A few weeks ago we issued a request for support from companies who would like to see a lower rate of corporation tax in Northern Ireland as the Institute kicks off a revived campaign. There is still time to participate in this campaign. Does your Northern Ireland based company or client support a lower rate of corporation tax for the region? If so, read on for how you can participate in our campaign to reignite the path to a lower rate of corporation tax for the region.  The Corporation Tax (Northern Ireland) Act 2015 contains the legislation for how a lower rate of corporation tax would work practically in Northern Ireland. However, this is subject to rate-setting arrangements which mean that this rate-setting power may not be exercised unless Treasury regulations have been made. These Treasury regulations are subject to very specific conditions specifically the continued commitment of the NI executive to “take all the actions necessary to demonstrate that its finances are on a sustainable footing for the long term”. The support of the Institute’s members for a lower rate of corporation tax in Northern Ireland has not waned in recent years with a recent Ulster Society survey showing that approximately two thirds of our members continue to support this initiative. On foot of this ongoing support combined with the restoration of the Northern Ireland Assembly and a new government in Westminster, Chartered Accountants Ireland is embarking on a new campaign to engage with and equip policy makers with the information and tools necessary to pursue a lower rate of corporation tax for the region as one of a range of economic levers to drive growth and employment.  We are seeking companies in Northern Ireland who support this campaign and who are prepared to tell us why they support a lower rate and what it would mean for them and the region. These quotes will be included in a position paper which is expected to be launched before the end of 2024. Contact tax@charteredaccountants.ie to participate.    

Last week we reminded you that the 2023/24 self-assessment registration deadline is approaching. It is now just six days’ away on Saturday 5 October 2024 in order to avoid a failure to notify penalty. Those required to register for self-assessment include anyone who is: self-employed or a sole trader in a business which commenced in 2023/24, ·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. 

In this week’s miscellaneous updates, we bring you news of a new role for the Office of Budget Responsibility (OBR) and the latest HMRC performance data has been published. HMRC’s bank details have changed in respect of paying several taxes and the letter sent to taxpayers when they authorise an agent to act on their behalf via the online agent authorisation service has been updated. And finally, the latest HMRC Stakeholder Digest has been published. New role for OBR The Budget Responsibility Act 2024 received Royal Assent earlier this month on 10 September 2024. The aim of this legislation is to ensure that “future fiscal announcements making significant, permanent tax and spend changes” will be “subject to an independent assessment by the OBR”. More information on what this means is set out in the Press Release published in July when the original Bill was introduced to Parliament. HMRC bank details changed Agent Update 123 highlights that HMRC has changed its bank accounts for payment of the following taxes: the customs declaration service, plastic packaging tax, fuel duty, economic crime levy, soft drinks industry levy, and the trust registration service penalty. Taxpayers who make payments via Faster Payments, BACS or CHAPS should use the new details. Anyone paying by direct debit is not required to take any action. Updated agent authorisation letters In another story from Agent Update 123, HMRC has updated the letter which is sent to taxpayers when an agent is authorised to act on their behalf via the online agent authorisation service. According to HMRC, the changes are intended to clarify the role of the agent and in particular, reinforces that the taxpayer retains responsibility for their own tax affairs.

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. We also bring news of changes to excise goods legislation for Northern Ireland which take effect from 1 October 2024 and remind you that the next changes in the Windsor Framework do not commence from 30 September 2024 and have been delayed to 31 March 2025. Changes to excise goods legislation for Northern Ireland Legislation takes effect from 1 October 2024 which makes several changes to the holding and movement of excise goods in Northern Ireland. The purpose of this legislation is to make “technical fixes to the statute book to better implement the EU excise provisions applicable in Northern Ireland under the Windsor Framework of the EU Withdrawal Agreement”. More information is available at the following links: Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) (Amendment) Regulations 2024, SI 2024/941, and Policy paper. Miscellaneous updates to guidance and publications CDS Declaration Completion Instructions for Exports, Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS), Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS), CDS Declaration Completion Instructions for Imports, 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports, Tax types for Data Element 4/3 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, CDS Customs Clearance Request Completion Instructions for Inventory Exports, Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS), CDS BIRDS Declarations and Customs Clearance Request completion instructions, National additional codes to declare with Data Element 6/17 of the Customs Declaration Service, Appendix 23 Imports: Declaration Category Data Sets, Upload documents and get messages for the Customs Declaration Service, Moving goods between Great Britain and the UK Continental Shelf, Trade Specialised Committee on Administrative Co-operation in VAT and Recovery of Taxes and Duties, Report a problem using the Customs Declaration Service.

We have compiled the latest updates to various VAT legislation, publications, briefs, and guidance. HMRC has also contacted us to advise that several Revenue and Customs Briefs have been removed from gov.uk and guidance has been updated where applicable. Register for VAT by post, VAT Personal exports - tax-free sales of new motor vehicles for use before export, Charity funded equipment certificates (VAT Notice 701/6 supplement), VAT Assessments and Error Correction, Who should register for VAT (VAT Notice 700/1), VAT domestic reverse charge technical guide, Help with VAT compliance controls — Guidelines for Compliance GfC8, and Value Added Tax (Caravans) Order 2024, SI 2024/910 and policy paper.

The OECD has issued its Interim report for September 2024 which shows that global growth remains resilient, and headline inflation has further declined in most G20 countries.  Projected global GDP growth for 2025 is 3.2 percent, while inflation is expected to be in the region of 3.3 percent. Other key findings globally include the easing of pressures on labour markets, the pace of regulatory reform has declined, and global growth is expected to stabilise amidst robust growth in the USA, UK, Canada, and Spain.

On 19 September 2024, nine jurisdictions signed and a further 10 expressed their intent to sign the Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule (STTR MLI). Jurisdictions can implement the Subject to Tax Rule (STTR) by either joining the STTR MLI or by bilateral amendments to tax agreements. The STTR ensures a minimum level of tax on certain cross-border payments and is designed to prevent circumstances where income is either taxed at very low rates or not taxed at all due to differences in tax regimes between countries.

In Irish news, Revenue has issued a fresh warning about an email and text scam, and changes to the Standard Fund Threshold have been announced. In UK news, the UK Government has confirmed that the Trader Support Service is being extended by a further year, an ongoing recommendation of this Institute, and the 2023/24 self-assessment registration deadline is approaching. In International news, the OECD is advancing it’s work on the Pillar Two Subject to Tax Rule. Ireland Revenue has issued a fresh warning about an email and text scam. Changes to the Standard Fund Threshold have been announced. UK The UK Government has announced that the Trader Support Service is being extended a further year to December 2025. The 2023/24 self-assessment registration deadline is approaching.   International The OECD is advancing it’s work on the Pillar Two Subject to Tax Rule. 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 EU exit corner here.  

The international community has taken another step in ensuring fairer international tax arrangements (particularly for developing countries) with the implementation of the Pillar Two Subject to Tax Rule (STR).   The STR ensures a minimum level of taxation on relevant cross-border payments and aims to prevent circumstances where income is either taxed at rates below 9 percent or not taxed at all due to differences in tax regimes across jurisdictions. The STR particularly benefits developing countries as such jurisdictions are often the source of significant outbound payments.  

The Annual Report on Taxation (previously known as ‘Tax policies in the European Union’) has been published annually by the European Commission since 2016. The report is a detailed analysis of tax systems and taxation policy across the EU. The report assesses progress on tax policies both at Member State level and at EU level and forms the basis for discussion on the present and future of EU tax policy. 

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