Report stage and third reading of Finance Bill 2024-25 took place last week. In advance, a number of government amendments were tabled and updated explanatory notes published. The Bill’s passage through the House of Commons has now been completed and all Government amendments (and no others) were passed. As the Bill has now moved to the House of Lords, it is considered to be ‘substantively enacted’ for accounting purposes (specifically UK GAAP and IFRS) as Finance Bills cannot be amended by the House of Lords and will only be debated. As this is a formality, the Bill is also now considered to be in its final form. The Government amendments were as follows: Minor changes to the scope of the new residence based inheritance tax regime and to the new temporary repatriation facility including that this will be available on offshore income gains in trusts, Additional relief for visual effects expenditure, and Clarifications to the conditions to be satisfied for payments into decommissioning funds to be treated as decommissioning expenditure for ring fence tax purposes. In other legislative news, the House of Lords agreed amendments to the National Insurance Contributions (Secondary Class 1 Contributions) Bill at report stage on 25 February 2025. This Bill will implement the changes to employer national insurance contributions announced in the 2024 Autumn Budget. The Bill has now had third reading in the House of Lords and will return to the House of Commons.  

In this week’s miscellaneous updates, the fuel advisory rates applicable from 1 March 2025 are available and HMRC has launched a technical consultation on the impact of the reforms to the inheritance tax (IHT) reliefs, agricultural property relief (APR) and business property relief (BPR) in the context of trusts. The official rate of interest from 6 April 2025 has been set and the latest HMRC performance data is available. HMRC has appeared at the Public Accounts Committee (PAC) and it has been announced that the free joint filing service provided by HMRC and Companies House will close from April 2026. The Institute for Fiscal Studies (IFS) has published an article looking ahead to the Spring Statement later this month and the consultation outcome for ‘Tackling non-compliance in the umbrella company market’ has been published. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. HMRC technical consultation on reforms to APR and BPR At Autumn Budget 2024 the Government announced controversial changes to APR and BPR for IHT from 6 April 2026. The Institute has previously highlighted to the Government its concerns in relation to these changes particularly in the context of Northern Ireland family owned businesses and farms. These changes will also impact on the IHT payable by trusts comprising property that qualifies for APR and/or BPR where the value of that property exceeds £1 million. The Government has now launched a technical consultation on the application of this £1 million allowance for property settled into trust qualifying for 100 percent APR/BPR. Note however that this consultation is very limited in scope and focuses solely on the technical implications for trusts containing agricultural or business assets. As previously advised by HMRC, the wider policy change announced in the Autumn 2024 Budget is not being consulted on. As a technical consultation, this is running for a shorter period of time and closes on 23 April 2025. Responses can be submitted by using the online form or by sending responses to aprbpr.consult@hmrc.gov.uk. Official rate of interest The Taxes (Interest Rate) (Amendment) Regulations 2025 sets the official rate of interest for calculating the benefit in kind on a beneficial loan at 3.75 percent from 6 April 2025. HMRC has also updated the tables of interest rates for beneficial loan arrangements to reflect the new rate with details of historic rates also available. Latest HMRC performance data The latest HMRC performance data has been published: HMRC quarterly performance updates, HMRC monthly performance reports, HMRC quarterly performance update: October to December 2024, and HMRC monthly performance report December 2024. Members are encouraged to provide feedback on HMRC service levels by email to: tax@charteredaccountants.ie. HMRC appears before PAC HMRC appeared again recently at a PAC hearing where the Committee heard about the impact of fiscal drag amongst a range of other issues. At the hearing, HMRC’s current CEO Sir Jim Harra said ‘The freezing of the tax thresholds mean that more people come into the tax system so there are more people for us to deal with, it also means that more people go into higher rates and our experience is that people’s tax affairs become more complex. This year for example, we’ve seen a very significantly greater number of people whom we have to adjust their PAYE code because of bank and building society interest, and that has certainly driven more customer contact.’ The hearing also discussed why HMRC does not publish data on the cost of tax compliance for individuals, the high level of senior staff in HMRC, and the increasing cost of VAT and corporation tax administration. The hearing is part of the PAC’s inquiry ‘The Cost of the Tax System’ which was opened in response to the National Audit Office’s report on the drivers of cost in the tax system. A full transcript of this appearance will be available on the parliament website in due course. Free company filing service to close from April 2026 In an announcement last week, it was confirmed that from April 2026 the Government’s free online accounts and company tax return service will close meaning small businesses that primarily use this service to file their accounts and company tax returns at the same time with Companies House and HMRC will need to use commercial software for filings on or after 1 April 2026. The announcement comes as a surprise and was not consulted on. From 1 April 2026, companies will only be able to file their annual accounts with Companies House using third party software, web services, or paper filing. However, it will only be possible to use software to file company tax returns with HMRC from 1 April 2026. IFS looks ahead to the Spring Statement In an article looking ahead at the Spring Statement which will take place later this month on Wednesday 26 March, the IFS asks ‘what are the Chancellor’s options if – and it is very much an if – the upcoming Spring Forecast puts her on track to miss her fiscal target?’ The IFS notes that economic developments since the autumn mean that it is possible, but not guaranteed, that the Chancellor will now be missing one or both of the fiscal rules under the Office for Budget Responsibility’s updated forecasts and that this prospect is largely a result of her own earlier decisions. According to the IFS, the Chancellor has two options: ‘The first option would be to prioritise policy stability. The Chancellor could reiterate her commitment to fiscal sustainability and her fiscal rules, but break the letter of those rules – despite them only being legislated in January – and delay any corrective fiscal action to the full fiscal event in the autumn. This would recognise that twice-yearly fine-tuning of tax and spending plans brings costs, and that in an uncertain world there is no meaningful economic difference between a forecast for a small current budget surplus in 2029–30 and a forecast for a small current budget deficit in 2029–30. The second option would be to prioritise the fiscal rules. She could abandon her commitment to holding only one fiscal event per year (at the first time of asking), and announce tax rises or (even) tighter spending plans at the Spring Forecast to achieve a forecast for a current budget surplus in 2029–30. The Chancellor might worry that breaching the letter of her ‘non-negotiable’ rules could send an unwelcome signal and affect financial market participants’ perceptions of this government’s ability or willingness to take difficult fiscal decisions. Delaying decisions to the autumn could also make it harder to adjust public service spending plans (given that multi-year departmental settlements are to be agreed in June) and trigger months of speculation about possible tax rises in the Autumn Budget.’ If the Spring Statement contains tax changes, we will report on these in due course in Chartered Accountants Tax News. Tackling non-compliance in the umbrella company market: consultation outcome The Government has published the consultation outcome to ‘Tackling non-compliance in the umbrella company market’. As a result, the Employment Rights Bill will be amended to define ‘umbrella companies’ and provide for their regulation by the Employment Agency Standards Inspectorate and the new Fair Work Agency (when this body is established). It was also confirmed that, as announced at the Autumn 2024 Budget, the Government will bring forward legislation to move the responsibility to account for PAYE from umbrella companies that employ workers to recruitment agencies that supply their labour to an end client. This will take effect from April 2026 with consultation  expected on the draft legislation later this year

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, 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 Importing SPS controlled goods that interact with the ALVS, Check if a business holds Authorised Economic Operator status, List of customs training providers, and Using commodity codes and related additional codes in the Customs Declaration Service.

IAASA has published its 2024 quality assurance review reports in respect of seven firms that perform statutory audits of public-interest entities (PIEs) in Ireland. The reports summarise IAASA’s inspection of each firm’s internal system of quality management. The reports include any findings and recommendations made by IAASA to the firms regarding these systems. The reports also summarise the results arising from IAASA’s inspection of a sample of audits of public-interest entities performed by each firm, including the grades assigned to the audits inspected and any key recommendations made to the firm.

Technical Alert 02/2025 – Illustrative Management Representation Letter in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive This Technical Alert provides an illustrative example of a management representation letter that may be used by the assurance provider when conducting a limited assurance engagement required under the Corporate Sustainability Reporting Directive (“CSRD”) as transposed in Ireland into Part 28 of the Companies Act 2014. The International Standard on Assurance Engagements (Ireland) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information – Assurance of Sustainability Reporting in Ireland (ISAE (Ireland) 3000) as issued by the Irish Auditing and Accounting Supervisory Authority is the applicable assurance standard to be used for CSRD sustainability reporting in Ireland. ISAE (Ireland) 3000 paragraph 56-57 provides that: “56. The practitioner shall request from the appropriate party(ies) a written representation: That it has provided the practitioner with all information of which the appropriate party(ies) is aware that is relevant to the engagement. Confirming the measurement or evaluation of the underlying subject matter against the applicable criteria, including that all relevant matters are reflected in the subject matter information. 57. If, in addition to required representations, the practitioner determines that it is necessary to obtain one or more written representations to support other evidence relevant to the subject matter information, the practitioner shall request such other written representations.”   Click here  to access the TA.  Click ISAE (Ireland) 3000 to access the standard.

As US-EU trade tensions continue to escalate, now is the time for Irish businesses to prepare for any potential disruption by assessing their potential exposure and supply chain risks, writes John O’Loughlin On Wednesday, 26 February, during his first cabinet meeting, US President Donald Trump announced tariffs would be imposed on the European Union (EU), stating, “We have made a decision, and we’ll be announcing it very soon. It’ll be 25 percent.” Although no concrete implementation timeline has been disclosed, nor whether these rates will apply universally to all goods or only to certain industries, Trump indicated that levies would be applied “generally”, implying they would “be on cars and all other things”.  Digital services tax memo On 21 February, Trump signed a memorandum directing the US Trade Representative to renew investigations initiated during his first term and assess whether US companies are being adversely affected by countries levying Digital Service Taxes (DSTs). The findings of these reports may result in tariffs being imposed on these countries. Britain, France, Italy, Spain, Turkey, Austria and Canada have been specifically noted within the memo as having DSTs and being subject to this investigation. The administration will also review EU and British policies that may undermine free speech or foster censorship. The Trump administration will also examine EU and British policies that could undermine free speech or encourage censorship. Previous tariffs were suspended to facilitate negotiations for a global tax deal, which have since stalled. Irish and EU reactions Given the heightened risk of a trade war between the US and the EU that has now emerged, companies in Ireland have been increasingly vocal about the potential impact. Glanbia noted that the risk of tariff wars “could potentially impact the importation of key raw materials and/or negatively impact on the group’s international sales channels”. Paul Merriman, founder of AskPaul and CEO of Fairstone Ireland, highlighted that “those who trade in pharmaceuticals and chemicals will see the most notable change as Trump has stated he wants to push manufacturing back onto US soil”. Key actions for businesses US import tariffs on EU goods now seem to be an imminent reality. Key actions businesses in Ireland can and should take include: Assessing your customs data to understand your exposure; Determining the customs origin of goods shipped to the US to see if they are considered to be EU-originating; and Gaining oversight of your end-to-end supply chain, including having the right data, to assess the impact on material sourcing and exposure for tariffs on component parts. Preparing for the future Keeping up to date with the policies and tariff measures implemented by Trump is crucial to evaluating the potential impact of these tariffs and risks to your supply chain. While the exact details of the US President’s EU tariffs are yet to be clarified, understanding your product portfolio and the implications these measures may have on your imports is a vital first step.  John O'Loughlin is Partner for Global Trade & Customs at PwC Ireland You can read John’s earlier article on the global threat of US tariffs at www.accountancyireland.ie

With nearly one-third of UK adults feeling anxious about money, Tom Barrett explores practical ways to manage finances without letting stress take control Financial stress is an increasing reality for many in the UK, with studies reporting a strong link between conditions like depression and anxiety with those experiencing money struggles. According to research from The Mental Health Foundation, close to one-third of UK adults (31%) feel anxious due to their financial status, while more than a quarter (27%) feel stressed.  Understanding financial anxiety   For many people, financial anxiety can manifest into habits like constantly checking their bank balance. A recent report by Lloyd’s Banking Group found that just 55 percent of Brits feel comfortable checking their bank balance, while one in four (23%) worry about their finances at least once a week.   While checking your bank balance isn’t necessarily a bad habit, if you find yourself becoming obsessive or feeling significant anxiety, it may indicate a larger issue and could be worth considering reducing the frequency with which you check your balance.   With 17 million Brits experiencing daily financial anxiety, it’s evident that financial well-being needs urgent attention. Frequently arising from historical money concerns, overspending or the fear of insufficient resources, cultivating a healthy relationship with your personal finances is essential.   So, how can you stay financially aware without triggering stress or worry?   While it is essential to manage your finances, habits such as frequently checking your bank account can lead to stress rather than control. Worrying about money involves not only the figures, but also the emotional weight connected to financial security. Fortunately, there are ways to maintain awareness without allowing it to negatively impact your mental and physical well-being. Schedule regular check-ins Rather than engaging in regular impulsive checks, allocate specific times (weekly or monthly) to conduct a thorough review of your finances. Think of it as a financial check-in and set a recurring appointment with yourself. During each ‘check-in’, review transactions, look for unnecessary expenses (e.g. subscriptions or direct debits you might have forgotten to cancel) and track your progress. Make necessary adjustments and stick to them. Review your direct debits   Don’t become complacent about your direct debits. Dedicate some time to shopping around for better deals on your regular outgoings once or twice a year. This includes things like insurance (e.g. car, home, life), phone contracts, internet providers and energy bills. Comparison sites can make this process easier, helping you save money and improve your bank balance over time. Build a financial safety net  This doesn’t generally need to be said to accountants, but it’s worth repeating for anyone: financial emergency funds are important. If you can do it, setting up a small emergency fund can provide reassurance and reduce stress related to unexpected bills or expenses. Knowing you have a safety net can make checking your finances less daunting and easier to handle.   Use budgeting tools   Even accountants need help sometimes. Budgeting tools are a great way to manage your money without the anxiety of constantly checking your accounts. Tools that help you budget can give you a clear overview of your spending patterns and allow you to stay proactive. Many apps also offer features like spending summaries categorised by type (e.g. food, travel, entertainment) and goal tracking all in one place. These provide valuable insights to keep you on track, which can then reduce your anxiety. Seek support when needed  If worrying about your finances is part of a bigger problem distressing you, it’s important to reach out for support. Whether it’s accessing advice from a charity like caba or seeking out financial resources, there is support out there to help you build healthier money habits, reduce your anxiety about your finances and provide tailored advice realistic to your situation. Tom Barrett is Financial Wellbeing Expert at caba

Dan Byrne explores the turbulent future of ESG investing as political headwinds, shifting investor priorities and global divisions challenge what was once seen as the surefire future of finance Things are heating up around environmental, social and governance (ESG) investing—a movement that, just a few short years ago, was supposed to be the future. For years, it seemed unstoppable, but now ESG is being tested. This is the year of backlash, motivated mainly by the change of government in the US. To put it simply, the Trump administration sees ESG less as the way forward and more as a punching bag. In response, some corporate giants in the US are disowning ESG or shutting up about it. Others are wondering what to do next.  It’s the pressing question for company boards: how do they proceed from here, given the considerable hostility towards a movement that continues to attract significant investment and, in many countries, solid legal support? The mayhem surrounding ESG Some reports suggest that investor support for ESG proposals may be waning.  According to a report from ShareAction, just 1.4 percent of ESG-related shareholder resolutions won majority approval in 2024. While this covers the US, it also includes the UK and EU, territories in which ESG was supposed to have strong backing.  These resolutions are not legally binding, but they can—and often do—pressure boards into shifting their goalposts.  One of the main drivers of the success of these ESG-related shareholder resolutions is the support of any asset managers who might have a stake in individual companies. The ShareAction report also found that the most prominent managers in the world, including BlackRock, Vanguard, State Street, and Fidelity, backed just seven percent of these resolutions.  It also found significant geographical discrepancies among asset managers in general, noting that those in Europe backed 81 percent of resolutions and those in the US backed just 25 percent. These numbers hammer home the idea that ESG lives two separate lives at this point, which isn’t easy to navigate for cross-border businesses. Future outlook With Donald Trump back in the White House and Republicans solidifying their influence on US business, ESG is going to have an even tougher time there. The US administration has already rolled back climate-related rules and made it harder for investors to push companies on sustainability. Trump’s Securities and Exchange Commission leadership is shifting power from shareholders to corporate boards, which means fewer ESG resolutions making it to a vote in the first place. Globally, the picture is different but equally puzzling. Europe still sees ESG as essential, with regulations such as the Corporate Sustainability Reporting Directive (CSRD) making sustainability reporting mandatory. Many Asian markets are also ramping up ESG requirements, particularly in finance.  If ESG now operates in two divided worlds, we can expect the trends in one to spill over into the other all the time, creating more headaches for anyone caught in the middle. Advice for corporate leaders The smartest thing corporate leaders can do right now is to read the room—focus on your stakeholders and what they want. If your investors, customers and regulators care about ESG, it should be a priority. In this scenario, you will need the right strategy and trained talent sitting on your board who will be able to offer the proper guidance when called upon.   However, there is no longer a universal ESG playbook—what works in Frankfurt might be poison on Wall Street. This means businesses need to take a more strategic, tailored approach. For companies operating in multiple markets, this balancing act is even trickier. It’s not just about compliance—it’s about messaging. How do you talk about sustainability in a way that resonates with European investors but doesn’t alienate US stakeholders? How do you maintain ESG commitments without getting caught in the political crossfire? This is where adaptability is key. Training executives and board members on regional ESG dynamics, monitoring regulatory shifts and crafting flexible ESG strategies will be essential. Shifting tides The ESG landscape has diverged, and businesses can no longer afford to take a one-size-fits-all approach in this kind of mayhem. While the movement still holds weight in many parts of the world, the political and financial headwinds emanating the US are impossible to ignore. Corporate leaders need to be pragmatic—ESG isn’t dead, but it is no longer a guaranteed win. The companies that succeed will be the ones that can navigate these shifting tides without losing sight of what matters most to their own stakeholders. Dan Byrne is Content Manager with The Corporate Governance Institute

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the European Commission has released its eagerly anticipated ‘Omnibus’ proposal. Meanwhile, the International Accounting Standards Board (IASB) has published amendments to its 'IFRS for SMEs' standard. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has issued updated “Guidance on the Going Concern Basis of Accounting and Related Reporting”. The guidance brings together various company law requirements, listing rules, codes and standards and serves as a practical guide to assist companies prepare high-quality going concern disclosures. The International Accounting Standards Board (IASB) has issued its February 2025 update and podcast. The IASB has issued a major update to the IFRS for SMEs Accounting Standard. The standard is either required or permitted in 85 jurisdictions. Included in the updated standard (amongst other things) is a revised model for revenue recognition. The update is effective for annual periods beginning on or after 1 January 2027. The UK Endorsement board is seeking comments and views in relation to the IFRS Foundation’s Proposed Amendments to the Due Process Handbook. Comments are welcomed by 11 March 2025. EFRAG (the European Financial Reporting Advisory Group) is also seeking comments to contribute towards its response to the same project, with comments welcomed by 24 March 2025. EFRAG has published a summary report on its recent event “Financial Reporting: What’s Ahead for 2025”. EFRAG has published its Feedback Statement on the IASB's Exposure Draft on Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. It has also issued a Feedback Statement on the IASB ED Climate-related and Other Uncertainties in the Financial Statements - Proposed illustrative examples. EFRAG are still accepting comments on its Draft Endorsement Advice for IFRS 18 - Presentation and Disclosure in Financial Statements. Accountancy Europe and IFAC, in a joint statement, have outlined ways in which they will work together to support their members and strengthen the profession. Sustainability Omnibus proposals In its release of the eagerly awaited “Omnibus” proposals on 26 February, the European Commission (EC) has proposed some significant changes to its Sustainability Reporting Regulatory framework. These proposals, if approved, will simplify the sustainability reporting rules that many Irish companies have been preparing for in recent years. The proposals will also remove many companies from a mandatory sustainability reporting regime. The proposals will now enter trialogue negotiations between the European Parliament and the European Council where amendments may be made prior to its introduction. Chartered Accountants Ireland will continue to engage with the relevant bodies, and we will update members on any significant developments. To read more about the proposals, see our recent news item. The Omnibus proposals have attracted a lot of attention since they have been published. Readers may be interested in reading the following. Accountancy Europe’s March 2025 Sustainability Update addresses some of the key changes proposed. The Global Reporting Initiative (GRI) has labelled the decision “a backward step for EU sustainability” and has questioned how this will achieve a climate-neutral EU which is one of the key goals set out in the European Green Deal. The European Funds and Asset Management Association have published this infographic outlining some of the proposals expected from the European Commission in 2025. An IFRS Sustainability Stakeholder event took place on 25 February – Disclosure about transition plans.  The recordings of the various sessions are available to view online. The International Sustainability Standards Board (ISSB) has published the recording of its seventh 'Perspectives on sustainability disclosure' webinar Using the GHG Protocol for climate-related disclosures. Episode 8 ‘The future of integrated reporting and integrated thinking’ will be held on March 20th. The ISSB has issued its February 2025 update and podcast. The GRI has published a series of five case studies of companies reflecting on their journey towards compliance with GRI 101: Biodiversity 2024. Accountancy Europe recently held an online discussion with SMEs and discussed some of their sustainability reporting issues. Legislation 2025 Readers are reminded that new UK company size thresholds for micro, small and medium companies will come into force from 6 April 2025. The Professional Accountancy team has added a new UK company thresholds page to the Technical Hub where you can read more about the changes and access a chart showing the pre and post 6 April 2025 thresholds . Other news The Competition and Consumer Protection Commission (CCPC) has published its Annual Mergers and Acquisitions Report 2024, providing details of the mergers and acquisitions notified to, and reviewed by the CCPC, throughout the year. The professional services sector (including legal, accountancy, consultancy, engineering, and veterinary) was the most prominent sector, with 13 merger notifications received. In February 2025 the Central Bank of Ireland (CBI ) published its 2025 Regulatory & Supervisory Outlook report. CBI states that the report sets out the Central Bank’s perspective on the key trends and risks that are shaping the financial sector operating landscape, and its consequent regulatory and supervisory priorities for the next two years. Artificial Intelligence is spotlighted again this year with the Central Bank expecting to be designated as a “Market Surveillance Authority” by the Government as part of a multi-lateral system of AI supervision in Ireland and the EU. Another spotlight is Geopolitical Risks: and the report outlines a Framework for Navigating Heightened Uncertainty. Other topics which may be of interest include the piece on credit unions including Credit Union Sector Key Risks Overview. The Global Reporting Initiative (GRI) has launched a consultation on a revised version of ‘GRI 404: Training and Education 2016' and a new standard titled ‘Working Parents and Caregivers’. The consultation is open until 29 April 2025. Enterprise Ireland recently launched its new five-year strategy, Delivering for Ireland, Leading Globally (2025-2029) which sets out targets to increase jobs and to increase exports, focussing on strengthening skills and talent, funding ambition and embracing sustainability. In episode 12 of its podcast series “The Fast Future”, IFAC look at ways in which SMEs can embrace technology. The Charities Commission for Northern Ireland has released a short video outlining what it means to be a charity trustee. Charities representative body, the Wheel, is encouraging its members to support an initiative being undertaken by the Government’s Anti-Money Laundering Steering Committee, which is aimed at helping to assess the AML risk to the non-profit sector.  Artificial Intelligence (AI) - updates The Irish AI Advisory Council was established in January 2024 to provide independent expert advice to government on artificial intelligence policy. In February 2025 it released its latest report  “Ireland’s AI Advisory Council Recommendations --Helping to Shape Ireland’s AI Future”. One of the areas the report covers is AI Literacy and education. AI literacy is something which readers may be aware Article 4 of the AI Act requires providers and deployers of AI systems to ensure a sufficient level of. The report also calls for government guidelines for use of generative AI and a system to access AI tools. 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.  

Chartered Accountants Ireland has identified a common thread of discussion at our recent events and among our members more broadly, that of “burnout in the profession”.  Reflecting on the 2025 International Women’s Day theme #AccelerateAction and motivated by the desire to better understand and address this issue, the Institute team consulted with well-being leaders and members at Chartered Accountants Ireland, who are deeply invested in the topic - Dee France, Thrive Wellbeing Manager, Dr. Caroline McGroary FCA, Lecturer in Accounting at Dublin City University and Institute Past President and former Chair and Partner with Grant Thornton Ireland, Sinead Donovan FCA.  What is burnout? What we learned is that there are common misunderstandings about the true meaning of burnout. While many consider burnout to be a state of physical exhaustion, it is in fact a multidimensional concept with three main components: exhaustion, cynicism and low professional efficacy, a definition now accepted by the World Health Organisation. It is also part of a complex psychological process, which is impacted by a range of factors, leading to a host of negative outcomes, including serious mental health and physical health issues, decreased job satisfaction and increased turnover intentions, among many more.   Challenging assumptions and seeking solutions We also learned that while much research labels burnout as a “female experience”, these findings must be challenged. The reality is that burnout can be experienced by any gender, at any stage of career, in any profession. Generalisations such as this claiming that we, as women, are more prone to burnout than other genders, may imply that we are less resilient and more prone to stress, resulting in a range of negative career outcomes.  Burnout has also emerged as something of great concern to Gen Z (those born in the mid-90s) and Millennials (those born in the early-1980s). In the Deloitte 2024 Gen Z and Millennial Survey, respondents outlined that work-life balance remained a top priority. That said, many feel they don’t achieve this balance due to long working hours, which is resulting in significant stress. In addition, the 2024 ICBE (Irish Centre for Business Excellence) Business Excellence Skillnet and UL Study found that future business leaders were reluctant to “step up” to leadership roles due to concerns over work-life balance.  In response to these studies, Immediate Past President of Chartered Accountants Ireland, Sinead Donovan, highlighted that burnout should not be an accepted culture in any profession. She further reiterated that as leaders in the accountancy profession, we have a duty to our current members, and the next generation, to show what a purposeful career looks like and how we can exist, and indeed thrive, in these roles without experiencing burnout. It should not be accepted as a side-effect of a successful career. To this end, there was collective agreement that while there is a lot of valuable work being done by wellbeing teams across professions to support members, given the prevalence of, and increased attention on, burnout in recent times, we need to learn more about it and the extent to which it affects members in our profession. We also need to learn how to prevent it from occurring in the first place so that it becomes more of a rarity, not just another stepping stone to be endured.  #AccelerateAction – Stronger together Therefore, as we celebrate International Women’s Day 2025, we encourage our many stakeholders in the accountancy profession, as well as colleagues in other professions, to #AccelerateAction against burnout and to support each other while doing so.   

To celebrate International Women's Day, we want to showcase some of our female authors. With expertise in a huge range of topics – from audit, to tax through to corporate governance and leadership – we're incredibly proud to have worked with these women to publish high-quality books and textbooks. Patricia Barker Patricia Barker is a Fellow of Chartered Accountants Ireland, having qualified in 1973, the 20th woman to qualify since the inception of the Institute in 1888. She served her articles with Stokes Bros & Pimin Dublin and worked in Peat, Marwick, Mitchell & Co. in Manchester. She then became a partner in an accounting practice in Manchester and worked in Manchester University as a principal lecturer. She was appointed lecturer in DCU in 1980 and progressed through senior lecturer, Associate Dean (Business School) and Vice-President (Academic) of DCU. She has completed an MPhil in Gender Studies at Trinity College. Her PhD developed a paradigm of disclosure of financial information to employees in organisations. Patricia has written The Minority Interest: Women Who Succeed in the Accountancy Profession. Veronica Canning Veronica Canning is an internationally acclaimed motivational speaker, executive mentor and consultant, with 30 years’ experience working at senior level across a wide range of organisations in all sectors and of all sizes, from SMEs to multinationals and the public sector. With her considerable experience, Veronica works with high potential individuals addressing their challenges, including developing an executive presence and building or repairing their personal brands. She also designs and runs group programmes, customised to the challenges facing organisations. Veronica has written Your Brand: Advance your Career by Building a Personal Brand. Dr Mary Collins Dr Mary E. Collins is a Chartered Psychologist who has worked in the leadership development/talent management field since 2003. Her current role with the RCSI Institute of Leadership involves working with senior leaders in the healthcare sector to develop their capabilities through a range of executive development and academic programmes. Prior to joining RCSI, she was Head of Talent and Learning for Deloitte Ireland. Mary is an Accredited Professional Executive Coach and Coach Assessor with the Association of Coaching, a committee member of the Coaching Psychology Division of the Psychological Society of Ireland and a council member of the Irish Institute of Training & Development (IITD). She also leads a successful business psychology practice.  Mary has written Recruiting Talented People. Margaret D'Arcy Margaret D’Arcy holds a BA in Accounting and Finance from DCU and is an Associate of Chartered Accountants Ireland. She has extensive experience in delivering courses for professional accounting examinations. Margaret has been lecturing for almost years and has taught both management and financial accounting for both third level and professional education courses. Previous to her lecturing and teaching career, Margaret held a number of roles in financial institutions in such areas as retail banking, treasury and international operations. Margaret has written An Introduction to Financial Accounting (2nd Edition). Gabrielle Dillon Gabrielle Dillon is an AITI Chartered Tax Adviser (CTA) and a Director of Dermot O’Brien & Associates. With over 18 years’ experience in VAT, she previously worked as a VAT Manager for BDO. Gabrielle has lectured in VAT for the Irish Tax Institute as well as other professional bodies. She is the regular author of VAT Cases & VAT News in the Irish Tax Review and is a member of its Editorial Board. Gabrielle has co-authored VAT on Property: Law and Practice (2nd Edition). Ethna Kennon Ethna Kennon, FCA, AITI is a Director in KPMG Ireland’s indirect tax group. Ethna has over 15 years’ experience specialising in VAT and providing indirect tax advisory and compliance services to a wide range of domestic and international businesses. She also lectures on VAT matters for Chartered Accountants Ireland and the Irish Tax Institute. Ethna has co-authored A Practical Guide to Value-added Tax. Penelope Kenny Penelope Kenny is a Fellow of Chartered Accountants Ireland, a former member of the Institute’s Council and also former Chairman of the Leinster Society of Chartered Accountants. With over 20 years’ accounting experience, she is principal at ArtsGovernance, which offers consulting on corporate governance specialising in the arts and cultural sectors. Penelope is a non-executive director, treasurer and head of the finance and audit committee of a large non-profit organisation with assets of over €500 million. She holds an MA degree from University College Dublin, for which her thesis was corporate governance. Penelope has written Corporate Governance for the Irish Arts Sector. Rachel Killeen Rachel Killeen is a marketing and communications consultant working with entrepreneurs and professional services firms to help them build business using integrated, strategic digital and traditional marketing plans. Rachel has worked with the RBS Group and also Danske Bank, focusing on marketing to corporate, treasury and SME clients. In 2007, she founded Killeen Communications Limited and now works with a range of clients from financial services and professional firms to FMCGs. Rachel has written Digital Marketing and Client Science: The Five Cs Marketing Plan for Professionals. Sheila Killian Sheila Killian is an associate professor of accountability at the Kemmy Business School, University of Limerick, where she teaches corporate sustainability and corporate finance, mainly at postgraduate level. She has also taught at universities in Finland and South Africa. Prior to joining academia, Sheila graduated in mathematics and professionally qualified in taxation and as a Chartered Accountant. She has worked in tax practice, aviation finance and educational software development. Sheila has published numerous peer-reviewed research papers on sustainability, accountability and the common good, with a focus on professional expertise, social justice, tax policy and responsible business school education.  Sheila has written Corporate Social Responsibility: A Guide, with Irish Experiences and Doing Good Business: How to Build Sustainable Value. Collette Kirwan Collette Kirwan FCA, BBS, PhD is a lecturer in accounting at Waterford Institute of Technology. She trained as a Chartered Accountant with PricewaterhouseCoopers where she subsequently worked as a manager in Audit Services. Collette first joined the School of Business at Waterford Institute of Technology in 2005. Between 2012 and 2016, Collette was a lecturer in accounting at University College Dublin where she lectured on the Master of Accounting and the Professional Diploma in Corporate Governance. Over her career, Collette has lectured at undergraduate, postgraduate and executive education levels on a range of subjects including auditing, financial reporting, financial management, corporate governance and business research methods. In 2013, Collette was awarded her PhD from University College Dublin. The study examines the role of non-executive directors on boards of private family firms. Collette’s research interests include corporate governance, boards of directors, governance of family firms, governance of not-for-profit organisations, financial reporting and auditing. During her academic career, Collette has presented at a number of international and national conferences and has published articles in Accounting, Auditing and Accountability Journal (AAAJ) and Accounting in Europe. She has also published articles on corporate governance in Accountancy Ireland. Collette has co-authored Cases in Corporate Governance and Business Ethics. Mariannunziata Liguori Mariannunziata Liguori is Senior Lecturer in Management Accounting and Director of the MSc Accounting and Finance at Queen’s Management School, Belfast, where she moved after a visiting period at the University of Alberta in Canada. She was awarded a PhD, investigating processes and organisational dynamics of accounting change in the public sector, by Bocconi University, Milan, where she has also previously worked. Mariannunziata is a member of the editorial board of the public-sector and not-for-profit journal Financial Accountability & Management. She has been the secretary of the Public Services and Charities Special Interest Group of the British Accounting and Finance Association since 2015. Mariannunziata has co-authored Charity Accounting and Reporting at a Time of Change. June Menton June Menton FCA holds a degree in Business and Legal Studies from UCD. She is a technician member of the Irish Taxation Institute. She completed her training in a medium-sized accountancy firm, O'Kelly and Co., before joining Deloitte where she worked as an auditor and management consultant. She has been Financial Controller of the Irish Sports Council since 2002. June has written Crack the Books: Accounting for Non-Accountants. Christine Nangle Christine Nangle B. Comm., ACA, Finance Manager of the Institute of Technology Tallaght where she is also an associate lecturer in the Department of Accountancy & Professional Studies. She is also director of a software development company. Christine has extensive practical and lecturing experience in auditing and assurance, and financial reporting. She qualified as a Chartered Accountant following her professional training with Deloitte and subsequently worked in industry, including eight years with Coca-Cola Hellenic Ireland, where she was Head of Internal Audit and latterly Commercial Finance Manager. Christine has written External Auditing and Assurance (4th Edition). Ros O'Shea Ros O’Shea, BComm, MAcc, FCA, AITI, Dip Corp Gov, is a highly experienced business leader with a career spanning almost 20 years working with the board and executive of two of Ireland’s largest and most-respected companies: CRH plc, where she was Head of Group Compliance & Ethics, and Smurfit Kappa Group plc. An Irish Chartered Accountant by profession, Ros is a partner in Acorn Governance Solutions, sits on the boards of the Food Safety Authority of Ireland and the Royal Victoria Eye & Ear Hospital, is Programme Director for the Diploma in Governance & Compliance at the Irish Management Institute and also runs programmes for the Institute of Directors on these topics. Ros has written Leading with Integrity: A Practical Guide to Business Ethics. Anne Marie Ward Anne Marie Ward is Professor of Accounting at Ulster University (Jordanstown). Her teaching specialities are managerial finance and financial accounting. She has taught both topics at undergraduate and at postgraduate levels, and she also lectured for Chartered Accountants Ireland for 18 years. Anne Marie has also published articles and research reports in professional and academic journals. Anne Marie has written Finance: Theory and Practice (4th Edition).

Ireland’s transport sector is becoming more sustainable, yet sales of electric vehicles fell in 2024. Tackling affordability, infrastructure and incentives will be key to regaining momentum, writes Sean Casey Ireland’s transport sector is responsible for about one-fifth of the total carbon emissions generated in Ireland, with close to half coming from passenger cars. This makes the decarbonisation and electrification of passenger cars and other road vehicles critical to Ireland’s ability to meet our climate targets. Despite this, The Society of the Irish Motor Industry (SIMI) reported a 23.6 percent drop in EV sales in Ireland in 2024 compared to the previous year. So, what are the roadblocks impacting Ireland’s EV uptake? The fifth annual EY Global Mobility Consumer Index report highlights consumer concerns regarding: EV affordability; Subsequent battery replacement costs; The sufficiency of adequate public charging infrastructure; Duration of charging time; Battery range; Depreciation; Future trade-in value; and The environmental effects of EV battery production. Although there are some indications of recovery in Ireland’s EV market, immediate improvements in state-backed measures—including those recently proposed in the draft Programme for Government 2025—are essential to recharging the EV adoption drive. Legislative and regulatory landscape Part of the wider Fit for 55 initiative, The Alternative Fuels Infrastructure Regulation (EU) 2023/1804 (AFIR) introduces measures designed to ensure: The minimum infrastructure necessary for the adoption of alternative fuel vehicles across all transport modes; Full interoperability of this infrastructure; Comprehensive user information and adequate payment options at alternative fuel infrastructure (such as EV charging points). The regulation establishes several mandatory targets for the deployment of this infrastructure. To support the implementation of AFIR in Ireland, the Department of Transport has opened a public consultation seeking feedback to develop an updated National Policy Framework for Alternative Fuels Infrastructure in Transport. The updated framework has yet to be published but is expected to complement: Existing frameworks, including the National Road Network EV Charging Plan and Regional and Local EV Charging Network Plan; Existing legislation, including S.I. No. 535/2022, the ‘Part L Amendment’ to Building Regulations 1997 to 2022, which sets out new regulations on charging infrastructure in building developments. The framework will also support the delivery of 2030 Climate Action Plan (CAP) targets, including 845,000 passenger EVs, 95,000 light goods vehicles, 3,500 heavy goods vehicles and 1,500 EV buses. Despite the continued rise in the overall number of EVs on Irish roads, sales dipped by 23.6 percent in 2024, year-on-year. The current rate of new EV registrations is below that needed to meet Ireland’s ambitious CAP targets.  Measures needed for acceleration State-supported measures are now required to boost EV adoption rates and we recommend that policymakers: Identify and address barriers to utilising available en route charging infrastructure funding. Additionally, subsequent grant scheme phases should aim to include all national single and dual-carriageway roads. Review all open market selling price thresholds and consider increasing vehicle registration tax (VRT) relief. Review customs duties on second-hand EV imports, as set out in the draft Programme for Government 2025. Consider a capped increase in EV purchase grants, restoring the amount available to motorists to pre-July 2023 levels (€5,000), and consider extending financial incentives to used EVs. Work with the regulator and system operators to launch a flexibility awareness campaign, consistent with actions set out in the Commission for Regulation of Utilities’ National Energy Demand Strategy, to reduce barriers to entry and support conditions in which  battery EVs can participate readily and flexibly. Ireland’s electric future The decarbonisation and electrification of transport will be essential to Ireland’s delivery of its climate targets, per the CAP. Sales of EVs in Ireland slowed in 2024, however, prompted by concerns about affordability, charging infrastructure and future trade-in values. Last year’s fourth quarter sales suggest a positive turnaround may be on the way for the EV market in 2025, but enhanced state-backed measures are needed now to boost EV adoption. A rebound is possible, but only if policymakers act swiftly to remove barriers and reinvigorate consumer confidence in Ireland’s electric future. Sean Casey is Partner and Consulting and Head of Energy and Assets at EY Ireland

Ornaith Giblin outlines the essential steps to achieving a healthy work-life balance for high-level executives striving to manage heavy schedules and competing priorities A high-powered executive who runs a multi-million euro business, also sits on the boards of several not-for-profits, is raising two kids and has just run a second marathon. How do they do it? How is it possible to lead a business, contribute pro-bono time and have a work-life balance that prioritises family and fitness? This “art” of time management and efficiency doesn’t come easy. We have all developed, read about, adopted and rejected various methods—some successful and some not—to try to boost our productivity. However, people often still find themselves frustratingly short of time. What is absolutely clear is that the people who rise to the top usually have the art of time management nailed—often to a level that puts the rest of us to shame. So, what principles do they employ that we could all learn from? Learn to let go and delegate If you are a new manager, you will understand first-hand the battle here. You hold on to the tendency to “do” because you’re the best one to do the job, and taking the time to train someone else doesn’t seem any more time efficient. Even for senior managers, this is an issue. You might have strengths that place you as the best project manager, process improver, statutory reporter or deep-dive analyser, but if you did all of this all the time, you would have no time for team leadership, strategy or driving commercial objectives. Approach this situation from another viewpoint: what do you do that no one else is qualified to do? You were hired to take care of the higher-level aspects of your job and this must be prioritised. Business-as-usual can be delegated. Not only will it boost your team, but you might be pleasantly surprised by what others can do when asked to step up to the challenge. Make a plan and then a contingency plan I write the next day’s plan the evening before. This practice helps me assess my progress and gain insights into my productivity patterns over time. I remove what I’ve completed from my earlier plan, reschedule unfinished tasks for the next day and note a few new priorities requiring attention. Even more critical, however, is the need for a contingency plan to help manage the unknown. It is crucial to set aside a “free” hour each day to manage unforeseen issues. If you find you don’t need this hour, use it to speed up the delivery of other outlined priorities. Focus on results rather than hours People focus on the time it will take to complete a task. Task completion will invariably expand to fill the allocated time. In accounting, you are even more susceptible to this mindset, even if you work in industry, due to the industry-accepted practice of “billable hours”. Instead of analysing a task in terms of how long you anticipate it will take, allocate the time to the task in a way that aligns with the value of the end result. Your success will not be measured by how long you work, but rather what results you deliver. Set your hours and create distance At first glance, it may seem arbitrary to set working hours for the sake of having a work-life balance. If you have nothing planned, why not work into the evening and get a few more things done? Because working all the hours you have available will dull your shine. Frequently, ambitious people work more because they’re always “on”, driven by the buzz, and feel that the more work they get done, the better. However, taking the time for yourself means you can show up the next day fresh and full of ideas. Whether it’s setting hours so you can get out and exercise, spend time with your family, or just kick your feet up, distance is essential for idea generation, innovation and creativity in your work. Ornaith Giblin is a consultant at Barden

Strong leadership isn’t just about strategy—it’s about trust. Michael O’Leary explains how leaders can build lasting trust to the benefit of their organisations If we expected that the post-pandemic era would stabilise employee/employer relationships, we were mistaken. Remote work, hybrid working, the “great resignation”, quiet quitting, falling employee engagement, staff shortages, wellbeing challenges and the rise of artificial intelligence all present challenges to organisation cultures and leadership. These pressures may also impact the engagement, purpose and satisfaction experienced by management. According to a LinkedIn survey, the actions of disaffected or poor leaders account for 70 percent of the reasons employees decide to engage or disengage at work. People don’t leave organisations, they leave managers. In Neurosicence of Trust, Paul J Zak shares how employees in high-trust companies enjoy their jobs 60 percent more, are 70 percent more aligned with their organisation's purpose and feel 66 percent closer to their colleagues. Empathy and a sense of accomplishment are higher in such firms, while burnout is 40 percent below that in low-trust cultures. Not only does trust improve organisation performance, but, according to Zak’s report, employees in high-trust companies are paid, on average, 17 percent more than those in other firms. In his research, Zak identified eight management processes that build trust for leaders: 1. Recognise excellence Research indicates that recognition has the most impact when it occurs immediately after the task or goal has been achieved. Recognition from management is most powerful when personalised to the employee and occurs in a public setting. 2. Assign difficult but achievable challenges to teams Pressure to achieve releases neurochemicals which intensify employee focus and strengthen social connections. Zak explains that when team members need to work together to reach a desired outcome, this brain activity coordinates their behaviours efficiently. 3. Employee autonomy Autonomy promotes innovation that management control can inhibit. Being trusted to find solutions to problems is a big factor in an employee’s engagement. Encourage staff to question established practices, especially those that have persisted for years. 4. Enable job crafting Encourage employees to focus their energies towards projects about which they are passionate while ensuring clear expectations, accountability and 360-degree evaluations are in place. 5. Share information broadly Poor management communication remains one of the big employee bugbears. Uncertainty about company direction can lead to stress, which in turn inhibits the release of oxytocin, a natural hormone which drives the social connections necessary for collaboration. Organisations that communicate plans broadly reduce uncertainty and increase teamwork effectiveness. 6. Intentionally build relationships Too often, managers communicate the message to “focus on your tasks” rather than encourage social connections. Zak cites neuroscientific experiments that show that when people intentionally build social bonds at work, their engagement and performance improve. Social events, which may appear to some to be “forced fun”, significantly enhance employee connectivity, particularly when such events include competitive team elements. 7. Facilitate whole-person growth High-trust workplaces help people develop personally as well as professionally. Though setting goals, learning plans and reviewing progress are key to professional growth, understanding how an employee is managing work-life balance or well-being is equally important. Leaders aware of personal challenges their employees face can often help through flexibility, rather than lose a valued contributor. 8. Show vulnerability Asking for help from colleagues is a sign of a confident leader and fosters trust and collaboration from those colleagues. It indicates that the leader is someone who involves everyone in achieving goals while valuing the opinions and expertise of others. High-trust culture boosts inclusion Building trust is a continuous process, and many colleagues and reports will start from different points in their willingness to believe the trust is authentic. Taking the time to understand that starting point and being patient while the trust emerges is essential. Being self-serving, not meeting commitments, being assumptive and jumping to conclusions are sure ways to breach any trust built. A culture characterised by high trust is more inclusive, performs better and is central to organisational success. Michael O'Leary is Chair of HRM Search Partners

In its release of the eagerly awaited “Omnibus” proposals on 26 February, the European Commission (EC) has proposed some significant changes to its Sustainability Reporting Regulatory framework. In recent years, many Irish and European companies have been getting to grips with EU Sustainability Directives and Regulations, including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation. These have introduced (or are due to introduce) compliance and reporting requirements for companies falling within their scope. The proposed Omnibus legislation aims to simplify the administrative burden created by the CSRD, the CSDDD and the EU Taxonomy. In releasing the proposals, the EC noted that they will enable businesses “to grow and create quality jobs, attract investments and get the necessary funds for their transition towards a more sustainable economy and help the EU meet the Green Deal's ambitious objectives”. The Omnibus package includes; A proposal for a Directive amending the CSRD and the CSDDD. A proposal which postpones the application of all reporting requirements in the CSRD for companies that are due to report in 2026 and 2027 (so-called wave 2 and 3 companies) and which postpones the transposition deadline and the first wave of application of the CSDDD by one year to 2028. A draft Delegated act amending the Taxonomy Disclosures and the Taxonomy Climate and Environmental Delegated Acts (subject to public consultation). A proposal for a Regulation amending the Carbon Border Adjustment Mechanism Regulation. A proposal for a Regulation amending the InvestEu Regulation. CSRD While the proposed Omnibus legislation includes changes to several key pieces of EU legislation, arguably the most impacted area will be the CSRD. Some of the key changes proposed to this Directive include; An increase in the thresholds limits which result in a large company being “in-scope”. This is expected to reduce the number of companies in-scope by approximately 80%. Under the proposed Omnibus legislation, the CSRD reporting requirements will only apply to large undertakings with more than 1,000 employees- ie. an undertaking with; 1,000 employees and either Turnover greater than €50m, or Balance sheet total greater than €25m Listed SMEs will no longer be required to mandatorily report under the CSRD. The introduction of a “Value chain cap”. Companies who are not in-scope of the CSRD will be able to use a voluntary standard (based on the VSME standard developed by EFRAG). This standard will serve to limit the information that CSRD reporters can request from non-CSRD reporters in their value chain. Companies who do not fall in-scope as a result of the revised thresholds may still voluntarily adopt the above-mentioned standard. A commitment to simplify the European Sustainability Reporting Standards (ESRS), including, a reduction in the number of datapoints, clarification of provisions which were deemed unclear and an improvement in consistency with other pieces of legislation. A reversal of the plan for sector-specific standards to be developed and adopted by the European Commission. A change in proposed assurance requirements for Sustainability Reports prepared under the CSRD, with the plan to move to reasonable assurance at some point in the future removed. A postponement of reporting requirements for “wave 2” and “wave 3” companies by 2 years. These waves will now enter into scope for financial years commencing on or after 1 January 2027 and 1 January 2028 respectively. CSDDD In relation to the CSDDD some of the key changes include proposals to; Extend the transposition deadline by one year, to 26 July 2028, and advance the adoption of the guidelines by one year (to July 2026), thereby giving companies more time to prepare. Simplify sustainability due diligence requirements, examples of this include focusing systematic due diligence requirements on direct business partners and reducing the frequency of periodic assessments and monitoring of their partners from annual to five years. Limit the amount of information requested by large companies from their value chain, thereby reducing the burden on SMEs and small mid-caps (250 – 499 employees and either turnover < €100M or Balance Sheet < €86M). Improve the harmonisation of due diligence requirements to ensure a level playing field across the EU. Remove the harmonised EU civil liability conditions and instead, defer to the various national civil liability regimes. Align the requirements on the adoption of transition plans for climate mitigation with the CSRD. The expected benefits of the proposed modifications, as outlined by the European Commission, is a reduced due diligence framework that is less complex and more harmonised, ensuring burden reduction and having a level playing field.    EU Taxonomy The proposed Omnibus legislation also amends the requirements of the EU Taxonomy Regulation and includes an increase in the reporting thresholds for mandatory reporting. Under the proposals, EU Taxonomy reporting would only be mandatory for a smaller number of companies, specifically large companies with;

More than 1,000 employees, and A net turnover of more than €450 million Companies within the scope of CSRD reporting, but who don’t have a net turnover figure of €450 million would be encouraged to voluntarily report. Additionally, companies may choose to voluntarily report on their partial Taxonomy alignment where they only meet certain Taxonomy criteria. The EC will consult on changes to the Taxonomy Disclosures Delegated Act and the Taxonomy Climate and Environmental Delegated Acts, with a view to simplifying these Acts. The Commission will also hold a public consultation asking for feedback on two alternative options to simplifying the “Do No Significant Harm” criteria. Benefits The European Commission have noted that there are several benefits which are expected to arise from the Omnibus Proposals, including; A streamlining of, and better alignment of, the CSRD and CSDDD requirements. Estimated total savings in administrative costs of approximately €6.3bn. Estimated to mobilise additional public and private investment capacity of €50bn to support policy priorities. Protection for SMEs from excessive sustainability information requests when they are in the value chain of companies reporting under the CSRD. An option for companies who are not in the scope of the CSRD to voluntarily report on their sustainability activities. Next steps These proposals will now enter trialogue negotiations between the European Parliament and the European Council where amendments may be made prior to its introduction. The extension of two years has been proposed for wave 2 and wave 3 by the Council to facilitate this transition preventing a situation where companies begin reporting under CSRD only to be potentially excluded shortly afterward. There is an urgent requirement to give clarity to companies and therefore finalise the CSRD and CSDDD adjustments as a matter of priority. It is expected that discussions on the broader Omnibus Package could extend over several months. Chartered Accountants Ireland is reviewing the omnibus simplification package with stakeholders to assess how we best continue to support businesses whatever size and whatever stage of the process they are at, to meet the standards, and how we train the accountants of the future to meet ESG-related legal requirements.   For further information in relation to this please see the European Commission's Q&A page.

Chartered Accountants Ireland was delighted to see the publication this week of a revised specification for Leaving Cert accounting by the National Council for Curriculum and Assessment. The development of a new curriculum that accurately reflects the role of the modern accountant has long been an advocacy priority for the Institute and following extensive engagement with officials from the Department of Education, the publication of the revised specification is an important milestone.  Leaving Certificate Accounting students will now have the opportunity to engage with themes including digitalisation, sustainability, ethical decision-making, and financial regulatory concerns as part of their coursework.   The draft specification is open for public consultation until Friday 28 April and the Institute (under the auspices of CCAB-I) will be making a submission in response to this which will be published on our website. You can read more about the subject development work by the NCCA here.

Today (26 February), the European Commission published its anticipated omnibus simplification package, which aims to reduce reporting burdens for companies, particularly SMEs. The package includes simplifications in sustainability reporting (CSRD), sustainability due diligence (CSDDD), and sustainable activity taxonomy (EU Taxonomy). The omnibus represents a dramatic change to several key pillars of the EU Green Deal, the key policy initiative in the path towards net zero by 2050. While we very much support simplification efforts to enhance the competitiveness of the EU’s single market, preserving regulatory certainty, clarity and stability for business is of utmost importance and is also key to remaining competitive.   As the largest professional body on the island of Ireland, representing over 39,000 members and educating over 6,600 students, the Institute has worked closely with members and member firms to equip them with the expertise and skills to prepare for and implement the CSRD both from a reporting and assurance perspective. Many of these have invested significant resources to upskill and meet existing requirements, and the changes proposed today may require several to pivot and understand new ones. Chartered Accountants Ireland is reviewing today’s omnibus simplification package with stakeholders to assess how we best continue to support businesses whatever size and whatever stage of the process they are at, to meet the standards, and how we train the accountants of the future to meet ESG-related legal requirements.  European Commission news release Commission simplifies rules on sustainability and EU investments

HMRC has become aware of a scam email purporting to come from HMRC asking firms to submit an Annual Supervisory Return with payment of fees as part of their AML supervision. This email is being sent to both HMRC supervised firms and accountancy service providers supervised by the professional bodies. Although the content of the fraudulent email looks very similar to the official gov.uk website it appears to be sent from a false email address ending on @taxuk-access.services. Should you receive a fraudulent email purporting to be from HMRC, please do not click on the links and report this via https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-fraudulent-emails

HMRC’s Making Tax Digital (MTD) team will be in Northern Ireland next week on Tuesday 4 and Wednesday 5 March and would like to visit/meet with some agents to talk about MTD for income tax. With just over one year to the first tranche of mandation from April 2026, we would encourage small and medium sized firms in particular to consider taking up this unique opportunity for a face to face meeting. If your firm would like to meet with HMRC, please contact us by email to take forward. HMRC has also recently updated the list of available software for MTD for income tax with sixteen products now available to choose from.

Finance Bill 2024-25 continues its path through the parliamentary process. Committee stage for the Bill concluded at the end of last month with a number of government amendments passed affecting a range of areas including the UK’s Pillar Two rules and the abolition of the remittance basis regime for non-UK domiciled individuals from 6 April 2025. The Bill is now due to have its report stage and third reading next week on Monday 3 March. Amendments can be made to the Bill at this stage. These are selected by the speaker. However, report stage is the last opportunity for amendments to be made before third reading takes place after which the Bill will move to the House of Lords.