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.   

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. 

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).

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.

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.  

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. 

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.  

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. 

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.

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.

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.  

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 

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.  

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.  

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. 

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.    

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is available. We remind you that the first phase of the UK’s Border Target Operating Model for imports into Great Britain commences later this week from 31 January 2024. And finally, the conclusions of last year’s 2023 Civil Society Forum (“CSF”) between the UK and the EU have been published (Chartered Accountants Ireland participates in the UK Domestic Advisory Group which feeds into the annual UK and CSF meeting). UK Border Target Operating Model (“BTOM”) first phase commences from 31 January 2024  In just two days’ time, the UK’s BTOM commences when new border requirements come into effect when importing certain commodities, including some food, into Great Britain. This marks the start of the introduction of the UK’s new BTOM. Two reminder emails have been sent to us by the UK Government (one from HMRC and one sent on behalf of the Department for the Environment, Food and Rural Affairs) setting out the changes in more detail. You can also read more about the first phase of the BTOM in an article in Accountancy Ireland’s Briefly.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Bringing commercial goods into Great Britain in your baggage; Taking commercial goods out of Great Britain in your baggage; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Declare commercial goods you’re taking out of Great Britain in your accompanied baggage or small vehicles; Report payments and view your allowance for non-customs state aid and customs duty waiver claims; What you can do if things are seized by HMRC or Border Force; The Taxation (Cross-border Trade) (Miscellaneous Amendments) Regulations 2024 and The Ship’s Report, Importation and Exportation by Sea (Amendment) Regulations 2024; Customs declaration completion requirements for Great Britain; Search the register of customs agents and fast parcel operators; Customs Declaration Service communication pack; Appendix 21: Import Declaration Category Data Sets; and Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS).

This month’s tidbits cover guidance on how to confirm the identity of HMRC representatives and a range of corporation tax return forms have been updated.   

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

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