The UK Government has published in draft the Companies (Directors' Remuneration and Audit) (Amendment) Regulations 2025. They have not yet been adopted and that date is currently unknown. If adopted the legislation will repeal most requirements relating to the reporting of directors’ remuneration by quoted companies that were added in 2019 to implement the EU revised Shareholder Rights Directive. The explanatory memorandum explains that those requirements overlapped considerably with the reporting framework as it was before the Directive’s implementation, or added no material value to shareholders so this legislation would remove most of these requirements, to avoid duplicative or unnecessary reporting. It will also make changes to the existing audit regulatory framework to address some gaps or inconsistencies in regulations that have been identified by Government and the audit regulator, the Financial Reporting Council (FRC). The changes form part of wider action being taken by the Government to streamline the UK’s non-financial reporting framework. Readers can find more information about the changes in the explanatory memorandum to the Companies (Directors’ Remuneration and Audit) (Amendment) Regulations 2025. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

In recent months the Institute has approved certain Institute Registered Auditors (audit firms), and responsible individuals (RIs) at those firms, to carry out sustainability assurance engagements in Ireland, pursuant to the EU Corporate Sustainability Reporting Directive (CSRD) as transposed into Irish law.  These are referred to as ‘approved firms’ and sustainability assurance service providers (SASPs) respectively.   The recent Omnibus proposals from the EU Commission have created uncertainty over the scope of the CSRD going forward.  Audit firms should be alert to these emerging developments when considering whether and/or when to seek approval to carry out sustainability assurance engagements.  Transitional (‘grandfathering’) arrangements for SASP approval The EU Omnibus package does not include proposals to directly change the transitional (‘grandfathering’) arrangements for SASP approval. Therefore, it remains the case that an individual approved as a RI in Ireland before 1 January 2026 can avail of transitional arrangements when applying for approval as a SASP.   Under those transitional arrangements a RI is eligible for SASP status if he/she undertakes a minimum of 60 hours of CPD in the relevant subjects.   Note that a RI who is approved as RI in Ireland before 1 January 2026 does not have to apply for SASP status before 1 January 2026 to be eligible to avail of the transitional arrangements described above.  A person approved as RI on/after 1 January 2026 who applies for SASP status will be required, by law, to complete an examination and 8 months relevant practical experience to gain the sustainability assurance qualification. Eligibility for approval to carry out sustainability assurance engagements The eligibility criteria for SASP and firm approval are set out in the Institute’s Audit Regulations (incorporating assurance under CSRD) and Guidance, Ireland (the Audit Regulations).   The Institute has prepared FAQs to provide information for audit firms and RIs considering applying for approval to carry out sustainability assurance engagements. For audit firms who do wish to apply for approval at this time, the audit compliance principal can start the application process by contacting sasp-applications@charteredaccountants.ie to request the relevant application forms.    When an audit firm first applies for approval to carry out sustainability assurance engagements at least one RI at the firm must also submit an application for approval as a SASP. Ongoing obligations of approved firms and SASPs Once approved to carry out sustainability assurance engagements, an approved firm and SASP have ongoing obligations in relation to SASP CPD, compliance with relevant provisions of the Audit Regulations and annual regulatory fees relating to sustainability assurance approved status.  Regulatory Fees It is necessary for the Institute to collect regulatory fees to fund the Institute’s work in providing a robust regulatory framework for approved firms and SASPs.  Each application for SASP status is subject to an approval fee.  From 2026, ongoing annual regulatory fees will also be payable by approved firms. Applications for RI status in 2025 An applicant for SASP status must be a RI in Ireland.  As outlined above, an applicant who is approved as RI before 1 January 2026 can avail of transitional arrangements when applying for SASP status (even where that SASP application is made at a date after 1 January 2026).  If an audit firm wishes to designate new RI(s) during 2025 with the intention of ensuring that the RI status of that person is approved by the Institute before 1 January 2026, the firm is advised to submit application(s) for RI status to the Institute as soon as possible, and at the latest by   1 August 2025.    Early application allows time, in most cases, for assessment of the application by the Institute, including where necessary, consideration by the Quality Assurance Committee, before the end of 2025. The Professional Standards Department cannot provide guaranteed timelines for consideration and approval of RI applications as time required depends on the nature of the application.  Complex or incomplete applications for RI status may take longer to process than well-presented, detailed applications which clearly demonstrate an applicant’s competence and experience.  While the transitional arrangements for SASP status may encourage some firms to consider appointing more RIs during 2025 than might otherwise have been intended by the firm, firms are reminded that only appropriately qualified and experienced individuals can be granted RI status in accordance with the Institute’s Audit Regulations. Application forms for RI status are available on the Institute’s website.  Queries regarding RI applications can be directed to authorisations@charteredaccountants.ie.

Last week at a conference marking the 20th anniversary of HMRC, the Exchequer Secretary to the Treasury (XST) announced that from 31 March 2025, HMRC will be launching a new email enquiry service for agents to help escalate and resolve individual (and not employer) PAYE and Self-Assessment queries which are over four weeks old. HMRC subsequently provided more details of how the new service will work in an email to agents. For several years, the Institute has been advocating for HMRC to establish an email enquiry service for agents including in last year’s Pre-Budget submission and in a letter at the end of 2024 to HMRC on services. The Institute participates in the new HMRC Stakeholder Forum, the Customer Services for Tax Agents and Representative Bodies Working Group which aims to assess current agent services and to develop improved services for agents contacting HMRC with client queries. This new email enquiry service is an output from that forum which will continue its work including reviewing the workings of the new service. During the XST’s speech at the same event, he reflected on the Government’s vision for the future of HMRC and announced that the Government intends to raise the income tax Self-Assessment reporting threshold for trading income from £1,000 to £3,000 within this Parliament. You can read more about the XST’s speech in an email from HMRC.

The Institute will be responding to the following consultations over the coming weeks and wants to hear your views: Electronic invoicing: promoting e-invoicing across UK businesses and the public sector and Reforms to Inheritance Tax agricultural property relief and business property relief: application in relation to trusts. Email tax@charteredaccountants.ie to participate. Electronic invoicing The purpose of this consultation is to gather views on standardising electronic invoicing (e-invoicing) and how to increase adoption of e-invoicing across UK businesses and the public sector. The consultation explores how different e-invoicing approaches may align with businesses and aims to support the development of a UK approach. The consultation will run to 7 May 2025. Please share your views with us by Friday 18 April 2025. Should you wish to respond individually, responses are being accepted by submitting a form or by email to einvoicingconsultation@hmrc.gov.uk. April 2026 changes to Inheritance Tax (IHT) reliefs - agricultural property relief (APR) and business property relief (BPR) As many readers will be aware, at Autumn Budget 2024 the Government announced controversial reforms to two key IHT reliefs, APR and BPR, which will commence from April 2026. Among the changes include the following amendments: a new £1 million allowance will apply to the combined value of property that qualifies for 100 percent BPR or APR or both - after the £1 million allowance has been exhausted, relief will apply at a lower rate of 50 percent to the combined value of qualifying agricultural and business property, and the rate of BPR will be reduced from 100 percent to 50 percent in all circumstances for shares admitted to trading on a recognised stock exchange which are not ‘listed’. HMRC has now launched a limited technical consultation on this issue. Note that the purpose of this consultation is not for stakeholders to provide feedback on the overall policy change but is instead limited to examining aspects of the application of the £1 million allowance for property settled into trust qualifying for 100 percent APR or BPR. As this is a technical consultation, it is running for a shorter period of time to Wednesday 23 April 2025. The Institute is aware of the damaging impact that these reforms will have on businesses and farms in Northern Ireland and in November 2024 flagged these concerns to the Government. We would encourage members to take the opportunity to respond to this limited technical consultation and express their wider views on this damaging policy change. You can respond by using the online form or by email to aprbpr.consult@hmrc.gov.uk. The Institute again encourages you to share your views on these policy changes as we will again be writing to the Government to highlight the particular damage these changes will cause in Northern Ireland. Please email tax@charteredaccountants.ie by Friday 11 April 2025 with your views.

Last week we highlighted that HMRC is conducting a review of the Agent Online Forum (Agent Forum) as there is concern that the forum is not working as intended. The Agent Forum is for tax agents who are members of a professional body and its aim is to enable agents to report issues about HMRC systems that are affecting taxpayers and their clients with responses received to forum posts from HMRC. If you use the Agent Forum, please email tax@charteredaccountants.ie with your feedback. If you are not already a member of the forum, a profile must first be set up on HMRC’s Customer Forum after which access to the Agent Forum should be requested. HMRC will require your contact details, the name of your professional body and your membership number in order to register you on the Agent Forum. The aim of the forum is to be a place for agents to report issues that are potentially widespread and affect a number of taxpayers or agents therefore it should not be used to raise client specific queries.

We previously notified you about industrial action affecting HMRC’s Employer Helpline and Construction Industry Scheme (CIS) helplines. This has now been extended to 16 May 2025. Read the full message from HMRC below about this further extension. “We have robust plans in place to ensure we continue delivering critical services. HMRC Employer Services phonelines and webchat will be open 8am-6pm as usual but customers may experience longer wait times. We recognise that this is inconvenient for customers and agents who need direct support.  The lines affected are:  Employer Helpline (EHL)   Construction Industry Scheme (CIS) Helpline   There are no expected impacts on other services. We will keep the opening hours and service levels under review, and we will update you in advance of any changes.   We are updating GOV.UK and the recorded message that customers hear when calling the helpline. This tells them about the industrial action, the increased wait times and encourages customers to use our digital services.  We strongly encourage customers to use our digital services rather than waiting to speak to us on the phone. Some of the main topics customers call these helplines about, which they can do online are: get a quick answer to queries using the digital assistant  Check the status of your CIS refund in the ‘Where’s My Reply’ tool – only call us if the date has passed   Check your balance in the Business Tax Account. For technical support with online services use the Online Services Helpdesk.”

In this week’s miscellaneous updates, HMRC is holding a webinar tomorrow on the National Minimum Wage increase from 1 April 2025 and the minutes from two HMRC Stakeholder Forum’s which the Institute is represented on have been published. Amd finally, new GOV.UK content has now been launched on setting up a business as a result of the work of another HMRC forum that the Institute participates in. National Minimum Wage from 1 April 2025 HMRC is holding a webinar on this tomorrow. Read the full email from HMRC below which includes a link to register for the webinar. “The National Minimum Wage (NMW) rates increase from 1‌‌‌ April‌‌‌ 2025. HMRC is offering a live webinar to help employers get ready for the change, as well as talking over some common mistakes employers make. The NMW team are offering a number of live webinars as mistakes are very easy to make. If your clients are a business that makes deductions through payroll, operate salary sacrifice schemes or don’t necessarily pay for all time worked, this webinar is for you. The NMW team are offering a number of live webinars as mistakes are very easy to make. If your clients are a business that makes deductions through payroll, operate salary sacrifice schemes or don’t necessarily pay for all time worked, this webinar is for you. Getting ready for the National Minimum Wage increase Register for this webinar on how we can help you get your clients ready for the new rates and avoid accidentally underpaying your workers. You’ll have the opportunity to ask questions throughout using the on-screen text box. Some other useful steps employers/your clients can take, include: check the new rates identify which staff are due the new rate update payroll systems as soon as possible contact the ACAS helpline to get impartial and confidential advice on paying workers correctly ·visit the 'Calculating the minimum wage' guidance page on GOV.UK for advice on how to perform the right calculations, because NMW is more than just a pay rate.” Stakeholder Forum minutes HMRC has published the minutes of the November 2024 Wealthy External Forum sub-group examining the changes to the taxation of non-doms on GOV. UK. The following guidance has also been published by HMRC’S Wealthy Team: IFM37800 - Carried interest: information provided in a tax return - HMRC internal manual, and IFM37850 - Carried interest: tax packs - HMRC internal manual. The minutes from the 128th Joint VAT Consultative Committee meeting from January 2025 have also been published and are now live on GOV.UK. New content on starting up a business HMRC has published the following new content on GOV.UK as a result of the work of the Guidance Strategy Forum which the Institute participates in: Set up a business, Step 1 of Become a sole trader: What a sole trader is, and Step 1 of Set up a private limited company: Limited companies. The guidance contains a new comparison table format which is not previously done on GOV.UK before. Since the launch there has been a lot of great feedback about how users are finding it useful. This is not the end of this group’s work but is considered to be a major milestone. HMRC is conducting another round of user research with limited companies (and another with sole traders is planned) and is also now conducting impact tracking to see if the changes help users in the way that the new guidance aims to.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Apply to operate a customs warehouse, Notices made under the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018, Communications resources to help you move goods from Great Britain to Northern Ireland, Using a special procedure without a prior authorisation, Making an entry summary declaration, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service, and Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020.

On Monday evening 10 March, Institute President and Deputy President Barry Doyle and Pamela McCreedy started a series of US engagements on behalf of Chartered Accountants Ireland.  Approximately 150 Chartered members based in New York and the surrounding region assembled in the Consulate General of Ireland, New York, to attend the Institute’s panel discussion and member networking event on the current economic climate for FDI from the US into Ireland. The Institute’s newest overseas members chapter, for members in New York, was also launched by the President, accompanied by Minister Jennifer Carroll MacNeill. The weeks leading up to the event were characterised by geopolitical uncertainty, and given this context, the Institute was privileged to have such a well-placed panel of speakers at the event. Feargal O’Rourke FCA – Chair of IDA Ireland; Liz Munnelly FCA – CFO of Kerry North America; and John Feeney, Head of Corporate and Commercial Banking joined MC Caitríona Perry, chief presenter for BBC News in Washington, for an engaging and informative conversation at a time of increased focus on the long-established bilateral trade relationship between Ireland and the Unted States.   The event was opened by Gareth Hargadon, Deputy Consul General of Ireland in New York, and we want to thank Gareth and the team for their warm welcome again this year. Minister Carroll MacNeill spoke of the Institute’s status as an all-island body allowing Chartered Accountants Ireland members to access key business and economic positions as “trusted, ethical leaders” who occupy an important position in the island’s US-EU and US-UK relationships – allowing potential to influence and shape policy which cannot be underestimated. She noted the breadth of Irish businesses paving the way in the US across a variety of sectors, from Therapie Beauty Clinic to Kerry Group. President Barry Doyle spoke to members about the importance of Irish Chartered Accountants’ role in American organisations, steering businesses and strengthening relationships across the Atlantic. Barry’s key message was the vast potential offered by the global nature of the accounting qualification. New York resident and Chartered Accountants Ireland Council member Conall McGonagle – CFO and CAO of The Ireland Funds referenced the fact that New York is home to a complete cross section of members, and he and Barry Doyle launched the New York member chapter, providing members in the region key touchstones with the Institute and each other. The chapter – like the other 14 overseas member chapters around the world – will offer a central point of contact for members arriving in the city as well as those who already call it home. The panelists set the scene of the reality on the ground for businesses operating between the Irish and American markets, at a time of increased turbulence and uncertainty. The message was however positive, with Feargal O’Rourke noting Ireland’s all-time-high employment rate, something that is very appealing to US FDI investors. Echoing his sentiments at last November’s launch of a Chartered Accountants Ireland Guide to FDI in Ireland paper, he noted that Ireland maintains its position as a good place to invest for a wide variety of economic and social reasons. Continuing in this positive vein, Elizabeth Munnelly encouraged all businesses – regardless of their size – to explore the Irish market, citing Kerry as an example of a company that started out small and now employs 6,000 staff. John Feeney focused on domestic investment, reassuring potential investors to Ireland that there is funding available for infrastructure projects, emphasizing that Ireland must continue to create the right environment to attract investment. Members in the room were highly engaged and there were plenty of questions from the floor on everything from FDI to defense spending to tariffs.  During the week, the President and Deputy President also met with Mark Koziel – President and CEO of AICPA (Association of International Certified Professional Accountants) to congratulate him on his new role. The President also met with AICPA’s Susan Coffey as well as Lee White, CEO of IFAC, to ensure we strengthen the Mutual Recognition Agreement. During the meeting, they discussed IFAC’s key priorities, and ways in which IFAC plans to collaborate with other accountancy bodies to support the growth of the profession. Barry and Pamela, along with Global Member Manager Gillian Duffy, continue their outreach in Washington DC forging and strengthening relationships with stakeholders and members there. With over 750 members in the USA, the United States continues to be a draw to Irish Chartered Accountants at all stages of their career. The role members play in supporting both US and Irish businesses is critical to their success with senior business leaders such as Donald Gaynor, Elizabeth Munnelly and Alan Ennis making an impact on the US and Irish economies. Initiatives like the Morrison Visa – now in its 30th year – are just one avenue to help Irish people to access America and continue this tradition of success. Likewise, the ACA qualification is dubbed a “global passport” for good reason. Ireland remains uniquely placed to support growth, and with Irish Chartered Accountants held in such high esteem within business communities, they can provide trusted leadership in changing times. Members who wish to become involved with the New York member chapter – or any other member chapter – should contact Gillian Duffy. Photos from the event can be viewed here.

If your firm wishes to file information at Companies House on behalf of clients or if you plan to verify the identity of certain individuals, you will need to register to be an Authorised Corporate Service Provider. Click here for more information. 

HMRC is conducting a review of the Agent Online Forum (Agent Forum) as there is concern that the forum is not working as intended. The Agent Forum is for tax agents who are members of a professional body and its aim is to enable agents to report issues about HMRC systems that are affecting taxpayers and their clients with responses received to forum posts from HMRC. If you use the Agent Forum, please email tax@charteredaccountants.ie with your feedback. If you are not already a member of the forum, a profile must first be set up on HMRC’s Customer Forum  after which access to the Agent Forum should be requested. HMRC will require your contact details, the name of your professional body and your membership number in order to register you on the Agent Forum. The aim of the forum is to be a place for agents to report issues that are potentially widespread and affect a number of taxpayers or agents therefore it should not be used to raise client specific queries.

The Northern Ireland Tax Committee chaired by Janette Burns met recently for the first time in 2025. A range of issues was on the agenda including Making Tax Digital (MTD) for income tax which commences in just over a year from April 2026 for unincorporated businesses and landlords with turnover from self-employment and property income exceeding £50,000 in 2024/25. The meeting was attended by several HMRC MTD Programme representatives, including the Programme Director Craig Ogilvie, who gave an update on the current status of this project whilst also reflecting on its challenges. Craig also set out what HMRC’s ambitions are for the next phase of testing in 2025/26, including the supports which will be available to taxpayers and agents. HMRC will be writing to agents who are likely to have clients in the first phase of mandation in the coming months; just one element of a wider comms plan. HMRC is keen to hear about the plans of our member firms to get ready for this major change and, in particular, specifically the reasons why firms are not planning to take part in testing in 2025/26 and what the challenges/blockers are preventing participation. Email tax@charteredaccountants.ie to provide your feedback. The Institute continues to work with HMRC on MTD readiness and is developing a cross-department MTD readiness strategy to assist members in their preparations. Last week HMRC held an MTD event in Belfast on Tuesday 4 March which the Institute was represented at. Another event is to be held in Belfast later in 2025 which we will share details of once available. HMRC’s MTD team, including the Programme Director also presented at the Institute’s Practice Consulting team’s Practice News webinar at the start of February. On the guidance front, HMRC has published an updated version of work out your qualifying income for Making Tax Digital for Income Tax. The changes made to this guidance are as follows: Clarified the definition of ‘qualifying income’. This is because HMRC is seeing that various taxpayer types think that other income sources are included under ‘income from self-employment’ e.g. income from a partnership or dividends from their personals service company when they are not, Explanation of ‘latency’, Added a new sub-section on what’s not included, Added new sections on if you use the cash basis and are VAT registered, if the transactions in UK land rules apply, and if you are impacted by basis period reform, and Redesigned the section on residency and removed the concept of domicile which will no longer be relevant from April 2025. These changes align to internal HMRC feedback and policy review but are also based on user feedback from ongoing user research in support of this interactive guidance tool, linked from Find out if and when you can use MTD. The list of available MTD for income tax software has also been updated.

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

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

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

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

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

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

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

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