Institute reacts to Autumn Statement announcements  17 November 2022 – Today’s Autumn Statement did little to support businesses and their employees through the tough times ahead, according to Chartered Accountants Ireland. The Institute, which represents over 5,200 members working in businesses and practices across Northern Ireland, commented as the Government announced its ‘Autumn Statement’ in Westminster, with the Chancellor acknowledging that the UK is in recession after the biggest monthly increase in inflation in over 40 years.  Commenting, Dr Brian Keegan, Director of Public Affairs, Chartered Accountants Ireland said,  “Businesses in Northern Ireland are feeling the effects of this inflationary crisis particularly acutely. These businesses are also dealing with continued uncertainty over trading arrangements in the context of the ongoing Protocol negotiations along with the absence of devolved government.  “We saw during the COVID-19 pandemic that the Government can react speedily at a time of crisis. As this crisis deepens, more needs to be done by the Government to develop and deliver much needed supports through the tax system. For many businesses, these could be a vital lifeline for survival and, ultimately, job protection.  “For example, the Government could reintroduce extended relief for trading losses, as it did during the pandemic. This would enable businesses to claim relief for losses much earlier which would generate vital tax refunds and improved cash flow. “Tax policy and the tax system can, and must, be used to not only build strong and sustainable economies but to provide crucial support via targeted interventions.” ENDS     

The Minister announced the extension of reduced VAT rates for gas and electricity, with newspapers and certain health products becoming zero-rated. As signalled earlier this year, the reduced 9 percent VAT rate for the hospitality sector will not continue past 28 February 2023. Gas and Electricity The 9 per cent rate of VAT will be extended for gas and electricity to 28 February 2023. The measure was due to end on 31 October 2022. Newspapers Newspapers play a critical role in our society. In recognition of this, the Minister announced a reduction in the VAT on newspapers (including digital editions) from 9 per cent to zero rate from 1 January 2023. Health Products Automatic External Defibrillators will now be taxed at the zero rate. In addition, non-oral Hormone Replacement Therapies and non-oral Nicotine Replacement Therapies will be zero rated. These changes will be introduced from 1 January 2023 Hospitality The 9 per cent VAT rate which is currently in place for the benefit of the tourism and hospitality sector will cease after 28 February 2023 where the rate will revert to 13.5 per cent.

The Bank Levy has been extended to the end of 2023. It is expected that the amount collected in 2023 will be in the region of €87 million.