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Comment
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Polarised politics in a fragmented world

The foundations for a common polity are eroding as increasingly polarised views and influences continue to flourish, writes Cormac Lucey It looks like voters in the United States will have to decide between Joe Biden and Donald Trump in November’s presidential election. It is symptomatic of how polarised American politics have become that the strongest argument for voting for Joe Biden is that he isn’t Donald Trump and vice versa.  Why have politics in the developed world become so opposite? And what is the likely future direction of travel? In my opinion, several secular factors are eroding the political centre and promoting the rise in political extremes.  Narrowcasting has replaced broadcasting. In the past, TV and radio channels were limited in number and had to cater for a large audience. The result was broadcasting that was jointly watched or listened to by large sections of the community. Today, it is viable to create media and social media offerings that cater for very narrow and specialised audiences. Broadcasting has been replaced by narrowcasting. Sectional views are being promoted. A common, integrated view is being relegated. Social media algorithms seek to maximise their audiences even if it means promoting a one-sided view of what’s happening. Just look at the US where the difference in political perspectives offered by Fox News and MSNBC is such that, even when covering the same story, they often appear to be reporting on different events. The commercial imperative to maximise audiences means that people are increasingly being told what they want to hear resulting in an echo chamber effect where contrary views are downplayed or ignored. Division is promoted – unity is structurally disadvantaged. The growth of technology has turbo-charged the division of labour. The essence of the Industrial Revolution is that people ceased to be farmers and moved off the land to earn their living by doing increasingly specialised tasks. While specialisation has promoted greater efficiencies and higher economic growth, it has come with the cost that we now have a reduced understanding of what others do and of how the entire system hangs together.  Society has become more politically polarised around socio-economic differences. In his book The Road to Somewhere, David Goodhart explained the shock of the Brexit and Trump 2016 votes. He described a UK society that was divided between “Somewheres” and “Anywheres”.  “Somewheres” are firmly rooted in a specific community and Goodhart reckons that this group constitute about half of the UK population. “Anywheres” are typically socially liberal, well-educated and generally living in cities – they could live and work anywhere (as the pandemic illustrated).  Goodhart reckons that they comprise just 20 to 25 percent of the population but dominate politics and the media. “Inbetweeners” oscillate between these two groups. Brexit and Trump represented a shock victory for the “Somewheres” over the “Anywheres”. Recent protests in Ireland against immigration by asylum seekers are probably being carried out by “Somewheres,” angry at the immigration policies of Dublin’s “Anywhere” political establishment.   In the future, the challenge will be that each of the drivers of political fragmentation listed above seem likely to continue to grow. If the foundations for a common polity are eroding, reaching political agreement is likely to be increasingly difficult in the future.   *Disclaimer: The views expressed in this column published in the February/March 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland

Feb 09, 2024
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Careers
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"If I can see it, I can be it"

Charlotte Rose Keating reflects on her path from a law graduate to achieving FCA status, highlighting the transformative power of stepping out of your comfort zone so you can achieve more in work and life I was awarded FCA status in January. Reflecting on my career journey so far, with its twists and turns, I am grateful for the chain of events that led me to become a Chartered Accountant and excited to see what being a Fellow will bring.  At school, I never imagined it would be possible for me to be a member of the accountancy profession. Maths was my Achilles heel. I believed I wasn’t numerical. Being a fan of debating and problem-solving through words, I got my law degree from Trinity College Dublin.  I graduated in 2008, but with the uncertainty of the financial crisis, it was not the ideal time to apply for graduate jobs. This, combined with uncertainty in my personal life, drove my need to secure a good role.  One evening, while applying for law firm training contracts, an advertisement for Deloitte popped up on my screen. Intrigued, I clicked to learn more and was pleased to see that the firm encouraged applications from individuals of varied backgrounds, not just those with accounting and finance-related degrees.  “I’ll take the risk” As I selected the Enterprise Risk Services Department, I thought, “I’ll take the risk,” and applied. Like magic, things started to fall into place.  While on holiday, I got called for an interview and as it turned out, one of my travel companions had trained with Deloitte and specialised in risk. She and her partner sat me down around a campfire to give me advice and conduct a mock interview.  Sure enough, it ended up being a fantastic interview experience.   When I was offered the role, I couldn’t wait to get started, seeing it as an opportunity to diversify, understand the business world and overcome a long-held fear of numbers.  Working mainly in internal audit and regulatory compliance for various public and private sector clients, I leveraged my law degree while developing new skills and confidence.  Training and qualifying as a Chartered Accountant involved stepping out of my comfort zone, but it is one of the best decisions I’ve made. Yes, it gave me security, but it provided me with so much more, including the opportunity to travel and fulfil a lifelong dream of living and working in New York City.  The qualification was an invaluable asset when I pursued professional acting, not a fallback. Being a member of the profession provided me with the tools and the self-belief I needed to set up my own coaching and training business – Act On It Coaching – where I work with individuals and companies to support personal and professional development.  Despite taking my qualification in a different direction, I still use it daily to support and add value to my clients. My membership is something I treasure and I value the support of the Institute. The bias challenge Since my training days and throughout my career, I have been fortunate to have had wonderful role models and mentors who reflected my strengths and encouraged me, guiding me on where to improve and imparting advice drawn from their own career journeys.  I’ve had the privilege of working with many inspiring, strong women. Having female camaraderie and confidantes is extremely beneficial at any stage in one’s career.  Bias, both conscious and unconscious, is still a challenge in the workplace, and there remains a lack of female representation in key decision-making roles. As the saying goes, “If I can see it, I can be it”, and female role models at the partner and senior executive levels are essential in enabling junior-level women to envision their own career pathways. Mutual respect and people accepting one another’s unique qualities and differences naturally fosters inclusion and encourages individuals to play to their strengths to make a positive impact and contribution in what they do. Take responsibility for your career  When it comes to navigating career advancement, the most effective strategy, in my opinion, is to start with you. Take responsibility for your career.  I have asked myself what I want to achieve as I have learned that self-reflection is so important to set short- and long-term goals. I have reflected on my strengths, achievements and the aspects of work I enjoy to build confidence in the present that can propel me towards future achievements.  To keep focused, on track and in charge of my career, I check in regularly and ask myself questions like: • What do I need to do more of? • What do I need to do less of? • What do I need to start doing? • What do I need to do differently? • What do I need to stop doing altogether? This practice helps me to identify professional opportunities and be prepared to put myself forward confidently.  It’s also highly beneficial to get clarity from others. Asking a senior colleague the simple question, “how am I getting on?” can help you to understand whether or not you are meeting expectations.  Seeking feedback from clients and junior staff is also fundamental to growth and career progression.  Good and timely communication prevents conflicts and misunderstandings and dramatically reduces anxiety. It’s important to be technically strong, of course, but we need to hone our soft skills, especially in this era of artificial intelligence. As I was in a small but growing department when I started with Deloitte, I was fortunate to have ample opportunities to develop leadership skills early on.  An aspect of my work that I particularly enjoyed was coaching and mentoring junior staff members and designing and delivering training for them.  This led to me developing the Trainee Toolkit, a programme I have been rolling out across different firms to support the next generation of Chartered Accountants in succeeding in their exams and training contracts, assisting the efforts to plug the talent gap and future-proof the profession.  Tap into your professional community  Being part of the family of Chartered Accountants provides us with community, whatever stage of our career we are in. It’s vital to tap into this community and make the most of the support available to advance our careers.  Collectively, we give ourselves a sense of purpose, an appreciation of our individuality and health and wellbeing benefits.   Nurturing relationships and building connections within this community can be particularly beneficial for women, who face various unique challenges in the profession.  Mentoring and networking allows women to brainstorm collectively, share solutions to challenges, professional and personal experiences, to thrive, build confidence, take control of their careers and ultimately experience greater fulfilment in all that they do. Managing work-life balance As a self-confessed adrenaline junkie, I love saying yes to new challenges. This is my biggest issue when it comes to work-life balance. I take on a lot because I don’t want to say no to opportunities to grow. Being mindful and focusing on each task to the best of my ability helps me to avoid feeling overwhelmed.  Good time management is also key; anticipating unforeseen events and factoring buffer time into my projects reduces pressure. A non-negotiable is my daily walk. It’s my chance to reflect, exercise and clear the cobwebs. I often go out with a problem and come home with a solution. Living a more holistic life where we can be at our best involves recognising that nothing is wasted, all experiences in and out of the workplace, all the successes and setbacks shape us into who we are, and it’s good to take stock of this daily. Cultivating personal and professional relationships helps us perform at our best and feel good in the process. Charlotte Rose Keating, FCA, is CEO of Act On It Coaching  My Story So Far: Women's Career Series Last year, Accountancy Ireland introduced a new series in collaboration with the Gender Working Group of the Institute’s Diversity Equity and Inclusion Committee. Focused on the women in our membership, we are relaunching this series this year under the new banner ‘My Story So Far: Women’s Career Series’. It follows the 2022 publication of a global Chartered Accountants Worldwide survey which explored opportunities for women in the profession. The survey found no obvious gender-related barriers to entry into the profession but revealed that a growing number of women were making the decision to leave or pivot within the profession mid-career. ‘My Story So Far: Women’s Career Series’ seeks to highlight the experiences of the women in our membership and provide a forum to share their insights into how they have managed their careers in tandem with their lives and overcome the challenges and obstacles they have encountered along the way.

Feb 09, 2024
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Personal Impact
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Giving back for the greater good

Chartered Accountants have a unique set of skills that can help guide and support the valuable work of Ireland’s charities and not-for-profits Orla Roche, FCA, TMITI, has been volunteering in the not-for-profit sector since childhood and began to carve out a career in charity after qualifying as a Chartered Accountant with KPMG in Dublin and returning to live in her native Galway in 2002. “I volunteered for charities from a young age and became involved in the sector because I find the objectives of charities very interesting; they make a difference,” explains Roche, who is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group.  After returning to Galway, Roche also qualified as a tax technician with the Institute of Taxation and established Roche Chartered Accountants, her own business, offering tax and business consultancy services. “I’ve worked in both the corporate and not-for-profit sector for the likes of Galway Simon Community, Pobal, Connacht Rugby, St Vincent de Paul, GAA, Trócaire and Goal in Sudan,” she says. “Because profit is not the objective of a charity, my roles have been more varied and rewarding; it is not just about ‘doing the numbers’.” Roche is currently Finance and Governance Manager with First Fortnight, a mental health charity, which recently hosted its annual arts festival at locations nationwide in January. “First Fortnight challenges mental health stigma through arts and cultural action. We offer creative art therapy to children, adolescents and adults who are homeless or at risk of homelessness and we’ll be expanding this service to new locations around the country this year,” Roche explains. First Fortnight is one of more than 11,500 charities registered in Ireland ranging from small, local and volunteer-only to large, national or international organisations with thousands of employees, according to the Charities Regulator. Although all charities are classed as not-for-profit organisations, not all not-for-profit organisations are charities. Under the Charities Act 2009, a charity must be set up to promote one or more charitable purposes, promote only that charitable purpose and deliver a public benefit. “Ireland’s strong charity sector plays a central role in our society. The diversity of the sector’s activities is reflected in the Register of Charities, which includes over 3,600 schools as well as libraries, museums, youth clubs, daycare centres and much more,” explains Helen Martin, Chief Executive of The Charities Regulator. Aside from their societal impact, charities have a significant financial impact on the Irish economy. About 281,250 people are employed by registered charities, according to the Report on the Social and Economic Impact of Registered Charities in Ireland published last year by the regulator. “That’s equivalent to almost one-in-eight workers. Total direct expenditure by Irish charities was estimated in our report at €18.6 billion in 2022, an increase of 28 percent over 2018. The overall financial impact of the charity sector was estimated at €32.1 billion in 2021, when the indirect and induced effects of activity are also included,” Martin says.   Personal motivation  Tony Ward, FCA, has worked in both voluntary and professional roles within Ireland’s charity and not-for-profit sector, prompted initially by his personal experience. “My introduction to the sector came through my diagnosis with a degenerative eye condition in the early nineties, which led me to become involved with Fighting Blindness as a board member while working in practice, consultancy and the private sector,” he says. “I would go on to become an employee of Fighting Blindness and then Director of Finance with The Wheel – Ireland’s national association of community and voluntary organisations, charities and social enterprises – until May 2022 when I went into consultancy, largely in the charity sector.” Ward is currently co-Chair of the Institute’s Charity and Not-for-Profit Special Interest Group and sits on the board of several charities and not-for-profit organisations. He has firsthand experience of the benefits they can bring to individuals who need supports and services. “I have benefited personally from continuing to be involved with charities working in the area of blindness and sight loss while learning about many others and the great work they do. They often fill gaps left by the State in the provision of essential services or enhancing aspects of society that are important to all, such as arts and sports,” he says. “I think it is very important that we give back and what easier way to do it than in an area where we all have existing competencies, which probably fit with the skills charities desperately need?” Chartered Accountants, in particular, have skills of great potential value to charities and not-for-profits, Ward believes.  “I would urge Chartered Accountants to give back by helping the charity and not-for-profit sector. Many are already involved and, the more I’ve become involved myself, the more I understood how complex and important the ‘business’ of running a charity is.  “Charities are all subject to the same or similar governance controls, business metrics and operational concerns as other organisations. It is very important that they have people with suitable skills involved,” he says. Valuable professional skills Orla Roche agrees that Chartered Accountants have a lot to offer Ireland’s charity and not-for-profit sector. Even if they don’t work full-time in the sector, they can bring valuable professional skills to the table on a voluntary basis. “I feel my qualification has brought a much-needed function to the charities I have worked with. Governance and accountability are vitally important to charities,” Roche says.  “Since the establishment of the Charities Regulator in Ireland and the impending Charity Amendment Bill, charities have to be more transparent and I welcome these changes.”  For those Chartered Accountants who may be interested in volunteering, Roche says that there are safeguards in place to protect them from potential risks. “Pitfalls might exist in very small charities with very few or no staff and few financial controls where the onus might lie with the directors,” she says, advising that these risks can be mitigated by:   • Using the Charities Statement of Recommended Practice (SORP); • Keeping up to date records; • Working closely with an auditor; and  • Complying with the relevant Companies Registration Office and Charities Regulator rules.   “The way I see it, Chartered Accountants have a vital role to play by joining the boards of charities in a voluntary capacity,” Roche says. “Our analytical, financial and people skills can increase the transparency and accountability of the sector and you will find many Chartered Accountants sitting on the finance sub-committee of charity boards around the country. “They can also help in producing accounts and ensuring financial controls and best practice are adhered to. This increases the transparency and accountability of the charities they volunteer with.” For those interested in volunteering their skills for the first time, Tony Ward advises reaching out to their family, friends and local community or logging on to Boardmatch.ie, an Irish charity specialising in not-for-profit board recruitment, or Volunteer Ireland at volunteer.ie. “There can be a lot of work involved, less so perhaps in organisations that have their own dedicated staff, but in my experience, a Chartered Accountant who understands how systems work can fairly easily slot into a charity board or committee,” he says. Áine Crotty, ACA, first became involved in charity and not-for-profit volunteering while completing her training contract with KPMG in Dublin. “I trained in financial services audit and then moved into risk consulting and then the insurance industry, but it was initially through my involvement in some of KPMG’s fantastic Corporate Social Responsibility (CSR) initiatives that I realised the benefits and rewards that could come from using my skillset to help charities as a Charity Trustee,” Crotty explains. Role of trustees The Charities Regulator defines Charity Trustees as the volunteers that sit on the boards of charities (or committees in the case of associations).  “They are the people who ultimately exercise control over, and are legally responsible for, a charity,” Helen Martin explains.  Her advice to existing trustees and Chartered Accountants who may be thinking of becoming a trustee is to familiarise themselves with the responsibilities of the role. “I would advise them to check the charity’s entry on the Register of Charities to ensure that it has filed its annual report with the regulator and that key details, such as the names of the charity’s trustees, are up to date,” says Martin. Through Boardmatch.ie, Áine Crotty secured her first role with a charity on the Audit and Risk Committee of the Board of Paralympics Ireland. She now also sits on the board of Gerri’s Place. “Gerri’s Place is a not-for-profit, social enterprise that provides wellbeing breaks for people who need time and space to focus on their emotional and mental wellbeing,” she says. “I have volunteered with and supported various mental health charities from a young age, as I had seen the effects of poor access to mental health services in my community. Joining the Board of Gerri’s Place has allowed me to continue contributing to a cause that is close to me. The skillset of a Chartered Accountant is invaluable to organisations like Gerri’s Place, Crotty says. “I see my Chartered Accountancy qualification and the skillset that comes with it as a privilege; it’s an even bigger privilege to be able to use that skillset to give back to those in need.”  For other Chartered Accountants keen to explore trustee roles in Ireland’s charity and not-for-profit sector, Crotty has this advice: “If you are confident in your skills and ready to give back some of your time, there is a place for you. With the charity sector becoming more and more regulated, there is a real need for professionals such as Chartered Accountants to get involved.” Regulatory environment Like all legal entities, not-for-profit organisations are subject to general laws and regulations dependent on a number of factors, explains Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, a board member of Age Action Ireland and co-founder of non-profit Chapter Zero Ireland. These include:   • How they are established (e.g. Companies Acts applying to companies); • Their purpose or cause (e.g. Charities Act applying to charities); • Their responsibilities (e.g. safeguarding legislation if caring for vulnerable people); • Their activities (e.g. licencing or permit conditions for fundraising or events); • Their governance structure (e.g. constitution, trust deed, etc.); and  • How they operate (e.g. employment legislation/health and safety legislation).    “In addition, the non-profit organisation may be subject to regulations or conditions because of where they source funding from,” Fitzgerald says. A sporting organisation receiving funding from Sports Ireland, for example, will be required to comply with the Governance Code for Sport. A charity receiving government funding, meanwhile, may be required to comply, in full or in part, with governance requirements for state organisations. “The financial reporting requirements for not-for-profit organisations also vary according to considerations similar to those outlined above,” Fitzgerald says. In Northern Ireland, requirements are defined for charities as a category of non-profit organisations by the Charities (Accounts and Reports) Regulations 2015. Under these regulations, the Charities Statement of Recommended Practice (FRS 102) (Charities SORP FRS 102) applies to charities with income exceeding £250,000.  In the Republic of Ireland, the Charities Governance Code requires charities to produce full unabridged financial accounts, and to make sure these are made publicly available. The Charities (Amendment) Bill 2023, meanwhile, provides for a number of amendments to the Charities Act 2009. The bill, currently under scrutiny in the Dáil, aims to provide greater transparency for the public in relation to the finances and operations of registered charities.  “The amendments proposed will facilitate the introduction – for the first time – of much-needed financial accounting regulations for registered charities in Ireland,” Helen Martin explains. “This will introduce greater transparency in the way charities report on their finances and ensure that all charities are treated equally regardless of whether they operate as a company or an unincorporated entity such as an association or charitable trust.” This in turn will ensure that the financial statements of charities are more informative and more comparable than is currently the case.  Níall Fitzgerald recommends that not-for-profit organisations undertake a regulatory mapping exercise to determine the extent of the legislation and regulation each is subject to. “This can be a useful process for a not-for-profit organisation of any size, enabling it to better design a fit-for-purpose governance structure that facilitates effective compliance and reporting, while the organisation mainly focuses on achieving its purpose and objectives,” Fitzgerald says. Crucial role of accountants Public trust and confidence is the bedrock of a charity’s existence and this applies whether it is a large organisation or one of Ireland’s smaller charities, writes Helen Martin.  Close to 50 percent of charities, excluding schools, have an annual income of less than €100,000.  Accountants can help support and enhance governance standards within charities. We know from our engagement with charities that many use accountants on a voluntary or professional basis to provide support on a wide range of financial matters, such as:   • Developing internal financial controls; • Preparing financial reports, including management accounts; and • Advising on and assisting with transactions and investments.    Promoting and supporting the principals of good governance helps ensure Ireland has a vibrant charity sector that is valued for the public benefit it provides across many facets of society.  This ranges from ensuring a robust risk management system is in place to making certain a charity’s details on the Register of Charities are correct and it is up to date with its filings. Another key area in which accountants can play a role is in supporting transparency and accountability. We know from research that there is a strong link between greater transparency and accountability and public trust. Accountants are accustomed to the requirement to comply with regulations and professional standards. Whether working on a professional or voluntary basis, as a charity trustee or a service provider, they can help charities by being familiar with their key regulatory obligations and making sure they are in a position to comply.  For example, it is essential to know when the charity’s annual report is due to be filed with the Charities Regulator and what your obligations are, as a charity trustee, if you receive a statutory direction to provide information under the Charities Act 2009.  Failure to file an annual report on time or respond to a statutory direction is a criminal offence and could also put a charity at risk of being removed from the Register of Charities. Getting started: three-step checklist for new trustees Níall Fitzgerald, Head of Ethics and Governance at Chartered Accountants Ireland, outlines three steps he recommends members take before agreeing to volunteer for a charity or not-for-profit. 1. Reflect on your personal motivation and the cause or purpose that matters most to you This passion will be a key source of the energy required for any commitment you make, but it will also be an important filter when choosing which not-for-profit organisation to get involved with. For some members, the motivation will be clear from the outset. For others, you will know it when you see it—perhaps when you hear about the impact a certain charity is having or as you come across examples of its work. 2. Think about the skills, experience and level of commitment you can bring to a not-for-profit This can be about much more than your financial or compliance acumen as a professional accountant, also taking into account any of the skills and abilities attained in your life and career. It is also useful to have an idea of the amount of time you can give to an organisation as this may be one of the key factors determining the extent to which you get involved. 3. Invest time and effort in identifying the right opportunity Whether you are searching for a voluntary position or approached about a vacancy, it is recommended that you carry out some form of due diligence on the organisation. This includes getting a clear understanding of its vision, mission and values, and how these fit with your own. One tip here is to consider the ‘SPF factor’ – Strategy, People and Finance – and ask these three questions: • What is the organisation’s strategy and what resources/capacity does it have to achieve this? • What is the profile and skillset of the people leading and running the organisation? • What is the state of the organisation’s financial position and performance?  In addition, consider the organisation’s expectations of you and your ability to deliver on them. Many of these matters are considered further in the Chartered Accountants Ireland Concise Guide for Ethics and Governance in the Charity and Not-for-profit Sector, available in the Ethics Resource Centre online at charteredaccountants.ie. Produced in 2018, the guide will be revised later this year to reflect more recent developments in the sector.

Feb 09, 2024
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Thought leadership
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Will the ‘10x Economy’ work for Northern Ireland?

The Department for the Economy unveiled an ambitious plan to boost the Northern Ireland economy in 2021, but will it be up to scratch? Professor Anne Marie Ward, Dr Esmond Birnie and Dr Stuart Henderson crunch the numbers to find out if the 10x Economy vision can deliver. Some argue that the Northern Ireland (NI) economy has strong potential given its apparent unique trade position as a halfway house between Europe and Britain, combined with the Department for the Economy’s (DfE) ‘10x Economy’ policy, which targets innovation, inclusion and sustainability. Yet, despite experiencing 25 years of peace, NI continues to suffer from political uncertainty and lower economic productivity relative to Britain and the Republic of Ireland (ROI). Moreover, ongoing uncertainties associated with Brexit continue to dampen potential foreign direct investment, which has been vital to the strong economy in ROI. It is against this backdrop that the DfE introduced a new growth policy in May 2021 aimed at achieving a 10-times better economy (‘10x economy’) by 2030.  The 10x vision is underpinned by objectives grouped into three pillars—innovation, inclusive growth and sustainability—and focuses on six priority sectors:  1. Agricultural technology (agritech); 2. Life and health sciences; 3. Advanced manufacturing and engineering; 4. Financial services and financial technology (fintech); 5. Software (including cybersecurity); and 6. Screen and low carbon.   The data The Northern Ireland Economic Trade Statistics (NIETS) is a new dataset that provides details on trade between NI and Britain for the first time. We have analysed this dataset, which covers the period 2014–2020 and comprises a sample of enterprises that are VAT or PAYE registered and trade in NI.  Approximately 5,000 to 7,000 enterprises respond to the survey annually. As part of our research, we examined the 10x priority sectors over the period 2014–2020.  Data on financial services and fintech are not included in the dataset and due to GDPR issues, we had to merge some of the 10x priority areas, ending up with four 10x sectors:  • Agritech;  • Health and life sciences; • Advanced manufacturing (including low carbon); and  • Software and screen.  Approximately 11.4 percent of the total sample is classified as being 10x. Here is a summary of our findings. Growth in sales and gross value added (GVA) As shown in Table 1, the 10x sectors of the NI economy were relatively resilient from 2014–2020 as total Gross Value Added (GVA) increased over the period, though agritech was negatively impacted by COVID-19.  Performance of the non-10x sectors improved over the period 2014–2019, as evidenced by increased total GVA (except traditional manufacturing, which declined by 20.35%). Most non-10x sectors were adversely impacted by COVID-19, however, except manufacturing and ‘other’ production.  Productivity Productivity is measured by the ratio sales per employment and GVA per employment. As illustrated in Figure 1, for 2014–2020, the wholesale and retail sector had the highest sales per employment, followed by agritech and other production. Other production has the highest GVA per employment, followed by construction, health and life sciences and software and screen. Agritech has the second lowest GVA per employment. External sales behaviour A country’s wealth is influenced by its ability to attract funds from external markets. To determine how NI is doing, we investigated the trade behaviour of NI enterprises using four ratios, which reflect the percentage of overall sales each business undertakes with Britain, ROI, the rest of the European Union (REU) and the rest of the World (ROW). The average percentage for each year (2014–2020) for the whole sample is provided in Table 2.  The most important external market is Britain, accounting for on average 11.75 percent of sales, followed by ROI (6.18%), ROW (2.69%) and REU (1.74%). Generally, the percentage of total sales to these external markets increased steadily over the period 2014–2019 and declined in 2020, coinciding with COVID-19. Patterns in the percentage of total sales to the four markets are further analysed by sector over the period 2014–2020 in Figures 2 to 5. Sectoral differences are evident. Generally, non-10x enterprises (the six to the left-hand side of each figure) are less engaged with external markets relative to 10x enterprises (the four to the right-hand side of each figure).   Differences in the relative importance of markets is also observed across sectors. For example, the ROI market is most important to the agritech sector (Figure 3), and the ROW market is most important to the health and life sciences sector (Figure 5), probably indicative of sales to the US. This sector is also very active in markets in the REU (Figure 4).  Note: When interpreting these results, be aware that the data is based on the largest enterprises in NI and the authors had to design their own 10x categories based on Standard Industrial Classification codes.   Will it work? The number of enterprises in NI that can be classed as ‘10x’ increased over the period from 619 in 2014 to 723 in 2020. They are contributing GVA to the economy and, importantly, most of their turnover is to external markets, which is beneficial for a small regional economy where local demand is limited.  These enterprises seem to be resilient, with little change in behaviour observed in the period after Brexit, and, with the exception of agritech, they continued to grow despite COVID-19 (though the data was only available for 2020).  In theory, the DfE’s ambitions are laudable. Cluster approaches have proven successful in other countries, including ROI, where foreign-owned high-tech enterprises pay higher wages, invest in R&D for future growth and have high exports.  Moreover, the vision of sustainable growth and prosperity for all (levelling up) aligns with more holistic concepts of economic growth that account for social and environmental concerns alongside economic prosperity.  There are concerns, however. This is an ambitious undertaking that will take time to implement. The 2030 target set by the DfE is tight, the support structures to fuel 10x growth are not yet fully established, ‘10x’ is not yet fully defined, ‘place’ is not yet fully defined and hence the data are not (yet) available to enable 10x to be identified and analysed by place.  This will hinder the ability to foster clusters and build networks, which are important for innovation. Also, change will be difficult due to existing established structures.  For example, most policy and government action is managed through Local Government Department (LGD) level structures. However, clusters of enterprises may cross LGD boundaries, complicating a joined-up approach.  In addition, economic and social development is not only managed by the DfE; many other bodies such as central government and local government departments, business networks and educational establishments, are involved. Role for accountants Accountants can play an important role in the success of the DfE’s policy and the future of the NI economy. Accountancy firms are present in most towns across the region. Accountants are part of local business networks and have first-hand knowledge of entrepreneurship and innovation within communities.  Moreover, accountants are well-equipped to facilitate the creation of priority clusters and expanding networks that enable local businesses to connect and grow both within and beyond their communities. This will be good for communities and for the accountancy profession.   *Note: The tables and diagrams in this article are from the authors’ full report, available on the Northern Ireland Statistics and Research Agency website. Professor Anne Marie Ward, FCA, is Professor of Accounting at Ulster University; Dr Esmond Birnie is Senior Economist at Ulster University; and Dr Stuart Henderson is a Lecturer in Financial Services at Ulster University.

Feb 09, 2024
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Young Leaders Think Tank creates global community of difference makers

The inaugural Chartered Accountants Worldwide Global Young Leaders Think Tank has set the stage for a shared vision for the future of the profession The drive to attract and retain talent is not news for anyone in the trenches of day-to-day recruitment and retention, but for the accountancy profession, the challenge of attracting new entrants is a global one – and a global problem requires global thinking. To foster exactly this, the Institute was delighted to facilitate the inaugural Chartered Accountants Worldwide (CAW) Global Young Leaders Think Tank in early January.   The session saw representatives from the next generation of leading professional accountancy organisations come together to discuss their shared vision for the profession. Present at the inaugural Think Tank in Dublin last month were representatives of: • The Institute of Chartered Accountants in England and Wales (ICAEW) • The South African Institute of Chartered Accountants (SAICA) • The Institute of Singapore Chartered Accountants (ISCA) • Chartered Accountants Australia and New Zealand (CAANZ) • The Institute of Chartered Accountants Scotland (ICAS); and  • Chartered Accountants Ireland.  The CAW Global Young Leaders Think Tank initiative is the brainchild of Sinead Donovan, President of Chartered Accountants Ireland. After meeting the global delegation representing CAW at last September’s One Young World summit in Belfast, Donovan saw an opportunity to further strengthen the connections forged between members of the CAW delegation at the conference and give these young leaders a lasting platform.  You can view photos from the event here. Community of difference makers “Seeing the energy, enthusiasm and appetite for tangible collaboration amongst the CAW delegation in Belfast, we recognised the opportunity for CAW and its member institutes to derive substantial value from establishing a think tank,” Donovan explains.  “CAW is more than just a worldwide network, we are a community of difference makers and we need to embrace the opportunity to build stronger connections within the global Chartered Accountancy community and amongst our leaders of tomorrow.”  Facilitated by Donovan and Sinead Fox-Hamilton, FCA, Relationship and Professional Development Manager with Chartered Accountants Ireland (and herself a former Chartered Star), the inaugural CAW Global Young Leaders Think Tank took place at Grant Thornton’s Dublin office on Friday, 19 January. During the session, representatives shared their ideas on how best to communicate with the next generation, how to tackle myths surrounding accountancy careers and potential barriers to entering the profession. Also on the agenda was their shared insights into what they most value as a member of their respective Institute and the importance they place on their own professional development, now and in the future.  Platform for future strategies Focused on giving the profession’s young leaders a platform to express their insights freely, the goal of the Think Tank’s first session was to discuss strategies to evolve the profession and engage Gen Z and Gen Alpha to ensure a strong talent pipeline.  Despite differences in paths to qualifications and entry requirements across the jurisdictions, representatives universally agreed that one of the biggest barriers to recruiting the next generation of accountants were the misconceptions that persist about the profession.  These include the mistaken belief that the profession is dull, overly focused on numbers and suitable only for introverted personalities naturally skilled at maths. Combined with a narrow understanding of the various career paths and roles available to Chartered Accountants, these perceptions are limiting the appeal of the profession. While those in the profession know this couldn’t be further from the truth – with the Think Tank delegation being the very embodiment of the diversity of industries and career paths the qualification opens up – dispelling these outdated myths for the wider public, those not already ‘in the tent’, is key.  The Think Tank participants discussed the need to reposition Chartered Accountancy as the exciting, purpose-driven profession it truly is, emphasising its role in enabling business leadership and fostering innovation. They also highlighted the teamwork inherent in the profession and multitude of potential career paths it offers. Also highlighted was the ability to travel with the qualification to work overseas and avail of visas in locations not as readily available to other professions and in sectors outside accountancy.  Global opportunities for profession Think Tank participants identified the mobility of the qualification as a key attraction, particularly in the context of third level students who may have had their key university years curtailed somewhat by COVID-19 restrictions.  Other key areas of discussion included how representatives viewed the value of their membership and what they saw as priorities for lifelong learning.  The group advocated for an increased focus on qualitative skills to reflect the increasingly advisory or consultative nature of the role of the Chartered Accountant in business.  Soft skills identified include communication and presentation skills that could better enable them to articulate the ‘narrative behind the numbers’ and convey their strategic insights and recommendations to businesses and clients.  Among their many recommendations, the group also discussed the importance of fostering skills in relationship management, teamwork, leadership and conflict resolution and the need to include these more in professional development programmes.  Developing these skills in a hybrid or remote work setting was put forward as a big challenge, particularly for students in the post-COVID-19 landscape for whom hybrid working may be their predominant experience of working today.  CAW white paper The findings and perspectives gathered at the inaugural Think Tank will be summarised in a CAW white paper analysing key trends. This white paper will be circulated to each Institute in its global network to inform their own strategies. The energy and enthusiasm garnered for this pilot event further cements the need for future Think Tanks, where issues affecting the global accounting community, such as sustainability and technological change, will be discussed and progressed. The success of the inaugural session has set out a template and vision for a continued series of annual Think Tanks event, hosted by each Institute in the CAW network in turn, all aimed at building stronger connections within the global community of Chartered Accountants and giving future leaders a platform to help shape the profession for future generations.  Among this year’s inaugural delegation were several of Chartered Accountant Ireland’s past Chartered Stars. These included:  • Michael Walls, Associate Director, Management Consulting, KPMG Ireland;  • Aisling McCaffrey, Director, Sustainability and Financial Services Advisory, Grant Thornton;  • Caroline McGroary, Assistant Professor, DCU, Research Fellow and Fullbright Scholar, Boston College; and  • Patrycja Jurkowska, Global Programme Finance Lead, Self Help Africa.  The international delegation comprised Chartered Accountants working across Ireland and the UK, each representing their own respective Institutes. They included: • Jane Carroll, Client Relations Associate with AllianceBernstein in London (but originally from Brisbane representing CAANZ); • ISCA representative Joanna Chung, now based in Berlin as a junior consultant with Boston Consulting Group; • ICAEW’s James Skilton, Client Manager with London’s Cooper Parry; • Lisa Blum, ICAS, Finance Manager at Lloyds Banking Group in Edinburgh; • Louise Chunnett, IT Internal Audit Manager, Bidvest Group, based in Dublin and representing SAICA; and  • Mishka Hajee, Vice President of Internal Audit and Integrated Risk at Citi Bank, also based in Dublin and representing SAICA.   

Feb 08, 2024
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The abiding value of transatlantic ties

The achievements of the vibrant network of over 700 Chartered Accountants in the US continue to represent the best of the profession and provide a crucial conduit for inbound investment to our shores US members represent best of the profession  For decades, Ireland’s Chartered Accountants have beaten a well-worn path across the Atlantic, writes Sinead Donovan, President of Chartered Accountants Ireland. Facilitated by a Mutual Recognition Agreement with the American Institute of Certified Public Accountants (AICPA), our members have had the opportunity to build their careers in roles across industry and practice. Many make the move in the early years of their career, looking to explore the world and gain post-qualification experience in a new market. As you will see in this special report, many remain there through their careers, becoming embedded in the local economy, their achievements in senior positions representing the best of the Chartered qualification. These more established representatives of our profession become highly effective advocates across the United States, and indeed for the island of Ireland, as they become influential ambassadors for inbound investment to our shores. This flow of investment is well-established and mutually beneficial for our economies, and I am proud of the critical role our members play in driving and servicing this. As a membership organisation, one of the most critical things we can do is support members in this work. In what I like to call the “family” of accountants, I have come to realise that no matter how far from home members are located, there is that strong desire for community and a sense of belonging with their fellow members overseas and with the Institute at home. On the ground in the US, there is also a strong network of overseas chapters, run so effectively by local volunteer members, many of whom I had the pleasure of meeting last year when I visited. The other crucial way we support members is through the power of our professional network. Over the years, we have built strong and enduring relationships with AICPA, the National Association of State Boards of Accountancy and Chartered Accountants Worldwide, among many others. This collective voice is invaluable in continuing to help our profession to grow and further develop meaningful economic and societal impact.  Colm Mackin, Act+Acre As co-founder and Chief Executive of Act+Acre, the New York headquartered haircare business he runs with his wife and business partner Helen Reavey, Colm Mackin has just launched the brand in 235 US outlets of Sephora, the cosmetics retail giant. It is a major milestone for Mackin, a Chartered Accountant from Co. Down, and Reavey, a top hairstylist from Armagh, who launched the brand together in 2019. They partnered with scientists at Stanford University to develop a range of patented cold-processed haircare products designed to resolve scalp-related issues ranging from product build-up to thinning hair. Since then, Mackin and Reavey have employed a successful e-commerce strategy that has seen Act+Acre grow from strength to strength, netting the venture US$12 million in private investment. “That first spark of an idea came from Helen’s experience working at Paris Fashion Week with all these models who were going from show to show,” Mackin explains.  “They had nothing to remove scalp build-up and their hair wasn’t performing. We saw this gap in the market for a range of products that could address these issues and promote scalp health as the basis for healthy hair.” At the time, Mackin had transferred from PwC in Dublin to work on the international tax team at the firm’s New York office. His decision to leave a secure role in practice for the unfamiliar world of entrepreneurship was bolstered by his pure belief in the Act+Acre concept. “What I had been doing in practice gave me a really good grounding for what we’ve gone on to achieve with Act+Acre, but there are different chapters to the story,” he says. “We spent six months researching our products and the cold-processed process behind them. Then, you must get the product/market fit right, build your team and raise the money you need. “I think that’s where I’ve really seen the benefits of my qualification coming through. America is a place where you have access to investors you wouldn’t necessarily find in smaller markets and being Irish helps because we’re naturally good storytellers and we are naturally passionate.  “That helps to get the conversation started, but being a Chartered Accountant also means I have a very good understanding of profit and loss on a balance sheet. I can speak with confidence to investors; it’s just innate. I can answer their questions. You’re speaking to them on their level and that helps hugely when you’re out there raising money to build your own business.” US market appeal Mackin is one of over 700 members of Chartered Accountants Ireland currently living and working in the US.  More than one-in-three are in the 24-44 age bracket, demonstrating the market’s ongoing appeal to, and demand for, talented Chartered Accountants from Ireland building their careers.  While concentrated in cities such as New York, Boston, Chicago, San Francisco and LA, their footprint can be found right across the country, from Washington State to Florida and from Texas to Michigan.  Eighty-two percent of Institute members in the US work in business. The second largest cohort (10%) work in practice.   Una Troy, SS&C Technologies One of the 82 percent of Institute members in the US working in business is Una Troy. Troy is a Managing Director with SS&C Technologies, a provider of services and software to the financial services and healthcare industries with some 20,000 clients and offices around the world. Based in New Jersey, Troy qualified as a Chartered Accountant in Dublin and had already worked in high-level positions in the funds industry in the UK and Australia by the time she found herself en route to the US in 2005. “I was working with BISYS Fund Services in Dublin in 2005 when the company started hiring people to support its growing hedge fund business in the US and I decided to make the move across to New Jersey,” she says. Almost immediately, Troy found her qualification as a Chartered Accountant beneficial to her career progression in the States. “At the time, BISYS had acquired the hedge fund administration arm of an accountancy practice and I was able to help that business integrate into BISYS,” she says. “My accountancy background gave the local leadership team confidence in me and the group I was leading and, when BISYS was sold to Citi, I became Global Head of Operations for Citi’s hedge fund business.” Troy was subsequently appointed Managing Director, SS&C GlobeOp, following SS&C Technologies’ acquisition of Citi’s Alternative Investor Services Business. “I have found the US very welcoming as a place to live and work. There are a lot of commonalities culturally between Ireland and the US; both share a very strong work ethic. There are great career opportunities here and your efforts are rewarded.” Troy’s advice to Chartered Accountants who have relocated to the US more recently is to make full use of the professional network facilitated on-the-ground by Chartered Accountants Ireland. “You’ll start to form a network of colleagues within your work role, but it’s also important to broaden your contacts outside that,” she says. “Attend events hosted by Chartered Accountants Ireland and other organisations relevant to your work. Once you start to attend these events, you automatically start to broaden your network.” The Chartered Accountancy qualification is relatively well-recognised in the US and associated with high professional standards, Troy says, but certain roles may require applicants to hold a Certified Public Accountant (CPA) designation.  “For many Irish Chartered Accountants, the qualification itself will suffice but where a CPA designation is required, an accelerated path has been facilitated by the American Institute of Certified Public Accountants (AICPA) and the National Association of the State Boards of Accountancy (NASBA) through a Mutual Recognition Agreement (MRA) with Chartered Accountants Ireland,” she says. About the MRA Chartered Accountants Ireland first signed its MRA with the AICPA and NASBA in 2004 and the agreement has since been renewed several times.  “Irish Chartered Accountants can access the US designation and gain practice rights in the US,” explains Ian Browne, Director of Education, Chartered Accountants Ireland. “This is of particular relevance to those who wish to work in practice in the US and is increasingly required by US firms.” To successfully complete the process, Chartered Accountants are required to pass the International Qualification Exam (IQEX) operated by NASBA. This can be done in Ireland before moving to the US. “Additionally, as the US CPA qualification includes audit rights, you should ideally have obtained the Irish Audit Qualification before you leave should you plan to work in audit,” Browne says. Ken L. Bishop, President and CEO of NASBA, says the MRA gives Irish Chartered Accountants a relatively easy route to securing the necessary certification to work in the US. “Irish Chartered Accountants are typically highly valued by the US profession and many have taken advantage of the MRA,” Bishop says. “I believe that the MRA and the flexibility and mobility of practice privileges that can be accomplished is hugely important. We live in an increasingly global economy, and the business and economic nexus between the US and Ireland continues to increase.” Alan T. Ennis, former Revlon CEO For Alan T. Ennis, who has lived and worked in the US since 1999, his qualification as a Chartered Accountant provided the crucial foundation on which he has been able to build a high-flying career in business. Ennis studied commerce at University College Dublin and qualified in 1991 with Arthur Andersen, where he continued to work as a manager for a few years before moving to the UK to join Ingersoll Rand in Manchester. It wasn’t until he negotiated a transfer to the US multinational’s New Jersey office in 1999, however, that his career really began to take off. “I moved through various different financial roles from internal audit to financial planning and investor relations there,” he says. In 2004, as he was considering a potential move to North Dakota to take up a position as CFO of Ingersoll Rand’s Bobcat division, Ennis was headhunted for a very different role. “I was offered the position of head of internal audit at Revlon. I was in my early thirties and my choice was between Bobcat in Fargo, North Dakota, and this other role with a very different and much smaller company that would put me in New York.  “Revlon had a lot of debt at the time. It was a high-risk move, but I thought, ‘you know what, I’m going to go for it’.” It was a risk that would pay off for Ennis who quickly climbed the ladder at Revlon. “Being a Chartered Accountant put me in a very good place to understand the financial operations of any corporation and that really stood me in good stead at Revlon,” he says.  “I could understand financial statements, I understood the importance of profitability and cash and how investments work.  “What happened next was really a combination of readiness and serendipity. Within two-and-half years, I had gone from Head of Internal Audit to Corporate Controller to President of International and then Chief Financial Officer.” As CFO, Ennis again found his training as a Chartered Accountant invaluable. “The Board of Directors could see that I knew how the business worked; how it operated.” After two-and-a-half years as Revlon’s CFO, Ennis was appointed to the top role of Chief Executive of Revlon for five years. “I had a great run and a superb team of people behind me and when I left that role in 2014, I got a great package and I wasn’t under pressure anymore really to prove myself. I had choices,” he says. In the years since, Ennis has “dabbled in private equity and joined a couple of boards, both profit and not-for-profit.”  “In everything I’ve done here in the US, my qualification continues to be the most valuable jewel in my chest of knowledge,” he says. “My advice to Chartered Accountants moving from Ireland to the States now is to make sure you start to connect with other Chartered Accountants over here straight away – and there are lots of us in New York, Boston, San Francisco and other places. That’s a valuable network. “The other piece of advice I would have is that it’s okay to put yourself out there – in fact, it’s a good idea. Americans tend to be confident in how they present themselves professionally. They are proud of what they have done and they’re confident in their success and in abilities.  “They’re not afraid to talk about it. Irish people, myself included at times, tend to downplay our achievements and abilities. In the US, people won’t necessarily understand that so it’s not a bad idea to learn to advocate for yourself, your skills and talents.” Significant contribution to New York business community Irish Chartered Accountants make a significant contribution to the New York business community, writes Helena Nolan, Consul General of Ireland in New York. Its active members are a testament to the wide reach of Irish and Irish American accounting professionals in the broader New York business and finance sectors. It was a pleasure to host Chartered Accountants Ireland again for another networking event at the Consulate in New York during St. Patrick’s week in 2023 and an honour to have Irish Minister for Education, Norma Foley TD, present to address the gathering of members and partner organisations. Networking events like these are important for showcasing members’ contribution, for raising awareness of the increasing opportunities available now for businesses in Ireland and to help underpin the vibrant professional relationships between professional organisations and individuals in the United States and Ireland. The Consulate team is always pleased to support and reinforce these strategic linkages between our two countries and our two economies, where we see an increasingly mutual relationship, in terms of trade and investment, and great potential for the future. Chartered Accountants play important role in winning FDI for Ireland    Ireland’s investment relationship with the US is strong and enduring with about half of all IDA Ireland clients headquartered in the US, writes Brian Conroy, Executive Vice President and Director, North America, IDA Ireland. These US companies employ more than 180,000 people in Ireland across a range of sectors such as technology, life sciences, financial services and engineering. US investments in Ireland are by no means gained effortlessly. With over 30,000 members, Chartered Accountants Ireland plays a very important role in the winning of FDI for Ireland. The Institute’s members work in senior positions in practice and industry both in Ireland and in the US and provide the financial leadership and talent crucial to Ireland’s success. A key reason our country is an attractive place for US companies to do business is because people here in government, industry and academia work hard to make it that way. The activities of US multinational companies supported by IDA Ireland make a crucial contribution to our FDI success. US members: key decision-makers driving NI inward investment Alongside our wider diaspora network, professional membership bodies like Chartered Accountants Ireland play a significant role in bringing people together, writes Andrea Haughian, Executive Vice President and Head of Americas with Invest Northern Ireland.  Organisations like Chartered Accountants Ireland afford agencies such as Invest Northern Ireland the opportunity to engage with members across the US, many of whom are, or can facilitate access to, key decision-makers responsible for investment decisions. We deeply value the relationships facilitated by Chartered Accountants Ireland. For more than 20 years, Invest Northern Ireland has supported US companies to successfully establish centres of excellence in Northern Ireland.  Northern Ireland’s global reputation as a trusted business partner with a thriving entrepreneurial ecosystem, talented workforce and deep expertise in research and innovation, has long been a magnet for significant foreign direct investment from the US. Companies such as Seagate, Citi, Aflac, and Microsoft have joined more than 230 US-owned businesses operating across the region and employing over 30,000 people in sectors as diverse as technology, advanced manufacturing and engineering, life and health sciences and financial and professional services.  Demonstrating the importance of the relationship between the US and Northern Ireland, US President Joe Biden has appointed Joe Kennedy III as the US Special Envoy to Northern Ireland for Economic Affairs with a focus on advancing economic development and investment opportunities. 

Feb 08, 2024
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OECD publishes first aggregated statistics on ICAP

The OECD has recently published the first aggregated statistics from the FTA (Forum on Tax Administration) ICAP (International Compliance Assurance Program); a multilateral risk assessment of an MNE group’s key international tax risks. The statistics cover all cases completed to October 2023 and look at the relationship between ICAP and other tools for aiding tax certainty, including APAs (Advanced Pricing Arrangements) and MAPs (Mutual Agreement Procedures).

Feb 06, 2024
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Commission facilitates delayed CBAM reports due to reporting difficulties

The European Commission is aware that businesses may have encountered difficulties submitting their quarterly CBAM (Carbon Border Adjustment Mechanism) reports. As a result, it is offering a new option for affected businesses to “request delayed submission”. No penalties will be imposed on declarants who have experienced difficulties.

Feb 06, 2024
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Miscellaneous updates, 6 February 2024

HMRC has published updated guidance on full expensing to clarify that corporate partnerships are able to claim, subject to the expenditure qualifying, and the National Audit Office has published its annual reports on the administration of Scottish and Welsh income tax. Various guidance documents on the creative sector reliefs have been updated (see below) and we update you on the removal of the functionality to copy existing VAT clients across to the Agent Services Account (“ASA”) which was previously covered in September and December 2023. The latest HMRC organisation structure is available on GOV.UK and the process for applying for probate in England and Wales has changed. HMRC has also sent its latest News and Information Bulletin.  Updated guidance on creative sector reliefs  HMRC has published updated guidance as follows:-  Claiming Film Tax Relief for Corporation Tax;  Claiming Animation Tax Relief for Corporation Tax;  Claiming High-end Television Tax Relief for Corporation Tax;  Claiming Orchestra Tax Relief for Corporation Tax;  Claiming Theatre Tax Relief for Corporation Tax;  Claiming Video Games Tax Relief for Corporation Tax;  Claiming Children’s Television Tax Relief for Corporation Tax;  Claiming Museums and Galleries Exhibition Tax Relief for Corporation Tax;  Creative industry tax reliefs for Corporation Tax;  Claiming Video Games Expenditure Credits for Corporation Tax; and  Claim Audio-Visual Expenditure Credits for Corporation Tax.  Removal of functionality to copy existing VAT clients across to the Agent Services Account – update  HMRC has provided an update on this issue which confirms that the functionality will be removed from 16 February 2024. A series of questions and answers which we received from HMRC which provides more information is set out below. HMRC has also provided additional information in an email.  “What is happening?  HMRC is removing ‘VAT for Agents’ from the Online Agent Authorisation Service (OAA).  From 16 February 2024, agents who wish to be authorised to represent their clients for VAT must do so in the Agent Services Account (ASA). This process is known as a ‘digital handshake’.  On the same day, HMRC will remove the ability to copy across ‘VAT for agents’ authorisation codes from OAA to ASA.   How does this affect agents?  If agents already use the Agent Services Account for all VAT authorisations, they will see no change.  If agents use ‘VAT for Agents’ in OAA they must stop doing so as soon as possible. From 16 February, the service will be removed from OAA.   This means that agents will no longer be able to use the ‘VAT for Agents’ service in OAA to seek authorisation to represent clients or copy across relationships to their Agent Service Account.  Any ‘VAT for Agents’ authorisation codes generated in the Online Agent Authorisation service before 16 February must be used before 18 March 2024.   How will this affect an agent’s clients?  If an agent has already used OAA to get authorisation to represent a client for VAT, they will see no change.   For new VAT authorisations completed on the Agent Services Account, an agent’s clients must use the web link agents send to them to complete a digital handshake. Clients must have a Government Gateway ID to do this.  Agent’s clients must complete their part of the digital handshake within 21 days of the agent receiving the link. After 21 days, the link will expire, and you will need to begin the process again to generate a new link.  HMRC will not send any links or codes directly to an agent’s clients when an agent seeks authorisation to represent them.  Guidance to support agent’s clients through the digital handshake is available on GOV.UK.  Why is this happening?  HMRC has a number of online services available to agents, many of which are now nearing the end of their lifespan.  To provide a better service to agents, HMRC is starting to move all the functions from these legacy services into a single point of access: the Agent Services Account. By doing so, HMRC aims to make using online services simpler and more consistent across all areas of work.  The Agent Services Account offers agents the ability to transact for VAT clients and to get authorised to represent them. This also removes the need to map across details to ASA using authorisation codes generated in OAA.”  Change to probate in England and Wales  Both HMRC and the HM Courts and Tribunal Service (“HMCTS”) have updated the process for applying for probate in England and Wales. As a result, form IHT400 has been updated.   The change means that personal representatives applying for probate in England and Wales no longer need to complete form IHT421 (probate summary). Instead, when HMRC receives and processes the IHT400, a letter will issue with a unique code and estate value details which should then be used when applying for probate through the HMCTS online portal.  The process for applying for probate remains the same in Northern Ireland and Scotland.  

Feb 06, 2024
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Webchat for agents is continuing and new process for chasing repayments

Last week, HMRC confirmed that it is continuing to offer webchat services for the Agent Dedicated Line (“ADL”) beyond 31‌‌‌ ‌‌January 2024 for both Self-Assessment (“SA”) and Pay as You Earn (“PAYE”). Effectively this appears to permanently change how HMRC handles some agent queries and follows on from recent restrictions introduced to the types of queries dealt with by HMRC on both the ADL and its SA helpline. More information is available in an email sent last week by HMRC. If members have questions which have not yet been addressed or experience any problems with these further changes, please get in touch.    The email confirms that agents will be able to access webchat via HMRC’s digital assistant without the need to transfer to a HMRC representative. Agents with “complex or urgent SA queries” can still speak to an adviser on the ADL, selecting option 1 from the menu.   The PAYE webchat service will focus on repayment queries and can be accessed through the PAYE digital assistant. Agents with PAYE coding queries or complex PAYE queries can once again call the ADL, selecting option 2 from the menu. 

Feb 06, 2024
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Tax UK
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2022-23 self-assessment filing deadline feedback request

The Institute would like members who were involved in the recent 2022/23 Self-Assessment filing deadline to get in touch with their feedback. We’d like to specifically hear about your experiences in making contact with HMRC, particularly in light of the recent restrictions in the Agent Dedicated Line and Self-Assessment helpline.  

Feb 06, 2024
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Tax UK
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Finance Bill update

Finance Bill 2023-24 continues its passage through the parliamentary process with report stage having taken place yesterday, Monday 5 February 2024. This will be followed by the Bill’s third reading in the House of Commons after which the Bill will proceed to the House of Lords. Last week the House of Lords Finance Bill Sub-Committee published its report into the Bill after thanking those who contributed to its inquiry into the Bill’s draft clauses. The Institute’s submission to the inquiry, which can be viewed on the Tax Representations page of our website, focused on the impact of merging the SME and large company R&D tax relief schemes and restrictions to the geographical scope of agricultural property relief from April 2024.  Last week the Government published details of amendments and new clauses ahead of report stage. These were accompanied by an Explanatory Note and Tax Information and Impact Note, where applicable, and are summarised as follows:-  New Clause 5 — Electricity generator levy, new investment exemption;  Amendments 7 to 8 to Schedule 1 — R&D intensity ratio and preventing double counting of amounts in total relevant expenditure;  Amendment 1 to Schedule 1 — R&D: avoidance of double-claiming and gaps in entitlement during transition;  Amendments 3 to 5 to Schedule 6 — imposing information requirements for creative sector relief to provide for consequences of non-compliance short of the total invalidity of the claim. 

Feb 06, 2024
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Tax UK
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This week’s EU exit corner, 6 February 2024

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Office Borders bulletins are also available. HMRC has also asked us to advise that the UK intends to open the Import One Stop Shop Scheme for businesses established in Northern Ireland for registration from 1 March 2024. Full guidance is due to be published soon. And finally, Saturday 3 February 2024 saw the return of the Northern Ireland Assembly after a two-year absence. Deal with DUP sees return of Northern Ireland Assembly  Last week the DUP and UK Government reached a deal which culminated on Saturday in the return of the Northern Ireland assembly. After the deal was announced earlier in the week, the UK Government published the accompanying Command Paper and associated documents, including legislation, which sets out more detail. The agreement and corresponding legislation were then debated in Parliament.  Essentially, the Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024 will amend the UK Internal Market Act 2020 in order to provide protection in law against exit procedures on goods moving from Northern Ireland to Great Britain. The regulations amend the Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020 to ensure that unfettered access benefits Northern Ireland traders only, not businesses which may divert goods to Northern Ireland to obtain the same benefit.   The Institute expects UK Government officials to provide more information in due course on what this specifically means for traders and will advise accordingly in Chartered Accountants Tax News in future.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  CDS Declaration Completion Instructions for Imports;  Appendix 23 Imports: Declaration Category Data Sets;  Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Receive goods into and remove goods from an excise warehouse (Excise Notice 197);  Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text;  Simplified Procedures Exclusions List of Procedure and Additional Procedure Codes for exports  CDS Declaration Completion Instructions for Exports;  Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes;  Appendix 24: Declaration Category Data Set; and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

Feb 06, 2024
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Financial Reporting
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FRC thematic review addresses the quality of reporting by large private companies

The Financial Reporting Council has released a thematic review entitled “Reporting by the UK’s largest private companies”. The thematic review seeks to develop the understanding of the quality of reporting by some of the UK’s largest private companies. The thematic review is a useful document for preparers of financial statements as it highlights areas of good quality reporting, which companies are encouraged to consider in preparing their annual reports, as well as omissions and areas for improvement identified during their research.

Feb 02, 2024
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Technical Roundup 2 February

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has published some useful reports covering large private companies in the UK as well as a report to support companies applying the UK Corporate Governance Code 2024, which launched last month. EFRAG and IESBA have launched public consultations on sustainability standards and the European Securities and Markets Authority has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA). Read more on these and other developments that may be of interest to members below. Auditing The FRC has issued an update to the Ethical Standard for Auditors. The standard will become effective on 15 December 2024. The FRC has issued a report which highlights some of the key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.    Financial Reporting The Irish Auditing & Accounting Supervisory Authority (IAASA) has published a summary of the outcomes of its 2023 financial statement examinations. The European Financial Reporting Advisory Group (EFRAG) has published a Feedback Statement on its response to the International Accounting Standards Board (IASB’s) request for information on the Post-Implementation Review of IFRS 15. The Feedback Statement summarises constituent's feedback, including responses to EFRAG’s draft comment letter and explains how the feedback received was considered by EFRAG in reaching the positions reflected in their final comment letter. The IASB has issued its January 2024 update, as well as a joint update with the International Sustainability Standards Board (ISSB). Podcasts covering both of these updates have also been released by the IASB and IASB/ISSB. The IFRS Interpretations Committee has released a podcast which provides an update on its recent activities, including details of two recent discussions relating to climate-related commitments and disclosure of revenue and expenses for reporting segments. The Financial Reporting Council (FRC) has published a thematic review entitled “Reporting by the UK’s largest private companies”. This report provides details of the quality of reporting in these companies, including areas where the standard could be improved. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments with comments requested by 29 April 2024. Anti – money laundering Would you like to know more about trust and company service providers (TCSPs)? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published. Sustainability EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024. It is intended that the listed SME standards will be effective from 1 January 2026 (with a 2 year opt-out) while the voluntary non-listed SME standards are intended to assist SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner. The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April. The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year. The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability. The European Environment Agency (EEA) have issued their 2024 update briefing of  ‘The costs to health and the environment from industrial air pollution in Europe’ which presents the latest assessment of the trends in externalities of industrial air pollution from over 10,000 facilities in Europe, from 2012 to 2021. These facilities report data on pollutant releases and transfers to the European Industrial Emissions Portal. The European Central Bank (ECB) has set out its focus areas for 2024 and 2025 which will guide its activities on climate change. The ECB have also set out their planned measures to address the focus areas. The European Parliament has adopted a directive which seeks to protect consumers from greenwashing and misleading marketing practices relating to environmental claims. Other news The 2018 Corporate Governance Code (the Code) was updated in January 2024 following a consultation which concentrated on a limited number of changes. The 2024 Code will apply to financial years beginning on or after 1 January 2025. The FRC has also published guidance to support companies in applying the Code. The Charity Commission of Northern Ireland has announced 31 January 2024 as the first mandatory filing deadline for 1,983 charities registered prior to May 2019. There is also a further 279 charities, registered after May 2019, which have the end of January deadline.  President of the European Commission Ursula von der Leyen has launched the Strategic Dialogue on the Future of Agriculture, a new forum mandated to shape a shared vision for the future of the EU's farming and food system. The European Commission proposes to revise the European Works Councils (EWCs) Directive to further improve social dialogue in the EU. Meaningful information and consultation of employees in key company decisions can help anticipate and manage changes like addressing labour shortages or introducing new technologies. Accountancy Europe has published a factsheet on the Carbon Border Adjustment Mechanism, which is now in enforced in the EU. The factsheet provides an overview of its main provisions. Our last edition of Roundup brought readers some information about the UK’s Economic Crime and Corporate Transparency Act which received royal assent on 26 October 2023. We included a link to an Institute information guide outlining some of the changes which may be of interest to members. In this week’s edition we report that the first changes to UK company law are expected on 4 March Companies House writes that it is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on that date. Click here for a summary of what changes are expected and how you can sign up for e mail newsletters from Companies House. A new study published by Skillnet Ireland and IDA Ireland has highlighted the need to upskill non-IT employees with key digital and data skills as this has become a requirement for all businesses in order to ensure our companies have a strong talent pipeline capable of adapting to the changing demands of digitalisation. Spring 2024 Legislative Programme The Irish Government recently published its legislative programme for Spring 2024. The link to the press release and the contents of the programme were included in our last edition and below are some of the items in draft legislation which might be relevant to members. An interesting one is the Access to Cash Bill. This Bill is listed for priority drafting. Its aim is to preserve access to cash. The Bill will also look at the resilience of the cash system and the manner in which cash travels around the system in Ireland. This involves two main elements – the regulation of ATM operators and the regulation of Cash in Transit companies. Since the publication of the legislative programme the Government has published the general scheme of the Access to Cash Bill and you can find more details of the general scheme here. Since the Autumn legislative programme in October 2023 the Digital Services Bill and the Charities (Amendment) Bill were initiated and are working their way through the legislative process. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is still listed as heads in preparation and is on the priority drafting section. The Co-operative Societies Bill and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 are still in preparation. Heads are in preparation for a National Cyber Security Bill and work is underway on an EU Data Bill which is to give effect to the EU Data Act. This is an EU regulation, but the Department of Enterprise, Trade and Employment has been advised that primary legislation is needed to enact it. 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.  

Feb 02, 2024
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Press release
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Accountancy profession contributed €19.8 billion to Irish economy, and increase of 53% since 2017 new report reveals

30 January 2024 – The Irish accountancy profession - comprising the accountancy sector, as well as accountants working across the wider economy - made a €19.8 billion contribution to the Irish economy in 2022, a new report published today by Oxford Economics for the Consultative Committee of Accountancy Bodies (CCAB), has revealed. The report further found that the profession supported over 83,000 jobs in Ireland and generated €1.8 billion in tax revenues in 2022. The profession’s contribution to the Irish economy has increased by 53% since this report was last compiled in 2017.  The profession in the UK and Ireland made a combined €114 billion contribution to the UK and Irish economies in 2022, supporting almost 1 million jobs, and generating €13.7 billion in tax revenues.  Expenditure on external accounting services by businesses in Ireland reached €3.4 billion, and almost £30 billion (£29.3 billion) in the UK in 2022. In both markets, the report estimated that the IT sector was the largest purchaser of accounting services in that year. The same year, the UK also exported £4 billion in accounting services, increasing its share of total UK service exports since 2016 by 0.3% percentage points, despite the changed trading landscape post-Brexit. CCAB said the findings highlight the key role the profession has played supporting businesses over the past five years, helping them to navigate the impacts of the Covid-19 pandemic, Brexit and geo-political crises like the war in Ukraine, as well as the transition to a green economy and new technology.  Julia Penny, CCAB Chair, said  “The significant contributions highlighted in this report underline the value of the accountancy profession to the prosperity of the UK and Ireland.  Accountants are playing a key role in driving economic growth: helping millions of businesses to navigate global challenges and opportunities, as well as leading schemes to boost social mobility and access to the profession.  “It’s not surprising to see that contributions have grown during the past five years given the impact of the pandemic and cost of doing business crisis. Demand for our knowledge and skills remains strong, in part thanks to our expanding roles in dealing with a range of non-financial information. I expect accountants to retain a central role as the profession evolves to further help businesses adapt to the climate emergency and technological advances, issues on which our future economic success and stability depend.” Barry Doyle, Deputy President, Chartered Accountants Ireland said “The figures published today illustrate just how fundamental the accountancy profession is to Ireland’s economic prosperity, something that can be too easy to overlook. It is very encouraging to see both the continued strong growth in demand for the services of the profession, and the extraordinary growth in the scale of the economic contribution to the Irish economy, up 53% since 2017.  “Behind the headline figures are over 83,000 individuals employed by the accountancy profession in Ireland, driving and servicing FDI and Irish business of all sizes and in every single sector of the economy. Accountants play a role in almost every aspect of our economy and society.” Stephen Noonan, Head of ACCA Ireland said “This report highlights the crucial role that the accountancy profession plays in creating a dynamic economy, providing the skillset that supports inward investment, the growth of exports and thriving businesses that create employment across the country. “As the Irish economy evolves and develops in the months and years ahead, with the growth of the renewable and digital economies, the profession will play a key role in supporting business and organisations adapt and grow to a changing environment. To support that, it is incumbent on both the private and public sector to work in partnership to ensure that we retain and recruit the skillset required which will support long term prosperity.”  The report assesses both the economic and wider social impact of the profession to the UK and Ireland, with quantitative analysis supplemented by case studies which provide a snapshot of the positive contributions that accountants are making in the areas of diversity and inclusion; skills; and sustainability.   CCAB is an umbrella organisation for the UK and Ireland’s leading accountancy bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.  Membership of CCAB bodies has grown by 14% since 2017, and these bodies reported more than half a million students registered globally during 2022. Read the full report to discover the breadth of the accountancy profession’s impact and CCAB’s commitment to driving sustainable growth among the organisations, economies, and communities it serves.  ENDS 

Jan 31, 2024
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Anti-money Laundering
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Trust or company service providers (TCSPs)

Would you like to know more about TCSPs? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published .   This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

Jan 30, 2024
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Audit
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FRC Ethical Standard for Auditors effective 15 December 2024

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Jan 29, 2024
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Tax
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2022/23 self-assessment deadline final push

Many of you will be aware that the 2022/23 online self-assessment (“SA”) filing deadline is later this week on Wednesday 31 January 2024 which is also the deadline for paying any balancing payment of income tax and Class 4 National Insurance for 2022/23 and the first payment on account for 2023/24. HMRC has issued a reminder that taxpayers can enter into a payment plan to arrange time to pay their outstanding tax bill (broadly, this can be used where the taxpayer owes less than £30,000). The guidance on self-assessment for postmasters affected by the Horizon scandal has also been updated. Reminder: we’d still like to hear from you about the impact of HMRC’s helpline restrictions on filing 2022/23 SA returns by the deadline. Please get in touch when you get the opportunity to do so as we will be accepting feedback into the early weeks of February 2024. 

Jan 29, 2024
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Tax
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Miscellaneous updates, 29 January 2024

The minutes from the 124th Joint Vat Consultative Committee meeting, which Chartered Accountants Ireland is represented on, have been published. HMRC has introduced a new form for appealing corporation tax penalties and we update you below on using the agent reference number when a payment is to go to a nominee. HMRC has published initial information on how employers and employees can claim back national insurance contributions previously paid as a result of a recent Upper Tribunal decision (see below) and a consultation has been opened on the draft IR35 (off-payroll working rules) legislation changes which aims to enable taxes already paid by individuals to be deducted when recovering the tax due under PAYE. In Scotland, the Scottish Government has published a draft Statutory Instrument to amend the Land and Buildings Transaction Tax. See also a message from HMRC about agent authorisation duplication of letters.  The agent reference number and nominations  We remind you that from 26 February 2024, if a payment is to be made to a nominee, the agent reference number (“ARN”) must be used on all P87 employment expenses and marriage allowance transfer claim forms submitted to HMRC. The ARN is a unique identifier for each legal entity registered with HMRC as an agent and previously was used by HMRC mainly for internal purposes. However, going forward the ARN will be used more frequently when agents contact or are dealing with HMRC.   Claims for overpaid National Insurance Contributions (“NICs”)  The decision in Laing O’Rourke Services Ltd and Willmott Dixon Holdings Ltd vs HMRC case, which HMRC is not appealing, opens up claims for refunds of employee and employer NICs by way of disregarding part of the car allowance from earnings for NICs purposes if an employee has undertaken or claimed business mileage at less than the maximum 45p a mile.   In two recent Bulletins (November 2023 Agent Update and December 2023 Employer Bulletin) HMRC has provided initial information ahead of full guidance on how employees and employers can backdate claims for refunds.  For a claim to be successful all the existing rules still apply. The disregard should be based on “quantified and evidenced business miles driven”. As a result, claims will not be successful if evidence cannot be provided. No disregard is available on payments made that are within the definition of relevant motoring expenditure if salary is sacrificed from an individual’s pay.   Changes to Scotland’s land and buildings transactions tax (“LBTT”)  The Scottish Government recently published a draft Statutory Instrument which will amend the LBTT.   The changes will introduce a new exemption from LBTT for local authorities and there are various amendments to the additional dwelling supplement (“ADS”), which adds an extra 6 percent supplement to the LBTT paid in Scotland.   The legislation will take effect from 1 April 2024 once approved by the Scottish Parliament.  Duplication of agent authorisation letter  HMRC has advised us that some newly registered agents may receive a copy of their authorisation letter at least twice, if not more. HMRC apologises for this confusion and advises that that there is no need to contact them if duplicate authorisation letters are received.    

Jan 29, 2024
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