EU Finance Ministers recently adopted new tax transparency rules for service providers in crypto-asset transactions for EU customers. The new rules will update various existing measures, including DAC 8, and are aimed at improving the detection of tax fraud, evasion and avoidance. The Directive will require that all crypto-asset providers based in the EU must report on transactions involving EU residents.  

This week we bring you news about recent bulletins published by HMRC and the tax checks that are needed to renew certain licenses have recently been extended to Northern Ireland. Also featured are key reminders from HMRC about phishing scams, and a reminder to tell HMRC that your personal and business circumstances have changed. An email reminder has also been issued about alcohol duty reform and the various new reliefs which may be available. Earlier this month, the Chancellor announced an increase to the National Living Wage which will take effect from April 2024.  Recent bulletins  The most recent Agent update: issue 113 was recently published last week. Get the latest guidance and information including:- loss carry back claims for corporation tax;  making a valid claim for R&D tax relief;  the launch of a toolkit for the assurance of remittances to be reported on tax returns; and  important information for taxpayers using 'pay by bank' to pay HMRC.  The latest Employer Bulletin: October 2023 is also available providing employers and agents with up to date information on payroll topics. Featured in this bulletin are the following topics, amongst others:-  electric charging of company cars and vans at residential properties;  paying your PAYE Settlement Agreement;  reporting PAYE information in real time when payments are made early at Christmas;  Overlap relief — preparing for the new tax year basis; and  ‘pay by bank account’ enhancements.  Extension of tax checks for licence renewals  The tax checks which have been in place in England since April 2022 and which are needed before renewing certain licences were recently extended to Scotland and Northern Ireland. In Northern Ireland the checks are required for licences to drive taxis and specifically for renewal applications made on or after 2 October 2023.  Licensing authorities must confirm that a tax check has been completed by applicants renewing or applying for certain licences.   In order to complete a tax check, an online form should be used which provides a code (which expires after 120 days) which should then be given to the licensing body to confirm the applicant’s status. It should be noted that this tax check is in addition to any checks that licensing authorities already undertake.   More information is available in the guidance.  Phishing scams  HMRC has recently shared tax phishing scam guidance for students with universities on its social media channels. This is because many students are starting paid work, sometimes for the first time, they have not dealt with HMRC before, and are unfamiliar with paying tax or dealing with the tax authority. This makes them vulnerable to fake ‘tax rebate’ offers and similar scams.  A more general news release has also been published warning people about phishing scams associated with the Self-Assessment deadline.   Change in personal and business circumstances  A video was issued on YouTube in summer 2022 promoting the HMRC app and advising individuals why and how to notify HMRC if they have a change of personal or business circumstances: How can I update my personal details on the HMRC app?  HMRC have asked us to share the below reminder:-  “This is a reminder to keep your tax records up to date.   Tell HMRC if your circumstances change  HMRC requires you to tell us of any changes to your personal or business circumstances.   This is so your tax records remain up to date and we can make sure you get the right information about your tax affairs.   If your name, address or personal details have changed, you need to tell HMRC via gov.uk https://www.gov.uk/tell-hmrc-change-of-details You can also notify us, and check your details are correct, on the HMRC app by opening a personal tax account. Download the app today on iOS or Android.   If your business address or details have changed, for example you may no longer be self-employed or your business may have closed, you need to tell HMRC via gov.uk https://www.gov.uk/tell-hmrc-changed-business-details   You also need to tell us about certain income changes, relationship, or family changes, and if you are planning to leave the UK. For more information visit gov.uk   It is your responsibility to tell us; if you don’t you could still incur fines and penalties after your business has stopped trading.”

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Windsor Framework and the latest Trader Support Service bulletin is also available. The Institute will also be attending the next UK Domestic Advisory Group meeting on 6 November and would welcome your feedback by Friday 3 November on specific areas of concern which arise in relation to the Trade and Co-operation Agreement. Update on the Windsor Framework   Meetings of the Joint Committee and the Specialised Committee on the Windsor Framework took place recently, where the EU and UK reviewed progress and finalised certain arrangements for the Framework’s implementation. According to the joint statement released  after the Withdrawal Agreement Joint Committee meeting “The Joint Committee took stock of discussions under the Withdrawal Agreement framework since the last meeting on 3 July 2023. The alternate co-chairs welcomed the progress made and reiterated their mutual commitment to continued work to ensure the full implementation of all the elements of the Windsor Framework in a faithful way.”  Parliament also returned from conference recess last week, with debates taking place on the Retained EU Law Bill, and the Windsor Framework regulations. Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:- HMRC Brexit communications resources;  Report payments and view your allowance for non-customs state aid and Customs Duty waiver claims;  Report and manage your allowance for Customs Duty waiver claims: service availability and issues;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Check if a business holds Authorised Economic Operator status;  List of customs training providers;  Making an entry summary declaration;  Apply for a voluntary clearance amendment (underpayment) (C2001);  Claim repayment or remission of charges on rejected imports; and  Moving goods between the UK and the UK Continental Shelf. 

From 1 April 2023, the reporting requirements for the Trust Registration Service (“TRS”) were expanded. As a result, HMRC updated the TRS manual. An online form must now be used to report “material discrepancies”. This does not include small spelling errors or slight differences in the trust name, so long as the trust is identifiable from the trust name on the TRS.  A relevant person is now required to conduct ongoing due diligence throughout a business relationship with a registerable trust, and prior to engaging in the relationship. Ongoing monitoring must also be carried out in line with the relevant person’s money laundering obligations. 

Finance (No.2) Bill 2023 was published yesterday by the Minister for Finance Michael McGrath TD. The Bill contains the legislation giving effect to the announcements on Budget Day. We will have a full overview of the Bill in next Monday’s Tax News. For now, you can download the Bill here and the Explanatory Memorandum here.

In Irish news, Revenue launch a public consultation on real-time reporting of VAT and Minister Simon Coveney TD announces a Budget 2024 package in recognition of the ongoing challenges businesses face.  In UK news, the 2022/23 paper self-assessment filing deadline is approaching and you can read the Northern Ireland Tax Committee’s response to the consultation on tax incentives for occupational health. In International news this week, the OECD releases new text on the implementation of Amount A of Pillar One. Ireland Revenue has launched a public consultation on the introduction of real-time digital reporting for VAT. The Minister for Enterprise, Trade and Employment, Simon Coveney TD, announced a package as part of Budget 2024 to assist businesses with ongoing challenges. UK 31 October 2023 is the self-assessment paper filing deadline for 2022/23 to avoid penalties. Read the Northern Ireland Tax Committee’s response to the consultation on tax incentives for occupational health. International The OECD releases new text on implementing Amount A of Pillar One. 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 here.  

Revenue has published a new Tax and Duty Manual to provide guidance on the VAT treatment of medical equipment and appliances. In addition, VAT guidance on rollators has been moved to the new manual and has been marked as no longer relevant. 

PAYE taxpayers may be entitled to a repayment of income tax and USC if they are out of work. Revenue has updated the Tax and Duty Manual which provides information on claiming an unemployment repayment online with screenshots of amended myAccount and ROS screens. 

Section 83DA SDCA 1999 came into effect on 1 June 2023. It provides for a full repayment of stamp duty where a residential property is sold for the purposes of an affordable dwelling purchase arrangement under the Affordable Housing Act 2021, within 12 months of its acquisition. Revenue has updated the Stamp Duty Manual to include detailed step-by-step guidance on how to make a repayment claim using Revenue's eRepayments system, which can be accessed through ROS or myAccount. 

Revenue is hosting free online events to give taxpayers an overview of the Enhanced Reporting Requirements (ERR). ERR applies to certain expenses/benefits paid to employees and/or directors. The events will include a Q&A and will address the following topics:  requesting Employer Reporting Notifications (ERN)  submitting expense/benefit details through ROS by file upload or by online form  viewing expenses/benefits by submission type and  an employee’s view in myAccount of submissions made by their employer.  For anyone wishing to attend a webinar they should go to www.revenue.ie/err, select the link to Revenue’s ‘Eventbrite webpage’ and choose the relevant event for your business and follow the on-screen instructions to book your ticket. For further details see eBrief No.212/23. 

The Department of Finance has published the White Paper which sets out estimates of receipts and expenditure for 2024. The latest economic analysis by the Government predicts a surplus of €9.6 billion for 2023 and surplus of €12.5 billion for 2024. Tax revenues are strong with revenue of €88.3 billion predicted for 2023 increasing to €93.3 billion for 2024. The post-Budget forecast was published as part of Budget 2024. 

Revenue has published the Budget Excise Duty Rates Tax and Duty Manual (TDM) to reflect changes in certain excise duty rates announced in Budget 2024. The TDM includes new rates of Mineral Oil Tax and Tobacco Products Tax effective from 11 October 2023. Relevant changes have also been made to the Excise Duty Rates on Energy Products and Electricity Taxes TDM.