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. Several services have also been unavailable since Friday 23 June and are expected to reopen today.

The Government has launched a new consultation on tackling non-compliance in the umbrella company market and a new Call for Evidence has been opened on certain share schemes. More details on each are provided below. In addition, a new consultation on how to reform transfer pricing, permanent establishments and Diverted Profits Tax legislation has also been opened. Share schemes As announced at the Spring Budget, a Call for Evidence on the Save As You Earn and Share Incentive Plan shares schemes has been launched which seeks to improve these schemes, and expand their use, by making it easier for businesses to set them up and offer them to employees. This Call for Evidence will close on 25 August 2023. Umbrella company market A consultation, Tackling non-compliance in the umbrella company market, has been opened examining policy options to regulate umbrella companies and tackle non-compliance in the umbrella company market. This consultation will close on 29 August 2023 and follows on from the Governments Call for Evidence: umbrella company market which aimed to ensure that the Government has an up-to-date and well-informed view of how the umbrella company market operates. The Government has published a summary of responses to this consultation which was used to inform the newly launched consultation in this area. Transfer pricing, permanent establishments and the diverted profits tax This consultation  closes on 14 August 2023; HMRC is seeking views on proposals to reform the following UK laws: transfer pricing: pricing transactions between related parties; permanent establishment: basis for taxing UK activities of non-UK resident companies; and the diverted profits tax: anti-avoidance measure for countering arrangements designed to divert profits from the UK. The overall aim is to clarify and modernise the legislation, and ensure it achieves its objectives, while developing simpler legislation that is easier to understand and supports growth by improving tax certainty. HMRC is holding a number of consultation events on the following dates (note the date by which registration for each closes): 30 June (registration closes 26 June); 6 July (registration closes 29 June); and 10 July (registration closes 29 June).

HMRC’s weekly news and information bulletin from 22 June is now available as well as the latest Agent Update 109. HMRC has also provided an update on the actions and takeaways from the February 2023 Stakeholder Conference. The latest Agent Update features:- helping taxpayers steer clear of tax avoidance schemes; publication of the new Code of Practice 9; a new webinar: Agent Forum – working with the agent community; and VAT registration – improving HMRC’s service.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service and Borders Weekly Stakeholder Bulletin are also available. And we remind you that the duty reimbursement scheme is expected to open later this week on 30 June. The Institute has lobbied on the need to open the scheme  for several years. Miscellaneous updated guidance etc. Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837); Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Customs Declaration Service communication pack; Appendix 1: DE 1/10: Requested and Previous Procedure Codes; Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes; Check if a business holds Authorised Economic Operator status; Attending an inland border facility; List of customs training providers; and Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the end of the EU transition period. HMRC has also updated the VAT road fuel scale charges that apply from 1 May 2023 and also contacted us to advise that it is removing certain VAT Briefs from GOV.UK which are being archived.

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. 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. Supply chain assurance in the security sector: book now This webinar is for end-users who outsource their security supply and their agents. It will provide further information regarding the risks and the potential consequences of failing to assure your labour supply chain. 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. The Agent Forum – working with the agent community: book now This webinar aims to raise awareness of the Agent Forum (“AF”) and will look at:- the benefits of using the AF; proper use of the AF, including what HMRC expects from agents and what to expect from HMRC; good practice; and useful hints and tips. A recording is also available to register to view of the webinar UK freeports – examples of tax and customs benefit.

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.

At the April meeting of the Forum on Harmful Tax Practices, the group reached new conclusions on five regimes as part of the implementation of the BEPS Action 5 minimum standard on  harmful tax practices. Three of those regimes are now abolished (one for Aruba and two for San Marino), one was amended (Jordan), and the other is in the process of being amended (Albania).

The European Commission has proposed new rules to make withholding tax procedures in the EU more efficient and secure. The initiative will promote fairer taxation, fight tax fraud, and support cross-border investment. Recognising that current refund procedures are often lengthy and costly, the key proposals include a common EU digital tax residence certificate, two fast-track procedures complementing the existing standard refund procedure as well as a standardised reporting obligation.

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is available, and HMRC has now appointed its technical delivery partner for the Single Trade Window. A consultation has been launched on introducing a voluntary standard for customs intermediaries, and HMRC is seeking more information on the role of the accountant and/or chief financial officer in business decisions on whether to use the Common Transit Convention. HMRC is also writing to businesses that complete export declarations, and it is also confirmed that the long-awaited duty reimbursement scheme will open for claims from the end of this month. The Institute was also in attendance at last week’s UK Domestic Advisory Group (“DAG”) meeting and raised questions on the Windsor Framework. UK DAG meeting The Institute is a member of the UK DAG, and was in attendance at last week’s meeting which gave group members the opportunity to put questions to Pedro Serrano, the EU’s Ambassador to the UK, Sir Oliver Heald, Leader and Co-chair of the UK-EU Parliamentary Partnership Assembly, and representatives from the UK Government. The Institute asked the Ambassador if he was able to share any insights from the EU in respect of how the Windsor Framework (“WF”) is being implemented, from the perspective of potential discrepancies between the UK and EU publications on the framework, and if the EU is satisfied that the new goods movements red and green lane processes will be ready from September 2023. The Ambassador responded that the ongoing relationship between the UK and EU remains positive and all possible work is being doing to implement the WF in the agreed manner. The UK Government also responded to this question and said that the Government is very committed to implementing the WF, and more information and guidance will follow as soon as possible, in addition to the guidance published last week. The UK is working very closely with the EU on that information and guidance.  Duty reimbursement scheme After much lobbying by the Institute, including our letter earlier this year, it is now confirmed that from 30 June 2023, the UK Government will launch the reimbursement scheme for EU duty paid on “at risk” goods which can be shown to not have entered the EU. More information on how the scheme will work was also provided at a meeting on the Windsor Framework several weeks ago, attended by Chartered Accountants Ireland – see our stories here and here. The scheme will be backdated to 1 January 2021, and will also apply to red lane goods movements which should originally have been green lane, under the WF revised trade operating model. The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023 underpin the scheme. It is not yet clear if HMRC will pay interest on overpayments received under the scheme. Single Trade Window Deloitte, working with IBM, has been announced as HMRC’s chosen technical delivery partner to build and maintain the platform on which the Single Trade Window (“STW”) will be hosted. The STW aims to simplify traders’ interactions with the border. The World Customs Organisation (“WCO”) defines such Single Windows as ‘a facility that allows parties involved in trade and transport to lodge standardised information and documents with a single-entry point to fulfil all import, export, and transit related regulatory requirements’. The STW, at its core, ensures a single-entry point for border data, which results in reduced duplication for users. HMRC aims to work closely with Deloitte and IBM to ensure stakeholders’ views continue to be fed into the design of the UK STW. Consultation on introducing a voluntary standard for customs intermediaries As announced at the 2023 Spring Budget, a consultation has now been launched on the proposal to introduce a voluntary standard for customs intermediaries, with the aim of improving the quality of service across the sector. This consultation closes on 30 August 2023 and This will seek views 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. This consultation will be of interest to customs intermediaries, traders (particularly those who use or are considering using a customs intermediary), and any other members of the border industry with an interest in and/or understanding of the customs intermediary sector. HMRC will be holding webinars regarding this consultation where policy officials will explain further the scope of the consultation and the consultation process. If you would like to attend one of these webinars, please contact HMRC by emailing customsintermediariesconsultation@hmrc.gov.uk. The Common Transit Convention and the role of the accountant/chief financial offer HMRC has sent the below request on the role of the accountant/chief financial officer in the context of the Common Transit Convention (“CTC”). “We would like to understand better the role of the accountant and/or chief financial officer in business decisions on whether to use the CTC or not, when importing and exporting goods to the European Union and other European countries, so that we can shape future guidance and communication products to key decision makers. Who we are? We are from the Transit Policy Team in the Customs Policy and Strategy Directorate in HMRC. The CTC is a European wide Convention that the UK acceded to in our own right on Exiting the EU. It allows signatories to the Convention to move goods easily across multiple customs territories until the goods arrive at their final destination, where Customs Duties and VAT are paid. This means that the Duty and VAT are suspended until the final destination, offering cash flow benefits to businesses. What we do? We are working on improving our support and guidance on the CTC to help businesses decide if it may be useful to them. And in the Chancellor’s Spring Statement we announced a package of Transit simplifications for businesses, particularly those using the CTC Trusted Trader scheme which allows businesses to start and end Transit movements at their own premises rather than going to a government office at the port. More information on these measures can be found here.  We’d love to talk to you, if you would be interested then please contact us at transitpolicymailbox@hmrc.gov.uk.” Moving to the Customs Declarations Service for exports HMRC is currently writing to businesses that complete export declarations to make them aware of the key dates for transitioning from the current CHIEF system to the Customs Declarations Service (“CDS”) by the end of November 2023. Traders should therefore check that HMRC has the correct email address to ensure that they are informed at the right time. From 1 December 2023, all export declarations must be made through the CDS. However, traders should not try to move export declarations to the CDS before September 2023, unless contacted by HMRC. Currently, specific types of export declarations cannot be made through the CDS and must still be submitted using CHIEF. HMRC is writing to businesses making these declarations to inform them of when they can start using the CDS.  The current timetable for full transition of export declarations is as follows: from May 2023, HMRC has been contacting traders submitting the highest number of export declarations but only through the Goods Vehicle Movement Service, and has advised them to start making export declarations through the CDS. from July 2023, HMRC will contact all remaining export declarants to make sure they are ready to make export declarations through the CDS by setting out the actions they need to take and signposting to relevant guidance. from September 2023, the CDS is expected to be open for making declarations for all export routes. Next steps Traders that have not already done so should carry out the following steps to prepare for making export declarations through the CDS: Apply for an Economic Operator Registration and Identification (EORI) number beginning with ‘GB’; Subscribe to the CDS; Read the latest CDS guidance. Contact HMRC with any questions. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Customs, VAT and Excise UK transition legislation from 1 January 2021; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Method of payment (MOP) codes for Data Element 4/8 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); Appendix 2: DE 1/11: Additional Procedure Codes; Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes; Appendix 2 C21i: DE 1/11: Additional Procedure Codes; The Customs (Miscellaneous Amendments) Regulations 2023; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and Appendix 1: DE 1/10: Requested and Previous Procedure Codes.  

Paul A. Slattery outlines the keys to successful impromptu public speaking. Ad hoc speaking situations are a common occurrence in professional settings, and the mere prospect of delivering a speech at short notice can be nerve-racking for many of us. However, there is no need to dread this. By employing specific techniques, you can deliver a successful presentation at any time. Be prepared to sound spontaneous Your goal is to sound spontaneous while articulating your ideas in an organised manner, making an impact on your audience. Although being fresh and spontaneous is desirable, simply ‘winging it’ should never be your approach. Achieving a balance of ‘organised improvisation’ and appearing natural without following a script requires preparation. The rule of three The ‘Rule of Three’ is an excellent starting point. It can be adapted to suit any topic and is based on the concept that we are more likely to remember a list of three items or ideas. You can use the Rule of Three to structure your presentation and deliver a solid argument, even with barely any time to prepare. Select the three most important aspects to concentrate on, such as “Three necessary measures to undertake….” The Rule of Three is exemplified in another recommended communication model: ‘Be Brief. Be Bright. Be Gone.’ This philosophy was introduced by Jay Frost and David Currier in their book of the same name. The idea was originally intended for aspiring pharmaceutical sales representatives, but it can be universally applied. To succeed in sales, it is essential to comprehend and implement these three principles: Be brief — Keep your sales pitches short and to the point. Be bright — Understand your product and its context. Be gone — Respect your customer’s time. Be brief Keep in mind that simplicity is key to effective communication. Start by defining the reason for the presentation and providing the relevant facts. Tell your audience only what they need to know – not everything you know. Be ready to answer their questions and maintain a positive attitude in your communication. Consider using the BLUF methodology. BLUF stands for Bottom Line Up Front and is a concise communication practice in which critical information is presented first. It is commonly used in the US military to ensure precision and impact. Think of BLUF as an inverted pyramid providing a simplified version of the message. It is applicable not only in military writing and journalism but also in business presentations. Be bright As a starting point, understand your situation and its context. You should also aim to create a bright impression by engaging in eye contact and, when feasible, firmly shake hands. Try maintaining a confident posture by standing tall. Make sure to convey openness and receptiveness by uncrossing your arms and legs. A sincere smile can go a long way in creating a connection. When speaking, project your voice into the room to ensure everyone can hear you clearly. Speak with confidence to convey your expertise and captivate your listeners. In other words, project your executive presence. Be gone Once you have conveyed your message, it is important to conclude promptly, respecting people’s time and avoiding unnecessary follow-up. Showing consideration for others’ schedules and minimising complexity are vital in any professional communication. There is no need to dread presenting at short notice. Being ready will assist you in delivering concise and compelling presentations. By practising the approaches mentioned here, you can deliver successful impromptu speeches, sound spontaneous and leave a lasting impression on your audience. Paul A. Slattery is the founder and Managing Director of NxtGEN Executive Presence

How do employers attract and retain Gen Z? Full-blown member David Boyd explains The oldest members of Gen Z are now 26, only a few years out of university, an experience shaped by an abrupt shift to online learning, disrupted exams and prohibited socialising. Then the introduction of remote work put individuals’ priorities into perspective. So what does this mean for Gen Z in the workforce? Great Place to Work identified that Gen Z are the largest generation, 32 percent of the global population. By the year 2030, the number of Gen Z employees is anticipated to triple. While they are educated, skilled, socially conscious and resilient, their full potential is as yet unknown. Having grown up with evolving technology, they are more adaptable to change and accepting of efficiencies at work. Additionally, Gen Z want to work for an organisation that sees them as an individual, not a number. As this generation loves learning and puts diversity and inclusion first, a company’s culture can be their first non-negotiable factor in applying for a job. Forget the generalisation that all of Gen Z are “quiet quitters” because what they really want is transparency, action on diversity, and social and environmental responsibility from an organisation that will support their career development. Generation X and Millennial employers should be mindful of Gen Z’s use of anonymous review websites and social media platforms to assess organisational culture. Therefore, organisations should consider if their digital platforms feature people from diverse backgrounds and show support for LGBTQ+ communities, and their online presence is authentic, showcasing their values. Gen Z are said to be the most selective generation, who will change jobs and employers for better opportunities and value alignment. They pay close attention to the types of interview questions asked, particularly if the interviewer is empathetic towards their happiness in the role and good cultural fit. Some people hold the misconception that what Gen Z want at work is a Google-style lounge area and activities but what they really want is holistic benefits, particularly flexibility. Gen Z have experienced working remotely and so are keen to optimise their time outside work to meet their commitments and achieve ambitions. They are unwilling to compromise their vision to fit into a culture that does not fulfil their expectation to live outside working hours. Of course, flexibility includes more than just flexible working hours; it means internal mobility through acquiring a new skill or role. It is unlikely that Gen Z will settle in one role for the duration of their career without the opportunity for growth and development. A study by LinkedIn found that 40 percent of Gen Z are willing to accept a pay cut for a role that offers better career development. A further 70 percent had experienced a career awakening, initiated by the pandemic. Symptoms included boredom, a craving for more work-life-balance and the desire for a job aligned with their passions. Organisations that strive to attract and retain Gen Z should commit to making a strong initial connection with employees, utilise technology for efficiencies, take action on social and environmental global issues, and provide support for employees’ personal and career development. David Boyd is a Graduate Consultant at Grant Thornton in Northern Ireland

In developments this week, the Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting; the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. Read more on these and other developments that may be of interest to members below. Assurance and Audit Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms has been issued. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting.  The report, commissioned by the FRC and conducted by independent research agency YouGov, involved qualitative interviews with 40 ACCs of Public Interest Entities (PIEs), representing a diverse range of organisations, including FTSE 100 and FTSE 250 companies, other listed equities, building societies, and unlisted banks.  The FRC has published a response to the consultation on proposed amendments to the Audit Enforcement Procedure (AEP) and related guidance launched on 3 April 2023. The main purpose of the proposals was to effect changes to the decision-making remit of the Board and the Case Examiner under Part 2 of the AEP (Initial Stages). Financial Reporting The Financial Reporting Council (FRC) has updated its guidance to Actuarial Standard Technical Memorandum 1 (AS TM1) version 5, which provides clarity on the application of some paragraphs within the standard. The International Accounting Standards Board (IASB) has issued the June 2023 IFRS for SMEs Accounting Standard update. This covers news, events and other developments in the standard during the month. This update includes an overview of the proposed amendments to the standard relating to the Pillar Two model rules. Insolvency For the first time in Ireland, the Court has appointed an Examiner to a foreign registered, non-EU company on the basis that its centre of main interests is in Ireland. McCann FitzGerald solicitors are acting for the Company in examinership and has summarised this precedent appointment. We have recently been engaging with the Examiner of the High Court who has noted that Judge Quinn, who manages the Examiner’s Court List, is keen to finalise a number of old liquidations in the coming months. The Examiner is seeking the engagement of Liquidators in helping to finalise these matters. In that regard, the Examiner will shortly be in contact directly with the Solicitors who act for Liquidators in these matters asking for papers to be submitted for a Final Application to the Court and your co-operation in preparing up to date Liquidator’s Reports would be greatly appreciated. Sustainability The International Sustainability Standards Board (ISSB) has announced that it will issue its sustainability standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures on 26 June 2023. Accountancy Europe have made available some working documents which compare the first set of European Sustainability Reporting Standards (ESRS) proposed in the recent Delegated Act to the European Financial Reporting Advisory Group’s original drafts. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a Call for Evidence (CfE) on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II. The objective of this Call for Evidence (CfE) is to gather industry feedback that will help better understand the evolution of the market and provide answers as to how firms apply the new MiFID rules on sustainability. The FRC has issued its response to the ISSB consultation on the methodology for enhancing the international applicability of the SASB Standards and SASB Standards Taxonomy updates. Other News Accountancy Europe has published its June 2023 SME update. The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has this week launched a public consultation on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management. The consultation runs until 11 September 2023. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. It sets out the key achievements of the authority in fulfilling its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU) during a transformative year.   The European Banking Authority (EBA) has published its Report on money laundering and terrorist financing (ML/TF) risks associated with EU payment institutions. Its findings suggest that ML/TF risks in the sector may not be assessed and managed effectively by institutions and their supervisors. The Central Bank has published its second Quarterly Bulletin of 2023. For further technical information and updates please visit the Technical Hub on the Institute website.

Andrea Dermody explains how organisations can develop a culture of belonging where employees can thrive Do you remember a time when you weren’t picked for a team? Or a time when you felt like the ‘other’, the ‘only’, in a group? Do you remember how that felt? These feelings relate to your sense of belonging, your fundamental human need for connection and affinity with others. Over the last few years, we have seen the narrative around diversity and inclusion expand to include equity and belonging, ‘DEIB’ for short. But what does the ‘belonging’ element mean? The dictionary defines belonging as “a feeling of being happy or comfortable as part of a particular group and having a good relationship with the other members of the group because they welcome you and accept you”. According to research by Coqual, a non-profit think tank, a sense of belonging at work is rooted in four elements: Being seen for your unique contributions; Feeling connected to your co-workers; Being supported in your daily work and career development; and Being proud of your organisation’s values and purpose. The research found that employees with high belonging scores also have high engagement scores, higher retention scores, greater loyalty to their organisation and are more likely to recommend their company as a good place to work. When individuals feel a genuine connection to their organisation and their colleagues, they are more likely to contribute their unique skills, ideas and perspectives. This is critically important as 72 percent of European employees report feeling disengaged from their workplace. Might a culture of belonging address this challenge? Creating a culture of belonging How do we build belonging? Belonging is in the little things and, according to Geoffrey L. Cohen in Belonging – The Science of Creating Connection and Bridging Divides, “slight adjustments in the way we interact with people in our daily lives can do much to nurture belonging”. Here are some of the strategies that work: Lead from the top by acknowledging that the objective of the organisation is to create a culture where DEIB is part of how you do business every day and tying its achievement to reward and the promotion of leaders. Spotlight diverse role models to overcome the challenge described by Amy Edmondson in The Fearless Organisation as “when no one at the top of the organisation looks like you, it can make it harder for you to feel you belong”. Be respectfully curious. Don’t assume that what gives you a sense of belonging is the same for everyone. Ask questions and actively listen to learn who people are and what makes them feel they belong. Develop your leaders to understand the difference between diversity, inclusion, equity and belonging and their role as culture shapers and carriers. Build psychological safety by promoting a culture where everyone feels comfortable speaking up, taking risks and celebrating the learning acquired from mistakes. Belonging does not exist in isolation from the other components of DEIB. Organisations need to take a balanced score card approach to build capability, accountability and action across all four areas, regardless of how they label this work. When employees feel they belong, they are more likely to thrive and contribute their best work. Organisations that get this right will reap the benefits of a diverse, engaged and high-performing workforce. Andrea Dermody is the founder of D&I advisory consultancy Dermody  

Chartered Accountants Ireland have issued  Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The TR was prepared in consultation with the Central Bank of Ireland.  The deadline for the reports is 31 October 2023. The letter sent to payment and electronic money firms requested the firm to obtain a specific audit of compliance with the safeguarding requirements under the European Union (Payment Services) Regulations 2018 (“PSR”) and/or European Communities (Electronic Money) Regulations 2011 (“EMR”).  As set out in the Central Bank letter one of the most important objectives for the Central Bank is that user funds are protected. Recent submissions from the sector as well as other communications received from firms highlighted that one in four payment and e-money firms have self-identified deficiencies in the safeguarding risk management frameworks . The nature and scale of these deficiencies indicated that some firms do not have robust safeguarding arrangements in place. The Firm has been asked to prepare a detailed document setting out a description of certain aspects of its organisational arrangements to secure its compliance with the relevant safeguarding requirements under the PSR/EMR and an assertion, approved by the board of directors, stating that in all material respects the description is fairly presented and the controls and processes included in the description were operating as described at the reference date. The statutory auditor (or other audit firm) performs a reasonable assurance attestation engagement, in relation to this assertion. This engagement is separate from the statutory audit of the financial statements of the Firms and does not in any way form part of the statutory audit and may be carried out by the Firm’s statutory auditor or other audit firm. This guidance has been prepared in consultation with the Central Bank. This TR should be read in conjunction with International Standard on Assurance Engagements 3000 (Revised) “Assurance engagements other than audits or reviews of historical financial information” (ISAE 3000 (Revised)).

Demand for early career accountants has increased by 20% in the last 12 months, according to new data released by specialist accounting talent advisory and recruitment firm Barden. Defined as accountants with 3-5 years post-qualification experience (PQE), the demand for early career accountants is being driven by finance teams restructuring and reshaping themselves for the future. At present, finance managers, finance business partners and senior financial accountants are amongst the most sought-after talent in organisations big and small. Practical accounting skills remain important but increasingly CFOs are prioritising candidates with people skills; such as the ability to influence others, to lead others, to lead change programmes, and the ability to communicate financial information to non-financial people. Elaine Brady, Managing Partner, Barden Leinster said “It has been widely reported in recent months that greater attention needs to be devoted to the development of softer skills, the sorts of skills that early career professionals have not had the opportunity to develop as effectively during COVID. We are seeing this on the ground, and increasingly it is these core skills that differentiate who is promoted/hired and who is not.” This increased demand contrasts with a similar decline in available talent driven by two key factors. The first of these is a significant uptick in the number of early career professionals relocating overseas/travelling post-pandemic, with the duration of their stays extending well beyond the traditional 12–18-month mark. The second factor is a divergence in the opportunities available for accountants at this early career level as firms diversify their service lines and finance project and transformation opportunities increase in frequency. These findings come as Barden announces a new three-year agreement to support the Chartered Accountants Ireland Young Professionals group. The partnership will ensure those a few years into their careers as chartered accountants have access to the most up to date marketplace intelligence and expertise they need, awareness of future trends and opportunities as they come down the tracks, and what these mean for their career. Commenting, Sinead Donovan, President of Chartered Accountants Ireland said “Today’s announcement represents a significant enhancement of the supports available to early career accountants. Supporting the next generation as they enter the profession and build their careers was my priority when I became President. When we see a 20% increase in demand for talent coupled with a decline in available talent, it’s clear that there is something amiss. “Part of this is better communicating exactly what we do in our profession. It is not just the traditional accounting skills anymore, it is the people skills, the non-financial reporting expertise and so much more. Our annual student recruitment campaign, underway at the moment, very much reflects this focus. We are delighted to partner with Barden to help the next generation access these opportunities.” Elaine Brady, Managing Partner, Barden Leinster concluded “Our partnership with Young Professionals cements our commitment to Chartered Accountants Ireland members and signals our confidence in the future of the profession.  Over the coming years we hope that our insights, data and collective experience will help enable early career members to make better, more tactical decisions about their professional future.  That’s what makes this partnership so important.”  Today’s announcement marks the expansion of an already existing partnership between Barden and Chartered Accountants Ireland to support trainees and young members as they move through the early stages of their careers. This partnership commenced in 2018 with Barden’s sponsorship of the Leinster Society annual salary survey and was further expanded in 2020 via sponsorship of the Chartered Accountants Student Society.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is available, and HMRC has now appointed its technical delivery partner for the Single Trade Window. A consultation has been launched on introducing a voluntary standard for customs intermediaries, and HMRC is seeking more information on the role of the accountant and/or chief financial officer in business decisions on whether to use the Common Transit Convention. HMRC is also writing to businesses that complete export declarations, and it is also confirmed that the long-awaited duty reimbursement scheme will open for claims from the end of this month. The Institute was also in attendance at last week’s UK Domestic Advisory Group (“DAG”) meeting and raised questions on the Windsor Framework. UK DAG meeting The Institute is a member of the UK DAG, and was in attendance at last week’s meeting which gave group members the opportunity to put questions to Pedro Serrano, the EU’s Ambassador to the UK, Sir Oliver Heald, Leader and Co-chair of the UK-EU Parliamentary Partnership Assembly, and representatives from the UK Government. The Institute asked the Ambassador if he was able to share any insights from the EU in respect of how the Windsor Framework (“WF”) is being implemented, from the perspective of potential discrepancies between the UK and EU publications on the framework, and if the EU is satisfied that the new goods movements red and green lane processes will be ready from September 2023. The Ambassador responded that the ongoing relationship between the UK and EU remains positive and all possible work is being doing to implement the WF in the agreed manner. The UK Government also responded to this question and said that the Government is very committed to implementing the WF, and more information and guidance will follow as soon as possible, in addition to the guidance published last week. The UK is working very closely with the EU on that information and guidance.  Duty reimbursement scheme After much lobbying by the Institute, including our letter earlier this year, it is now confirmed that from 30 June 2023, the UK Government will launch the reimbursement scheme for EU duty paid on “at risk” goods which can be shown to not have entered the EU. More information on how the scheme will work was also provided at a meeting on the Windsor Framework several weeks ago, attended by Chartered Accountants Ireland – see our stories here and here. The scheme will be backdated to 1 January 2021, and will also apply to red lane goods movements which should originally have been green lane, under the WF revised trade operating model. The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023 underpin the scheme. It is not yet clear if HMRC will pay interest on overpayments received under the scheme. Single Trade Window Deloitte, working with IBM, has been announced as HMRC’s chosen technical delivery partner to build and maintain the platform on which the Single Trade Window (“STW”) will be hosted. The STW aims to simplify traders’ interactions with the border. The World Customs Organisation (“WCO”) defines such Single Windows as ‘a facility that allows parties involved in trade and transport to lodge standardised information and documents with a single-entry point to fulfil all import, export, and transit related regulatory requirements’. The STW, at its core, ensures a single-entry point for border data, which results in reduced duplication for users. HMRC aims to work closely with Deloitte and IBM to ensure stakeholders’ views continue to be fed into the design of the UK STW. Consultation on introducing a voluntary standard for customs intermediaries As announced at the 2023 Spring Budget, a consultation has now been launched on the proposal to introduce a voluntary standard for customs intermediaries, with the aim of improving the quality of service across the sector. This consultation closes on 30 August 2023 and This will seek views 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. This consultation will be of interest to customs intermediaries, traders (particularly those who use or are considering using a customs intermediary), and any other members of the border industry with an interest in and/or understanding of the customs intermediary sector. HMRC will be holding webinars regarding this consultation where policy officials will explain further the scope of the consultation and the consultation process. If you would like to attend one of these webinars, please contact HMRC by emailing customsintermediariesconsultation@hmrc.gov.uk. The Common Transit Convention and the role of the accountant/chief financial offer HMRC has sent the below request on the role of the accountant/chief financial officer in the context of the Common Transit Convention (“CTC”). “We would like to understand better the role of the accountant and/or chief financial officer in business decisions on whether to use the CTC or not, when importing and exporting goods to the European Union and other European countries, so that we can shape future guidance and communication products to key decision makers. Who we are? We are from the Transit Policy Team in the Customs Policy and Strategy Directorate in HMRC. The CTC is a European wide Convention that the UK acceded to in our own right on Exiting the EU. It allows signatories to the Convention to move goods easily across multiple customs territories until the goods arrive at their final destination, where Customs Duties and VAT are paid. This means that the Duty and VAT are suspended until the final destination, offering cash flow benefits to businesses. What we do? We are working on improving our support and guidance on the CTC to help businesses decide if it may be useful to them. And in the Chancellor’s Spring Statement we announced a package of Transit simplifications for businesses, particularly those using the CTC Trusted Trader scheme which allows businesses to start and end Transit movements at their own premises rather than going to a government office at the port. More information on these measures can be found here.  We’d love to talk to you, if you would be interested then please contact us at transitpolicymailbox@hmrc.gov.uk.” Moving to the Customs Declarations Service for exports HMRC is currently writing to businesses that complete export declarations to make them aware of the key dates for transitioning from the current CHIEF system to the Customs Declarations Service (“CDS”) by the end of November 2023. Traders should therefore check that HMRC has the correct email address to ensure that they are informed at the right time. From 1 December 2023, all export declarations must be made through the CDS. However, traders should not try to move export declarations to the CDS before September 2023, unless contacted by HMRC. Currently, specific types of export declarations cannot be made through the CDS and must still be submitted using CHIEF. HMRC is writing to businesses making these declarations to inform them of when they can start using the CDS.  The current timetable for full transition of export declarations is as follows: from May 2023, HMRC has been contacting traders submitting the highest number of export declarations but only through the Goods Vehicle Movement Service, and has advised them to start making export declarations through the CDS. from July 2023, HMRC will contact all remaining export declarants to make sure they are ready to make export declarations through the CDS by setting out the actions they need to take and signposting to relevant guidance. from September 2023, the CDS is expected to be open for making declarations for all export routes. Next steps Traders that have not already done so should carry out the following steps to prepare for making export declarations through the CDS: Apply for an Economic Operator Registration and Identification (EORI) number beginning with ‘GB’; Subscribe to the CDS; Read the latest CDS guidance. Contact HMRC with any questions. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Customs, VAT and Excise UK transition legislation from 1 January 2021; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Method of payment (MOP) codes for Data Element 4/8 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); Appendix 2: DE 1/11: Additional Procedure Codes; Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes; Appendix 2 C21i: DE 1/11: Additional Procedure Codes; The Customs (Miscellaneous Amendments) Regulations 2023; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and Appendix 1: DE 1/10: Requested and Previous Procedure Codes.

HMRC has begun sending a monthly email containing updates on the plastic packaging tax (“PPT”). This month’s email is available to read. HMRC has also sent an email with key reminders on the PPT.

The Spring Finance Bill 2023 (official title: Finance (No 2) Bill (Session 2022-23)) continues its passage through the parliamentary process with Committee Stage recently completed. The Bill now moves on to Report Stage, although no date has yet been announced for this, however this is expected to take place after the House of Commons returns from recess. Following Committee Stage completion, an amended version of the Bill has been published. The Committee considered all the remaining clauses of the Bill that had not been examined during the Committee of the whole House. All clauses were passed including amendments tabled by the Government.

In March we reported that 31 July 2023 was the extended deadline to ensure voluntary payments of any shortfalls of national insurance contributions (“NICs”) for the tax year up to 2016/17 were made to protect maximum entitlement to the UK state pension. Last week, the Government announced that the deadline is now extended to 5 April 2025. This announcement also confirms that the rate of voluntary contributions made up to 5 April 2025 will remain at 2022/23 rates. You can check your NICs record here. In order to get a full basic state pension, an individual must have paid sufficient NICs for a minimum number of qualifying years in their working life. See the State pension guidance note for more information.