This week we bring you news of a new form which HMRC plans to launch over the summer to provide details of overlap relief for some taxpayers. A new form is now available for claiming the marriage allowance, and HMRC’s teams have responded to queries on VAT and the self-assessment online return form. A new compliance campaign has also been opened, and HMRC is contacting companies with an identified error in an R&D tax relief claim. HMRC’s latest News and Information Bulletin is also available. Overlap relief information request form At some point over summer 2023, HMRC aims to launch an online form for overlap relief requests as part of the move to basis period reform. The Institute, in its response to the basis period reform consultation in summer 2021, recommended that HMRC provide this information to taxpayers where it was held in its systems. Any unincorporated businesses with a non-31 March or 5 April accounting period end are able, in the transitional tax year 2023/24 of basis period reform, to use an unused overlap relief carried forward. This is particularly important as any profits not already assessed for tax must be included in the assessment for 2023/24 but can be reduced by unused overlap relief. HMRC will only be able to provide this information if it has been recorded in HMRC’s systems and included within submitted self-assessment returns for previous tax years. If these details have not been recorded, HMRC intends to provide data to allow the taxpayer (or their agent) to calculate any unused overlap relief from the relevant self-employment data it does hold, and which is available in HMRC’s systems. Requests for overlap information can be made ahead of the launch of the form. The following information is required to do so:- taxpayer name; national Insurance Number or unique taxpayer reference; name/description of the business; sole trader or partnership; partnership UTR, if relevant; date of commencement (if not known, tax year of commencement); and, most recent accounting period end date. New marriage allowance postal claim form HMRC has published a new form which allows taxpayers to apply for the marriage allowance by post. This allowance can now be claimed online, via a postal application, or by a claim in the self-assessment return. Previously, it was only possible to apply by post via letter. VAT query HMRC’s VAT team was asked whether a reason can be provided when a flat rate scheme application is denied. Details of a direct contact in order to appeal the decision was also sought. HMRC’s response is as follows:- “If the decision to disallow the customer from joining the Flat Rate Scheme is appealable, then the Decision Maker will have advised the customer who to contact to appeal within their decision letter. If there are no contact details within the letter, this would be because the decision is not appealable. However, the customer may be able to get some information about why they were disallowed from joining the scheme from frsapplications.vrs@hmrc.gov.uk.” Self-assessment online form query HMRC was asked if the “for reference only” text on the Self-Assessment return (SA 100) could be removed as previously HMRC had confirmed that SA100’s printed from the GOV.UK page and posted are being accepted by HMRC hence the “for reference only” text is causing some confusion. HMRC responded as follows:- “We have noted the concern about the “for reference only” messaging and we will consider this as we monitor and review the changes to the SA100 gov.uk pages. On the SA100 forms page, there is a link explaining how to request a paper return. The link appears immediately underneath the SA100 forms in the ‘Details’ section of the page. It connects to the Self-Assessment forms ordering service rather than the SA helpline.”  New compliance campaign launched HMRC has recently launched a new compliance campaign targeting taxpayers named in the Pandora Papers. The campaign letter invites them to make use of the contractual disclosure facility or the worldwide disclosure facility and reminds taxpayers that penalties of up to 200 percent may be charged on the tax due on any overseas income and gains not declared. Since publication of the papers, HMRC has been using information to identify UK taxpayers who may have taxable income or gains they have not declared.  R&D tax relief compliance checks follow ups We understand from HMRC’s R&D sub-group forum that HMRC has been writing to/emailing around 200 companies who have made an error in recent R&D tax relief claims asking them to complete a questionnaire providing feedback on their experience of the compliance check process. All responses to the questionnaire will be anonymised and personal details held securely. All recipients of this contact were part of HMRC’s recent mandatory random enquiry programme. The questionnaire aims to help HMRC understand why the errors occurred and feedback will be used to inform HMRC processes, with an overall aim of help companies get R&D claims right first time.

Since the closure of the Office of Tax Simplification (“OTS”) which was announced in the September 2022 mini-Budget, the Institute has been discussing tax simplification with HMRC at various forum meetings. A key recommendation was the need for an annual report on tax simplification which also features in the Next Financial Year 2023 due to be published after the summer. HM Treasury has recently confirmed that it will report annually on progress on tax simplification. The confirmation came during Treasury questions, when the Financial Secretary to the Treasury Victoria Atkins told the chair of the Treasury Committee that a report will be sent to the Committee once a year setting out what progress has been made on tax simplification. The decision to do so also follows on from a House of Commons Treasury Committee report published last month which concluded that the tax system is overcomplicated and “This overcomplication creates compliance burdens, confusion, and disincentives to work or grow a business. It is an obstacle to economic dynamism. (Paragraph 8)”. The Institute continues to also recommend that an independent body is still needed to tackle tax complexity. The Treasury Committee also concluded that disbanding the OTS risks signalling that tax simplification is not a priority for the Government, and that the most important factor in securing a simpler tax system in practice would be the Chancellor taking, and acting on, the personal responsibility for simplification that he has pledged. It also concluded that the Government’s performance against its stated intention to simplify the tax system must be subject to public scrutiny.

The 2023 Adjudicator’s report confirms that despite a lower number of complaints about HMRC in 2022/23 (950 complaints compared to 1,029 in 2021/22), the upheld rate (including fully and partially upheld complaints where the AO did find something went wrong) increased to 47 percent, an increase of 15 percent. The role of the Adjudicator was created in 1993 to introduce an independent tier of complaint handling for HMRC, and various other Government bodies. The Adjudicator’s Office (“AO”) aims to provide a free, impartial, and independent service, and to investigate all complaints within their remit, and to resolve individual complaints whilst highlighting trends in both customer service, and complaint handling. The Adjudicator seeks to continue to push the various Government departments it reports on, including HMRC, to improve quality in complaint handling, so that people will only feel the need to escalate more sensitive and complex complaints to the AO. In its HMRC update and case studies section, the Adjudicator says that 2022/23 has seen HMRC recover its service standards post-pandemic “with varying degrees of success”. Although HMRC’s Customer Services Group has struggled with volume, and also significant pressure on resources “meaning that the recovery has slipped and is therefore ongoing.” According to the report, recovery in HMRC’s Customer Compliance Group has been quicker leading to a “two-tier level of service being provided in HMRC, depending on where your complaint sits.” The main reasons for taxpayer cases related to poor complaint handling by HMRC officials with the conclusion that for many, complaints were not being prioritised in HMRC’s Customer Service Group. Increasing numbers of taxpayers, often vulnerable, “are stuck in the complaints system for long periods with little or no meaningful response from HMRC.”  

The Spring Finance Bill 2023 (official title: Finance (No 2) Bill (Session 2022-23)) continues its passage through the parliamentary process with all remaining House of Commons stages completed since out last update, including Committee Stage, Report Stage, and Third Reading in the House of Commons. The Bill has now completed all House of Lords stages and is expected to receive Royal Assent tomorrow, Tuesday 11 July. The Government has also announced that “Legislation Day” will take place on Tuesday 18 July. On that day, the Government will publish draft legislation for inclusion in Finance Bill 2024, alongside explanatory notes, tax information and impact notes, responses to consultations and other supporting documents. It is expected that the draft clauses will largely cover pre-announced policy changes. Because the Spring Finance Bill is a ‘Money Bill’ the House of Lords cannot make any changes to it hence the text of the Bill is therefore essentially now final meaning it is substantively enacted for UK GAAP and IFRS purposes.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also bring you key outputs from a meeting last week on the newly opened reimbursement scheme. The latest Trader Support Service and Borders Weekly Stakeholder bulletins are also available. Reimbursement scheme – more information As set out last week, the long-awaited duty reimbursement scheme was launched on 30 June. The Institute lobbied on the need to open the scheme for several years and is pleased to see this come to fruition. By way of reminder, the reimbursement scheme allows for reimbursement of tariffs paid on goods classed as being at risk which later became not at risk under the original Protocol, and on goods which will move in the new red lane which should originally have been green lane movements under the Windsor Framework. This includes the following scenarios:- Final sale of goods takes place in NI; Goods are consumed in NI; Goods are destroyed in NI; Goods are moved back to GB from NI; and Goods are exported to RoW (Rest of World) from NI. Chartered Accountants Ireland attended a meeting with UK government officials from HMRC and HM Treasury last week to discuss the reimbursement scheme in more detail. The below information was discussed in the meeting. In order to claim, the trader must gather evidence to support the claim and submit this to HMRC via an online application where a caseworker will consider the application. More evidence may then be requested by the caseworker in order to finalise and process the application. Claims can be made by: the importer for the original ‘at risk’ movement into NI, if they are established in the UK; or the appointed agent or representative acting on their behalf (if the original importer is not established in the UK, only their UK appointed agent or representative can submit the application). At the meeting it was once again confirmed that interest will not be paid on refunds received by traders; HMRC stated that the reason for this is that until the regulations underpinning the scheme were laid, there was no statutory basis on which claims for refunds could be made. The Institute is considering making representations on this given the known cash flow impact that delayed refunds have had for many traders since January 2021. It was also confirmed that reimbursements can be claimed for single or multiple movements. For goods moving from GB to NI, the full amount of the overpaid duty will be refunded. For RoW to NI movements, the duty repaid will be the difference between the UK and EU rates (if the EU rate is higher). The difficulty that some traders will have in providing evidence to support goods originally moved on the basis of “at risk” which subsequently become “not at risk” was discussed in detail, particularly for small items which often do not have a serial number and cannot be fully traced in terms of their end use. HMRC stated that they have not set out an exhaustive list of evidence which is required to support claims but were clear that using approximate apportionments will not be sufficient. Overall, HMRC will seek to be as pragmatic as possible to ensure the evidence provided is robust, whilst at the same time ensuring that the scheme is not open to abuse. It was pointed out that previous goods movements split between “at risk” and “not at risk” using the apportionment method on arrival into NI will be particularly problematic in terms of evidencing these becoming not at risk. In particular, the traceability of low-value non-serial numbered products brought into NI in bulk which then go into a parts store, and are used as required without any record kept, are likely to cause particular issues. HMRC is willing to discuss such cases in more detail. The deadline for making claims is three years from the point of the original duty being paid, where this is paid after 30 June 2023. For historic claims going back to 1 January 2021, the three-year window runs from 30 June 2023 to 30 June 2026. At the meeting HMRC also highlighted that the guidance on moving certain categories of steel into Northern Ireland without being subject to safeguard charges where relevant quotas are open has been updated. And finally, as the scheme is now open, we welcome your feedback on its operation and any issues you may be experiencing. Miscellaneous updated guidance etc. Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020; Report payments and view your allowance for non-customs state aid and Customs Duty waiver claims; Check if you can claim a waiver for goods brought into Northern Ireland; Data Element 2/3: Document and Other Reference Codes: Licence Types – Imports and Exports of the Customs Declaration Service (CDS); Claim a waiver for duty on goods that you bring to Northern Ireland from Great Britain or countries outside the UK and EU; Classifying edible fruit, vegetables and nuts for import and export; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; Notices made under s32A of the Taxation (Cross-border Trade) Act 2018; Customs, VAT and excise UK transition legislation from 1 January 2021; Simplified procedures exclusion list of procedure and additional procedure codes for CDS; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Border Force customs offices list; Summary of movements of goods into Northern Ireland from Great Britain 2022; Apply for a voluntary clearance amendment (underpayment) (C2001); Get proof of origin for your goods; and Check your goods meet the rules of origin.

The European Commission recently published a progress report on Pillar One. The Commission has stated that it “will do its utmost to ensure a timely and consistent implementation of Pillar One at EU level.”

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. Agent services account access groups: book now This webinar looks at access groups within the agent services account including about access groups; clients lists and transacting with clients; adding team members; managing access groups; examples; and error messages, filters, and client references. An overview of the new alcohol duty structure and rates: book now From 1‌‌‌ August‌‌‌ 2023, alcohol duty will be charged in relation to the strength of the product as opposed to the product type. This webinar will explain the new alcohol structure and rates, including the reduced rates for draught products An overview of the new alcohol duty structure and small producer relief: book now This webinar will provide a background into the new small producer relief, including eligibility criteria, and how to calculate this. Capital allowances and vehicles: book now This webinar is part of HMRC’s annual Self-Assessment programme covering the rules for cars, qualifying expenditure, pools and rates, and vehicle hire purchase. A recording is also available to register to view of the webinar UK freeports – examples of tax and customs benefit.

The European Commission is calling for feedback on its proposal to amend to Council Regulation (EU) No 904/2010 regarding VAT administrative cooperation and combating VAT fraud. The feedback period will run until Thursday 3 August.

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

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

As cyber threats continue to evolve, businesses must prioritise proactive measures to safeguard their operations. Eleanor Barlow highlights four critical cyber-attacks organisations should be prepared for this summer Given the scope of cyber threats over the past several years, it is more important than ever for businesses to take proactive measures to protect themselves. Here are the four cyber-attacks I feel organisations should be aware of and ready to protect themselves against this summer. AI-powered social engineering attacks  Artificial intelligence (AI) has entered almost all spheres of the business world. While AI brings numerous benefits and advancements, it also introduces new cybersecurity risks, such as social engineering attacks. These attacks use manipulative tactics to deceive the victims into revealing sensitive information or trespassing security structures of the organisations. To execute these attacks, cybercriminals rely on AI-based natural language processing (NLP) algorithms to generate more realistic and human-like phishing emails, chatbot interactions or voice calls. Detecting these malicious campaigns is getting harder for the average employee, which is why significant training is required to know what to look for and how to prevent escalation. Cloud-based breaches Cloud computing has become a norm in today’s digital landscape, offering scalability, flexibility and cost-efficiency to businesses. Nevertheless, the widespread adoption of cloud services exposes organisations to new cybersecurity threats, making them a major concern in 2023. Cybercriminals target cloud environments to exploit misconfigurations, weak access controls or insecure APIs. A recent example of the consequences of cloud misconfigurations is the Toyota data leak, in which the personal information of over two million customers was exposed after an access key was leaked on GitHub for almost five years.  Enhanced phishing attacks  Phishing attacks involve cybercriminals posing as trustworthy entities with the intention of deceiving individuals into divulging sensitive information or performing malicious actions. With over 500 million phishing attacks reported in 2022, the number is expected to rise further this year. In fact, threat actors continuously refine their techniques to make phishing emails and messages appear more genuine and convincing, which takes a trained eye to spot. Zero-day vulnerabilities in supply chain attacks With the increasing complexity of supply chains and the interconnectivity of various systems, zero-day vulnerabilities are anticipated to be a significant cybersecurity threat during the summer of 2023. A zero-day attack is a strategic exploitation that involves using previously unknown vulnerabilities in the supply chain and has no available patches or fixes. These vulnerabilities in the supply chain can have severe consequences, allowing attackers to compromise the integrity and security of products and services. They can lead to data breaches, unauthorised access and the potential for sabotage or manipulation of systems. Awareness is key By being aware of these possible threats, organisations can arm themselves appropriately to prevent them. To effectively deal with the cybersecurity challenges of 2023, organisations need to adopt a customised and agile cybersecurity strategy. Eleanor Barlow is Head of Content at SecurityHQ  

The Young Professionals Committee elected Brendan Brophy as the chairperson at the AGM on Thursday 6 July. Brendan was elected alongside Niamh McCarthy as Vice chair for the 2023 / 2024 term. We sat down with Brendan to learn more about him and his plans for the 2023 / 2024 term. While I am often referred to as the ‘Australian’ among my Irish friends, I personally identify as blend of Australian and Irish, and I am a proud dual citizen. My parents emigrated to Australia from Belfast during the height of the Troubles, meaning I have Irish and Australian citizenship, and I was raised with a deep appreciation and love for both cultures. I qualified as an Australian Chartered Accountant in 2016 through Chartered Accountants Australia & New Zealand (CAANZ). After gaining valuable experience as an accountant and tax professional in Australia, I decided to embark on a new journey and relocate to Dublin in mid-2017. I was able to obtain membership with Chartered Accountants Ireland through the reciprocal agreement between the two bodies. I had four years of valuable tax experience in Australia, but when I landed in Ireland, I quickly realised that Australian tax regulations and expertise was not as highly sought after in the local market. I subsequently transitioned into diverse financial management and reporting roles and currently work as a Cost Accountant at Square. Not long after my move to Dublin, I recall receiving an email from Chartered Accountants Ireland promoting an event organised by the Young Professionals Committee. Intrigued by the prospect of networking and connecting with fellow young professionals, I rallied a few of my co-workers to attend the event and the rest is history! Little did I know at the time that this would mark the beginning of my involvement with the committee. I am honoured to be elected as Chairperson of the Committee and look forward to a great year ahead. This year my primary goal is to prioritise the establishment and nurturing of meaningful connections. While attending exceptional events with notable speakers and engaging entertainment can be valuable, I believe the true significance lies in sharing those experiences with others. As young professionals, we play a pivotal role in bridging the gap between senior management and junior staff, fostering connections and collaboration within the organisation. Furthermore, it is essential to maintain a strong connection with the Institute and the great resources such as CA Support and Thrive that our available to all members. I would like to take this opportunity to congratulate Peter Gillen on a fantastic year as chairperson of the Young Professionals Committee. Special thanks to my fellow committee members, as well as Institute staff Karin Lanigan and Linda McGee who work tirelessly behind the scenes to support all our initiatives.  I look forward to the year ahead and hope that many young professionals will join us virtually and in person at our upcoming events. Keep an eye on our LinkedIn and Instagram accounts to hear the latest developments. Brendan Brophy  Brendan Brophy on LinkedIn Visit the Young Professionals homepage  

Quality breaks in the workday play a crucial role in boosting productivity and enticing employees back to the office, says Deirdre O’Neill Napoleon established 200 years ago that an army marches on its stomach. Now employers who encourage longer, better quality, more frequent breaks are key to unlocking productivity, improving employee well-being and enticing people back to work. New research by Compass Ireland and Mintel found that the time workers spend on their main lunch break varies worldwide.  It averages 54 minutes in China, one of the world’s fastest-growing economies, but just over 20 minutes in Poland. In Ireland, though, lunch breaks average 33 minutes. Analysing insights from 35,000 workers across 26 countries, the Compass Global Eating at Work Survey 2023 shows that, on average, workers take just 35 minutes daily for their main lunch break if they have one.   Full-time employees (working five days a week) were found to skip one lunch break a week, including those surveyed in Ireland, while a third of workers eat their lunch alone, reducing opportunities for socialising. One percent of Irish workers report taking no breaks during their working week, risking burnout. However, this figure is considerably below the global average of 5 percent. Better breaks equal better results The research indicates that employers who invest in good breakout areas and better-quality food and drink offerings can significantly increase productivity, well-being and colleague collaboration and reduce feelings of isolation among employees.   Eighty-one percent of Irish workers said taking a lunch break makes them more productive, while 88 percent agree that regular breaks throughout a workday improve their overall productivity.   Generational differences Globally, Gen Z and Baby Boomers take the shortest lunch breaks, and how employees spend their personal time varies across different age groups. This indicates employers should tailor breakout areas to match unique workforce demographics. While eating and drinking during a break is the top priority for every age group (Baby Boomers, most of all), younger Gen Z and Millennial workers want the time for things that support their mental health. These include socialising with colleagues, relaxing, hobbies and personal interests. The research also found that employees are significantly more likely to socialise and network with colleagues during breaks if they have food and drink facilities at work. The more advanced the food offer provided, the stronger this trend becomes. In workplaces with a restaurant, cafeteria, canteen or coffee shop, 70 percent of workers eat lunch with colleagues, with only 23 percent eating alone. In contrast, when no food and drink facilities are provided, just 38 percent spend their main break with colleagues, while nearly half (48 percent) choose to eat alone. Competing with home While the length of main breaks is largely consistent across home-based, hybrid and work-based employees, those working from home report having more frequent and higher quality breaks than when in the workplace. This presents a considerable challenge for employers trying to encourage workers back to the office. In Ireland, 50 percent of hybrid workers say they take more breaks when working from home. With recruitment and productivity a key challenge facing businesses today, employees taking time out of the working day to relax and recharge with colleagues can make a huge difference. It may seem counterintuitive, but good quality breaks are a win-win for employees and employers, enhancing productivity, collaboration and mental health. Taking a lunch break is no longer a routine event at a set time of day either, our research shows. With the rise of flexible working, employees now expect to refuel when and where suits them best. They want convenient, good-quality food and drink to boost energy and comfortable places to relax and socialise with colleagues. Employers looking to motivate their teams, attract new talent and encourage hybrid workers back into the workplace are investing in what is known as the ‘hotelisation’ of workspaces. Comfortable breakout areas and some form of entertainment, such as ping-pong or TVs, are becoming much more common, as are rooftop gardens and patios for coffee breaks. Employers are conscious of meeting the needs of workers by providing food and refreshments, combined with social interaction, that people can’t replicate at home. Wise employers are creating a workplace culture where breaks are encouraged, not frowned on. Deirdre O’Neill is Managing Director at Compass Ireland 

The latest KPMG Enterprise Barometer reveals a positive outlook among Ireland's indigenous businesses, with over a third planning workforce expansion. These entrepreneurial firms prioritise sustainability but seek clarity on costs and benefits, says Alan Bromell KPMG Enterprise Barometer 2023 highlights confidence among Ireland’s indigenous businesses, with over half (55 percent) expecting to increase turnover in the next 12 months.  The majority of survey respondents, 83 percent, support the need for more action on climate change, and 7 out of 10 are actively pursuing sustainable measures, demonstrating the proactive approach these entrepreneurial businesses are taking to incorporate environmentally friendly practices into their operations.   The research reveals overall optimism among Irish businesses, with over half (55 percent) expecting to increase turnover in the next 12 months and 38 percent expecting to expand their workforce, demonstrating a belief in their growth potential and job creation. Balancing the costs and benefits of sustainability While the majority of survey respondents support more action on climate change, two-thirds express concern about the need for more clarity on the costs and benefits of these measures, and three-quarters say no stakeholder groups are exerting pressure on them to develop decarbonisation strategies. This poses a significant challenge for companies as they strive to make informed decisions on sustainability measures and allocate resources effectively. The survey showed resilience and measured confidence in the future amongst Irish businesses and entrepreneurs. Notwithstanding the challenges in areas such as costs and interest rates, Irish entrepreneurs are resourceful and robust. Private Irish business and entrepreneurship are critical pillars of the Irish economy, providing employment, sustaining tax revenues and acting as role models for future entrepreneurs. In addition, their ingenuity and innovation can be instrumental in solving various challenges, from technology, health and nutrition to sustainability and environmental protection. The survey also shows that sustainability has become a fundamental aspect of business operations, and it’s encouraging to see businesses in Ireland actively pursuing sustainability measures. However, they need help understanding the costs and benefits of decarbonisation. Tax suggestions for Budget 2024 When asked for their views on the current tax regime, less than a quarter (24 percent) said they believe it encourages entrepreneurship and growth. At the same time, three-quarters feel that the Irish tax regime is more challenging for domestic businesses.  The top three tax changes businesses would like to see in Budget 2024 are introducing tax measures to encourage sustainable behaviour (83 percent), amending capital gains tax rates or rules to encourage investment in Irish companies (79 percent) and introducing a reduced tax rate for dividends for entrepreneurs (74 percent ). These highlight a desire for tax incentives and reforms that promote sustainable business practices, stimulate investment and reward entrepreneurship. Recruiting challenges Sixty percent of private Irish businesses and entrepreneurs face difficulties recruiting the right individuals to fill key company positions. Nearly half (45 percent) consider the current tax regime in Ireland a disadvantage to recruiting and retaining skilled employees. The availability of residential accommodation is another primary concern; over three-quarters (77 percent) say lack of accommodation is an issue, suggesting that the housing situation in Ireland could impact recruitment and competitiveness. Alan Bromell is Head of Private Enterprise at KPMG

ICAEW has shared a recording of a recent webinar titled ‘Bounce Back Loan SARs: what good looks like’ This is free of charge but requires registration via the link below. Bounce back loan SARs: what good looks like (icaew.com)

Do you complete expenses and benefits returns? Or do you complete online filing for employment related securities? If so, you have an important role to play in ensuring returns are submitted by the 2022/23 filing deadline of Thursday 6 July 2023, and payments are made on time. By way of reminder, from 6 April 2023, forms P11D and P11D(b) can only be submitted online by employers (except for the digitally excluded). Amendments can also only be made online from 6 April 2023. Also, since 6 April 2023, a new online service is available for employers and their agents to apply for a PAYE Settlement Agreement.  Note that ICAEW has shared how filing P11Ds online can work when a different agent is authorised for PAYE and a tip on registering for PAYE to file P11Ds online. Here’s a reminder of the key deadlines this month:- 6 July 2023 – deadline for submitting all 2022/23 P11D(b) and P11D forms, and the employee must receive their copy of the P11D; 6 July 2023 – deadline for online reporting of the 2022/23 annual return in respect of employment related securities; 19 July 2023 – deadline for non-electronic payment of Class 1A National Insurance Contributions (NICs) for 2022/23; and 22 July 2023 – deadline for electronic payment of Class 1A NICs for 2022/23. To save on administration, don’t forget to consider PAYE Settlement Agreements, where relevant. For 2022/23 these must be agreed by Wednesday 5 July 2023, with payments due by 22 October 2023 (19 October 2023 if paying by post). HMRC is also reminding employers of the expenses and benefits position of COVID-19 position of tests and equipment.

In this week’s EU exit corner, we bring you the latest guidance updates, and publications relevant to EU exit. We also update you on the recent opening of the reimbursement scheme, and bring you news of current consultations in the area of customs. The latest Trader Support Service and Borders Weekly Stakeholder Bulletin are also available. And finally, if you account for import VAT on your VAT Return under postponed accounting for VAT, you must access the Customs Declaration Service to get a postponed import VAT statement online Reimbursement scheme now open Last week on 30 June, the long awaited duty reimbursement scheme launched which means traders can now reclaim duty on goods moving into Northern Ireland which do not subsequently move into the EU. Claims are possible back to 1 January 2021. HMRC recently responded to the Institute to say that interest will not be paid on refunds received by traders, however we have asked HMRC to provide more detail on this, and will keep you updated. The Institute lobbied on the need to open the scheme for several years. The reimbursement scheme allows for reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the Windsor Framework. This includes the following scenarios:- Final sale of goods takes place in NI; Goods are consumed in NI; Goods are destroyed in NI; Goods are moved back to GB from NI; and Goods exported to RoW (Rest of World). In order to claim, the trader must gather evidence to support the claim and submit this to HMRC where a caseworker will consider the application. The following publications are also available which are relevant to the scheme:- Declaring goods you bring into Northern Ireland 'not at risk’ of moving to the EU; Trading and moving goods in and out of Northern Ireland; Notices made under the Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; and Apply to claim a repayment or remission of import duty on ‘at risk’ goods brought into Northern Ireland. Consultations Four consultations are currently open which are relevant to customs. HMRC has also published a new customs and UK border consultations tracker. Customs treatment of post and parcel exports – closes 20 July 2023 This consultation seeks to understand who makes use of the Export Memorandum of Understanding and Extra Territorial Offices of Exchange, and why, before looking at each procedure individually to establish ways in which the UK’s post and parcels export regime could be improved. The objective is for HMRC to establish how the customs treatment of low-value post and parcel exports can be developed to enable the smooth flow of these goods out of the UK, while ensuring appropriate due diligence is applied to help protect the countries and territories exported to, while complying with international obligations. Introducing a voluntary standard for customs intermediaries – closes 30 August 2023 This consultation seeks views on the proposal to introduce a voluntary standard for customs intermediaries, with the aim of improving the quality of service across the sector. It follows on from the 2022 Call for Evidence: An Independent Customs Regime and the measures complement wider transformational changes at the border that the government has committed to delivering as set out in the 2025 Border Strategy. Views are sought on: the objectives of a voluntary standard, and what format it could take; how a voluntary standard could be designed and implemented; the potential content of a voluntary standard; and training and educational offerings for the intermediary sector, which would support the introduction of a voluntary standard . The future of customs declarations – closes 8 September 2023 This consultation seeks views on potential simplifications to customs declarations, and the use of technology to facilitate declarations and other customs processes. HMRC are holding webinars on 5 July 2023 and 13 July 2023 where policy officials will explain the consultation questions and how to respond. If you would like to attend one of these webinars, please contact HMRC by emailing externalstakeholders.customs@hmrc.gov.uk by 3 July and 11 July respectively. Bringing goods into the UK temporarily – closes 22 September 2023 This call for evidence seeks views from individuals, businesses and intermediaries on how the Temporary Admission (“TA”) procedure is working and, in particular, their experience of using TA in the UK. The government would like to gather and consider a wide range of views on how the TA procedure could be simplified for users. The government also welcomes views on potential improvements to the UK’s TA procedure to make it more accessible. TA is used by a broad range of sectors, including the creative, cultural and sports sectors, the leisure industry, museums galleries and auction houses and a broad range of businesses of all sizes. This call for evidence is likely to be of particular interest to traders, customs agents, freight forwarders and hauliers, as well as business representative organisations, trade bodies and customs consultancies that help traders with their customs affairs. Miscellaneous updated guidance etc. Specialised Committee on the Implementation of the Windsor Framework: joint statement, 23 June 2023; Customs, VAT and excise UK transition legislation from 1 January 2021; List of customs training providers; Customs declaration completion requirements for Great Britain; CDS Declaration Completion Instructions for Imports; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Search the register of customs agents and fast parcel operators; Draft notices made under the Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; and Check simplified procedure value rates for fresh fruit and vegetables.

The Institute is seeking feedback from members on two formal consultations, and we are also considering writing to the Government in relation to the Spring Budget announcement that from 2024 agricultural property relief for Inheritance Tax will be restricted, and will only be available on UK farmland and farm buildings. We are particularly concerned of the impact this will have in Northern Ireland given our geographic proximity to the Republic of Ireland. Get in touch by Monday 10 July with your comments and observations on this, and the two formal consultations below. The Tax Administration Framework Review: information and data – closes 20 July 2023 This seeks views on how HMRC's information and data-gathering powers could be updated to enable digitalisation of services, improve compliance and reduce administrative burdens. Section 6 of the consultation sets out the specific consultation questions. The Tax Administration Framework Review: Creating innovative change through new legislative pilots – closes 20 July 2023 This seeks views on a proposed legislative approach to piloting. HMRC is exploring how it can develop and improve testing prior to wider roll out of change. Section 6 of the consultation sets out the suggested discussion areas. Currently, testing of changes or collaboration with external stakeholders can be limited by legislative inflexibility. This explores the opportunities and challenges of a possible sandbox testing approach, and what safeguards might be necessary and proportionate.

HMRC has published partial draft guidance on the multinational top-up tax (“MTT”), and the domestic top-up tax (“DTT”) included in the Finance No. 2 Bill 2023. The MTT and DTT will take effect in the UK in respect of accounting periods beginning on or after 31 December 2023. Comments should be emailed to HMRC Pillar 2 consultation inbox. Include “HMRC guidance” in the subject line, and refer to the page number (MTTxxxxx) and page title if applicable, when submitting comments. HMRC also welcomes feedback on what stakeholders might find useful in future guidance. This guidance will form a new manual hence further draft guidance will be published in due course. We also understand that HMRC is sending letters to large businesses who it believes may be within the scope of the MTT and DTT.  The multinational top-up tax is a new tax on multinational enterprise groups with annual revenue of €750 million or more. A top-up tax will be charged on UK parent members when a subsidiary is located in a non-UK jurisdiction, and the group’s profits arising in that jurisdiction are taxed at a rate below the minimum effective tax rate of 15 percent. These measures constitute the UK’s adoption of a qualifying Income Inclusion Rule and a Qualifying Domestic MTT (part of the Pillar 2 or GloBE rules). The draft guidance is partial and consists of three chapters of the HMRC guidance manual on multinational top-up tax, which exists as a standalone manual. Page 24 of the guidance includes a cross-reference table between the OECD Model Rules and the UK legislation. The three chapters are:- Introduction, which includes an overview of the taxes and guidance on chargeability; Scope, which includes guidance on excluded entities, the revenue threshold test, and the transitional CbCR safe harbour; and Administration. Additionally, the Introduction chapter includes a map between the legislation and the OECD Model Rules (at MTT09990). The draft guidance is intended to reflect the legislation in the Finance No. 2 Bill 2023 and will be updated to reflect any amendments to the legislation. Therefore, you should not assume that the guidance is comprehensive, nor that it will provide a definitive answer in every case. HMRC will use their own reasoning, based on their training and experience, when applying the guidance to the facts of particular cases.

This month’s tidbits cover several newsletters and the latest advisory fuel rates. The following newsletters are available:- Pension schemes newsletter 150 — May 2023, Charities newsletter 1 — June 2023, Employment Related Securities Bulletin 52 (June 2023), and Public service pensions remedy newsletter — May 2023; The latest advisory fuel rates, which apply from 1 June 2023, are available; The following guidance has been updated:- Confirm a tax check for taxi, private hire or scrap metal licence applications, and Complete a tax check for a taxi, private hire or scrap metal licence A new Spotlight “Dividend diversion scheme used to fund education fees (Spotlight 62)” has been published; The guidance on how to claim a refund of Income Tax deducted from savings and investments has been updated; Several publications relevant to the new Economic Crime Levy have been updated:- Prepare for the Economic Crime Levy, Register for the Economic Crime Levy, and Check if you need to register for the Economic Crime Levy.