HMRC Stakeholder Digest HMRC has released the February 2025 HMRC Stakeholder Digest which provides a monthly round-up of HMRC’s latest news and updates including:   New ‘Help for Hustles’ campaign Unlocking Child Trust Funds Filling National Insurance gaps to increase the State Pension Tax advice– don't get caught out by tax avoidance

Revenue has published a new Tax and Duty Manual on the VAT treatment relevant to Taxi drivers outlining the various VAT rules which apply to taxi drivers. The manual outlines the VAT registration obligations of taxi drivers, and the VAT recoverability rules for relevant services received. The VAT implications for taxi drivers using the services of an online platform provider for taxi booking are outlined in the guidance.

Revenue has updated its guidance on the VAT Treatment of heat pump heating systems to provide additional details on the application of the second reduced VAT rate. For the second reduced VAT rate of 9 percent to apply, the supply of the heat pump heating system and its installation must be completed by the same business in the same supply (i.e. a supply and install contract). The supply and installation of a heat pump heating system can include key equipment required to facilitate the efficient operation of a heat pump. The Tax and Duty Manual Fixtures and Fittings has also been updated to refer readers to the above-mentioned manual for details on the VAT treatment of heat pump heating systems.

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 also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Below we also feature a range of resources to help businesses in their preparations for the changes to business-to-business parcel movements from Great Britain to Northern Ireland under the Windsor Framework from 31 March 2025.  Useful resources for parcels changes  Here are some of the links to guidance and resources:  Future arrangements for moving parcels from Great Britain to Northern Ireland under the Windsor Framework  Simplified processes for Internal Market Movements (SPIMM)  Moving goods into Northern Ireland as ‘not at risk’  UK Internal Market Scheme (UKIMS)  Customs Duty Waiver Scheme  Duty Reimbursement Scheme  Categorising goods for Internal Market Movements from Great Britain to Northern Ireland  Miscellaneous guidance updates and publications Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service, Manage your Trader Goods Profile, Applying to use simplified declarations for imports, Apply to operate a temporary storage facility, Pay less Customs Duty on goods from a country with a UK trade agreement, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Simplified processes for fixed transport installations, Apply for a customs comprehensive guarantee to cover customs debts, Apply for Designated Export Place approval, Apply for authorised consignor or consignee status, Apply to import multiple low value parcels on one declaration, Importing bananas you have to pay duty on into the UK, Apply to use simplified procedures for import or export (C&E48), Transfer the rights and obligations of a customs special procedure to someone else, Apply to pay less duty on goods you import for specific uses, Apply to delay or pay less duty on goods you import to process or repair, and Apply to operate a customs warehouse.

The OECD has published a working paper on taxing capital gains. The paper analyses the rationales, challenges, and implications of offering more favourable tax treatment to capital gains compared to other forms of income. This paper lays the groundwork for evaluating potential policy reforms.

Revenue has published new Guidelines for Agents and Customers regarding the Agent e-linking process outlining the new e-linking process for both agents and customers. As outlined in the earlier news item on our update from the meeting of the TALC Collections Subcommittee, the new e-linking system will be available from 25 March 2025. The new e-linking system will involve the agent initiating the linking process online and the client actioning the request.  As the requirement and responsibility lie with the client to approve the link request, greater digital security and transparency is provided to both the agent and client. The system will facilitate viewing, approving and rejecting agent links functionality and should provide customers and their agents with a quick, secure, and cost-effective method to conduct their business electronically with Revenue.  Customers without a ROS or myAccount registration will continue to be processed under the existing linking rules.

The OECD has published its consolidated report on Amount B  as part of the Two Pillar Solution. This consolidated report includes all publications on Amount B by the Inclusive Framework in 2024.

The delegation from the Commission’s Tax Matters subcommittee, concluded its mission to Finland and Estonia. Regina Doherty, MEP and leader of the delegation, stated that is time to review the EU’s legal framework in the area of taxation to identify remedies which can reduce the administrative and regulatory burden on EU companies.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. Among the issues discussed, Revenue provided an update on the new agent e-Linking process, advised of the withdrawal of the facility to file draft financial statements under any circumstances, and confirmed that agents will be copied on final demand notices issuing to their clients. Revenue also confirmed that issues with the 2024 Form 11, for taxpayers claiming the Residential Premises Rental Income Relief, will be fixed later this month . Minutes of the meeting will be available in due course. New Agent e-Linking Revenue confirmed that its new agent e-linking system will be available from 25 March 2025. Under the new system, where a taxpayer has an online registration in ROS or myAccount, the agent will no longer be required to generate a client consent letter. Instead, upon submission of the agent-client link request by the agent, the taxpayer will receive an approval notification in their ROS/MyEnquiries inbox. The agent will be notified when the taxpayer has approved the link. Revenue will issue a letter to agents outlining the new e-linking system containing a QR code for access to further guidance. A letter is also to issue to ROS taxpayers. iXBRL In certain limited circumstance Revenue accept, by concession, the filing of draft iXBRL financial statements. Revenue has advised that it intends to withdraw this concession, and the upload of draft financial statements will not be permitted under any circumstances, from the end of May 2025. Final accounts with full tagging of directors’ and auditors’ reports are required. Debt Management Services A new notification system for the issue of final demand notices to agents will go live by the end of March 2025. By end of day each Monday an agent will receive a listing of their taxpayers who have been issued with a final demand notice that week. The notification will be sent as a priority email to the agent’s ROS Inbox. ROS issues Revenue is aware of issues with the ROS Form 11 calculation of Residential Premises Rental Income Relief (RPRIR) including PRSI. A fix for RPRIP in the Form 11 will be released on 24 March 2025. Revenue will correct any submissions that are made before 24 March. If the matter is urgent Revenue can be contacted for a manual fix. Practitioners outlined the frustrations and concerns of advisors and taxpayers regarding the perceived unreliability of ROS and the accuracy of its calculations. Revenue, acknowledging the negative impact of multiple releases and ROS downtime on taxpayers and their agents, has confirmed that there will be a single CT1 release in April 2025. The main ROS release is scheduled for 6 September 2025, with the proposed release on 22 September 2025 cancelled to avoid issues around the corporate tax filing deadline. Modernisation Revenue provided an update on its bank payments modernisation project. With fixed direct debits (FDD) for PREM no longer being a payment option, Revenue advised that there are still 3,000 taxpayers who have not switched from FDD. Next month will be the first month that FDD will not apply to VAT payments. FDD only applies to those that file VAT returns annually. Revenue expects to see the transition complete by December. The review of simplified VAT filings continues as a separate project.  

The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors has been published. This report sets out recent developments in international tax co-operation and tax transparency, as well as updates on initiatives to enhance tax certainty, and tax administration.

Today (26 February), the European Commission published its anticipated omnibus simplification package, which aims to reduce reporting burdens for companies, particularly SMEs. The package includes simplifications in sustainability reporting (CSRD), sustainability due diligence (CSDDD), and sustainable activity taxonomy (EU Taxonomy). The omnibus represents a dramatic change to several key pillars of the EU Green Deal, the key policy initiative in the path towards net zero by 2050. While we very much support simplification efforts to enhance the competitiveness of the EU’s single market, preserving regulatory certainty, clarity and stability for business is of utmost importance and is also key to remaining competitive.   As the largest professional body on the island of Ireland, representing over 39,000 members and educating over 6,600 students, the Institute has worked closely with members and member firms to equip them with the expertise and skills to prepare for and implement the CSRD both from a reporting and assurance perspective. Many of these have invested significant resources to upskill and meet existing requirements, and the changes proposed today may require several to pivot and understand new ones. Chartered Accountants Ireland is reviewing today’s omnibus simplification package with stakeholders to assess how we best continue to support businesses whatever size and whatever stage of the process they are at, to meet the standards, and how we train the accountants of the future to meet ESG-related legal requirements.  European Commission news release Commission simplifies rules on sustainability and EU investments

Revenue has recently updated its Guide to Exchange of Information to reflect new exchange relationships which commenced in 2024 and 2025 to date