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.”

Last year, the Exchequer recorded a surplus of €1.2 billion, down €3.8 billion from 2022. Although there was a growth in tax revenues, this was offset by increases in public expenditure as well as the transfer of €4 billion to the National Reserve Fund. Commenting on the figures, Minister for Finance Michael McGrath TD noted: “The end-year figures show an Exchequer surplus of €1.2 billion in 2023. Tax receipts came in largely as anticipated and reflect the underlying strength of our economy, especially the labour market. It must be acknowledged, however, that the budgetary surplus includes windfall corporation tax receipts which, if excluded, would result in an underlying deficit. In this regard, it is important to stress the more modest growth rate in this revenue stream over the past year as well as the inherent volatility in these receipts. Indications are that pandemic-era surge in exports in a small number of sectors – which drive corporate profitability in Ireland – are now unwinding; this would mean more modest growth in corporation tax receipts in the coming years. These developments underscore the importance of ensuring that permanent fiscal commitments are not made on the basis of transitory revenues. The establishment of the two new-long term savings vehicles (the Future Ireland Fund and the Infrastructure, Climate and Nature Fund) will allow us to prepare for future structural challenges while limiting our exposure to volatile windfall revenues. At the same time, Government continues to invest in public services and in boosting the productive capacity of our economy.” For more information, you can read December’s Fiscal Monitor.

Last week, Revenue published preliminary headline results for 2023 showing record-breaking total collections for tax and duties of €87.2 billion, as well as a further €26 billion on behalf of other government departments (including local property tax and PRSI). Income tax, corporation tax and VAT were the largest contributors to the tax take in 2023 at €32.9 million, €23.8 million and €20.3 million respectively, all higher than 2022 figures. The next highest contributor was excise at €5.6 million. Combatting non-compliance remains a key priority for Revenue, as well as confronting taxpayers seeking unfair advantages by means of various tax-avoidance schemes. In addition, administering the new Pillar Two legislation (ensuring certain multinational enterprises pay a minimum level of taxation) will be a priority. Businesses will also be required to settle warehoused debt by 1 May 2024. At the time of writing, debt warehoused under the Debt Warehousing Scheme stands at €1.4 billion. In their press release, Revenue noted: “The past four years have been a period of exceptional disruption in which we suspended our enforcement activity for a considerable period of time. This has had an impact on timeliness of payment and the levels of debt. At the end of 2019 the debt available for collection was €0.9 billion compared to €1.4 billion now. Our Debt Management System, which we developed in 2019, is now fully deployed in dealing with outstanding liabilities. Where taxpayers experience challenges in being timely compliant, we strongly encourage them to engage with us as soon as such difficulties start to emerge so that a mutually agreeable solution that takes account of their financial circumstances can be agreed. In the absence of meaningful and timely engagement with Revenue, Revenue will proceed with appropriate collection and enforcement action to recover the debt.”

Do boards truly understand the risks and opportunities AI presents? Ryan McCarthy explains why many are ill-prepared for this game-changing technology There can be no doubt that the era of artificial intelligence (AI) has arrived. Barely more than a year since ChatGPT landed with a bang, investment has poured into the sector. Google has launched its Gemini system and Elon Musk’s X has introduced Grok, an AI modelled on the Hitchhiker’s Guide to the Galaxy. Spurred by the proliferation of AI tools in the EU, the European Council and Parliament have reached provisional agreement on the world’s first comprehensive AI law. Given all this, you might expect that AI must surely be on the agenda at every board meeting. This is not quite the case, however. We’re not yet seeing AI discussed around boardroom tables in any meaningful way. When it is discussed, it is generally with very little depth. This needs to change. Every board member must take it upon themselves to understand the issues and implications of AI now and in the future – don’t leave it to someone else. Threat and opportunity On the occasions AI does come up at board meetings, the discussion invariably turns to the emerging threat or risks it may pose. What hasn’t been discussed yet are the business opportunities it may also present. AI tends to be viewed as an external factor that could affect an organisation rather than an operational item to be examined from the inside. Thematically, we are seeing continued focus on AI as a broad, external and conceptual threat. Board room discussion remains very much at the surface level. Risk: rules vs principles Boards have become focused on risk primarily from a corporate governance, rather than a practical, point of view. The risk section in a typical annual report is getting thicker and thicker – not without reason, but it can contain a lot of ‘cookie-cutter’ risks: cyber-attacks, supply chain challenges and climate change, for example – and now, AI. There has been a steady drift over time towards rules rather than principles. People ask whether the risk is written down and documented, as opposed to asking, ‘What’s really going to sink the ship?’ You rarely find a strong example of a business identifying a risk that is clearly explained alongside an outline of how it has been contained or overcome. Advising the experts So, if boardroom discussions about AI are still only skin-deep, what will move it onto the business agenda? You have to look at modern governance structure, which involves companies drawing on specialists in areas including audit, risk, nomination/remuneration matters and, more recently, sustainability. Some companies, particularly in the US, have created the dedicated role of Chief AI Officer. There may be a gap for a technology or ‘emerging tech’ committee at board level. There are already requirements regarding the correct number of financial experts needed on a board. Should every board now also have technology experts? Diversity behind the boardroom door This leads to a broader point: given the close correlation between youth and emerging technology, does the typical top-level boardroom have the right demographic to deal with AI? We have come a long way in terms of boardroom diversity, but there is another layer to diversity that is exposed here: do we have young people?  Do boards have people from different educational and skill backgrounds, particularly when it comes to technology and innovation? I would say that many don’t. Outside the boardroom, a company’s executive – including the HR function – should also be getting to grips with AI. If something like the AI opportunity is not coming up through the organisation to the board level, then you’ve probably got to ask whether you have an executive that is tuned in. In the same way you need day-to-day skills to fully embrace environmental, social and governance requirements, do you have the right skills for AI? The workforce question What I haven’t yet discussed with any client is the opportunity AI could potentially present for the workforce. Part of the reason is that we haven’t yet fully figured out use cases. It looks as if these use cases will become more apparent in 2024 and beyond. One Dublin hospital has begun using AI to assess radiology scans, for example, while the National Weather Service has an academic collaboration in place to explore the use of AI and data science in weather and climate services.  The medical profession is producing more and more diagnostic information yet there is a worldwide shortage of people to review it. Could AI provide a possible solution? Companies with large customer service operations have been through the cycle of using onshore customer service teams to moving some elements offshore and then introducing bots or some combination of all three. Could AI provide a better option? Curiosity is key I expect AI to feature more prominently in boardroom discussions in the future. The best board members – and by extension, the best boards – have an innate curiosity. Right now, there are two things in the world we should be curious about now: one is geopolitics, and the other is technology – more specifically, AI. If you sit on a board and you’re not curious about these two things and their potential impact on your business, you may be in trouble. Ryan McCarthy is Audit Partner and Board Leadership Centre Lead at KPMG

As finance leaders grapple with the Corporate Sustainability Reporting Directive and its complex demands, IT collaboration will become increasingly important, writes David Codd Finance Directors and Financial Controllers are working hard to understand the implications of the Corporate Sustainability Reporting Directive (CSRD) and to put the necessary reporting in place in their businesses. But their colleagues in IT also have a vital part to play. This is an unusual challenge for IT, and it’s important to consider how to collaborate effectively. What are the pitfalls to avoid? And how can you build a strong partnership to deliver your sustainability reporting programme? The CSRD, finance teams and IT The CSRD will expand sustainability reporting which will become mandatory for publicly listed companies (plcs) in 2025 for 2024 performance and a year later for all large companies. Finance teams are now performing double materiality assessments and assessing what new measures and information will be required. However, the underlying data itself must be identified and sourced, its reliability established, and processes put in place to extract and interpret the data and report accurately on an ongoing basis. This has the potential to become very onerous. IT support will be critical to an effective and efficient process, i.e. high-quality reporting with minimum manual intervention. An unusual IT challenge This is an unusual challenge for IT departments for various reasons: The scope is exceptionally broad The activities that impact the environment are conducted across an organisation’s operations and – for Scope 3 emissions – through multiple steps in the supply chain. So, the systems and datasets your IT colleagues will have to work with are unusually disparate and will even fall outside the boundaries of the technology estate they control. The standards are still being rolled out IT project managers like clear definitions at the start of a project. However, the first sustainability reporting standards have only recently been released, and the taxonomy for digital reporting is a work in progress. Plus, the “limited assurance” concept will give rise to different interpretations of the quality of the audit trail needed. This is a big project without a conventional monetary business case Chief Information Officers usually have many more attractive-sounding initiatives in the pipeline than they can deliver at once. So, they work with their finance and functional colleagues to prioritise, and resources are allocated based on financial payback or loss avoidance. Your CSRD-driven reporting programme does not neatly fit these criteria.      How to manage risks There are several risks when working with an IT team on sustainability reporting. Confused responsibilities You usually work with a financial systems team, but IT business partners for supply chain or manufacturing operations will already have been partnering with sustainability managers to develop scorecards. Muddled ownership and communications can result in lost time. In a large business, reporting is a full-blown programme consisting of several streams. It needs experienced management to coordinate it and manage the relationship with you. I would also recommend that accountability for IT delivery sits with the head of financial systems, and the IT project manager should sit on the team. This keeps the ownership and lines of communication as simple as possible. Your IT team can’t resource the project Since the 2000s, IT resource has shifted from enterprise systems to ecommerce, data analytics and security. Enterprise resource planning systems teams have been staffed to make incremental changes on the basis that resources can be contracted in as needed. However, consulting firms are now experiencing heavy demand for their sustainability reporting expertise as deadlines approach. The work should be scoped out with IT as early as possible. Most of the scope can be clarified now. Finance and IT should accept that adjustments will be needed, but it’s wise to use resources now and make progress. In this case, perfect is the enemy of good. Motivation The tech community loves stimulating work – through either buying into a goal or working with innovative technology (and preferably both). You need enthusiastic professionals volunteering for this project, but you’re competing with exciting fields such as artificial intelligence and the possibility of going to other employers. The people you need have lots of options. Be aware of the nuanced differences between finance and tech culture and accept that you’re competing for talent. Reach out to the IT community in your business, explain that CSRD prevents greenwashing and that high-quality reporting is a noble undertaking that will help your business to show the world what you’re doing. True partnership is key Recognise the significant challenge presented for both IT and finance by the imperative to develop a quality, efficient sustainability reporting process at pace. A true partnership between finance and IT is the key to successful reporting. David Codd is a Non Executive Director and Strategy and Transformation Consultant

Kevin Empey explores the three phases of flexible work adoption, from foundational steps to future-focused strategies As we enter a new year, there is still a noticeable gap between desired employer policy and employee practice and expectations as to how flexible work arrangements should operate. This gap narrowed in 2023, with both employers and employees taking steps to make flexible working fit-for-purpose more standard practice, but the evolution of more flexible work models is far from over. The employment market in 2024 looks set to be split between two types of employers. First, there will be the employers who continue to be open about how and where work is done with an eye to emerging influences such as artificial intelligence (AI) and the four-day work week. Second, there will be those who revert to more ‘fixed’, pre-COVID work models and mindsets with minor concessions to demands for some form of hybrid working offering.  While other business and employment priorities take over the agenda in 2024, it doesn’t mean flexible work design is done and there is further change ahead.  In our experience, there are three distinct phases in the transition to flexible work models and how organisations are adapting to new and emerging realities. Phase 1: Base camp Some organisations (not many) are still in the early stages of settling on their flexible working vision. They are continuing to lay the groundwork for establishing new work models that cater to evolving work patterns and demands as well as organisational priorities. This phase involves embracing the basics, getting the framework up and running and also considering their flexible working strategy for frontline roles and work that cannot be done remotely. Phase 2: Integration Most businesses find themselves in this second phase. They have spent 12 to 24 months adapting to their declared approaches (the ‘what’) and are now in a position to refine and integrate their flexible models (the ‘how’) with the demands of their business. This involves addressing specific challenges encountered in recent months, bridging gaps between employer policies and employee preferences, and adapting legacy processes and definitions of productivity. The opportunity presented by this phase is to ensure that work redesign will be an ongoing expectation and reality and is just not about getting hybrid right. The risk of this phase is that employers allow poor habits and practices to set in and that the expectation and need for ongoing reform and improvement is not made clear.   Employees are also considering whether their employer’s flexible working models align with what they want. Continued flexibility and ongoing dialogue will be critical to keeping people on board.  Phase 3: Beyond hybrid Organisations that have reached this stage have moved beyond the hybrid conversation. They have integrated hybrid working into a broader flexible work model. Their experiences and approaches provide valuable insights into how this transition can best be managed. A critical theme in this phase is the shift in narrative, where the focus is not solely on the hybrid debate but on achieving work flexibility and adaptability more broadly across the organisation. This will include open work design conversations involving AI solutions, four-day work week options and other influences on how and where work can be done better and faster. This encompasses reforming processes, enhancing employee experiences, reconfiguring workplaces and aligning change with ongoing cultural and transformational agendas. In this phase, the emphasis also shifts to enabling teams to drive changes and improvements collaboratively rather than imposing them from the top down. Furthermore, continuing support for managers to lead ongoing change becomes paramount in ensuring sustained success. It is also quite common to see some organisations shift from one phase to another and back again, as they re-set strategies and solutions with employees and their people leaders. The future agenda  As we move forward into 2024 and beyond, the perspective is shifting beyond the mere transition to hybrid working models. Building on recent hybrid working experiences and fostering a culture of adaptability and agility will be transformative for both employers and employees, narrowing the gap between what employers offer and employees want. The journey towards a flexible and adaptive workplace is ongoing and will continue at pace, with new chapters and milestones on the horizon. Those organisations that prioritise learning from recent experiences and adapting to change as an ongoing habit will be best-equipped to succeed and minimise the employer/employee gap. Kevin Empey is the Managing Director of WorkMatters

As the new year commences, so too do the new obligations for employers under the Enhanced Reporting Requirements. As previously advised, all employers are now required to make returns of certain non-taxable benefits and expenses in real-time. Revenue has advised that “a service for compliance approach” will be taken to 30 June 2024. During this period, Revenue will not be operating compliance programmes in relation to ERR and so we understand that Revenue will not seek to apply any penalties for non-compliance during this time.