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.

Representatives from the Institute, under the auspices of the CCAB-I, met with the Minister for Finance, Michael McGrath T.D and his team earlier this week to discuss CCAB-I’s pre-Budget 2024 submission. The need to simplify the tax system and reduce the administrative burden on businesses was discussed, as were the complexities experienced by small businesses, in particular, when availing of several of the business tax reliefs. The importance of long-term investment in critical infrastructure, not least housing, in order to maintain Ireland’s position as a competitive place to do businesses and also to retain and attract talent was also highlighted.  

In Irish news, Revenue has published guidance on EU reporting obligations for platform operators and we bring you news that Revenue is to make contact with certain entities that have not filed corporation tax returns. In UK news, HMRC is launching a form over the summer which can be used to obtain details of overlap relief for basis period reform, and the Government will be reporting annually on tax simplification, both of which are previous recommendations of Chartered Accountants Ireland. In International news, the European Commission publishes a progress report on Pillar One.  Ireland Revenue has published a new guidance on how new EU reporting obligations for platform operators will operate in Ireland. Revenue has informed us that it intends to issue Level 1 compliance intervention notices to taxpayers who registered for Corporation Tax and have not filed Corporation Tax returns for years up to and including 2021. UK Read in our miscellaneous HMRC updates about HMRC launching a form over the summer which can be used to obtain details of overlap relief for basis period reform. The Government will be reporting annually on tax simplification. International The European Commission recently published a progress report on 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.          

Section 739J(3) TCA 1997 obliges investment limited partnerships (ILPs) to file a statement annually using Form ILP1. The filing deadline for Form ILP1 in respect of the year of assessment 2022 is extended to 14 September 2023. A new version of the Form ILP1 is now available on the Collective investment vehicles webpage, in the Related Forms panel of the Revenue website and should be used for filings in respect of the year of assessment 2022. As noted on page 1 of the Form ILP1, filing should be completed electronically and returned to Revenue via MyEnquiries to largecasesdiv@revenue.ie. The Form ILP1 has been updated by the addition of the following panels: Name of Signatory in plain text; Net Asset Value of the ILP at the end of year of assessment; General Overview of business activities carried out by the ILP in the year of assessment; Details of any Material Transactions carried out by the ILP in the year of assessment; Details of any transactions entered into with persons connected with any partner in the ILP in the year of assessment; Disclosure of Assets held by ILP at end of year of assessment (which includes disclosure of asset type, location, and value); and Detailed guidance notes attached to the updated Form ILP1 to assist completion of the statement, including practical examples illustrating level of detail required.