Last week, the Institute’s Northern Ireland Tax Committee wrote to the new Exchequer Secretary to the Treasury, Dan Tomlinson MP, to highlight a range of tax policy and tax administration recommendations and concerns ahead of the Budget on Wednesday 26 November. In our Pre-Budget submission, the Institute continues to press the Government to reframe the draft legislation on agricultural property relief and business property relief given the disproportionate impact the proposed changes will have on family owned farms and businesses in Northern Ireland (NI). The Institute’s UK Tax Manager, Leontia Doran, is scheduled to deliver oral evidence on this issue today to the House of Lords Finance Bill Sub-Committee as part of its inquiry into the draft Finance Bill 2025/26 clauses. In our submission, we continue to implore Government that it is not too late to reframe this policy ahead of April 2026. However, if the Government is not willing to do so, we continue to recommend that a specific carve out from the rules is included in the final legislation to protect NI. Given how deeply connected agricultural is throughout the island of Ireland, the unique circumstances of NI farmers cannot be ignored and must be addressed. The cross-border nature of NI’s agri-food industry, where Ireland is its largest export market, means that NI needs to remain competitive in order to be able to serve its largest market, particularly if its dual market access to the EU is to grow to its true potential. This will only be achieved via a coherent tool kit of economic policies, not the least of which should include pro-business and pro-family succession tax reliefs. It is for this reason that the Government should exclude NI from these changes. The Committee also highlighted a range of other issues in the submission as follows: The campaign to reduce the rate of corporation tax in NI, The tax burden and complexity arising from cross-border and remote/hybrid working on the island of Ireland, Tax simplification and the lack of progress in this area, Making Tax Digital for Income Tax and the need to delay the implementation of mandatory tax adviser registration from 1 April 2026, and The ongoing need for climate and environmental objectives to feature significantly in UK budgets, which includes a range of tax policy recommendations. We encourage you to read the full submission at the link above.

The latest UK tax tidbits features updated guidance and publications in a wide range of areas. Reporting poor R&D tax relief service standards, Rates and allowances: Inheritance Tax thresholds and interest rates, Inheritance Tax thresholds and interest rates, Annual Tax on Enveloped Dwellings: work out the value of your property, Annual Tax on Enveloped Dwellings: technical guidance, Annual Tax on Enveloped Dwellings, Check genuine HMRC contact that uses more than one communication method, List of approved professional organisations and learned societies (List 3), Income Tax personal allowances and reliefs, Tell HMRC about the end of a qualifying interest in possession because someone has died (IHT100b (death)), Regulations to update the UK’s automatic exchange of information agreements, Cryptoasset Reporting Framework, Negligible value claims and agreements, Compliance checks: tax advantaged shares schemes — CC/FS1f, Check genuine HMRC contact that uses more than one communication method, Find payroll software that is recognised by HMRC, Voice Identification Privacy Notice, Our governance, Submit your Soft Drinks Industry Levy return, List of community amateur sports clubs (CASC) registered with HMRC, Ask HMRC to transfer surplus Income Tax allowances, When National Insurance and PAYE is due on tips, gratuities and service charges (E24), Class 1A National Insurance contributions on benefits in kind (CWG5), and Tax-free savings newsletter 17.

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. 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. In a recent meeting of the Northern Ireland Joint Customs Consultative Committee, HMRC confirmed that the process is ongoing to deliver a permanent service beyond the end of 2025 which will provide the same services as the current Trader Support Service (TSS). For several years, Chartered Accountants Ireland lobbied the UK Government for a permanent solution to the TSS which would continue to provide  free support to help businesses move goods between Great Britain and Northern Ireland by facilitating customs and safety declarations.  Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020, Reference document for authorised use: eligible goods and authorised uses, Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020, Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020, Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020, Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020, Customs, VAT and excise UK transition legislation from 1 January 2021, Apply for repayment of import duty and VAT (CHIEF), Importing sanitary and phytosanitary controlled goods into Great Britain that interact with the Border Trade Matching Service, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

In this week’s detailed miscellaneous updates which you can read more about below, a new digital process must now be followed to notify VAT error corrections and new evidence requirements must be met to satisfy all new PAYE claims for pensions tax relief. From 1 October 2025, agents are now able to reactivate Self-Assessment (SA) for their clients by calling the Agent Dedicated Line (ADL). In other news this week: The Institute for Fiscal Studies has published its Green Budget 2025 which sets out a range of potential options for tax increases in the next Budget, The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and Check HMRC’s online services availability page for details of planned downtime and the online services affected.  New online process for VAT error correction after withdrawal of VAT 652 In early September, HMRC withdrew VAT Form 652 for VAT corrections. A new process must now be followed to notify VAT error corrections. More detail on this change is set out in updated guidance. The process is essentially now digitalised, with a paper option available for anyone who is exempt from Making Tax Digital for VAT. According to HMRC, the aim of this change is to improve efficiency and accuracy. Errors should now be corrected online by businesses by logging in using their Government Gateway credentials and using the Check how to tell HMRC about VAT Return errors tool. HMRC has also confirmed that agents are able to submit corrections on behalf of clients through the same system.  Any business with a confirmed exemption from MTD for VAT should continue to notify HMRC about errors in their VAT returns in writing. Written notifications should be sent to the VAT error correction team either by post at BT VAT, HMRC, BX9 1WR, or by email at inbox.btcnevaterrorcorrection@hmrc.gov.uk. Agents can also write on behalf of clients using the same contact details to correct errors, however HMRC had asked that the online route be used by agents where possible. The online tool can also be accessed by agents on GOV.UK. This will take the agent to the landing page to submit the error correction notice or to the authorisation pages to support setting up authorisation via the required digital handshake.  On 5 September, guidance within VAT Notice 700/45 section 4 was updated with information on how and when to correct VAT errors using the new process. However, HMRC acknowledges that it was not clearly communicated that authorised agents can also use the online error correction tool. New evidence requirements for PAYE pensions tax relief claims From 1 September 2025, all PAYE claims for pension tax relief should be made online or by post but must also be supported by evidence from the pension provider or employer. Supporting evidence is needed for each tax year that a claim is made. Information on the new process and evidence requirements is set out in Newsletter 172: August 2025 of the Pension Schemes Newsletter. Anyone who is not in Self-Assessment (SA) is able to contact HMRC to claim tax relief in respect of pension contributions in certain scenarios. Successful claims are reflected via an adjustment to the taxpayer’s tax code. SA taxpayers should continue to claim relief via their SA tax return.  Broadly, the evidence required is a letter or statement from the pension provider or a payslip from the employer which should provide the following details: The claimant’s full name, Details of the pension contributions paid and the tax year they relate to, and If the claim relates to a workplace pension, that the claimant received 20 percent tax relief automatically from their employer. SA client reactivation From 1 October 2025, agents are now able to reactivate SA for their clients by calling HMRC on the ADL. Reactivation means that if that client was previously in SA and did not submit a tax return in 2023/24, they can be reactivated before submitting their 2024/25 tax return and do not need to register again, as they will already have a Unique Taxpayer Reference number.  More information on this will be shared by HMRC in the October Agent Update later this month. This new process follows recommendations and discussions between HMRC and Chartered Accountants Ireland and the other professional bodies at recent stakeholder forum meetings. The new service can only be accessed by selecting the relevant option from the ADL menu meaning it is not possible to be transferred to this from other HMRC helplines or to request this via web chat. HMRC have confirmed that it is possible to discuss up to five client reactivations in one single call. It should also be noted that this service is for reactivations only. If the client was not previously in SA, the normal SA registration process must be completed.  

In Irish news, Revenue has announced plans for the roll out of electronic invoicing for VAT and real time VAT reporting, and Revenue has also provided clarification on the 2024 income tax return disclosure requirements for employer PRSA contributions. In UK news, the Institute has responded to the House of Lords call for evidence on the latest Finance Bill draft clauses and the Institute recently participated in an event which explored the complex issues arising from cross-border working. In International news this week, the European parliament proposes a simplified tax architecture to benefit EU citizens and businesses. Ireland 1. Revenue has announced plans for the implementation of the VAT in the Digital Age (ViDA) requirements. 2. Read about the additional information provided by Revenue on the disclosure of employer PRSA contribution.   UK 3. In our submission to the House of Lords inquiry into Finance Bill 2025-26, the Institute continues to recommend that the Government needs to reframe its policy changes on agricultural property relief and business property relief. 4. The Institute was represented last week at an event in London which examined the complexity of global mobility, including tax implications and other key considerations.   International 5. The European Parliament has adopted a resolution on the role of simple tax rules and tax fragmentation in European competitiveness. 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 Cross-border developments and trading corner here.  

Earlier this week, the Institute’s Northern Ireland Tax Committee wrote to new the Exchequer Secretary to the Treasury, Dan Tomlinson MP to highlight a range of tax policy and tax administration recommendations and concerns ahead of the next Budget on Wednesday 26 November. In our Pre-Budget Submission, the Institute continues to press the Government to reframe the draft legislation on agricultural property relief and business property relief given the disproportionate impact this will have on family-owned farms and businesses in Northern Ireland (NI). The Institute’s UK Tax Manager, Leontia Doran, is scheduled to deliver oral evidence on this issue on Monday 20 October to the House of Lords Finance Bill Sub-Committee as part of its inquiry into the draft Finance Bill 2025-26 clauses. The Institute is telling the Government that it is not too late to reframe this policy ahead of April 2026. However, if the Government is not willing to do so, we continue to recommend that a specific carve out from the rules is included in the draft legislation to protect NI. Given how deeply connected agriculture is throughout the island of Ireland, the unique circumstances of NI farmers cannot be ignored and must be addressed. The cross-border nature of NI’s agri-food industry, where Ireland is its largest export market, means that NI needs to remain competitive in order to be able to serve its largest market, particularly if its dual market access to the EU is to grow to its true potential. This will only be achieved via a coherent tool kit of economic policies, not the least of which should include pro-business and pro-family succession tax reliefs. It is for this reason that the Government should exclude NI from these changes. The Committee also highlighted a range of other issues in the submission as follows: The campaign to reduce the rate of corporation tax in NI, The tax burden and complexity arising from cross-border and remote/hybrid working on the island of Ireland, Tax simplification and the lack of progress in this area, Making Tax Digital for Income Tax and the implementation of mandatory tax adviser registration from 1 April 2026, and The ongoing need for climate and environmental objectives to feature significantly in UK budgets, which includes a range of tax policy recommendations.

Last week the European Parliament adopted a resolution containing suggestions for reforms to the tax architecture to boost competitiveness while continuing to address tax avoidance and evasion. The resolution will feed into the ongoing work on legislative simplification, with a dedicated proposal of the European Commission expected to be released in early 2026.

The EU has published an updated list of non-cooperative tax jurisdictions. While no new jurisdictions have been added to the list in Annex I,  Viet Nam has been removed from Annex II due to its successful implementation of the OECD’s BEPS minimum standard on Country-by-Country Reporting.  Annex II reflects the countries engaged in constructive cooperation with international partners.

The OECD Forum on Tax Administration will host a hybrid event on enhancing tax certainty on 31 October 2025 . The event will allow tax policymakers and administrations, business representatives, and other stakeholders to assess the tax certainty agenda and work towards further improvements in dispute prevention and dispute resolution. Registration for the event closes on 15 October 2025.

On 16 October 2025 the EU parliament’s subcommittee on tax matters will hold an Interparliamentary Committee Meeting on "The taxation of digital activities at national and international level, in light of ongoing developments at OECD/G20 level."

New research from the ESRI indicates that, at the household level, measures introduced in Budget 2026 are expected to lead to modest income reductions next year, averaging around 2 percent of disposable household income. In a press release issued last week, the ESRI noted that the fiscal stance as outlined in the current and recent budgets is arguably too loose, and the reliance on unpredictable corporation tax receipts is a vulnerability.  The fiscal stance refers to the balance between government spending and taxation, comparing the amount which the government injects into the economy through expenditure to the amount which it withdraws through taxes.

From 1 January 2026, employees aged over 22 who earn €20,000 or more annually and are not currently contributing to a retirement savings plan through payroll will be automatically enrolled in the state-sponsored MyFutureFund scheme. The Government confirmed an allocation of €154 million in Budget 2026 to fund its contributions to the new MyFutureFund scheme. The Department of Social Protection has issued a press release providing details of upcoming free information webinars being run in November which will provide details and guidance to employers.