Representatives from the Institute, under the auspices of the CCAB-I, attended the first meeting of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements Subgroup last week to discuss the implementation of enhanced reporting requirements provided for in section 897C TCA 1997. The new legislation, which will be effective from 1 January 2024, requires that employers report certain non-taxable payments made to employees. The ‘reportable benefits’ are travel and subsistence payments, the remote working allowance and the exempt small benefits. Revenue informed the group that it has been engaging with the Payroll Software Developers Association (PSDA) and other software providers to assist in the development of software to enable taxpayers to make the necessary submissions under the new regime. Revenue advised that it identified the various providers following a survey it commenced in January. Revenue is now encouraging employers to contact their software providers to ensure their software will integrate with Revenue Systems. For employers that will not be using software, Revenue is in the process of developing its own reporting platform on ROS, separate to its payroll reporting platform. It is Revenue’s intention that reporting will be done on a real-time basis. At the subgroup meeting, practitioners raised their concerns with the additional costs associated with the new measures as well as concerns around the practicality of real-time reporting. Revenue is planning to engage with employers from September to provide webinars and information sessions on the new system, following distribution of the attached leaflet in the coming weeks. Noting Revenue’s intention to implement the new reporting system from 1 January 2024, our representatives expressed concern at the minimal preparatory time to be given employers and their agents to comply with the new requirements. The Institute has been highlighting to Revenue the onerous and costly administrative burden that this new reporting requirement will cause for all businesses.  Cróna Clohisey, Tax and Policy Lead in the Institute also raised concerns about the system in a piece in the Sunday Independent Business at the weekend. We will keep members updated of developments in this area.  

Revenue has updated paragraphs 11.2 and 11.3 of its Tax and Duty Manual regarding the Universal Social Charge.  The updated guidance clarifies that as employer Personal Retirement Savings Account (PRSA) contributions and employer Pan – European Personal Pension Product (PEPPP) contributions are not subject to PAYE, they are not chargeable to PRSI.

Revenue has updated the Tax and Duty Manual to reflect the Finance Act 2022 amendments for PEPP providers. Now, where a declaration under section 263F TCA 1997 has been provided to the deposit-taker, interest on a deposit of a PEPP provider that is an asset of a PEPP can be paid gross (i.e. without deduction of DIRT).

This week we bring you information on HMRC’s plans for dealing with post from agents which is more than a year old and how you can get this actioned. Updated guidance for full expensing has been published and a reminder has been issued for the new alcohol duty system which commences next month. We also feature key updates for employers and news that from next month any agent claiming a PAYE income tax refund for a client must have an Agent Services Account. HMRC has also sent an email updating agents on the correction of national insurance records and state pension entitlement. HMRC’s plans for dealing with agent post more than a year old On 10 July, HMRC began to implement its plans for dealing with agent post which is more than one year old. Essentially this involves an extension to the work of the Agent Account Manager Service on a trial basis. Read more about how you can contact HMRC to action post which has not been responded to and which is more than a year old. HMRC’s plan is in response to continued feedback from this Institute and the other Professional Bodies on unacceptable service levels including long post and phone waiting times.  Alcohol duty reform and full expensing for capital allowances HMRC has issued a reminder that the new alcohol duty system commences next month from 1 August 2023, and a reminder email is also available. The guidance on full expensing (capital allowances) for companies has been updated. Employer updates The June 2023 issue of Employer Bulletin has been published which contains articles, amongst others, on:- paying PAYE and Class 1A in July; an update on the National Minimum Wage for interns and work experience; and employer direct debits. Agents making PAYE repayment claims need an Agent Services Account From 2 August 2023, agents that claim PAYE income tax repayments on behalf of clients must have an Agent Services Account. (“ASA”). Note that this change does not affect repayments claimed through Self-Assessment. HMRC is currently updating any relevant forms for such repayments which will include a box for the ASA account reference to be added. As it can take time to set up an ASA, agents who do not currently have one are recommended to apply for one as soon as possible.

Revenue has updated its Tax and Duty Manual to reflect amendments introduced in Finance Act 2022 regarding the filing obligation of EUTs.

Tomorrow, Tuesday 18 July has been announced as “Legislation Day” when the Government will publish draft legislation for inclusion in Finance Bill 2024. Also published will be explanatory notes, tax information and impact notes, responses to consultations and other supporting documents. It is expected that the draft clauses will largely cover pre-announced policy changes. We will be reporting on the key announcements made in next Monday’s Chartered Accountants Tax News.

The UK’s new mandatory disclosure rules which took effect from 28 March 2023 require arrangements caught by the rules and entered into on or after this date to be reported to HMRC. Since 1 June 2023, reportable arrangements should be notified to HMRC via the Mandatory Disclosure Rules service. Taxpayers and agents were still able to use the DAC6 service until 31 May 2023 to tell HMRC about arrangements reportable before 28 March 2023, or to send additional information, replacements or deletions for previously submitted disclosures.

Revenue has updated a number of VAT Tax and Duty Manuals (TDMs) by deleting content which is no longer relevant. The updated manuals are on the VAT Treatment of Education and Vocational Training, the Union Scheme – One Stop Shop and the Non-Union Scheme – One Stop Shop.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The government has published the first UK Trade and Cooperation Agreement (“TCA”) implementation report which outlines the progress that has been made in implementing the agreement, and summarises the UK’s engagement with the EU through the TCA’s formal structures. Meetings have taken place recently in Brussels of both the EU-UK Parliamentary Partnership Assembly, and the EU-UK Joint Committee, and the Retained EU Law Bill has received Royal Assent. The latest Trader Support Service Bulletin is also available, and HMRC is advising participants in the current UK Trader Scheme to sign up to the new UK Internal Market Scheme (“IMS”) by the end of this month. Deadline for signing up to new UK IMS We understand that HMRC is currently writing to authorised traders in the UK Trader Scheme (“TS”) to advise them to sign up to the UK IMS by the end of this month so that their application can be approved in time for moving goods in the green lane under the Windsor Framework. HMRC is advising that applications to the new UK IMS which it receives after 31 July 2023 may not be processed in time. You can read more about the new UK IMS here, and here. Miscellaneous updated guidance etc. Guidance for preferential rates of duty and rules of origin; Transit newsletters – HMRC updates; Pay less Customs Duty on goods from a country with a UK trade agreement; Using an origin declaration for the Developing Countries Trading Scheme; Use the Developing Countries Trading Scheme to import goods; Notices made under The Customs (Origin of Chargeable Goods: Developing Countries; Trading Scheme) Regulations 2023; Check your goods meet the Developing Countries Trading Scheme rules of origin; List of customs training providers; Search the register of customs agents and fast parcel operators; Classifying electric lamps for import and export; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; and Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS).

Revenue has published a new Tax and Duty Manual on the dispute resolution procedures contained in the European Union (Tax Dispute Resolution Mechanisms) Regulations 2019. The European Union’s Directive on tax dispute resolution mechanisms ((EU) 2017/1852 of 10 October 2017) (the “Directive”) sets out a framework for the resolution of tax disputes between Ireland and other EU Member States. The Directive has been transposed into Irish law by The European Union (Tax Dispute Resolution Mechanisms) Regulations 2019 (S.I. No. 306 of 2019) and the European Union (Tax Dispute Resolution Mechanisms) (Amendment) Regulations (S.I. No. 673 of 2020).

The next OECD Tax Talks webinar will take place from 3.00pm to 4.00pm this Wednesday (19 July). The webinar is open to the public and there will time allocated for a Q&A session. You can also listen to all previous episodes by following the above link.

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) agreed an Outcome Statement which acknowledges the substantial progress made on the Two-Pillar Solution. The Outcome Statement, which is the fruit of twenty months of intense technical negotiations, covers the Multilateral Convention, a proposed framework for the application of the arm’s length principle, the Subject-to-Tax Rule and a comprehensive action plan.