From our engagement with members across Ireland, we know that the reporting of tax-free employee benefits in real-time continues to cause administrative headaches for businesses.  Following our recent meeting with Fianna Fáil finance spokesperson, Shay Brennan TD last week, the Deputy raised the issue via a Parliamentary Question to Tánaiste Simon Harris in Dáil Éireann. You can view the Deputy’s question here. We will continue to represent members’ views on this important issue in our lobbying activity in the run up to Budget 2026 over the coming weeks.

TaxSource Total is Chartered Accountants Ireland searchable, complete and freely available online tax resource. This excellent online resource has now been updated for Finance Act 2024. The legislation available includes the Taxes Consolidation Act 1997, the Stamp Duty Consolidation Act 1999, the Capital Acquisitions Tax Consolidation Act 2003, and the Value-Added Tax Consolidation Act 2010.  (Please note that previous users may need to clear their cache (Ctrl+F5) to enable access to the updated content.) 

As we reported last week, the Institute officially launched its latest policy paper on 12 June ‘Enhancing Our Competitiveness – The Case for a Reduced Rate of Corporation Tax in Northern Ireland’. This is a key strategic objective in our lobbying activity reflecting the fact that in a survey of our members in February, 60 percent continue to signal their support for the activation of NI’s devolved powers to set its own corporation tax rate. Members who attended the launch in Belfast have been sharing their perspectives on why the time is right and how the economy will benefit. 

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. Among the issues discussed, Revenue provided clarity on the tax clearance requirement for Residential Premises Rental Income Relief claims, provided an update on its banking modernisation programme, and advised that the PAYE Exclusion Order application is going online. Minutes of the meeting will be available in due course. Residential Premises Rental Income Relief & Tax Clearance Residential Premises Rental Income Relief (RPRIR) contained in section 480C TCA 1997 provides an income tax relief for landlords with qualifying residential premises rental income. It requires landlords with residential property wishing to claim the relief to have tax clearance on 31 December 2024. However, as it is a new relief, landlords who may have been tax compliant on 31 December 2024 may not necessarily have held a clearance certificate on that date. Revenue has confirmed that on an administrative basis, it will accept the landlord’s current tax clearance at the time of filing the tax return. Revenue will update the relevant guidance to reflect this position. A landlord filing a Form 12 income tax return without a current tax clearance in place at the time will see an error message to prompt them to apply for a tax clearance prior to filing. ROS issues with RPRIR Revenue is aware of issues with the ROS Form 11 calculation of Residential Premises Rental Income Relief (RPRIR) for properties with shared ownership in jointly assessed cases. A fix for RPRIP in the Form 11 will be released on 21 June 2025. Revenue will correct any submissions that have been made before that date. Local Property Tax Revenue noted that there are 2.1 million residential properties owned by 1.4 million taxpayers with 95 percent payment compliance to date. Revenue is aware of approx. 17,000 taxpayers registered for either income tax or corporation tax with an exposure to the Local Property Tax (LPT) surcharge if they file an income/corporation tax return before they pay their LPT liability. Revenue wishes to remind agents to check that their clients are LPT compliant before the filing deadline and, if required, put in place a separate agent link which is necessary for each property. Revenue is encouraging agents to check LPT compliance with their clients well in advance of the income/corporation tax filing deadlines to avoid unnecessary delays. A revaluation of properties for LPT purposes will be required on 1 November 2025 and Revenue will commence a bulk issue campaign in mid-September advising them of the changes and their obligations. Form 50A request for offset CCAB-I has received feedback from members reporting delays in Revenue approving F50A offset requests and which is resulting in taxpayers incurring interest charges on late payment of tax, although the money is with Revenue. Based on CCAB-I’s feedback Revenue informed the group that it will mark F50A offset requests as priority so the offset is available when the other activity happens. Banking Modernisation A new payments hub panel will be available on the ROS landing page in mid-August to manage bank account details and create new variable direct debit (VDD) mandates. Taxpayers will be able to see payment activity and status. Guidance will be updated accordingly. The VAT fixed direct debit (FDD) scheme will begin to be wound down from August 2025. VAT FDD taxpayers will be moved to pay and file VAT returns on a  bi-monthly basis but, where applicable, they can opt to file tri/bi-annually. In September 2025, taxpayers paying preliminary tax by direct debit will be migrated to the new payments hub. They will be required to complete and return a new direct debit mandate which will be sent to them by Revenue. Linked agents will be copied on the request. In 2026 Revenue intends to integrate the remaining direct debit arrangements (LPT, VHT, NLWT and C&E) onto the payments hub. It hopes to replace RDIs with VDDs for most tax heads removing the necessity for taxpayers to ‘push’ payments to Revenue. The single debit instruction (SDI) may be redesigned to have future dated SDIs. Revenue will also endeavour to migrate RCT to the payments hub at a later date. Revenue also informed the meeting that it will no longer accept payment by commercial debit card from 1 September 2025. PAYE exclusion order going ‘live’ Revenue informed the group that the PAYE exclusion order application process is going online. The paper system will continue to run in tandem for a period of time and the Tax and Duty Manual and notes for guidance will be updated in due course. Revenue has advised that there is no separate permission required to apply for PAYE exclusion orders but the agent does have to be linked to the applicant in order to apply on behalf of the applicant. If agents are applying on behalf of an employer or a  PAYE employee, they must be the PREM/ payroll agent or the PAYE agent on record.

The OECD has published a report titled Tax Administration Digitalisation and Digital Transformation Initiatives on the use of technology by tax administrations globally. The report provides useful insight to tax administrations considering relevant domestic reforms and may help identify opportunities for future collaboration between tax jurisdictions.

On Wednesday 25 June, the meeting of the EU Parliament sub-committee on tax matters will include a workshop on the study of tax barriers and cross-border workers and tackling the fragmentation of the EU tax framework.

Antigua and Barbuda signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). This represents an important milestone as the 105th jurisdiction joins the landmark agreement to strengthen the global tax treaty network.

In Irish news this week, Revenue has confirmed it will issue agents with details of client demand notices and the International Monetary Fund has published a report on the Irish economy. In UK news, the Institute has launched its position paper calling for a reduced rate of corporation tax for Northern Ireland, and in the 2025 Spending Review, HMRC has been awarded an additional £0.5 billion in 2026/27 to become a digital first organisation. In International news, the OECD has published guidance on the design of an investigation manual for tax-related crimes. Irish 1. Revenue has confirmed it will provide agents with weekly information on client demand notices. 2. Read about the annual review of the Irish economy by the Executive Board of the International Monetary Fund.   UK 3. The Institute has launched a refreshed campaign and published a position paper seeking a reduction in the rate of corporation tax in Northern Ireland. 4. Read about the additional funds awarded to HMRC in the 2025 Spending Review and its plans to become a digital first organisation. International 5. The OECD has recently published guidance to assist tax authorities in compiling manuals to support criminal tax investigations. 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 post EU exit corner here.

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 most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also asked us to share that a new system will be implemented from 28 June 2025 to check specific customs declaration elements against the information contained in the relevant license. Implementation of CERTEX From 28 June 2025, CERTEX will be the new system used to check specific customs declaration elements against the information contained in the relevant license. HMRC has published detailed guidance on this. CERTEX replaces the Automatic Licence Verification System (ALVS) for Northern Ireland. This change does not impact express operators moving consumer parcels under the UK Carrier Scheme.      If a licence is required, this change will impact the following document types:  Certificates of Organic Conformity (COI), Plants and plant products (CHED.PP), Food and feed of non-animal origin (CHED.D),  Food and products of animal origin (CHED.P),  Live animals (CHED.A), Ozone Depleting Substances (ODS), and Fluorinated Gases (FGAS). For these licensed goods moving into or out of Northern Ireland by import, export or transit, information on declarations such as commodity code, net mass, and supplementary units must match with licences. This is essential to avoid unnecessary delays to the movement of goods.  Also, from 28 June 2025, the Common Health Entry Document (CHED) reference must also be provided on the declaration in the new format. The reference format must be letters followed by numbers and include the full stop character. For example, 'CHEDA.XI.2025.1234567'.   If a trader is pre-lodging a declaration that will be arrived from 28 June 2025 this will need to include the new CHED format. If they have already pre-lodged a declaration for arrival from 28 June 2025 using the old CHED format, they will need to use the Customs Declaration Service to amend this prior to the arrival of the goods. They must continue to use the old CHED format if they are pre-lodging a declaration that will arrive prior to 28 June 2025. Failure to use the correct CHED format will result in rejections once the goods arrive and potentially delays in getting the goods released. Processes for making a declaration or obtaining a licence remain unchanged.  For support for goods in movement, contact the Department of Agriculture and Rural Affairs (DAERA) on 0300 200 7852 or email daera.helpline@daera-ni.gov.uk. For general support with freight movements, traders can contact the Trader Support Service team, or call the HMRC Customs and International Trade helpline on‌‌‌ 0300‌‌‌ 322‌‌‌ 9434‌‌‌ (textphone 0300‌‌‌ 200‌‌‌ 3719).   For support with parcels movements, traders can contact their parcel express operator. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Communications resources to help you move goods from Great Britain to Northern Ireland, Software developers providing customs declaration software, Simplified Process for Internal Market Movements (SPIMM): Category of goods guidance, Import goods to the UK temporarily, Software developers providing entry summary declaration support, Short shipments at temporary storage locations, Customs Declaration Service error codes, CDS Customs Clearance Request Completion Instructions for Inventory Exports, CDS BIRDS Declarations and Customs Clearance Request completion instructions, Notices made under The Customs (Import Duty) (EU Exit) Regulations 2018, Customs Declaration Completion Requirements for The Northern Ireland Protocol, Claim back an import security deposit or guarantee, CDS Declaration Completion Instructions for Final Supplementary Declarations, Simplified Process for Internal Market Movements (SPIMM) or UK Carrier (UKC) Scheme: Customs Declaration Service Data Element Completion Guide, CDS Declaration Completion Instructions for Exports, CDS Declaration Completion Instructions for Imports, Pipette tips (Tariff notice 12), Economic Operators Registration and Identification (EORI), and Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service.

The Executive Board of the International Monetary Fund (IMF) has concluded its annual review of the Irish economy. The publication issued by the IMF following the review acknowledges that the Irish economy has performed well and started 2025 in a strong position. In the report, the IMF noted that the Irish economy is projected to continue to grow but at a slower pace, with increased global uncertainty impacting on household and business spending decisions. The review also highlights significant downside risks to growth and public policy due to the concentration of activity in a small number of multinational enterprises and the impact of external trade and tax policy shifts on this cohort of businesses. Commenting on the report, Minister for Finance, Paschal Donohoe TD said: “I welcome today’s publication by the IMF, and its assessment that our economy and the impressive results we have achieved by building on our comparative advantages.  I note and share the IMF’s assessment of external risks, notably the reversal of globalisation, the ongoing disruption caused by regional conflicts, domestic capacity constraints, and the uncertainty in relation to corporation tax receipts. While I acknowledge Ireland’s vulnerability to the rise in global uncertainty, our economy has demonstrated resilience in the face of consecutive large shocks” Also commenting on the report, Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD said: “I welcome the IMF report which presents a timely opportunity to consider ongoing developments in our economy. Working with Minister Donohoe and his Department, we will be setting out how the country will manage government spending, taxes and reform over the next five years. This work looks beyond quick wins, ensuring informed investment, stability and real progress.”

Revenue has confirmed that their guidance on the Level 1 Compliance Programme – Debt Warehousing Scheme is obsolete as it is no longer possible to make a disclosure under the terms of the Debt Warehousing Scheme.  

Last week Chancellor Rachel Reeves delivered the 2025 Spending Review in Parliament which saw HMRC awarded an additional £0.5 billion in 2026/27 to make it a digital first organisation. The Spending Review sets planned spending totals for all UK Government departments from 2026/27 to 2028/29 inclusive in addition to investment spending plans until 2029/30. Although there were no specific tax announcements in the Spending Review, speculation now continues that there will be further tax rises in the Autumn Budget later this year given the spending and investment plans set out. The Institute for Fiscal Studies has now published a podcast setting out its analysis of the review whilst the Federation of Small Businesses says that the review lacked business focus. The House of Commons Treasury Committee subsequently announced an inquiry into the review. HMRC settlement The settlement includes additional funds of £0.5 billion in 2026/27 to “make HMRC a digital-first organisation”. This will be used to improve digital services and enable the use of AI to both assist taxpayers and improve productivity within HMRC.   Over the next three years, HMRC’s settlement is as follows: 2026/27: £7.3 billion, an increase from 2025/26 of £0.5 billion, 2027/28: £7.1billion, and 2028/29: £6.9 billion. By 2029/30:  90 percent of taxpayer interactions will be digital self-serve, up from the current 70 percent; and  HMRC will have reduced the number of letters it sends by 75 percent. HMRC will “eliminate all outbound post, with limited exceptions such as letters which generate revenue”.  However, it “will continue to ensure alternative channels, including phonelines, are still there for those who need them”.  The Institute looks forward to discussing how HMRC will achieve these very ambitious targets, including how inbound post will be treated, whilst also improving its current service levels as the taxpayer self-assessment population continues to grow because of fiscal drag. More information on this is expected to be available in the coming weeks when HMRC publishes its Digital Transformation Roadmap which was delayed from the spring pending the outcome of phase two of the 2025 Spending Review. The move to use more AI is interesting given recent comments by the Public Accounts Committee which said in a recent report that HMRC’s reliance on its legacy IT systems was restricting its use and development of AI. HMRC’s settlement also aims to enable the department to deliver the package of measures announced previously to close the tax gap including modernising HMRC’s use of data and recruiting an additional 5,500 compliance staff and 2,400 debt management staff.  Alongside the main Spending Review publications, HM Treasury also published ‘Spending Review 2025: Departmental Efficiency Plans’ which explains how different departments will deliver efficiencies. According to this, HMRC will deliver efficiencies of £773 million per year by 2028/29 in the following areas:  moving to digital services, improving and modernising its IT estate, continuous improvement and productivity which includes anticipated benefits from bringing the functions of the Valuation Office Agency within HMRC, restructuring its physical estate by consolidating offices into regional centres, exiting some sites and streamlining facilities contracts. By 2030, HMRC is aiming to have 85 percent of staff based outside London, and increasing focus on up-stream compliance to prevent errors from being made, rather than taking action after.