Revenue has advised us of forthcoming changes to how Revenue will engage with agents providing services to PAYE taxpayers. Revenue is ending the practice, generally known as the “A2” process, of making repayments of Income Tax and/or USC to the bank accounts of tax agents, rather than directly to taxpayers. This change is being made to ensure that all taxpayers receive any repayments due as promptly as possible and will bring these repayments In line with other repayments of taxes and duties.  It is intended to implement the change in two stages. Firstly, from 1 January 2025, agents will no longer be able to add new clients to the A2 process and any such new clients will receive their repayments directly from Revenue.  In the second stage, all repayments under the A2 process will cease from 31 December 2025. This will enable an orderly wind-down of existing arrangements during 2025. Please note that this change relates solely to how repayments made by Revenue are remitted.  It does not, in any way, represent a change to the option for PAYE taxpayers to engage the services of an agent to manage their tax affairs if they so choose. Revenue will include this matter on the agenda of the December meeting of the Tax Administration Liaison Committee. In addition, Revenue is proposing to establish a working group with appropriate representation from the agent community, including representatives from the Institute, to identify and address any such transitional issues collaboratively. An eBrief will issue inviting persons to register their interest in this group.

Member States recently updated the EU list of non-cooperative tax jurisdictions. Antigua and Barbuda was removed from Annex I (list of non-cooperative jurisdictions) after being granted a supplementary review by the Global Forum on Tax Transparency and Exchange of Information for Tax Purposes. 

Revenue has updated the Tax and Duty Manual which provides guidance on registration and filing for European cross-border payments reporting (CESOP). The guidance has been updated to describe enhanced ROS functionality for CESOP filers who wish to file nil reports in a filing period.

Revenue has updated the Stamp Duty Manual which provides guidance to the relevant financial institutions located in the State that come within its scope as to the application of the levy for the 2024 year. The updated manual clarifies that the rate of the levy to be applied for the year 2024 will remain at 0.112% as legislated for in Finance (No.2) Act 2023.

Revenue has updated the Tax and Duty Manual which provides guidance on the Help to Buy scheme. The updated guidance clarifies that a renovation or refurbishment of an old residential property does not qualify for the Help to Buy scheme (paragraph 5.3).

31 October 2024 is the self-assessment paper filing deadline for 2023/24 to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (see GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2023/24 paper filing deadline is extended to 31 January 2025. A reasonable excuse claim should accompany such returns.

From Monday 14 October 2024, claims for relief for employment expenses should only be made by post using form P87. The claim must now also be backed up by supporting evidence which should also be sent by post. According to HMRC, this change in process is being made as a response to a “growing tax risk driven by ineligible claims for employment expenses”. HMRC says they “are working at pace to reinstate the digital process as soon as possible”. Guidance on the new evidence requirements has also been published. From Monday 14 October, HMRC requires the taxpayer claiming relief for employment expenses to use the P87 form and provide supporting evidence to prove eligibility before the claim will be any further progressed. Some examples of acceptable evidence include receipts and copies of mileage logs which should accompany the P87 in the post. The following publications provide more detail on this: HMRC issue briefing: Evidence required to claim PAYE (P87) employment expenses, Claim tax relief for your job expenses, and Claim tax relief for your job expenses by post.

HMRC has recently been working on tidying up agent registrations and on 4 October 2024 emailed all agents asking them to provide details of their agent codes for self-assessment, VAT and corporation tax. Responses must be made by 8 November 2024 by completing the online form even if the agent/firm only has one code. We are aware that this email has caused some confusion with some believing it to be a scam/phishing attempt. The email is a legitimate email from HMRC and should not be ignored in order to ensure that an agent/firm’s continued access to online services for their clients is not interrupted or cancelled. This email has been sent to all agents who have signed up to receive HMRC agent emails and is not addressed to agent firms.  HMRC is conducting this exercise to identify codes which are no longer needed, or which are linked to entities that no longer exist due to mergers, takeovers or other changes. If this is the case, the correct legal entity will be required to obtain new authority from its clients.  Only one response is required for each legal entity. After 8 November 2024, HMRC will commence contacting firms who did not reply. It is important to note that failure to reply could lead to an agent code being cancelled by HMRC if there is no response. An agent code is the code that issued by HMRC when an agent firm first contacts them to obtain access to HMRC's self-assessment, corporation tax or VAT online services. It is used to enrol for the relevant service and may also need to be used in commercial filing software. The agent code is not the agent’s Government Gateway ID nor is it the Agent Services Account agent reference number.   Agents will have a different code for each service and may have several, for example for different branches of the same firm. Firms may also have codes to access other services; these are not to be provided as part of this exercise. For each code, you should identify if it is: still being used, not in use but is still needed, or no longer needed.   Once the response has been submitted, HMRC will send an acknowledgement which should be retained. Thereafter, HMRC will review the information submitted and make any updates necessary to its systems or it will contact the agent/firm if more information is required. 

In this week’s miscellaneous updates, we bring you news that the Court of Justice of the European Union (CJEU) has overturned a European Commission decision that the UK’s controlled foreign company (CFC) rules were state aid. From this month HMRC has begun replacing some of its texts and SMS messages with what it refers to as “branded messages” and the latest issue of HMRC’s Public Service pensions Remedy newsletter has been published. Two new non-executive directors have also joined HMRC’s board, one of whom includes the former director of the Office of Tax Simplification, Bill Dodwell. And finally, HMRC has published more information ahead of the commencement of VAT being charged on private school fees from 1 January 2025. CJEU decision says UK CFC finance company rules were not state aid The CJEU recently ruled that the UK’s CFC rules were compatible with the internal market and set aside the judgment of the General Court, ordering the European Commission to pay the court costs for those involved in the appeal. The case centred around whether the UK’s finance company exemption on the taxation of the non-trade finance profits of CFCs was tantamount to artificial diversion of profits and constituted state aid. HMRC branded messages From October 2024 HMRC has begun to replace some of the texts and SMS messages it sends to taxpayers with what it refers to as  “branded messages”. These “branded messages” use some of the features of rich communications services, in order to “modernises and improves SMS messaging”. Although HMRC says that “branded message are more secure”, it continues to advise taxpayers to follow the published guidance on identifying suspicious contact. VAT on private school fees HMRC has published more information ahead of the commencement of VAT being charged on private school fees from 1 January 2025. This confirms that education providers will be able to register for VAT from 30 October 2024. More details are available in the following publications: Check if you must register for VAT if you receive private school fees, and Charging and reclaiming VAT on goods and services related to private school fees.

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 available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs Team. HMRC has sent two attachments containing key information on the latest release for the Customs Declarations Service (CDS). Finally, last week it was announced by email that the new safety and security declarations for imports into Great Britain which were due to commence from the end of this month under the next stage of the Border Target Operating Model (BTOM) have been further delayed and will now commence from 31 January 2025. CDS latest release HMRC has asked us to share two attachments containing key elements of CDS release 4.6.0. The first attachment is an update on CDS release 4.6.0.  The second attachment is an annex which makes clear what codes traders should not be using. Delayed to introduction of safety and security declarations for imports HMRC has updated its guidance to reflect the decision to delay the new import requirements for goods from the EU (and other territories that did not have requirements before 1 January 2021) which were expected to be implemented from 31 October 2024 under the next phase of the BTOM. The waiver has now been extended until 31 January 2025. HMRC will publish further information in the coming weeks and will reach out to key stakeholders to start arranging more detailed engagement sessions, including support for readiness activity Miscellaneous guidance updates and publications Safety and security requirements on imports and exports, Making an entry summary declaration, Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS), Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020, Reference document for authorised use: eligible goods and authorised uses, Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, Flexible Accounting System for imports (Customs Notice 100), Appendix 2 C21e: Data Element 1/11: Additional Procedure Codes, and Method of payment (MOP) codes for Data Element 4/8 of the Customs Declaration Service.

The latest edition of our tidbits features guidance updates in a range of areas and HMRC’s latest organisation chart and governance arrangements are also available. Apply as an individual to receive UK rental income without UK tax deducted, Named tax avoidance schemes, promoters, enablers and suppliers, Work out and claim relief from Corporation Tax trading losses, Disguised remuneration: settling your tax affairs, Disguised remuneration settlement terms 2020, Register a limited company as a subcontractor with payment under deduction by post, Register a partnership as a subcontractor with payment under deduction by post, HM Revenue & Customs – Our governance, Declare no return of Class 1A National Insurance contributions, Check the recognised overseas pension schemes notification list, Self Assessment: tax calculation summary (SA110) , How to apply for a certificate of residence to claim tax relief abroad, Completing your Company Tax Return, HMRC email updates, videos and webinars for VAT, HMRC email updates, videos and webinars for company directors, Public service pensions remedy newsletter — October 2023, HMRC email updates, videos and webinars for tax agents and advisers, HMRC email updates, videos and webinars for employing people, Approved offshore reporting funds, Correction of pension contributions following the public service pensions remedy, Glossary of terms for tax and National Insurance contributions for employee travel (490: Employee travel), Pension schemes: report of relevant benefit crystallisation events or transferring relieved relevant non-UK scheme assets (APSS 252), International Tax — UK Real Estate Investment Trusts (form UK-REIT DT-Company), Tell HMRC about who is dealing with the estate when someone dies, Claim a tax refund when you've flexibly accessed all of your pension (P53Z), Claim back Income Tax on a pension death benefit lump sum P53Z(DB), Claim a tax refund if you've stopped work and flexibly accessed all of your pension (P50Z), Class 1A National Insurance contributions on benefits in kind (CWG5), Penalties for a failure to correct certain offshore tax non-compliance, Details of deliberate tax defaulters, Submit information to support your claim for R&D Corporation Tax reliefs, Named tax avoidance schemes, promoters, enablers and suppliers, HM Revenue and Customs' organisation chart, How HMRC resolves civil tax disputes, HMRC Code of Governance for Resolving Tax Disputes, Dispute resolution governance board remits, HMRC Accounting Officer Assessments, How HMRC consults with Large Businesses, Inheritance Tax: reduced rate of Inheritance Tax (IHT430), Help with common risks in transfer pricing approaches — GfC7, Using the Non-resident Landlords Scheme if you’re a letting agent or tenant, Penalties for a failure to correct certain offshore tax non-compliance, People involved in transactions connected with VAT fraud, Details of deliberate tax defaulters, Inheritance Tax account (IHT400) , Claim a refund of Income Tax deducted from savings and investments (R40) , Register an unincorporated association for Corporation Tax, Corporation Tax for non-UK incorporated companies, Register an offshore property developer for Corporation Tax, Register a non-UK incorporated company for Corporation Tax if you're a UK resident, Register a non-resident company who disposed of UK property or land for Corporation Tax, Apply as a company to receive UK rental income with no UK tax deducted, Register for Corporation Tax through a dependent agent permanent establishment, Pensions schemes newsletter 162 — September 2024, How to apply for clearance or approval of a transaction from HMRC, Software developers providing customs declaration software, Admit tax fraud to HMRC using the Contractual Disclosure Facility, Pay a penalty charge for not registering or maintaining a trust, Pay Plastic Packaging Tax, Pay duty on biofuels or road fuel gas, Pay your Economic Crime Levy, and Pay the Soft Drinks Industry Levy (notice 5).

In Irish news, Finance Bill 2024, which implements the tax changes announced on Budget day, was published yesterday. We will provide our analysis in Tax News on Monday. In the UK, HMRC has changed the services it provides to agents calling the Agent Dedicated Line and further draft guidance on the Pillar Two multinational top-up and domestic top-up taxes has been published for comment. In International news, the EU and Norway have signed an agreement to strengthen administrative cooperation, combating fraud and recovery of claims for VAT purposes.  Ireland  1. The Department of Finance have published Finance Bill 2024.  2. The Minister for Social Protection, Heather Humphreys TD, has announced that the pension auto-enrolment scheme will begin on 30 September 2025.  UK  3. Read about the changes which took effect from Monday 7 October for the services that HMRC provides to agents via the Agent Dedicated Line.  4. Further draft guidance on the Pillar Two multinational top-up and domestic top-up taxes has been published.  International  5. The EU and Norway have signed an agreement to strengthen administrative cooperation, combating fraud and recovery of claims for VAT purposes.  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.