In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit and the latest Trader Support Service and Borders Weekly Stakeholder bulletins are also available. Miscellaneous updated guidance etc.   The following guidance, and publications relevant to EU exit are available:-  Known error workarounds for the Customs Declaration Service (CDS);  Classifying drones and aircraft parts for import and export;  Classifying electrical equipment for import and export;  Classifying tobacco for import and export;  Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service;  Maritime ports and wharves location 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; and  Data Element 2/3: Document and Other Reference Codes: Licence Types – Imports and Exports of the Customs Declaration Service (CDS). 

HMRC’s latest schedule of live and recorded webinars is now 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.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. HMRC has also recently updated the Agent Dashboard which now includes Inheritance Tax. This dashboard is updated on a weekly basis and should be regularly checked to ascertain expected processing dates and HMRC’S current performance and service levels.  All agents, who are a member of a professional body, are also invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

The Platform for Collaboration on Tax released a new report on carbon pricing metrics. The purpose of the report is to strengthen the understanding of different carbon pricing metrics of the largest international organisations, including the IMF and the UN. 

The OECD has published a report “Tax Policy Reforms 2023” which analyses the role tax policy has played as governments sought to shield households and businesses from the surge in inflation in 2022. The OECD notes that “tax policy has been at the forefront of government support to families and businesses in the face of elevated levels of inflation”.

The European Commission has published two key proposals in the past week; Business in Europe: Framework for Income Taxation (BEFIT) and harmonized transfer pricing rules.   The BEFIT proposals set out rules for the calculation of the BEFIT tax base, the allocation of the BEFIT tax base to members of the BEFIT group, as well as rules governing the transposition of the directive into local law.   The Institute, under the auspices of the CCAB-I, responded to last year’s consultation on BEFIT and recommended that BEFIT should not be implemented until such time as the Pillar Two minimum taxation rules have matured to at least some degree.  With regard to transfer pricing, the proposals are aimed at harmonising transfer pricing rules within the EU and ensuring a common approach to transfer pricing. 

In the face of high inflation and looming challenges, Budget 2024 should focus on supporting Irish SMEs, writes Neil Hughes As we look ahead to 2024, there remains much to be optimistic about. Despite high inflation, the latest Azets SME Pulse Survey reveals that fewer than one in five SME leaders anticipates a decrease in revenue and profits this year. This points towards the positivity that surrounds the future of SMEs. It’s not the time to be complacent, however. Challenges lie ahead. Rising prices are putting a squeeze on already tight margins while many businesses are facing difficulties in attracting and retaining talented people. Employing more than a million people and accounting for two-thirds of firms in the private sector, SMEs are the backbone of the Irish economy, and this group should be a major consideration for Government in Budget 2024. SME Innovation Fund We propose the Government set aside €2 billion to establish an SME Innovation Fund, so Irish SMEs can harness the opportunities of the twin digital and green transitions. Putting aside €2 billion from the recent record tax take, taken in conjunction with other measures, could provide an important step in diversifying Ireland’s economic model and ensure that SMEs are nurtured and can thrive long into the future. National minimum wage SMEs across Ireland are concerned with the increasing cost of doing business. We recommend limiting any increase in the national minimum wage next year to the rate of inflation prevailing on the date of the Budget rather than the 12 percent increase recommended by the Low Pay Commission, which would place a significant burden on SMEs. SME Talent Taskforce We urge Government to consider the creation of an SME Talent Taskforce to address the significant challenges facing SMEs in attracting and retaining talented people within the domestic economy. Featuring representatives of Government, Enterprise Ireland, Local Enterprise Offices, employment bodies and the SME sector, it would be tasked with developing a dedicated roadmap to address bottlenecks in the labour market. Bringing together a new SME Talent Taskforce would help ensure that SMEs have a level playing field in attracting and retaining talented people and help them to succeed in a tight labour market. These measures should help SMEs ease the rising cost of doing business and staff shortages, as well as develop sustainable firms. Neil Hughes is the Managing Director of Azets Ireland

The ‘social’ facet of ESG is gaining more prominence with the evolution of gender pay gap rules, consumer trends and employee priorities, writes Doone O’Doherty The ‘social’ elements of environmental, social and governance (ESG) are rising in prominence, having played a secondary role to the environmental and governance pillars for some time. This lack of focus is partly because environmental and governance issues are much more clearly defined, and regulations in these areas are better developed – but things are changing. Local gender pay gap reporting regulations and the EU Pay Transparency Directive are game-changers. These, coupled with changing consumer preferences and employee attitudes, are prompting companies to increase their focus on social issues. The ‘S’ and tax contributions The social pillar of ESG looks at an organisation’s contribution to societal fairness. Total tax contributions are key in this regard, as tax is a key indicator of an organisation’s contribution to society. While the media often focuses on the level of corporation tax earned by the State, it is important to remember that companies are responsible for collecting income taxes via the PAYE system. In 2022, PAYE income tax and the universal social charge (USC) amounted to €25.46 billion. This equates to 30 percent of total Exchequer receipts. In addition, by paying employers’ PRSI (11.05%), employers are a significant contributor to the Social Insurance Fund, which funds social welfare benefits and the State pension. These are important components of an employer’s role in contributing to society via the tax system. This can increase trust in the market and promote an organisation’s overall purpose and values. The ‘S’ and pay equity When it comes to ESG and pay, the focus tends to be on linking executive pay to ESG goals. However, through an employment lens, an ESG strategy isn’t complete unless it addresses issues relating to all employees and supports the growth of a truly diverse workforce that is treated fairly, paid equitably and without bias. Equal pay In Ireland, equal pay provisions are contained in the Employment Equality Acts 1998 to 2021. Under this legislation, an employer is prohibited from paying an employee less (either directly or indirectly) in the same employment doing ‘like work’ on nine different grounds of discrimination. Although an organisation may be fully committed to equal pay, businesses must review their pay systems and consider carrying out an equal pay review to highlight issues they may not be aware of. If there are equal pay gaps, organisations must explain why. If no reasonable explanation can be found, steps must be taken to close the gaps. Gender pay gap Even if employers comply with equal pay obligations, they may still have a gender pay gap. Our analysis of 500 of the country’s largest employers that published gender pay gap reports in December 2022 found a mean gender pay gap of 12.6 percent. Firms must file new reports in December 2023 based on their situation in June. Progress in closing the gap will require a concerted effort that is enabled by HR, but led by business leaders, to improve the representation of women in their businesses. Pay transparency While many organisations already monitor pay equity, the EU Pay Transparency Directive – which must be transposed into national law by 2026 – introduces additional pay transparency measures. Key features of the Directive include: Recruitment: an obligation on employers to provide information concerning pay levels as part of the recruitment process and a prohibition to prevent organisations from asking candidates about their current or historic pay. Pay philosophy: a requirement for employers with more than 50 workers to share information on the criteria used to determine pay levels and progression. Pay information: a right for workers to request information on the average pay level split by sex for workers doing the same work or work of equal value. The ‘S’ and worker classification Spurred by COVID-19, on-demand labour platforms have grown. These offer new job opportunities for workers and convenient, more affordable services for consumers. The gig economy has become a hot topic in many societal and political debates. The debate primarily focuses on the workers’ working conditions and social security status. In Ireland, there are many ways to work and operate a business. Specific legislative protections for workers apply to each type of employment. For employers, it is important to ensure workers are correctly classified in a way that matches the reality of the relationship between the worker and the business. The misclassification of an individual can impact tax, social security and employment law rights and obligations. It can also lead to reputational damage if a company is perceived as treating workers inequitably. Acting as responsible corporate citizens With more focus on the social element of ESG, employers must make the following a priority for their organisation: Understand what legislation requires and the financial and reputational implications of getting it wrong. Ensure that their strategy, processes and systems around the changing regulations that underpin fair pay and workers’ rights are robust and accurate. Validate their organisation’s ability to produce the necessary statistical data to ensure compliance with the legislation. And if they cannot, identify the gaps. Employers should also begin crafting the narrative to explain how they support social progress – treating employees fairly, driving equality and acting as responsible corporate citizens. Doone O’Doherty is Tax Partner of People & Organisation at PwC

Afraid to negotiate? Ornaith Giblin outlines her top tips to help you overcome your fear and come out on top If negotiating a 10 percent discount on a store-spoilt item in a shop makes you feel uneasy, negotiating a large, complex business deal, asking for a pay raise or haggling with a vendor is probably your worst nightmare. Here are five useful strategies to help get what you want in any negotiation. Define your walkaway point and understand your variables Preparation is king, not only to become comfortable with your demand, but to fully understand and equip yourself with a self-made negotiation toolkit. Work out your lowest or highest walkaway point by asking yourself: when would it become financially unviable to continue the conversation? You should also consider what else you can offer your opposition, perhaps intangible, to get the best deal possible. Is it an introduction to another area of your business? An opportunity to tender for next year’s service agreement? These are your variables, your secret armour in the negotiation process. Own, command and use them. Decide what’s at stake Before going into any negotiation, understand two things: there are people, and then there are problems. Without managing both, you won’t agree to a solution. To negotiate effectively, it is important to distinguish your counterpart's underlying motivations from superficial bluffs. For instance, if you find out that their main motivation is to ensure you buy at least 25 laptops because they know they will cut a profitable deal at that volume, you may find that asking for free additional items is the best way forward. Minimise conflict How many times have you entered into a negotiation that has become tense or has even disintegrated because of personality conflict? Negotiation is outside of (nearly) everyone’s comfort zone, which means that, for most, these conversations are approached with mixed emotions. Add to this, the emotional pressures negotiating may bring to the table (perhaps performance-related), and you have a potential recipe, not just for tension, but also aggression and defensiveness. It is imperative that you go into a negotiation with your feathers unruffled. Be sure to watch your tone, try to build rapport and always be polite. No one has ever had a successful outcome by being rude. Don’t let price win or lose you the war You’re going into a negotiation with a walkaway point based on price, and likewise, your counterpart has come into the conversation from the same viewpoint. If you are both stuck on this walkaway point, you have to ask yourself what can be brought into the mix. If the price can’t be negotiated, what can you ask for as a compromise? If you have already identified what’s of value to the other party, and know what is of value to you, you can let that be your bargaining chip. Understanding your variables and theirs is key to optimising a negotiation situation. Find a win-win solution A wise person once said to me that a good deal is in your head. If you’ve achieved your objectives within your boundaries, and you are happy you’ve agreed to a good deal, then you could class yourself as a winner. However, if you’ve done that by derailing your negotiation counterpart, that’s a win-lose. By not finding a middle ground everyone is happy with, you’ve probably ruined your relationship with your vendor (or boss or organisation), leading to other issues down the line. In business, it’s important to never burn a bridge, and agreeing to a win-win solution is key to building mutually productive partnerships. Ensuring your solution is well-balanced and meets enough of both parties’ expectations is key to making sure you walk away from a negotiation with an actual good deal. If you really negotiate rather than barter with your counterpart, your relationship can produce longer-term mutual gains and a situation that can provide lasting returns for both parties. Ornaith Giblin is a consultant of mid-senior qualified accountants at Barden. You can get more information at Barden.ie

Welcome to this edition of Technical Roundup. In recent developments, Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan Director of Insolvency Supervision at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda; the EU Commission has issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has issued a draft comment letter for public consultation in response to the IASB’s Request for Information on its Post-implementation Review (PIR) of IFRS15 Revenue from Contracts with Customers. The International Accounting Standards Board has published Exposure Draft Annual Improvements to IFRS Accounting Standards—Volume 11.  The document is available to download from the Open for comment section and from the individual project pages on the work plan. The European Single Markets Authority (ESMA) has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). This includes technical improvements and additional clarifications. The European Financial Reporting Advisory Group (EFRAG) have issued their August update which summarises public technical discussions held and decisions taken during the month. In order for EFRAG to provide input to the initial phases of the IASB’s research project on the Statement of Cash Flows and Related Matters, EFRAG have issued an open call for tenders to assist in identifying uses and issues with the statement of cash flows. The IFRS Foundation has issued its August 2023 monthly news summary. This includes details of recent amendments to IAS 21, details of current consultations and requests for information and other matters of interest. Insolvency Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan, Director of Insolvency Supervision, at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda. The session will include some background on Cathy’s career and her journey from Revenue to CEA along with the evolution of the CEA from the ODCE. This webinar is a free event and open to all. Earlier this week, the UK government published its response to the consultation on ‘The Future of Insolvency Regulation’, which ran between 21 December 2021 and 25 March 2022. The consultation sought views on a comprehensive package of reforms to the insolvency practitioner regulatory framework. This response includes a significant package of reforms which addresses the current weaknesses, closes a loophole in the framework, and provides opportunities for further reform. It will strengthen insolvency regulation and increase public confidence in the framework. Sustainability Accountancy Europe, in collaboration with the European Sustainable Business Federation, have issued a paper ‘5-step starting guide to a sustainable transition for SMEs’.  The paper presents 5 first steps an SME can take to begin their sustainable journey. It is vital to initiate the process, even with small steps, and gradually start preparing the business for what lies ahead. EFRAG and the Global Reporting Initiative (GRI) have issued a joint statement confirming that they have achieved a high level of interoperability between their respective standards in relation to impact reporting. EFRAG has published its final comment letters on the ISSB consultation on Agenda Priorities and SASB methodology. Sanctions The UK Financial Conduct Authority recently issued a publication on firms’ response to increased sanctions due to Russia’s invasion of Ukraine. In the publication the FCA set out key findings from its assessments of sanctions systems and controls and includes examples of good practice and areas for improvement. While the publication is in respect of financial services firms, the findings in relation to good practices and areas that need improvement may be of interest in any efforts to making improvements to the approach to identifying and assessing the sanctions risks that firms are exposed to. In September 2023 the EU Commission issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. It is to help European operators to identify, assess, and understand the possible risks of Russian sanctions circumvention. It includes circumvention red flags related to business partners and customers and .The EU Guidance note is in the same vein as the summary AML Alert  Russia sanctions – Trade sanctions circumvention  which was  produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the UK Department of Business and Trade notice NTE 2023/08: Russia sanctions – Trade sanctions circumvention published 22 May 2023. Details of this notice were brought to members attention in a news item from Professional Standards Dept. of the Institute of August 23, 2023 where they alluded to awareness of the risk and obligations in relation to sanctioned goods as an important first step for those working in the accountancy profession so that they do not become party to the trade sanctions circumvention. Other News In September 2023 the UK Financial Conduct Authority (FCA ) announced a review of the treatment of domestic Politically Exposed Persons (PEPs) by financial services firms. The review will look at firms’ arrangements for dealing with PEPs based in the UK and will report by the end of June 2024. In the previous month of August 2023 it invited UK PEPs to share their experiences, including any problems they or their family members have encountered with the PEPs regime. The FCA has previously (in 2017 ) published guidance for how financial services firms should treat customers who are politically exposed persons when meeting their anti-money laundering obligations. The Financial Reporting Council (FRC) has welcomed the appointment of Peter Wyman CBE as the Institute of Chartered Accountants in England and Wales (ICAEW) first externally appointed Chair of the Board to modernise and strengthen the ICAEW’s governance and leadership. The Charity Commission for Northern Ireland is writing to over 250 charitable organisations, in preparation for work to begin on phasing out what is known as the “combined list”.  A list of all organisations the Commission is aware of, which may be charities but have not been registered yet, the combined list has been an integral part of the regulator’s work to manage registration of all charities in Northern Ireland. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). The Pensions Authority has published its 2022 Annual Report and accompanying statement from the Pensions Regulator. The Charities Regulator is holding a free webinar on Wednesday 27 September 2023 at 1pm to assist registered charities in preparing their annual reports. If you want to attend this you may register here. For further technical information and updates please visit the Technical Hub on the Institute website.

The demand for the services of our profession has never been stronger. In Ireland and across the world, the marketplaces in which we operate are ever changing, bringing opportunities and challenges in the short and longer term.  As an Institute, we are always looking ahead to ensure our qualification, resources, standards and services continue to be world class and fit for purpose in an ever-changing environment and a new world of work. By doing this, we can continue to be an attractive career option for talented, mobile recruits, and a future-ready, dynamic profession equipped to support businesses and economies.    We recently started discussions with CPA Ireland to explore areas for cooperation and innovation.  As the two all-island accountancy bodies headquartered in Ireland, it makes sense to engage in this way on behalf of the profession and our members, students and firms.  Any potential opportunities identified by these discussions will be shared with members in the weeks ahead. Sinead Donovan, FCA  President, Chartered Accountants Ireland 

  In September 2023 the UK Financial Conduct Authority (FCA ) announced a review of the treatment of domestic Politically Exposed Persons (PEPs) by financial services firms. The review will look at firms’ arrangements for dealing with PEPs based in the UK and will report by the end of June 2024. In the previous month of August 2023 it invited UK PEPs to share their experiences, including any problems they or their family members have encountered with the PEPs regime. The FCA has previously (in 2017 ) published guidance for how financial services firms should treat customers who are politically exposed persons when meeting their anti-money laundering obligations.

On 1 September 2023, the Institute responded to the Financial Reporting Council (FRC) invitation for comments on their proposed changes to the “UK Corporate Governance Code” (‘Code’)*.  The proposed changes arise from a UK government request of the FRC to strengthen the UK Corporate Governance Code in specific areas following the recommendations arising from UK White Paper on “Restoring Trust in Audit and Corporate Governance” (‘White Paper’) published in 2022. Some of the key changes proposed to the Principles and Provisions applying to boards include: Setting out a revised framework of prudent and effective risk management and internal controls to provide a stronger basis for reporting on, and evidencing their effectiveness. Improving the quality of comply-or-explain reporting, taking account of recently published FRC research and reports, e.g. reducing boilerplate wording and requiring reports to demonstrate the outcomes of governance activities. Revising the responsibilities of the board and audit committee for sustainability and ESG reporting, and associated assurance in accordance with a company's audit and assurance policy. Aligning governance and reporting practices with changes to legal and regulatory requirements as set out in the Government's response to the White Paper, including strengthening reporting on malus and clawback arrangements. The Institute response welcomes FRC proposals that: discourage boilerplate reporting and encourage clear and concise disclosure on the reasons for any departure from the Code’s provisions, and how the Board has otherwise adhered to the overall principles of the Code. encourage consideration of and reporting (in accordance with established sustainability reporting standards) all material sustainability and ESG matters, including climate ambitions and transition planning, in defining business purpose, strategy, and values. increase the emphasis on workforce and broader stakeholder engagement, strengthening diversity and inclusion, and improves the effectiveness of remuneration policies and transparency. respond to some of the Chartered Governance Institute recommendations on board performance reviews and emphasis on improving board effectiveness. engage with emerging risks and opportunities such as artificial intelligence, for which the Institute have provided, in our response, some detailed considerations for inclusion in FRC guidance. Some of the key points highlighted in the Institute’s response focused on: The missed opportunity from limiting the update of the Code to reacting to legislative proposals rather than addressing learnings from corporate governance in recent years, including the principles and values (including ethics and healthy culture) that were lacking in respect of high-profile corporate failures. Highlighting the increasing role and responsibilities of Audit Committees, and the risks arising by mandating them as default for additional requirements versus ensuring the ability of the Board, who are ultimately responsible, to delegate roles and responsibilities as it sees fit in accordance with fiduciary duties. The lack of guidance and definitions for key terms used in the principles and provisions which, if provided, would provide for better understanding, and promote greater consistency, in many areas of the Code, including directors declarations on risk management and internal controls, audit and assurance policies, and narrative reporting. The importance of maintaining the principle-based approach to corporate governance that the Code has championed for over thirty years and to avoid deferring to requirements which are prescriptive, a matter of law and are not suited to a comply or explain model. The risk that established and effective practices for stakeholder engagement, reporting on future prospects and delegating oversight of sustainability matters may be lost based on the way some of the proposals are set out. The Chartered Accountants Ireland response to the FRC addressed all 26 questions and is available here. The FRC proposals are available on their website here. Níall Fitzgerald, Head of Ethics and Governance, Chartered Accountants Ireland   * The Code applies to premium listed companies on the London Stock Exchange and companies with a primary listing on the Irish Stock Exchange (and the Irish Corporate Governance Annex). Other organisations can voluntarily adopt the Code, for example, Chartered Accountants Ireland applies principles of the Code where they are relevant and commensurate to the Institute as a membership body.  

The UK Financial Conduct Authority recently issued a publication on firms’ response to increased sanctions due to Russia’s invasion of Ukraine. In the publication the FCA set out key findings from its assessments of sanctions systems and controls and includes examples of good practice and areas for improvement. While the publication is in respect of financial services firms, the findings in relation to good practices and areas that need improvement may be of interest in any efforts to making improvements to the approach to identifying and assessing the sanctions risks that firms are exposed to.

It is with great sadness that Chartered Accountants Ireland notes the death of Gerry Nicholas. Gerry was admitted to membership in 1979. He served on Council from 2010 until 2017 and was Chair of the London Society from its inception in 1999 until 2019.  During those 20 years, he put in enormous effort into developing the London District Society into the thriving group it is today. He was keenly involved in many of the London-based Irish charities and other Irish professional bodies, forging strong links.  As a result, he was widely known, liked and admired for his clear business mind, enthusiasm and friendship.  Gerry had a strong financial career in the banking industry spending more than 15 years with Bank of Ireland and later through his own companies in asset management, mergers and acquisitions, corporate governance and corporate finance.  Gerry will be remembered as a true collaborator, connector, and communicator, with a huge personality.  He will be sorely missed. We extend our deepest sympathies to Gerry's family and many friends and colleagues throughout London, Ireland and worldwide.

In September 2023 the EU Commission issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russia sanctions circumvention. It is to help European operators to identify, assess, and understand the possible risks of Russian sanctions circumvention. It includes circumvention red flags related to business partners and customers that EU operators should watch for when they enter into a commercial relationship with a new trading partner . The EU Guidance note is in the same vein as the summary AML Alert  Russia sanctions – Trade sanctions circumvention  which was  produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the UK Department of Business and Trade notice NTE 2023/08: Russia sanctions – Trade sanctions circumvention published 22 May 2023  . Details of this notice were brought to members attention in a news item from Professional Standards Dept. of the Institute of August 23, 2023 where they alluded to awareness of the risk and obligations in relation to sanctioned goods as an important first step for those working in the accountancy profession so that they do not become party to the trade sanctions circumvention.

The Chancellor of the Exchequer announced last week that this year’s Autumn Statement will take place on Wednesday 22 November 2023. As usual, the Institute will be analysing the tax announcements for members, and any subsequent developments, in Chartered Accountants Tax News.  The Office for Budget Responsibility has also been commissioned to prepare an economic and fiscal forecast to be presented to Parliament alongside the Chancellor’s Autumn Statement. 

If businesses have second-hand motor vehicles in stock that they bought in Great Britain and moved to Northern Ireland before 1 May 2023, the VAT margin scheme can only be used if those vehicles are sold by 31‌‌‌ October 2023. The Institute is discussing the impact of this deadline with HMRC, and the need to extend it.   We are aware that many second-hand car dealers have significant pre-1 May 2023 vehicles in stock which are selling very slowly due to the ongoing inflationary crisis and general economic conditions.   If sold after 31‌‌‌ October 2023, VAT must be accounted for on the full selling price of the vehicles as the conditions for the new second-hand motor vehicle payment scheme, which only applies to eligible motor vehicles moved from Great Britain to Northern Ireland after 30 April 2023, will not be met. 

This year’s Secretary General tax report has been published providing an update on the progress on the OECD’s Two-Pillar Solution. The report also provides updates on recent work on indirect tax, tax transparency, and other areas of focus for the OECD.