Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime. Several services have also been unavailable since Friday 23 June and are expected to reopen today.

The Government has launched a new consultation on tackling non-compliance in the umbrella company market and a new Call for Evidence has been opened on certain share schemes. More details on each are provided below. In addition, a new consultation on how to reform transfer pricing, permanent establishments and Diverted Profits Tax legislation has also been opened. Share schemes As announced at the Spring Budget, a Call for Evidence on the Save As You Earn and Share Incentive Plan shares schemes has been launched which seeks to improve these schemes, and expand their use, by making it easier for businesses to set them up and offer them to employees. This Call for Evidence will close on 25 August 2023. Umbrella company market A consultation, Tackling non-compliance in the umbrella company market, has been opened examining policy options to regulate umbrella companies and tackle non-compliance in the umbrella company market. This consultation will close on 29 August 2023 and follows on from the Governments Call for Evidence: umbrella company market which aimed to ensure that the Government has an up-to-date and well-informed view of how the umbrella company market operates. The Government has published a summary of responses to this consultation which was used to inform the newly launched consultation in this area. Transfer pricing, permanent establishments and the diverted profits tax This consultation  closes on 14 August 2023; HMRC is seeking views on proposals to reform the following UK laws: transfer pricing: pricing transactions between related parties; permanent establishment: basis for taxing UK activities of non-UK resident companies; and the diverted profits tax: anti-avoidance measure for countering arrangements designed to divert profits from the UK. The overall aim is to clarify and modernise the legislation, and ensure it achieves its objectives, while developing simpler legislation that is easier to understand and supports growth by improving tax certainty. HMRC is holding a number of consultation events on the following dates (note the date by which registration for each closes): 30 June (registration closes 26 June); 6 July (registration closes 29 June); and 10 July (registration closes 29 June).

The Minister of State with responsibility for Company Regulation, Dara Calleary TD, has announced the commencement of the European Union (Disclosure of income tax information by certain undertakings and branches) Regulations 2023. The regulations require non-EU multinationals with subsidiaries and branches in the EU to comply with e same reporting obligations as EU multinational undertakings. The Minister commented: “I am pleased to announce the taking effect of the public country-by-country tax reporting regulations, which require for the first time that non-EU multinationals with significant turnover, doing business in the EU must comply with the same tax reporting obligations as EU multinationals. The regulations increase corporate transparency, enhance public scrutiny, and afford an opportunity for multinational enterprises to show the contribution made by their presence in the EU. This helps ensure trust in the fairness and transparency of our tax system and safeguards a level playing field between EU and non-EU multinationals. Ireland has long been a supporter of corporate transparency and good governance in the interests of all stakeholders including employees, investors, competitors and the general public, the new regulations support our ambitions in this regard.” Further information is available on enterprise.gov.ie.

HMRC’s weekly news and information bulletin from 22 June is now available as well as the latest Agent Update 109. HMRC has also provided an update on the actions and takeaways from the February 2023 Stakeholder Conference. The latest Agent Update features:- helping taxpayers steer clear of tax avoidance schemes; publication of the new Code of Practice 9; a new webinar: Agent Forum – working with the agent community; and VAT registration – improving HMRC’s service.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service and Borders Weekly Stakeholder Bulletin are also available. And we remind you that the duty reimbursement scheme is expected to open later this week on 30 June. The Institute has lobbied on the need to open the scheme  for several years. Miscellaneous updated guidance etc. Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837); Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Customs Declaration Service communication pack; Appendix 1: DE 1/10: Requested and Previous Procedure Codes; Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes; Check if a business holds Authorised Economic Operator status; Attending an inland border facility; List of customs training providers; and Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service.

Among the issues discussed were the tax treatment of income received under the General Medical Services (GMS) scheme, the draft Tax and Duty Manual on foreign pension lump sums, the impact of the General Block Exemption Regulation (GBER) updates on the Employment Investment Incentive (EII) scheme, and other matters. Revenue has also committed to a review of the procedures it follows when updating its Tax and Duty Manuals (TDMs). The Institute, under the auspices of the CCAB-I, met with Revenue last October to discuss the proposed review. Our representatives asked that a historic database of TDMs could be developed and that TDMs remain available while under review. This is an ongoing issue where TDMs are removed while being reviewed. You can find the minutes from  all of the recent meetings here. The minutes of the most recent meeting will be published shortly also.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the end of the EU transition period. HMRC has also updated the VAT road fuel scale charges that apply from 1 May 2023 and also contacted us to advise that it is removing certain VAT Briefs from GOV.UK which are being archived.

HMRC’s latest schedule of live and recorded webinars is now available for booking. Spaces are limited, so take a look now and save your place. An overview of the new alcohol duty structure and rates: book now From 1‌‌‌ August‌‌‌ 2023, alcohol duty will be charged in relation to the strength of the product as opposed to the product type. This webinar will explain the new alcohol structure and rates, including the reduced rates for draught products An overview of the new alcohol duty structure and small producer relief: book now This webinar will provide a background into the new small producer relief, including eligibility criteria, and how to calculate this. Supply chain assurance in the security sector: book now This webinar is for end-users who outsource their security supply and their agents. It will provide further information regarding the risks and the potential consequences of failing to assure your labour supply chain. Capital allowances and vehicles: book now This webinar is part of HMRC’s annual Self-Assessment programme covering the rules for cars, qualifying expenditure, pools and rates, and vehicle hire purchase. The Agent Forum – working with the agent community: book now This webinar aims to raise awareness of the Agent Forum (“AF”) and will look at:- the benefits of using the AF; proper use of the AF, including what HMRC expects from agents and what to expect from HMRC; good practice; and useful hints and tips. A recording is also available to register to view of the webinar UK freeports – examples of tax and customs benefit.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes.

Minister for Finance, Michael McGrath TD, has published a public consultation document “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets”. In April we reported that the Minister had published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector. An online consultation portal is now open to allow stakeholders to submit their views on how Ireland can maintain its position in asset management and fund servicing, how the sector can support economic activity both at the regional and national level and how to ensure the sector is financially resilient, future-proofed and continue to meet international best-practice. The review will also incorporate three recommendations from the Commission on Taxation and Welfare in relation to the taxation regime for investments products, the IREF and REIT regimes and the section 110 regime. The consultation period will run from Thursday 22 June until Friday 15 September 2023. More information can be found on gov.ie. The Institute, under the auspices of the CCAB-I will respond to the consultation and members wishing to provide input can contact us by email.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the TALC Collections subcommittee. Among the issues discussed, Revenue provided updates on the imminent changes to the obligations of tenants and collection agents of non-resident landlords, the debt warehousing scheme as well as the vacant homes tax. Revenue also informed the group that it intends to no longer accept payment by commercial credit card. Non-resident landlords Revenue re-confirmed the position that non-resident landlords must either arrange for their tenant to withhold 20 percent of the rent due and submit it to Revenue or engage a collection agent to collect rent and file a return of income. Revenue’s new Non-Resident Landlord Withholding Tax (NLWT) system, introduced by way of an amendment in Finance Act 2022, is expected to come into operation on 1 July. 2023. The amendment provides that collection agents who act for a non-resident landlord may deduct withholding tax at 20 percent and remit it to Revenue using the NLWT system. This amendment will relieve the collection agent from being chargeable to tax in Ireland for such income of the non-resident landlord, where the landlord chooses this option. Revenue has acknowledged that the transition to the NLWT system may give rise to cashflow concerns and advises taxpayers to review their options as to the timing of the transition, if they opt for the new system. In this regard, Revenue has advised that withholding tax operated in 2023 will reduce the taxpayer’s preliminary tax obligations. The NLWT system requires collection agents or tenants to make rental notifications (RNs) when rent is paid to non-resident landlords while withholding and remitting 20 percent of the rent payment to Revenue. It was noted that there are no restrictions regarding the bank account from which the withholding tax is to be remitted, so long as the withholding tax is operated and returned correctly. Revenue expects the portal to open for remittances from today. Revenue intends to update the ROS Form 11 2022 Tax and Duty Manual to permit the filing of 2022 returns by taxpayers that are not currently compliant with the legislative requirements applying to non-resident landlords. We will continue to keep members updated via Chartered Accountants Tax News. Debt Warehousing Scheme Revenue reminded the forum that in order for taxpayers to continue to avail of the benefits of the debt warehousing scheme they must file all returns, even Nil returns, and pay current taxes as they fall due,. At the end of May 2023, the total debt warehoused was less than €2 billion consisting of circa 61,000 taxpayers, 32 percent of which owe less than €100 each. Approximately 6,000 taxpayers owe a combined €1.7 billion. The debt warehousing scheme is currently in Period 3, running from 1 January 2023 to 1 May 2024, with interest accruing at 3 percent per annum on the unpaid debt. Taxpayers have until 1 May 2024 to agree and phased payment arrangement (PPA) and are reminded that they can make interim payments during this period, and also request a refund be offset against the balance warehoused. Revenue is encouraging taxpayers to engage now in the phased payment arrangement (PPA) process as there is much flexibility regarding payment terms, amounts and downpayments. A nominal downpayment percentage amount of tax and interest can be applied for initially using the online application system to commence the process of engagement and negotiation. In addition, payment breaks can be arranged once the PPA has been commenced. Revenue wished to remind taxpayers that they will take a flexible and pragmatic approach on a case-by-case basis. Vacant Homes Tax Following the introduction of the vacant homes tax (VHT) in Finance Act 2022, the first chargeable period runs from 1 November 2022 to 31 October 2023. If VHT applies to your property for this period, you must submit a VHT return to Revenue by 7 November 2023. Revenue provided the forum with a useful presentation titled “VHT – the 6 steps”. Taxpayers can pay their VHT liability by debit/credit card, monthly direct debit or annual debit instruction (ADI). Payment by ADI will be deducted on 21 March 2024. Commercial Credit Card payments In consideration of the high processing costs of commercial credit cards, Revenue informed the group that it intends to no longer provide an option for payment by commercial credit card.  

At the April meeting of the Forum on Harmful Tax Practices, the group reached new conclusions on five regimes as part of the implementation of the BEPS Action 5 minimum standard on  harmful tax practices. Three of those regimes are now abolished (one for Aruba and two for San Marino), one was amended (Jordan), and the other is in the process of being amended (Albania).