Latest Tax news

In Irish news, the Local Property Tax deadline for 2025 returns is next Monday 2 December and Revenue has published updated guidelines for electronic tax clearance. In UK news, the latest Finance Bill is progressing through Parliament and in our miscellaneous updates, HMRC has published updated details of its engagement forums many of which the Institute participates in. In International news, an OECD report shows average tax revenues remain steady as spending pressures grow.  Ireland Readers are reminded that the Local Property Tax deadline for 2025 returns is next Monday 2 December. Revenue has published updated guidelines for electronic tax clearance. UK Follow the progress of the latest Finance Bill through Parliament. HMRC has published updated details of its engagement forums many of which the Institute participates in. International An OECD report shows average tax revenues remain steady as spending pressures grow. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner.          

Finance Bill 2024/25 was published last month together with explanatory notes to the Bill. The Bill’s first reading in the House of Commons has already taken place with second reading scheduled for later this week on 27 November.

In this week’s miscellaneous updates, HMRC’s has published updated details of its stakeholder forums many of which the Institute participates in. HMRC has published amended regulations in respect of the reporting rules for digital platforms and the expert panel commissioned in December 2023 to report on corporate re-domiciliation has published its report. HMRC has also published a spotlight on GDPR and corporation tax relief and the GAAR panel has published its advisory opinion on certain employment award arrangements. And finally, HMRC has published updated guidance on employment related securities. Amendments to reporting rules for digital platforms The OECD’s Model Reporting Rules for Digital Platforms took effect in the UK from 1 January 2024 and require operators of digital platforms to collect and report to HMRC information about people selling goods and services on their platforms. Earlier this month, The Platform Operators (Due Diligence and Reporting Requirements) (Amendment) Regulations 2024 were laid and make two changes as follows which aim to align the UK’s rules with those of the OECD: UK reporting platform operators must report UK seller information to HMRC. Previously there was an exception to this if adequate assurances had been obtained that another operator would report that information, and The various thresholds which mean a seller is an ‘excluded seller’ are no longer proportionally reduced in certain circumstances. These changes take effect from today, 25 November 2024. Corporate re-domiciliation report published In December 2023, an independent expert panel was established to develop a proposal to change the legal framework to allow companies incorporated overseas to become UK companies, whilst retaining the same legal personality. Last month the panel published its report setting out proposals to enable this. The Government intends to consult in due course on a proposed regime design. HMRC spotlight on GDPR and corporation tax Spotlight 65 is being used by HMRC to highlight the incorrect use of R&D tax relief and other  claims being used to reduce a company’s corporation tax liability in the context of General Data Protection Regulation (GDPR). HMRC is aware of tax agents that target businesses to claim corporation tax refunds linked to potential GDPR fines/civil claims. These claims are designed to reduce business profits through the recognition of a provision and a corresponding expense. Provisions and related expenses should only be recognised in accordance with relevant Generally Accepted Accounting Practice. HMRC’s view is that these and similar claims are not in accordance with the law. HMRC will challenge anyone: making such claims, and who encourages or facilitates businesses to make false claims that reduce tax liability or seek a repayment. GAAR opinion on employment award arrangements The GAAR advisory panel has published its opinion on tax arrangements involving: the creation by A of an obligation to make pension payments to an employee, the transfer of that obligation to a third party (B), and the making of a payment by A to B in exchange for B taking on that obligation. The panel’s view is that: entering into the tax arrangements is not a reasonable course of action in relation to the relevant tax provisions, and carrying out of the tax arrangements is not a reasonable course of action in relation to the relevant tax provisions. HMRC employment related securities (ERS) guidance HMRC has published guidance on its view of what constitutes an 'arrangement' for the purposes of an enterprise management incentive (EMI) scheme and thereby leads to loss of independence for the purposes of being able to qualify for an EMI scheme. It has also updated its guidance on the EMI  deeming provisions in the ERS legislation following the outcome of the case of Vermilion. HMRC's position is that an option made available by an employer will automatically be considered an ERS option and liable to income tax and national insurance rather than capital gains tax.

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. HMRC has also sent an email and factsheet setting out guidance and information for hauliers on the movement of business to business parcels from Great Britain to Northern Ireland from 31 March 2025. The email also contains details of a webinar taking place next week on Tuesday 3 December. Miscellaneous guidance updates and publications List of customs training providers, Bringing goods into the UK for personal use, Customs declaration completion requirements for Great Britain, Imports, Appendix 1: DE 1/10: Requested and Previous Procedure Code for Final Supplementary Declarations, Preparing for the new safety and security declaration requirements, and Software developers providing entry summary declaration support.

The latest tidbits features guidance updates across a wide range of areas. Inheritance Tax account (IHT400), Pay Climate Change Levy by Direct Debit, List of approved professional organisations and learned societies (List 3), Appeals reviews and tribunals guidance, Details of deliberate tax defaulters, Cancel your registration for Economic Crime Levy, Submit a return for the Economic Crime Levy, Tax-free savings newsletter 13, Check if an email you've received from HMRC is genuine, HM Revenue & Customs – Working for HMRC, HM Revenue and Customs' organisation chart, HM Revenue & Customs – Our governance, Appeals reviews and tribunals guidance, Named tax avoidance schemes, promoters, enablers and suppliers, Tell HMRC about the end of a qualifying interest in possession (IHT100b), Tell HMRC about assets previously held in an '18 to 25' trust (IHT100h), GAAR Advisory Panel opinion of 7 August 2024: Reward through creation and sale of a pension obligation with consideration paid to the owner of the pension obligation, Repaying your student loan, Environmental taxes, reliefs and schemes for businesses, Find software for filing company documents, Employer Bulletin: October 2024, Tell HMRC about any charges on special trusts (IHT100e), Expenses and benefits: company cars and fuel, Changes in your annual allowance following the public service pensions remedy, Named tax avoidance schemes, promoters, enablers and suppliers, Personal Allowances: adjusted net income, HMRC issue briefing: Evidence required to claim PAYE (P87) employment expenses, Completing your Company Tax Return, Inheritance Tax account (IHT400), and Employment Related Securities Bulletin 57 (October 2024).

The OECD’s newly published Consumption Tax Trends 2024 report highlights governments’ ongoing efforts to improve the performance of their VAT systems and combat fraud and non-compliance. The report shows that VAT revenues continue to rise across the OECD, reaching 20.8 percent of total tax revenue on average in 2022, up 0.1 p.p. from 2021.  

The OECD has published Revenue Statistics 2024. The report shows the average level of tax revenues among OECD countries was largely unchanged in 2023 as governments addressed cost-of-living pressures amid growing spending challenges related to climate change and ageing populations.

A booklet on determining the employment status of workers has been compiled by the Department of Social Protection, the Revenue Commissioners, and the Workplace Relations Commission. The updated Code of Practice on Determining Employment Status is intended to give clear information about employment status taking into consideration labour market practices, legislation, and case law. The Code of Practice notes that decisions of the Department of Social Protection, Revenue or the Workplace Relations Commission are not binding on each other. As previously advised, Revenue published a new Tax and Duty Manual for determining the employment status of workers for tax purposes earlier this year. The new guidance reflects Revenue’s interpretation of the Supreme Court judgment in The Revenue Commissioners v Karshan [2024] IESC  24. The manual outlines the five-step decision-making framework (described by the Supreme Court) that businesses are to apply in determining whether a worker is an employee or an independent contractor for tax purposes. The manual also includes a number of examples to assist businesses in determining the employment status of workers.  

Revenue has updated the Tax and Duty Manual which provides guidance on completing the VAT Return of Trading Details. The revised manual clarifies the treatment of the receipt of services from outside the EU on a self-accounting basis (paragraph 2.2). In addition, there is now reference that section 4 of the RTD (Other Deductible Goods and Services) is subject to the deductibility rate of the filer (paragraph 2.3). Examples in paragraph 2.6 and Appendix 2 have been updated to reflect guidance on exempt reporting.

Revenue has advised that the Tax and Duty Manual regarding  conditional audit settlement offers is no longer relevant as the information provided in it is now set out in the Code of Practice for Revenue Compliance Interventions.

Revenue has updated the Tax and Duty which provides guidelines and procedures for the Collector General’s electronic tax clearance (eTC). The updated manual clarifies requirements for renewal of a Tax Clearance Certificate (Section 21).

Revenue has updated the Tax and Duty Manual which provides information for PAYE taxpayers on how to review their tax using MyGovID or myAccount. The revised manual reflects the years available for review, with updated screen shots throughout. The option to view the Employment Detail Summary has been removed from the PAYE Services card in myAccount.