In this week’s miscellaneous updates, the latest Agent Update is available and HMRC has updated its core strategic objectives. Details of a new ‘Spotlight’ have been published and 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 finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. Latest Agent Update Agent Update Issue 130 is available. Get the latest guidance and information including: Self-Assessment repayments no longer available through telephone or webchat, Student loans thresholds, rates and loan start notices, Reminder about the new arrangements for moving goods from Great Britain to Northern Ireland under the Windsor Framework from 1 May 2025, protecting customer data against malware, and updates to the Tax Agent handbook. HMRC updated strategic objectives. HMRC has updated its core strategic objectives on GOV.UK. The updated objectives are to: close the tax gap, improve day-to-day performance and the overall taxpayer experience, reform and modernisation of tax and customs administration, build a high-performing organisation with a skilled and engaged workforce, and support wider government economic aims through HMRC’s work. New Spotlight In a new Spotlight, Spotlight 68, HMRC is telling companies not to use a scheme which seeks to use advertising/marketing expenditure both as a mechanism to reduce taxable profits and disguise employment income in the form of redeemable loyalty points. This new Spotlight therefore flags a profit extraction scheme which aims to work as follows: the company buys ‘advertising’ from the promoter of the arrangement, it then claims a corporation tax deduction for the expense and reclaims the related VAT, the company’s directors/associates receive loyalty points equal in value to at least 80 percent of the cost of the advertising, these are converted by the promoter on a 1 point for £1 basis which is then credited to prepaid cards, and the cards are made available for directors/associates to use at their own discretion. However, HMRC does not believe that the scheme delivers the intended tax reliefs and is therefore advising companies and their directors to withdraw from such arrangements and regularise their tax affairs. HMRC Spotlights aim to highlight to agents and taxpayers when HMRC has begun investigating a scheme it believes has the features of tax avoidance. 

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. More information has also been published on the independent review of the Windsor Framework which was announced in January 2025. HMRC has also sent a reminder email that the new parcel arrangements under the Windsor Framework took effect from 1 May 2025 and has also asked us to share a document summarising the key changes. Independent review of the Windsor Framework (WF) The Independent Review of the WF was commissioned by the Secretary of State for Northern Ireland in January 2025 after a vote on the continued application of Articles 5 to 10 of the WF in the Northern Ireland Assembly in December 2024. Lord Murphy of Torfaen has been commissioned to lead the review with the aim of providing the Government with a report of the review’s conclusions no later than six months from 9 January 2025. This will examine the functioning of the WF and its implications for social, economic and political life in Northern Ireland, and on the UK internal market and will include recommendations. As part of the Independent Review, Lord Murphy is seeking input from relevant stakeholders. He is inviting those with insights, experiences, comments or concerns related to share their views in written format. Feedback should be submitted by 31 May 2025 using a feedback form. Miscellaneous guidance updates and publications Goods Vehicle Movement Service codes for Data Element 5/23 of the Customs Declaration Service, Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service, Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, CDS Declaration Completion Instructions for Final Supplementary Declarations, Communications resources to help you move goods from Great Britain to Northern Ireland, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

The OECD has published its annual report of taxes paid on wages in OECD countries. The report indicates that post-tax incomes have increased in the majority of OECD countries in 2024 as real wages recover. This year’s report also provides an analysis of the impact of tax credits and allowances on personal income tax rates in OECD countries. 

The European Court of Auditors (ECA) will present its special report Value Added Tax fraud on imports on 14 May to the European Parliament’s FISC Subcommittee on tax matters. The presentation will provide an opportunity for the ECA to present its report and discuss its findings with members of the Budgetary Control committee and FISC Members.

On 15 May 2025 the European Parliament’s FISC Subcommittee will host a public hearing on the implementation of the Two-Pillar framework in light of international developments and the EU-US relations. The hearing will consider the implications for the EU's approach to global tax governance, the implementation of the OECD's Two-Pillar framework and discuss potential avenues for future reforms.

The European Parliament’s FISC Subcommittee will host a public hearing on the future of EU anti-avoidance tax rules on 15 May 2025. This public hearing will assess the EU's progress in tackling corporate tax evasion and avoidance, and explore how the current framework can be modernised while highlighting the need to simplify and harmonise EU anti-avoidance rules.

In Irish news, the Economic and Social Research Institute has published an economic overview of Ireland and Northern Ireland, and the extended ROS pay and file deadline for the 2024 tax year has been announced.  In UK news, HMRC has published updated guidance on several major legislative changes effective from 6 April 2025 and we bring you a range of updates for employers. In International news this week, Members of the European Parliament discuss the role of tax policy for the green transition. Ireland 1. A high-level comparison of the economies of Ireland and Northern Ireland (NI) over recent years is outlined in a recent report published by the Economic and Social Research Institute. 2. Revenue has confirmed Wednesday 19 November 2025 as the ROS 2024 return extended filing and payment date for certain self-assessment taxpayers. UK 3. Read a range of updates from HMRC which are relevant for employers. 4. In this week’s miscellaneous updates, HMRC has published updated guidance on several major legislative changes which took effect from 6 April 2025. International 5. The European Parliament’s tax matters subcommittee hosted a public meeting on the role tax policy can play in achieving the green transition while maintaining 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 EU exit corner here.  

The Republic of Côte d’Ivoire has become the 150th signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the Convention). This paves the way for Côte d’Ivoire to engage in a wide range of mutual assistance in tax matters and exchange of information with 149 other jurisdictions while guaranteeing extensive safeguards for the protection of taxpayers' rights.  

The European Parliament’s tax matters subcommittee, hosted a public hearing on the role tax policy can play in bringing about the economic green transition while also ensuring that the EU business remains competitive. The purpose of the hearing was to examine tax incentives for clean energy, aviation, and maritime transport, with a particular focus on the recommendations from the Draghi report. The meeting focused on the green transition and enhancing sustainability in key sectors.

The latest UK tax tidbits feature updated guidance in a range of areas: Double Taxation Treaty Passport Scheme register,  HMRC email updates, videos and webinars for tax agents and advisers,  Extra Statutory Concessions (VAT Notice 48),  Check how much tax you pay on dividends and interest from savings,  Work out your Capital Gains Tax adjustment for the 2024 to 2025 tax year,  Late registrations for employment related securities,  Check how to deal with an employment related securities penalty,  Check if you have to pay tax on your pension,  Appeals reviews and tribunals guidance,  Calculate interest and penalties for tax years ending 5 April 2005 to 5 April 2023,  Calculate tax, interest and penalties for the tax years ending 5 April 2010 to 5 April 2023,  Named tax avoidance schemes, promoters, enablers and suppliers,  Our governance,  Check genuine HMRC contact that uses more than one communication method,  Apply for a refund of the higher rates of Stamp Duty Land Tax,  What will happen if you do not pay your tax bill,  Claim tax relief on your private pension payments,  Additional information you must submit before you claim for Research and Development tax relief,  Research and Development (R&D) Tax Relief: Enhanced R&D intensive support for loss-making SMEs based in Northern Ireland,  Research and Development tax relief: the merged scheme and enhanced intensive support,  Let Property Campaign: your guide to making a disclosure,  Employment Allowance: further guidance for employers,  Rates and thresholds for employers 2025 to 2026,  Inheritance Tax account (IHT400),  Check genuine HMRC contact that uses more than one communication method,  Check if you need to tell HMRC about your rental income,   Help with common risks in transfer pricing approaches — GfC7,  Penalties for a failure to correct certain offshore tax non-compliance, and  Details of deliberate tax defaulters. 

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. HMRC has also sent several reminders that the 1 May 2025 deadline for changes in how goods are moved by parcel and freight from Great Britain (GB) to Northern Ireland (NI) is in just a few days.  1 May 2025 parcels and freight deadline is approaching  HMRC has issued a range of reminders about the revised 1 May 2025 deadline for changes in how parcels and freight move from GB to NI. Read HMRC’s reminder emails as follows:  Traders moving goods from Great Britain to Northern Ireland, and  If your business moves goods from Great Britain to Northern Ireland.  Miscellaneous guidance updates and publications  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS),  CDS Declaration Completion Instructions for Imports,  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service,  Customs Importer and Exporter Population,  Customs UK Importer and Exporter Population: data tables 2024,  Top-up your Customs Declaration Service duty deferment account,  Amend or cancel a Customs Declaration Service import declaration,  Search the register of customs agents and express operators,  NCTS: software developers, and  Declare commercial goods you’re bringing into Great Britain in your accompanied baggage or a small vehicle.   

In this week’s miscellaneous updates, HMRC has published a range of updated guidance for key legislative changes which took effect from 6 April 2025 and draft legislation on the carbon border adjustment mechanism has been published for consultation. HMRC has issued a press release highlighting that Making Tax Digital for income tax commences next year and in another press release to mark the 20th anniversary of HMRC, HMRC looks to the future and says it is “harnessing the spirit of then Chancellor Gordon Brown’s bold reforms and embarking on a new era of transformation”. An update has been published on the consultation on predevelopment costs and 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 finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.   Updated guidance published on key legislative changes   Globally mobile employees The new Foreign Income and Gains regime commenced from 6 April 2025. HMRC has therefore published a collection of new guidance on 'Globally mobile employees' for employers. This includes guidance on the impact of residence on an employee’s liability to UK income tax, the newly reformed overseas workday relief, and the operation of PAYE for the new rules in place from 6 April 2025.   HMRC has also published guidance on how to send a notification to HMRC on running PAYE on a proportion of globally mobile employee’s income related to their UK duties. This addresses the new Section 690 Income Tax (Earnings and Pensions) Act 2003 direction process.   HMRC has also updated the relevant sections of their manuals with more detailed guidance as follows: new pages in the PAYE manual to cover the new globally mobile employee PAYE notification process,   a new section in the Employment Income manual for Overseas Workday Relief, and   updated pages on travelling expenses for non-resident and qualifying new resident employees working in the UK.  In September 2024, the Institute established a new working sub-group of the NI Tax Committee and Tax Committee South which is examining the complexity of cross-border and remote/hybrid working on the island of Ireland with a view to discussing the complexities of this with both the UK and Irish Government to identify improvements for employers and employees impacted. New Inheritance Tax (IHT) residence based regime  From 6 April 2025, the UK’s IHT territoriality rules changed from a domicile to residence-based regime. Broadly, and subject to transitional provisions, individuals who have been UK tax resident for at least 10 out of the previous 20 tax years are now considered ‘long-term UK resident’ and are therefore subject to IHT on their worldwide assets. There are specific provisions relating to trusts.   HMRC has now published guidance, and changes to its IHT manual which includes a new section on the rules for long-term UK residents.  Abolition of non-domiciled regime  The non-UK domiciled ‘remittance’ regime was abolished from 6 April 2025 and the new Foreign Income and Gains (FIG) regime was introduced. As a result, UK tax resident individuals now pay tax on worldwide income and gains on an arising basis irrespective of their domicile. This is subject to the four-year FIG regime which is available to individuals within their first four years of UK tax residence, after a period of at least 10 consecutive years of non-residence. These changes are also accompanied by a series of transitional rules which include the three-year Temporary Repatriation Facility for those previously taxed on the remittance basis.   HMRC has now published guidance to support these changes as follows:  a new Residence and FIG regime manual, and   updated pages in the Trusts, Settlements and Estates Manual, and   International Manual.   Further HMRC guidance and manual updates are expected to be published in due course.  Update on consultation on predevelopment costs  In the 2024 Autumn Budget, the Government committed to launching a consultation in early 2025 to explore the tax treatment of predevelopment costs. Earlier this month, HM Treasury published an update on this which referred to the recent Court of Appeal judgment in Orsted West of Duddon Sands (UK) Ltd v HMRC .   According to HM Treasury, as this case considered “matters with significant readout across to this issue” the publication of this consultation has therefore been postponed. The Government will determine its next steps in respect to this consultation in due course.   In the meantime, views from stakeholders on this judgment and its implications are invited by email to predevcosts@hmtreasury.gov.uk.