Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

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

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

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

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

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

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

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

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

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

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

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

Revenue has updated its guidance across several areas of Stamp Duty to reflect the recent amendments passed in Finance (No. 2) Act 2023. Stamp Duties Consolidation Act 1999 – Notes for Guidance 2023 Special provisions relating to uncertificated securities Exemptions and reliefs from stamp duty Transfers of land to young-trained farmers – section 81AA Farm consolidation relief – section 81C Levies Schedule 1: Stamp duties on instruments

The 2 percent reduction from 12 percent to 10 percent in Class 1 employee’s national insurance contributions (“NICs”), which was announced in the 2023 Autumn Statement, took effect from Friday 6 January 2024. HMRC has updated rates and allowances: National Insurance contributions to reflect this.  The legislation to enact this and the other NICs changes announced is contained in the National Insurance Contributions (Reduction in Rates) Act 2023 which received Royal Assent on 13 December 2023.   This Act includes the legislation to:   reduce the employee class 1 NIC rate from 12 percent to 10 percent from 6 January 2024;  set the blended rate for directors as 11.5 percent for 2023/24;  reduce the Class 4 NIC rate for the self-employed from 9 percent to 8 percent from 6 April 2024; and  remove class 2 NIC for the self-employed with profits above the lower profits threshold from 6 April 2024.   A further change to the treatment of VAT on sanitary products also took effect from 1 January 2024. 

As always, over the Christmas period, several Tax and Duty Manuals (TDMs) have been updated. Please take note of any areas of particular interest. Key Employee Engagement Programme (KEEP) (updated to reflect Finance Act 2022 amendments following EU Commission approval) Road Haulier Drives (Employees) – Subsistence rates – TDM 05-02-10 (updated for Enhanced Reporting Requirements (ERR)) Salary sacrifice arrangements – TDM 05-01-01k Taxation of Non-Irish Resident Landlords – TDM 45-01-04 The Provision of Free or Subsidised Accommodation – TDM 05-01-01c Special Assignee Relief Programme (SARP) – TDM 34-00-10 (including details of the new online portal for employer certification) Guidelines for Agents or Advisors acting on behalf of taxpayers – TDM 37-00-04b (including linking for ERR and SARP) VAT Notes for Guidance – ( updated to reflect Finance (No. 2) Act 2023) Registration and Filing Guidelines for DAC7 – TDM 33-03-05 Universal Social Charge – TDM 18D-00-01 (updated to reflect Finance (No. 2) Act 2023) Vacant Homes Tax – TDM 11B-01-01 (updated to reflect Finance (No. 2) Act 2023) Defective Concrete Products Levy – TDM 18E-00-01 (updated to reflect Finance (No. 2) Act 2023) Stamp Duty – Further levy on certain financial institutions – Part 9 (updated to reflect Finance (No. 2) Act 2023) Reporting Requirement for Payment Service Providers on Cross-Border Payments (related legislation effective from 1 January 2024) Recognised Clearing Systems – TDM 08-03-04 (updated to reflect Finance (No. 2) Act 2023) LPT – Meaning of a “residential property” – TDM 01-01 Mortgage Interest Tax Credit – TDM 15-01-11B VAT – Electronic Publications; VAT – Supply and installation of solar panels; VAT – Printing and printed matter; VAT – Flat-rate scheme for farmers; VAT – Sale of Live Animals by Auction (Mart) PAYE Regulation 16 – Arrears of pay being paid to an employee who has left an employment

As readers should be aware, the taxation of medical doctors participating in the General Medical Service (GMS) Scheme was high on the Institute’s agenda throughout 2023. In September of last year, we wrote to the Minister for Finance expressing our concerns about the proposal to assess GMS income on the treating doctor rather than as income of the practice, as we were unable to resolve the matter any further through the TALC process (as the matter required legislative amendment). Following our representations, the Minister introduced a Committee Stage amendment to the Finance (No.2) Act 2023 resulting in the introduction of section 1008A TCA 1997. The amendment provides that income received under a GMS contract by doctors in partnership can be treated as income of that partnership once the appropriate elections are made. Readers should note that employed doctors who are not partners in a partnership will taxed under self-assessment rules on GMS income from 1 January 2024. Revenue has now updated its guidance - General Medical Service (GMS) Scheme payments to medical practitioners – TDM 04-01-15 – setting out how medical partnerships can apply the new provision and the time-limits for making the necessary elections.

This week we bring you the most recent news and information bulletin from HMRC and the latest Agent Update 115 was published last month. Readers are reminded that from 1 January 2024, the new reporting rules for digital platforms commenced and HMRC recently launched a new voluntarily disclosure facility to enable taxpayers to pay any unpaid tax on crypto assets.  Agent Update 115  Agent Update: issue 115 is available. Get the latest guidance and information including:  how to help contractors steer clear of tax avoidance schemes;  changes to the Self-Assessment helpline and Agent Dedicated Line;  changes to the process for claiming payment protection insurance tax relief repayments;  preparing for changes for goods moving from the island of Ireland to Great Britain which commence from the end of January 2024; and  national insurance contributions rate changes in 2024.  New reporting rules for digital platforms  Readers are reminded that from 1 January 2024, UK digital platform operators are required to report details of their sellers to HMRC. As a result, HMRC has updated its guidance on selling online and paying taxes. The guidance explains if you regularly sell goods or services through an online marketplace, this activity could be treated as a ‘trade’ for UK tax purposes, and you may have to pay tax on your profits. However, if you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax. If you buy goods for resale or make goods with the intention of selling them for a profit, then you are likely to be trading and will have to pay tax on your profits.  However, if your total income from trading or providing services online was less than £1,000 (before deducting expenses) in any tax year, you are not required to inform HMRC nor pay any tax on the profits (this is due to the Trading and Miscellaneous Income Allowance).  Crypto asset disclosure facility  At the end of November 2023, HMRC launched a new voluntarily disclosure facility to enable taxpayers to pay any unpaid tax on crypto assets. The launch of this facility follows on from the joint statement earlier in November 2023 by the UK Government and 47 other countries, to implement new transparency and information sharing requirements in respect of crypto-asset platforms by 2027 via the Crypto-Asset Reporting Framework. The joint statement confirms the intention of signatories to implement that standard by 2027.   HMRC has now begun sending emails to some taxpayers which it believes has unpaid tax on crypto asset transactions.    

Following the recent Supreme Court decision in Karshan (Midlands) Ltd t/a Domino’s Pizza [2023] IESC 24 (“Karshan”) which ruled that delivery drivers should be recognised as employees, Revenue has updated its Code of Practice on Determining Employment Status (Employed or Self-Employed) – TDM 04-01-17. Several linked TDMs have also been updated and Revenue will be issuing separate guidelines addressing the implications of the judgment. Revenue will also be updating its guidance on the taxation of couriers in due course.

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. We also update you on the rules of origin for electric vehicles and batteries and the latest work of the House of Lords Windsor Framework Sub-Committee. HMRC has also sent an email reminder with useful preparation hints and tips for the first phase of its Border Target Operating Model which takes effect from 31 January 2024 for goods imported directly into Great Britain from Ireland.  UK and EU agreement on rules of origin for electric vehicles and batteries extended to  2026  The UK and EU have agreed to extend the Trade and Co-operation Agreement rules of origin for electric vehicles and batteries until 31 December 2026. This was confirmed by the release of a UK Press Notice and is confirmed in the Partnership Council decision.  House of Lords Windsor Framework Sub-Committee update  The House of Lords Windsor Framework Sub-Committee (formerly known as the House of Lords Protocol Sub-Committee) recently wrote to the Foreign Secretary asking for greater clarity on the regulatory divergence issues arising from the Windsor Framework, following consideration of evidence it received as part of the recent inquiry.  In November 2023, the Committee launched a short inquiry into regulatory divergence arising from EU and domestic legislation, in the context of the Windsor Framework and took evidence from academic, policy and legal experts, a range of business organisations, farming representatives and the government.  In its letter, the Committee draws attention to a number of key issues which were highlighted in the evidence it received, including:  The impact of regulatory divergence;  Potential opportunities of regulatory divergence;  Benefits of the Windsor Framework relating to regulatory divergence;   Potential risks relating to regulatory divergence; and  Mechanisms for managing regulatory divergence.  Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Bringing commercial goods into Great Britain in your baggage;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018;  Restricted and controlled goods for merchandise in baggage;  Notices made under the Customs (Export) (EU Exit) Regulations 2019;  Declare commercial goods you’re bringing into Great Britain in your accompanied baggage or a small vehicle; and  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS). 

The Minister for Finance, Michael McGrath TD issued a press release welcoming the implementation of the EU Minimum Taxation Directive (Pillar Two) into Irish law. The legislation will see Irish companies who are part of multinational enterprises with global turnover in excess of €750 million paying a minimum effective rate of taxation of 15 percent on their profits. While over 99 percent of companies in Ireland will be unaffected by the rules, the legislation represents the most significant update to tax law in recent years. Commenting on the new rules, Minister McGrath noted: “In October 2021, Ireland, along with almost 140 other jurisdictions, signed up to the OECD Two Pillar solution to address the tax challenges arising from the digitalisation of the economy. This has been described as a once-in-a-generation agreement and the pinnacle to the process of international tax reform that began over a decade ago. The rules become effective today in Ireland and in many other jurisdictions across the world. By implementing the global agreement on minimum effective corporate tax, Ireland demonstrates our continuing commitment to agreed, multi-lateral international tax reforms. The decision to join this global agreement was not taken lightly. Ultimately, it is our assessment that the positive effects will be greater than the challenges, as the agreement has the potential to bring much-needed stability to the international tax framework after the turbulence and uncertainty of recent years, safeguarding our future competitiveness by providing a sound and stable basis for inward investment into Ireland in the long-term. It is important to note that Revenue estimates that there may be approximately 1,600 multinational entity groups with a presence in Ireland that will come in scope of Pillar 2. The vast majority of businesses, those with revenues of less than €750 million per annum, will continue to pay corporation tax at the 12.5% rate. It is my firm belief that a key benefit of a more settled international tax policy environment will be an increased scope to focus on domestic tax policy in the enterprise sector, with several initiatives to improve aspects of the overall tax system announced in Budget 2024. These include an increase in the R&D tax credit from 25% to 30% which will incentivise businesses of all sizes to invest in their future productive capacity, as well enhancements to the Employment Investment Incentive, Start-up Capital Incentive and Start-Up Relief for Entrepreneurs schemes and a new lower rate of CGT for angel investors.”