed guidance on MTD for Income Tax after a period of consultation with stakeholders - this should contain practical worked examples/case studies of different scenarios and should carefully distinguish between the digital recording keeping requirements and functional compatible software requirements;  This guidance should be published in a timely manner in advance of the commencement date;  HMRC should work at pace and aim to publish the final MTD for Income Tax legislation, associated notices, and more detailed guidance as a matter of urgency;   The tax year from which new sources of trading or property income falling within MTD for Income Tax should be reported should be amended to the next tax year after acquiring that new source of income;   The quarterly filing deadline should be set as the seventh day of the next month to align with the VAT return filing deadline;   Unincorporated businesses should be able to move out of MTD for Income Tax in the next tax year where, turnover has fallen below the exemption limit and by a significant percentage; and   HMRC should undertake a detailed matching exercise to remove any anomalies so that quarterly update information matches that reported on the relevant self-assessment returns for trading and property income. 

This week we bring you the news that the 2023 annual report of the Administrative Burdens Advisory Board “Better tax for better business” highlights its concerns in relation to Making Tax Digital for income tax. The notes from the most recent meeting of the Wealthy External Forum meeting which was held in October 2023 are available; Chartered Accountants Ireland is represented on this forum by a member firm. The OECD Inclusive Framework has released the third set of Pillar 2 administrative guidance and HMRC has confirmed that donations to charities of crypto assets do not qualify for gift aid tax relief.   Administrative Burdens Advisory Board “Better tax for better business” report   The 2023 annual report of the Administrative Burdens Advisory Board “Better tax for better business” was published last month. Amongst other items, the report highlights Making Tax Digital for income tax (“MTD for ITSA”) as a priority area and in particular, that testing via the trial “will be mission critical for MTD ITSA, which is a far more complex proposition than MTD for VAT.” Overall, the Board concludes that time is short, and many challenges remain.  The Board is also concerned about the emerging climate and messaging used by HMRC this year which discourages taxpayers from calling HMRC helplines. Although it has some sympathy with HMRC in trying to encourage taxpayers to do some basic research and checking themselves, rather than always calling HMRC helplines, restrictions on helplines need to be carefully considered and designed when there is so much that taxpayers (and HMRC) can still find difficult and make mistakes with during tax administration activities. HMRC need to work towards a system where helpline support is there for genuine difficulties - which in turn means improving guidance. The Board is also keen to continue exploring where there is further scope to simplify and modernise the tax system.  OECD Pillar 2 administrative guidance   The updated guidance released last month includes the below items. Clarifications for the transitional Country-By-Country reporting safe harbour as follows:- Purchase price accounting adjustments in financial accounts;  Various calculation and application issues; and  A rule that requires adjustments to the tested jurisdiction’s profit before tax and income tax expense with respect to certain hybrid arbitrage arrangements.   Clarifications for the application of other aspects of the GloBE rules as follows:-  Calculation of the €750 million revenue threshold;  Mismatch between Fiscal Years of UPE and another Constituent Entity;   Mismatch between Fiscal Year and Tax Year of a Constituent Entity;  Further guidance on the allocation of Blended CFC Taxes;   Transitional Filing Deadlines for MNE Groups with Short Reporting Fiscal Years; and  A simplified Calculation Safe Harbour for Non-Material Constituent Entities.   According to an email from HMRC, it is the UK’s intention to ensure that this latest guidance is reflected in the UK Pillar 2 legislation. HMRC has also asked us to draw your attention to the release of additional draft HMRC guidance on which views are welcome by email.   Donations to charities of crypto assets  HMRC has recently updated its guidance on gift aid which confirms that donations of crypto assets do not qualify for gift aid relief. This is on the long-held view of HMRC that such assets are not currency or money. Should the crypto assets be converted into ‘money’ and then donated to the charity, then this may qualify for gift aid tax relief if the relevant conditions are met. 

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 bulletin is also available. From 2027, a carbon pricing mechanism for imports will be implemented in the UK to support decarbonisation and the Institute is meeting with HMRC next week to discuss the Import One Stop Shop rules and welcomes any member questions in advance. We briefly update you on the impact of the Retained EU Law (Revocation and Reform) Act 2023 (“REUL Act 2023”) and the introduction of the first elements of the UK’s Border Target Operating Model which commence from the end of this month.   Retained EU Law update  As a result of the REUL Act 2023, from 31 December 2023, circa 600 pieces of retained EU law were repealed. The Government’s first report on the status of REUL is due to be published by 22 January 2024. This is expected to include a summary of the data on the REUL dashboard, and is expected to include progress and future plans. Reports are due to be published every six months until June 2026. The House of Commons Library has also published a useful briefing on the new powers available to the Government under the REUL Act 2023.  Border Target Operating Model (“BTOM”)  The UK government has published a set of communication assets to support the readiness of traders and has been sharing these assets with UK and EU traders in preparation for the first phase of its BTOM which commences later this month.   These communication assets include:- Border control posts leaflet for plant and plant products;  Composite products decision tree;  Health certificates guide;  Import notifications guide; and  Phytosanitary certificate guide.  BTOM training sessions for traders are being held online throughout January. What changes are coming on 31 January 2024?   The introduction of health certification on imports from the EU of medium risk which are as follows:- animal products;  plants;   plant products;   the introduction of health certification on imports from the EU of high-risk food and feed of non-animal origin; and  the introduction of new checks and controls when moving Irish goods (i.e., any goods other than qualifying Northern Irish Goods) which are moved from Irish ports directly to Great Britain.  The Government has also set out three actions which can be taken to prepare for these changes:-   Know your risk-category – use these online tools to find the risk category of your commodity;  Ensure that your EU supply chain is preparing to provide you with health certificates and/or phytosanitary certificates – find out more here; and  Be ready to correctly submit your pre-notification via the Import of products, animals, food, and feed system (“IPAFFS”) – attend a January training session and read the import notifications guidance.  Sign up for the Defra Traders/Exports Newsletter for updates relating to the BTOM   Miscellaneous updated guidance etc.   Below we highlight recently updated guidance, and publications relevant to EU exit which this week includes the UK Government’s responses to various customs related consultations:-  Customs, VAT and excise UK transition legislation from 1 January 2021;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Bringing goods into the UK temporarily;  Apply to use simplified procedures for import or export (C&E48);  Apply to operate a customs warehouse;  Apply to use simplified declarations for exports;  The future of customs declarations;  Transit newsletters — HMRC updates; and  Introducing a voluntary standard for customs intermediaries. 

We have compiled the latest updates to various HMRC VAT publications, briefs, and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the UK’s departure from the EU. Claim a VAT refund as an organisation not registered for VAT;   Late payment interest if you do not pay VAT or penalties on time;   Pay the VAT due on your One Stop Shop VAT Return;  People involved in transactions connected with VAT fraud;  Partial exemption (VAT Notice 706);  Health professionals and pharmaceutical products (VAT Notice 701/57);  Updates on VAT appeals;   Charity funded equipment for medical and veterinary uses (VAT Notice 701/6);  Insolvency (VAT Notice 700/56);  Apply to join the VAT Flat Rate Scheme;   Motoring expenses (VAT Notice 700/64);  VAT on goods exported from the UK (VAT Notice 703);  Register for VAT if you make relevant acquisitions into Northern Ireland;  VAT Government and Public Bodies;  Claim a VAT refund as an organisation not registered for VAT; and  Register for VAT by post. 

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.  

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. Check the relevant page for information on planned downtime.  

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.   

IAASA has published a Consultation paper on its proposal to revise International Standard on Auditing (ISA) (Ireland) 505 External Confirmations and make related conforming amendments to ISA (Ireland) 600 (Revised February 2023) Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The proposed effective date of the revised standard is for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted. Responses are requested by 23 February 2024.

The International Auditing and Assurance Standards Board (IAASB) launched a consultation on proposed narrow scope amendments to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). The proposals have two key objectives. align definitions and requirements in IAASB standards with new definitions in the IESBA Code. extend the applicability of existing requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities. Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing which will impact on: Engagement quality reviews; The auditor’s report including independence, communicating key audit matters, and the engagement partner’s name; and Communicating with those charged with governance. Feedback is requested by April 8, 2024.

Economic Crime and Corporate Transparency Act 2023 Just published see our short guide on the UK’s Economic Crime and Corporate Transparency Act 2023.The guide details some of the changes which will be brought about by the Act. 

The CCAB-I Insolvency Committee has recently published Technical Release 01/2024 - Personal Insolvency (Amendment) Act 2021. This Technical Release outlines how the provisions of the Personal Insolvency (Amendment) Act, 2021 reflect practical amendments arising from Covid-19 and also the evolving nature of the existing legislation governing personal insolvency. The previous technical guidance document TA/02 2016 Personal Insolvency (Amendment) Act 2015 is still of relevance and guidance to members save for any amendments set out herein.

Newly Qualified – What Next? Now that you are qualifying as a member of the Institute there are a number of things to consider for the next phase of your professional career build. Below is a concise synopsis that may prove useful as you focus on this long term project : The Market - Practice, Industry and FS sectors are all seeking new and recent qualified team additions.  International opportunities remain good if you are keen to travel! The economic outlook is good notwithstanding inflation, Brexit, Ukraine.  Salaries – Salary and package levels have been strong in recent months. Salary range for newly qualifieds €55–60k and in some cases €60-65k . Benefits packages are where the spotlight is really.Salary should not be top of your list however when deciding your next career step. Early Career-build considerations : Treat it like a long term project  - Make time to plan.Set up a file / spreadsheet for yourself.  Research the multitude of paths you can take now.Speak to your mentors – (3 of them preferably!) Be deliberate about focusing on this career build project. Secondments can be a great way to overcome the gap in industry experience.Be prepared to adjust & shift direction and most importantly start building your Network! Some key career tips - build your personal brand and guard it carefully for the years ahead. Link-In with ACA’s 2 or 3 years ahead of you in their career path. Year 1 post-qualification gives you a licence to try & test random roles and you should feel free to experiment. Think 2 moves ahead when you accept an offer and consider the impact on your cv and a few moves down the road. Be vigilant of The (ACA) Career Pathway which is worth reviewing -  https://www.charteredaccountants.ie/Career-Pathway Consider Contract options in the market and tune in to the growing ‘Gig economy’.  Review Accountancy Ireland Back Issues you have not read in your spare time.   Invest in your Network  - Networking is the Spine of a successful Career ! It will eventually become the platform for your move as an FCA later in life but start now.  Reconnect with Ex Colleagues. Make it a habit to touch base with key people and pick their brains. Social Media – Like Share Discuss and connect constantly. Be vigilant of the people who attended the same events as you. Join LinkedIn Groups and get more involved with the Institute now you have less studies. Do a Career Audit - Draw a (self analysis) mind map. Analyse decisions you have made to date. What worked for you and what didn’t? Why?  What soft skills have you developed in recent years? What have your key achievements been?  And importantly, what did you enjoy and why?  Action Plan – You have an opportunity to take stock & plan now. Take time to gain that insight into what you really want for your career. Craft a strong CV and personal brand and be interview ready when the opportunity knocks. Become an expert on the market if you are actively looking to move now and check in with your Careers Team. . Career Coaching, Advice and Placement – Chartered Accountants Ireland Dave Riordan (FCA) Career Coach & Recruiter Chartered Accountants Ireland Careers Team +353 1 673 7251 Dave.riordan@charteredaccountants.ie  

Readers will most likely be aware that the 2022/23 online self-assessment (“SA”) filing deadline is in less than three weeks’ time on Wednesday 31 January 2024.  This is also the deadline for paying any balancing payment of income tax and Class 4 National Insurance contributions due, in addition to the first payment on account for 2023/24. We also remind you that last month HMRC commenced restrictions to the queries answered on its SA and Agent Dedicated Line (“ADL”) helplines which are effective between 11 December 2023 and 31 January 2024. Since that announcement HMRC has further announced that due to exceptional levels of demand, from 22 December 2023 HMRC is redirecting all ADL progress chasing queries for SA repayments to its 'Where’s my reply' tool.   More information is available on the new ADL restrictions in an email from HMRC. According to HMRC, the ‘Where’s my reply’ tool will enable agents to see an estimated date for the processing of a SA repayment.  HMRC has also confirmed what will happen if an agent is calling because the date given for a SA repayment in the ‘Where’s my reply’ tool has passed. In these circumstances HMRC will accept queries via webchat or the ADL about an SA repayment. However, it should be noted that HMRC may not be able to give any update if the repayment claim is undergoing security checks which can take up to 12 weeks.   

The OECD will host a webinar tomorrow (Tuesday 9 January) at 2.00pm (Irish/UK time) on the economic impact assessment of the Global Minimum tax on the taxation of MNEs. You can register for the event for free here.

The UK’s Tim Power has been appointed as the new chair of the OECD’s Committee on Fiscal Affairs (CFA). Mr Power is the Deputy Director for Business and International Tax in HMRC. Within HMRC, Mr Power and his team are primarily responsible for corporation tax. Mr Power has represented the UK in multilateral discussions within the OECD since 2013.

The Spring Budget 2024 will take place on Wednesday 6 March 2024. Following on from this, a second Finance Bill will be published. The current Finance Bill, which was published after the 2023 Autumn Statement, had its second reading in the House of Commons before Christmas and has now moved to Committee Stage, the date for which has not yet been determined.  Guidance for submitting Spring Budget 2024 representations to HM Treasury has also been published. Representations must be made by 24 January 2024 via the representations portal.  The Scottish and Welsh Governments also recently announced their 2024/25 draft budgets. Full details are available on the Scottish and Welsh budget pages. In Scotland, from 6 April 2024 a new ‘advanced rate’ band of 45 percent will be applied on income from £75,000 to £125,140. More details on the Scottish income tax rates and band applicable from 2024/25 are available in a factsheet. 

The European Commission has published the default values for determining embedded emissions during the Carbon Border Adjustment Mechanism (CBAM) transitional period (which runs to the end of 2025). These values will be revised regularly from the first reporting period (Q4 2023). CBAM is the EU’s key tool for combatting carbon leakage and is a central part of the Fit for 55 Agenda.