On Friday, the Department of Finance held the fourth meeting of the Business Tax Stakeholder Forum at the Department of Finance on Merrion Road. The Institute was in attendance under the auspices of the CCAB-I. The meeting was chaired by Sinead Ryan, Assistant Secretary with responsibility for business and international tax policy.  Among the matters discussed were recent developments in domestic tax (including the recent publication of Finance Bill 2024) and international tax (including recent work in implementing Pillar Two and finalising work on Pillar One).   Of particular interest to readers will be the Department’s request for a list of priority areas within domestic legislation where legislation could be updated with the dual aims of enhancement and simplification. The Institute will be discussing the matter with our Tax Committee with a view to providing a list of issues ahead of the Christmas break. 

With speculation now reaching fever pitch about potential tax rises, the Labour Party’s first budget in nearly fifteen years is just 10 days away on Wednesday 30 October 2024. The Institute’s Tax Team will be analysing the budget as normal. On the day, we will be issuing a newsletter reporting on key tax announcements. Detailed analysis will follow in Chartered Accountants Tax News on Monday 4 November and subsequent weeks.  

In this week’s miscellaneous updates, we bring you news of updated guidance from HMRC on VAT on private school fees and HMRC has made a new direction impacting R&D tax relief claims. The latest schedule of HMRC live and recorded webinars for tax agents is also available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.  Updated guidance - VAT on private school fees  HMRC has published updated guidance for private schools on if, when and how they must register for VAT on private school fees. It is still expected that the change will commence from 1 January 2025. Further guidance is available on GOV.UK. According to the updated guidance this is based on the legislation and technical note published on 29 July 2024 but will be updated if any policy or legislative changes are announced on Budget Day on 30 October 2024.  The guidance explains:   Who must register for VAT.   The normal tests apply meaning that the educational provider must register for VAT if total taxable turnover exceeds £90,000 for the last 12 months or is expected to exceed £90,000 in the next 30 days.  Guidance is provided on how to apply the tests, and it will also be possible to register for VAT voluntarily.   When to register for VAT.   Education providers will be able to register from 30 October 2024. However, the precise date of when they will need to register is dependent on the value of school fee payments they receive and when they receive them. VAT should not be charged, nor VAT invoices produced until the education provider has registered.   How to register for VAT.  The education provider should follow the normal process for registering for VAT entering ‘private education provider’ in the ‘business activity’ section of the application and selecting the correct standard industry classification code.  How to determine if VAT is chargeable on goods, services and payments.   Guidance is provided on a wide range of circumstances, including where education services include other elements such as school meals and the treatment of grant payments, and  How to reclaim VAT on supplies.   Once registered for VAT, the educational provider may reclaim VAT incurred on the goods and services used to make its taxable supplies. Guidance is again provided on a number of areas, including partial exemption and how to recover VAT incurred pre-registration.   R&D direction and recent R&D Tribunal decisions  HMRC made a new direction on R&D earlier this month. This direction specifies how information and notifications required under both R&D schemes should be made and authenticated and updates the rules to align with recent changes to the reliefs. The direction is available at: HMRC Directions regarding claim notifications and additional information made 1 October 2024.  HMRC has also highlighted to us a range of First Tier Tribunal cases on R&D-related decisions:  Tribunal finding for the company: H&H Contract Scaffolding Ltd v HMRC TC/2023/08212 (a penalty case), and Get Onbord Ltd (in liquidation) v HMRC TC/2022/13281,  Tribunal finding for HMRC: Assembly Global Networks Ltd v HMRC TC/2023/08328, Flame Tree Publishing Ltd v HMRC TC/2022/13745, Tills Plus Ltd v HMRC TC/2022/11982 and Strictly Money Ltd v HMRC TC/2022/02573.

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. The Department for Environment, Food and Rural affairs has also sent emails on exporting honey and apiculture products to the EU from 29 November 2024 and export health certificates for composite products.  Miscellaneous guidance updates and publications  Taking a vehicle out of the UK,  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS),  Search the register of customs agents and express operators,  Notices made under the Cash Controls (Amendment) (EU Exit) Regulations 2019,  CDS BIRDS Declarations and Customs Clearance Request completion instructions,  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020,  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, and  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020. 

In Irish news today, we have prepared our annual ‘At a Glance’ document outlining the various measures and changes contained in Finance Bill 2024 and Revenue has published updated guidance on the Help to Buy Scheme. In UK news, the 2023/24 paper self-assessment filing deadline is approaching at the end of this month and a new process for claiming relief for employment expenses began earlier this week. In International news, Member States have updated the EU list of non-cooperative tax jurisdictions.   Ireland  1. Read our “At a glance” document for a brief overview of Finance Bill 2024. 2. Revenue has updated guidance on the Help to Buy scheme to clarify that a renovation or refurbishment of an old residential property does not qualify for the scheme.  UK  3. Read about the changes to the process for claiming relief for employment expenses which took effect from Monday 14 October. 4. The 2023/24 paper self-assessment filing deadline is approaching.  International  5. Member States have updated the EU list of non-cooperative tax jurisdictions.  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 post EU exit corner. 

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.