Last week the Government also announced three technical consultations on draft legislation. More details are set out below. Raising standards project Following the package of measures announced at the Autumn 2024 Budget, on L-day HMRC also published two separate technical consultations, together with draft legislation. Overall, the measures are designed “to deter harmful practices, hold advisers accountable, and promote a more transparent and trusted tax advice market” and have the objective of supporting the Government’s three main priorities: to close the tax gap, enhance services, and modernise the tax system.   Both these consultations will run for eight weeks and will close on Monday 15 September. More details of the key proposals are set out below. Modernising and mandating tax adviser registration This consultation seeks views on the introduction of mandatory registration for tax advisers engaging with HMRC on behalf of clients, to ensure they meet minimum standards. Registration will be required from April 2026 and is supported by a £36 million investment in modernising HMRC’s adviser registration services. Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance This consultation seeks views on further measures to ‘support compliance and transparency in the tax advice market’. Proposals include strengthening HMRC’s powers to: Access information from advisers suspected of facilitating non-compliance, Apply proportionate penalties where there is evidence of such behaviour, and Publish details of advisers subject to HMRC sanctions.   HMRC also published a summary of responses on this measure, in response to the recent consultation in this space. Views on the draft legislative clauses and the practical implications of the proposed measures are sought by email to raisingstandardsconsultation@hmrc.gov.uk. Making Tax Digital (MTD) and Penalty Reform – draft legislation for technical consultation Last week, the Government also published draft legislation for Making Tax Digital for income tax and penalty reform. This aims to refine and simplify the existing framework and legislates for the changes announced in March at the Spring Statement. This includes: A deferral from MTD until at least 2029 for some groups, such as Ministers of Religion, Lloyds Underwriters, and recipients of the blind person’s allowance, Exemptions from MTD for others, including individuals with power of attorney, and non-UK resident entertainers with no other qualifying income, Technical and policy amendments, including the authority for HMRC to cancel or reset late submission penalty points and cancel associated financial penalties, A requirement for MTD users to submit their end of year tax return using MTD-compatible software, and A new qualifying income threshold for MTD for Income Tax of £20,000 to apply from 2028/29. As also mentioned at the Spring Statement, individuals will not be required to use MTD until April 2027 if they have information that they would need to submit using the SA109 supplementary pages. HMRC will work with stakeholders to finalise this deferral, which will be included in legislation later this year. In line with the existing tax policy framework, the aim of this technical consultation is to seek views on whether the draft legislation works as intended. To provide comments, please email: makingtaxdigitalconsultations@hmrc.gov.uk by 16 September 2025.

It was a busy day last Monday when the Government’s now traditional L-day kicked off with the publication of HMRC’s Transformation Roadmap (more on this later), the publication of several new technical consultations in three areas (see separate story), in addition to draft clauses for the next Finance Bill, covering a range of previously announced policy changes, including the controversial changes to inheritance tax. The key areas of draft legislation covered in the Bill are as follows: Private Intermittent Securities and Capital Exchange System (PISCES) tax implications, Income Tax: changes to Employee Car Ownership Schemes, Multinational Top-up Tax and Domestic Top-up Tax further amendments, Umbrella Companies: tackling non-compliance in the umbrella company market, Reform of the tax treatment of carried interest, Tax implications for companies and employees in relation to employees trading their shares on PISCES, Offshore Anti-Avoidance legislation, Changes to charity compliance measures, Better use of new and improved third-party data, and Reforming Inheritance Tax — unused pension funds and death benefits.

We have compiled the latest updates to various VAT legislation, publications, briefs and guidance. VAT Export and Removal of Goods from the UK, Fuel and power (VAT Notice 701/19), VAT Export and Removal of Goods from the UK, Check if you must register for VAT if you receive private school fees, Investment gold coins (VAT Notice 701/21A), Updates on VAT appeals, Apply to use Simplified Import VAT Accounting, Check if you must register for VAT if you receive private school fees, Check if you can register for the VAT Import One Stop Shop Scheme, Register for the VAT Import One Stop Shop Scheme, Insolvency (VAT Notice 700/56), Flat Rate Scheme for small businesses (VAT Notice 733), Authorise an agent to register or amend a VAT group, Amend a VAT group, Apply for VAT group registration, Apply to change the representative member of a VAT group, Flat Rate Scheme for small businesses (VAT Notice 733), Authorise an agent to register or amend a VAT group, HMRC email updates, videos and webinars for VAT, VAT: detailed information, HMRC email updates, videos and webinars for VAT, VAT grouping structure arrangements used by care providers (Spotlight 70), and Apply for VAT group registration.

As we predicted last Monday, following HM Treasury’s response to the Institute’s letter on this issue, on L-day the Government published draft finance bill clauses which confirm that the changes to Agricultural Property Relief and Business Property Relief will be proceeding as planned from April 2026. In the draft legislation as it currently stands, none of the recommended mitigations proposed by the Institute have been included. Read the Institute’s Press Release reacting to this in which we are seeking a special derogation from these changes for Northern Ireland, given the disproportionate impact of this in the region on the agricultural sector and family-owned businesses. The relevant Policy Papers on these reforms are also available here and here. The Institute is currently considering what further action is needed on this important issue and is also aiming to discuss this with local government. A full report on the other key announcements from L-day is covered later in this edition of Chartered Accountants Tax News. In the meantime, it is noteworthy that buried amongst the L-day publications is welcome confirmation that the Government has shelved Making Tax Digital for corporation tax.

Revenue has amended the Tax and Duty Manual regarding the publication of information regarding State aid granted to individual taxpayers. The revised version: Updates the list of notified State aid schemes and State aid schemes which fall under the General Block Exemption Regulation and the Agricultural Block Exemption Regulation. Outlines changes made in the General De Minimis Regulation and the Agricultural De Minimis Regulation, including the new transparency requirements that will apply from 1 January 2026 and 1 January 2027.

We have compiled the latest updates to various VAT legislation, publications, briefs and guidance. VAT Export and Removal of Goods from the UK, Fuel and power (VAT Notice 701/19), VAT Export and Removal of Goods from the UK, Check if you must register for VAT if you receive private school fees, Investment gold coins (VAT Notice 701/21A), Updates on VAT appeals, Apply to use Simplified Import VAT Accounting, Check if you must register for VAT if you receive private school fees, Check if you can register for the VAT Import One Stop Shop Scheme, Register for the VAT Import One Stop Shop Scheme, Insolvency (VAT Notice 700/56), Flat Rate Scheme for small businesses (VAT Notice 733), Authorise an agent to register or amend a VAT group, Amend a VAT group, Apply for VAT group registration, Apply to change the representative member of a VAT group, Flat Rate Scheme for small businesses (VAT Notice 733), Authorise an agent to register or amend a VAT group, HMRC email updates, videos and webinars for VAT, VAT: detailed information, HMRC email updates, videos and webinars for VAT, VAT grouping structure arrangements used by care providers (Spotlight 70), and Apply for VAT group registration.

Revenue has updated its guidance regarding outbound payments defensive measures  to reflect amendments to section 817U TCA 1997, introduced by  Finance (Local Property Tax and Other Provisions) (Amendment) Act 2025 and effective from 1 January 2026. The amendments extend the definition of ‘associated entities’ to include entities which are associated by reference to the ownership or control by the same individual, or individuals connected with that individual, within the meaning of section 10 TCA 1997.

The latest UK tax tidbits feature updated guidance in a wide range of areas. Check the recognised overseas pension schemes notification list, List of Individual Savings Account (ISA) managers approved by HMRC, Extra Support Team, Personal Allowances: adjusted net income, UK-US Automatic Exchange of Information Agreement (FATCA), Tell HMRC about the end of a qualifying interest in possession (IHT100b), Tell HMRC about a gift or other transfers of value in a trust (IHT100a), Check if you need to pay tax when you sell cryptoassets, Apply for a refund of Class 3 National Insurance contributions, Apply for a refund of Class 2 National Insurance contributions, Named tax avoidance schemes, promoters, enablers and suppliers, Pensions schemes newsletter 170 — May 2025, Help with self-employment on your Self Assessment tax return, HMRC email updates, videos and webinars for employing people, HMRC email updates, videos and webinars for landlords, Insolvency practitioner bulletin 6 (2025): repayment and refund satisfaction survey, Appeal an employment intermediary penalty, Economic Crime Supervision Handbook, HMRC tools and calculators, HMRC email updates, videos and webinars for the Construction Industry Scheme, Inheritance Tax: long-term United Kingdom (UK) residence (IHT401a), How different employment types affect Statutory Neonatal Care Pay, Check genuine HMRC contact that uses more than one communication method, Transfer of residence to the UK, Tell HMRC about a student or postgraduate loan in your tax return, and Compliance checks: customs and international trade — CC/FS1g.

Revenue has published two new manuals providing guidance on the tax treatment of income arising from social media and certain promotional activities. The guidance on taxation of income from social media and promotional activities outlines the relevant income tax and corporation tax treatment and the new tax and duty manual on the VAT treatment of social media influencers outlines the application of the various VAT rules to influencers and the related VAT compliance obligations. The manual on the taxation of income from social media and promotional activities sets out the tax compliance obligations of persons engaged in such activities and confirms that this income is subject to tax, even when activity is carried out occasionally and is not the individual's or company's primary business or main source of income. Practical examples and details of tax registration are included in the manual. In the VAT guidance, Revenue confirms that there are no special VAT rules for influencers, and the activity is subject to the ordinary VAT rules. The manual includes practical examples, details on registration obligations and guidance on VAT deductibility.

The European Commission has launched a 12-week public consultation  as part of its aims to modernise VAT rules for the travel and tourism sectors.  Stakeholders, including businesses, Member State authorities, and citizens, are invited to share their views on proposed reforms to the special VAT scheme for travel agents and the taxation of passenger transport services.

The OECD has published a second batch of updated transfer pricing country profiles for Austria, Belgium, Canada, Ireland, Latvia, Lithuania, Mexico, the Netherlands, New Zealand, Singapore, South Africa, and Spain. These profiles include new sections regarding hard-to-value intangibles and the simplified and streamlined approach for baseline marketing and distribution activities.

Last week, the Government published its Summer Economic Statement 2025. The document sets out the Government’s medium-term budgetary strategy and outlines the fiscal parameters within which discussions will take place ahead of Budget 2026. The Government also published the revised National Development Plan where they set out the strategy to address the current infrastructure deficit. The Institute’s Director of Members and Advocacy, Cróna Clohisey issued a press release last week following publication of the revised plan. The overall package of tax reductions and public spending increases for Budget 2026 will amount to €9.4 billion, an increase of 7.3 percent on the revised 2025 General Expenditure Ceiling, with the total tax package amounting to €1.5 billion. You can read our key takeaways from the release of the Summer Economic Statement and revised National Development Plan here. Following publication of the Summer Economic Statement, the Minister for Finance, Paschal Donohoe TD, noted the following: “The changing tariff landscape and increased protectionism is a key challenge for Ireland’s economic model. While the economy has remained resilient, the government will be proactive in our response. While continuing to advocate for multilateral cooperation, the SES provides resources to enhance our economic competitiveness by making large-scale investments in our public infrastructure and continuing to improve public services. In responding to emerging economic threats the government is also conscious of the delicate position of the public finances. At a headline level our public finances are in a strong position, with budgetary surpluses expected this year and next. However, our fiscal strength is underpinned in a large part by volatile corporation tax receipts, which represents a significant vulnerability. We are committing to a multi-dimensional but focussed approach in response to this challenge; boosting our public infrastructure stock, improving our competitiveness and safeguarding the public finances are the three key pillars of our approach. Through the publication of a revised NDP we are making available a record level of funding for public investment, with a particular focus on investment in the key strategic areas of water, energy, transport and housing. This will improve our public services, increase domestic and foreign investment and boost our competitiveness. We will also continue to invest in the Future Ireland and the Infrastructure, Climate and Nature Funds. These investments will strengthen our public finances in the medium to long term and help to address the costs associated with structural challenges, such as aging and decarbonisation. The emerging challenges that we face requires a budgetary strategy that is flexible, responsive and consistent with increasing Ireland’s competitiveness. In practice, this means using public resources to invest in productivity enhancing initiatives, while guarding against overly procyclical spending and building-up fiscal buffers. The budget package of €9.4 billion announced today strikes an appropriate balance between these considerations. It represents the critical first step in implementing Programme for Government commitments across the economy and is consistent with our response to the challenges being faced.”