We set out below a range of miscellaneous updates to the following manuals:    Life Assurance Companies - Return of Payments   Jobs and Pensions Service User Manual  PAYE Services: Manage your tax     Life Assurance Companies - Return of Payments (Part 26-06-02)  This manual has been updated as follows:  Links to relevant regulations and legislation have been inserted,  Guidance on submitting returns has been updated,  Contact details for the relevant area of Revenue have been updated, and  Minor updates and clarifications throughout the manual.    Jobs and Pensions Service User Manual (Part 42-04-64)  This manual has been updated as follows:  Screenshots throughout the manual have been updated,  In section 2.1, the instructions for adding an additional job have been removed,  In section 2.2.1, the list of payments for which taxpayers must enter the weekly payment amount now includes three additional payments, and  In section 4, the reference to a second/subsequent job has been removed.    PAYE Services: Manage Your Tax (Part 38-06-04)  This manual has been updated as follows:  The screenshots throughout the manual have been updated, and  Details in relation to tax credits that can be claimed/edited/deleted have been updated. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. 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. HMRC has sent an email setting out an update on the implementation of the Windsor Framework which confirms that the next step in the Windsor Framework (WF) has been delayed until 31 March 2025 hence the new arrangements for parcels and freight movements will now not take effect from next week. From 31 March 2025 (and not 30 September 2024), the green lane will broaden to all UK Internal Market Scheme authorised traders. Full international customs requirements for traders will be removed and simplified procedures will apply. This will specifically affect parcels moving from GB to NI. However, the next step in labelling requirements under the Northern Ireland Retail Movement Scheme will commence from 1 October 2024. We also set out the next phase in the Border Target Operating Model (BTOM). Next phase in BTOM As we approach the end of September, it is now just a short time before the next stage in the Border Target Operating Model (BTOM) commences. From 31 October 2024, phase three of the BTOM commences. From this date, safety and security declarations for EU imports into the UK will come into force. Alongside this, the UK will introduce a reduced dataset for imports. The goal is to reduce duplication in customs declarations. More information and guidance from the UK Government has also been published on the next stage in the WF as follows: Trading and moving goods in and out of Northern Ireland, Check if you can apply for the UK Carrier Scheme, Sending parcels to and from Northern Ireland, Apply for authorisation for the UK Internal Market Scheme if you bring goods into Northern Ireland, Future arrangements for moving parcels from Great Britain to Northern Ireland under the Windsor Framework, and Apply for the UK Carrier Scheme. Miscellaneous updates to guidance and publications Get help using example declarations for imports to Great Britain from the rest of the world Bringing commercial goods into Great Britain in your baggage Apply for approval to import duty-paid excise goods from EU countries into Northern Ireland, bought in an EU member state, as a Tax Representative

Minster for Finance, Jack Chambers, last week published the report of the independent examination of the Standard Fund Threshold (SFT). Following this review, the Government will implement phased increases in the SFT of €200,000 per year beginning in 2026 until 2029; after which the level of SFT will move with the applicable level of wage growth.    The SFT is the limit on the total capital value of an individual’s pension pot before unfavourable tax consequences are realised and has remained at €2 million for the past 10 years.   The Institute, under the auspices of the CCAB-I, responded to the public consultation on the SFT regime in December 2023 and recommended that the SFT should be increased in line with inflation as well as harmonising the treatment of public and private sector pensions when the SFT is breached.   The Minister also confirmed that there would be no change to the rate of chargeable excess tax (CET), currently 40 percent, but that this would be reviewed in 2030.  In relation to lump sums, the threshold for the higher rate of taxation to apply to a pension lump sum will be limited to €500,000 rather than a proportion of the SFT and this change will be introduced in Budget 2025.   Read the Minister's statement announcing the changes.  

In this week’s miscellaneous updates, we bring you news of changes to corporation tax correspondence and the latest Agent Update is available. HMRC has sent a further email on the new alcohol duty digital service and a new guideline for compliance GFC7 Help with Common Risks in Transfer Pricing Approaches has been published. 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. Agent Update: Issue 123 The latest Agent Update is available. Get guidance from HMRC if you're a tax agent or an adviser on the following: what an authorised agent can do on a client’s behalf, change of bank details for the Customs Declaration Service, change of bank details for HMRC, machine games duty and gaming duty, and register for Self-Assessment by 5‌‌‌ October‌‌‌ 2024. HMRC changes corporation tax correspondence From the beginning of this month, HMRC is no longer sending corporation tax return and instalment payment reminders, interest statements, or payment receipts. From October 2024, it will no longer send the company’s appointed agent a list of issued notices to deliver a company tax return. There are also plans to trial not sending some return and payment reminders. More information is available in the August 2024 Agent Update.

Revenue has become aware of a recent spate of fraudulent emails and texts purporting to have been sent by Revenue. The communications seek personal information and financial information in connection with a tax or wage subsidy refund. Revenue has reiterated that it never sends emails or texts seeking personal information from taxpayers. Revenue has directed taxpayers to its security page for further information. 

The Tribunal Procedure Committee is currently consulting on proposals which would amend the rules for each chamber of the First-tier Tribunals (FTT) (in addition to the Employment Tribunals) in relation to the provision of written reasons for decisions and other case management measures. The proposals which would affect the FTT Tax Chamber include:  a reduction in the time within which discretionary written reasons can be requested; and  amending the rules addressing when full or summary-form reasons are required or available. The closing date for responses is 22 October.

Saturday 5 October 2024 is the deadline to notify HMRC of a new source of income or gain for 2023/24. HMRC recently issued a Press Release highlighting this deadline which also aimed to debunk the top five myths about registering for self-assessment. Those required to register for self-assessment includes anyone who: is self-employed or a sole trader in a business which commenced in 2023/24, is not self-employed but who had a new source of income or a gain in 2023/24, or became a partner in a partnership or any new partnership which commenced in business in 2023/24.  Failure to register by the deadline can result in HMRC charging a failure to notify penalty.  

For several years, Chartered Accountants Ireland has been lobbying the government to either make the Trader Support Service (TSS) permanent or introduce another solution to permanently support the customs intermediaries’ market in Northern Ireland. It is therefore pleasing to see that the TSS will not end on 31 December 2024 as planned but is being further extended to December 2025. A competitive procurement exercise for the next phase of the TSS will also begin by early 2025 which will aim to deliver ongoing support for traders from 2026. The government recognises that the TSS is a key part of the government’s help for businesses adjusting to the new trading environment after the end of the EU transition period. The TSS, a free service, can help businesses save time and money while helping them comply with Windsor Framework requirements. Thousands of businesses have already benefited from using the service’s guidance, training, and support since its launch in 2020. Businesses can sign up to the Trader Support Service and access free online courses and training materials online.

Comments from Cróna Clohisey, the Institute’s Director of Advocacy and Voice in relation to Ireland’s tax base and our tax system appeared in a recent piece in The Sunday Times. 

Revenue has published the Pre-filing Notification Forms for the R&D Tax Credit. Companies are now required to notify Revenue of its intention to file a claim for the R&D Tax Credit for accounting periods commencing on or after 1 January 2024. The pre-filing notification must be in writing in the form prescribed by Revenue and must be filed at least 90 days before the claim for the credit is made. The forms are available on Revenue’s R&D Tax Credit page and at the links below:  Research and Development pre-filing form 766C  Research and Development pre-filing form 766D 

As readers will know, the Tax Administration Liaison Committee (TALC) is the forum where practitioners can make recommendations to achieve more effective and efficient tax administration. The Institute attends TALC under the auspices of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). There are several committees operating under TALC. Below we bring you updates from recent meetings of Main TALC, the TALC Indirect Taxes Sub-committee, and the TALC Direct and Capital Taxes Sub-committee.  Main TALC  The September meeting of Main TALC took place last week at Revenue’s Bishop’s Square offices. The agenda included an update from Revenue Technical Services (RTS), Enhanced Reporting Requirements (ERR), and Pillar Two. At the meeting we also raised the matter of customer service standards, noting certain issues which have been brought to our attention by members in recent months. Revenue acknowledged our concerns and committed to a full discussion at the December meeting of the group. We also noted the ROS downtime on Saturday 7 September.  On RTS, Revenue informed the group that it will be hosting webinars on 26 and 27 November 2024 to assist taxpayers making submissions to the RTS. The purpose of the webinars is to enhance the quality of submissions made to it and input has been sought from Main TALC on specific areas of focus for the webinars. The group noted that the webinars will be of great benefit to taxpayers.  Regarding ERR, Revenue updated the group on returns submitted to date. The latest data shows that returns have been made by 41,797 employers for around 665,000 employees representing in-scope benefits of €975 million. The majority of the payments made relate to travel and subsistence.  Lastly, on Pillar Two, Revenue noted that it is significantly increasing its resources to manage Pillar Two. There has also been a significant body of work throughout the summer to prepare for the commencement of Pillar Two compliance cycles in 2025.  TALC Indirect Taxes Sub-committee  At the recent meeting of the TALC Indirect Taxes Sub-committee, the group discussed various matters including issues arising with RCT and the VAT reverse charge mechanism, the status of the EU VAT in a Digital Age (ViDA) file, the recent VAT Modernisation (VATMod) consultation, and the categorisation of certain psychotherapeutic and counselling services for VAT purposes.  On the status of ViDA, Revenue officials noted that at the ECOFIN meeting in June, a Member State had exercised its veto due to a perceived issue with the “deemed supplier” obligations. A further update will hopefully be available at the next meeting in November.  Regarding the recent VATMod consultation, Revenue informed the group that a findings’ report issued. In total, there were 1,100 responses. The group agreed to arrange a meeting to discuss the findings’ report and Revenue acknowledged the quality and breadth of feedback provided.  TALC Direct and Capital Taxes Sub-committee  At the recent meeting of the TALC Direct and Capital Taxes Sub-committee, the group discussed various matters including RCT and the VAT reverse charge mechanism, the review process for Tax and Duty Manuals (TDMs), the tax treatment of Islamic financial transactions, TAC determination 44TACD2024, and the requirement to provide a breakdown of distributions from an Approved Retirement Fund (ARF), as well as various guidance updates.  The issue regarding RCT and VAT reverse charge relates to a question on the part of an RCT contract which the VAT reverse charge applies to. Revenue noted that the reverse charge only applies to construction services. The matter is also being considered by the TALC Indirect Taxes Sub-committee and officials from Revenue are aware of the discussions in both groups.  On the TDM review process, practitioners noted that issues with wording applied to TDMs while under review. There is a concern that the phrase, “The guidance may not reflect Revenue’s current position” is too broad. In the absence of a specific explanation on what is actually under consideration at a particular time, it casts any technical position into uncertainty until such time as the manual is refreshed or reinstated. Revenue will consider betters options in this regard but also noted the importance of appropriate wording.  In relation to 44TACD2024, practitioners queried whether this would influence Revenue’s approach to dealing with ARFs. Revenue noted that the case was determined on its facts and does not have precedential value. 

Last week, the Court of Justice of the European Union (CJEU) handed down the final judgment in Commission v Ireland (C-465/20 P). The case concerned tax rulings provided to two companies in the Apple Group which approved the methods used by those companies to determine their taxable Irish profits in relation to the trading activity of their respective Irish branches. In 2020, the General Court annulled the Commission’s decision that the tax rulings constituted illegal State-aid.   The Commission appealed the decision and in November 2023, Advocate General Pitruzzella’s opinion recommended that the CJEU should set aside the judgment of the General Court and refer the case back to that court. Rather than referring the case back to the General Court, the CJEU instead gave final judgment in the matter and so the matter is now concluded. In a press release issued last week, it was noted that  the CJEU “considers that the state of the proceedings is such that it may give final judgment in the actions”.  In a statement issued last week, the Minister for Finance, Jack Chambers TD noted that the country’s tax system is built on certainty and predictability. The minister acknowledged that many of the largest multinational companies operating in Ireland have been doing so for many decades and are significant employers. He also observed that the global tax environment has changed dramatically over the last decade and that the Irish Government has been at the forefront of these developments.  In a subsequent press release on the Escrow Fund (in which the contested taxes have been held), the Department of Finance noted that the funds will be released following the issue of tax assessments by the Revenue Commissioners. In relation to the matter of a third country adjustment (i.e., where overseas’ tax authorities deem tax to be arising in their country), the department stated it was not aware of any such claims at this time.