Last week HMRC picked up a new VAT email scam associated with a QR code. HMRC has posted about this on its social and digital media channels to issue a warning. Essentially HMRC became aware of a small number of cases where the paper bank details variations form (VAT484) has been wrongly used in an attempt to gain access to a business’s VAT repayments.   According to HMRC, action is being taken to address any cases identified to date, including writing to businesses to confirm changes made to their details since January 2024, and putting in place solutions to minimise any further instances. The warnings issued last week are available here:-  X - https://twitter.com/i/status/1782803752388342084; and  Facebook - https://fb.watch/rDBLKlAsfd/.  Anyone receiving any type of phishing attempt should report this to HMRC. 

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 and from tomorrow 30 April 2024 we remind you that the next stage in the UK’s Border Target Operating Model commences. HMRC has also provided a new portal which can be used to test the new computerised transit system (“NCTS”) which commences from July 2024.  Next stage in BTOM commences from tomorrow  From tomorrow 30 April 2024, to import live animals or animal products from non-EU countries into Great Britain, you’ll need to:-  find the BTOM risk category for the commodity you’re importing; and  follow the sanitary and phytosanitary rules for that import risk category.  The BTOM categorises live animals, germinal products, products of animal origin and animal by-products as high risk, medium risk, or low risk. Each category has different requirements.  NCTS portal  The new computerised transit system (“NCTS”) phase 5 web portal is expected to be available from July 2024. In preparation for this, HMRC has launched an online service which can be used to test the new portal. Note that any declarations or notifications completed in the service are for test purposes only and will not be submitted to HMRC.  If you are a UK trader, you should use the NCTS to submit electronic transit declarations. The Common Transit procedure can be used for movements between the UK, the EU, and other common transit countries. You must use the system if you’re a trader and want to move goods under the Common Transit Convention. You can keep up to date with news affecting NCTS users by reading the transit newsletters.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs Importer and Exporter Population 2023;  Customs importer and exporter population 2023: methodology notes;  Customs UK Importer and Exporter Population - business count data tables 2023;  Manage your import duties and VAT accounts;  Importing SPS controlled goods that interact with ALVS;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Customs Declaration Completion Requirements for The Northern Ireland Protocol;  Part 1 Tariff Supplement for CDS Volume 3 for the Northern Ireland Protocol; and  Part 2 CDS Declaration Completion Requirements for The Northern Ireland Protocol. 

In Irish news, the Minister for Finance is encouraging taxpayers to make arrangements by 1 May to repay warehoused debt, and Revenue publishes statistics for 2024 Local Property Tax. In UK news, we issue a final reminder about the 30 April 2024 deadline for the end of the VAT margin scheme for second hand cars transported to Northern Ireland from Great Britain before 1 May 2023, and read about the tax announcements made as part of last week’s Tax Administration and Maintenance Day. In International news, a new report has been published on the future of the EU Single Market. Ireland The Minister for Finance is encouraging taxpayers to make arrangements by 1 May to repay warehoused debt. Revenue has published statistics for Local Property Tax (LPT) 2024. UK 30 April 2024 is the deadline for the end of the VAT margin scheme for second hand cars transported to Northern Ireland from Great Britain before 1 May 2023. Read about the tax announcements made in last week’s Tax Administration and Maintenance Day. International A new report has been published on the future of the EU Single Market. 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 former Italian Prime Minister Enrico Letta recently launched a report on the EU Single Market. The report focuses on competitiveness, streamlining EU regulations to boost the data economy, investment in digital innovation, governance, tax, energy/climate, and SME competitiveness. There is anecdotal feedback that the document is being considered as a key document for the next EU Parliament. The Taoiseach has noted that while Ireland supports the integration of capital markets, this should not involve the harmonisation of corporate tax or insolvency laws.

Revenue has updated the Tax and Duty Manual regarding charities and sports bodies online applications for tax exemption. The guidance now reflects the increase in the value threshold requirement for audited accounts for charities, from €100,000 to €250,000 (paragraph 7.2). 

Last Thursday on Tax and Maintenance Day, the Government published a written ministerial statement setting out further detail on various commitments made at the March 2024 Spring Budget. This includes the launch of a consultation on the impact of recent High Court rulings on the VAT treatment of private hire vehicles and an update on the recent consultation on tackling non-compliance in the umbrella company market. The government also announced two further technical tax policy proposals.  In summary, the announcements were as follows:- VAT treatment of private hire vehicles – a consultation has been launched on the potential tax impact of recent High Court rulings on the private hire vehicle sector. This consultation also invites views on potential Government interventions that could help to mitigate any undue adverse effects on this sector and its passengers. The consultation is open until 8 August 2024; Tackling non-compliance in the umbrella companies market – the Government will publish a response to this consultation in due course. HMRC will publish new guidance later this year which will include an online pay checking tool. At present, the Government is considering introducing a statutory due diligence regime for businesses that use umbrella companies and will continue to engage with the recruitment industry and other key stakeholders on the detail of this;  VAT treatment of charitable donations - to encourage charitable giving, the Government will consult later this year on introducing a targeted VAT relief for low value goods donated to charities by businesses which the charities then give away free of charge to those in need; and  Mandating postcode provision for freeports and investment zones national insurance contributions (“NICs”) reliefs – a legislative change will be introduced which will require employers operating in a freeport or investment zone special tax site to provide their employee’s workplace postcode to HMRC if they are claiming the relevant secondary Class 1 NICs relief through payroll. This will be underpinned by a four-week technical consultation on the draft regulations required to implement this.  Full details of the various publications and announcements made are available at:- https://www.gov.uk/government/publications/summary-of-tax-administration-and-maintenance-spring-2024. 

The Minister for Finance, Michael McGrath TD, has welcomed data published by the Central Statistics Office (CSO) which shows a General Government Surplus of €8.3 billion last year, the equivalent of 2.9 percent of GNI*. This compares with an €8.6 billion (3.2 percent of GNI*) surplus in 2022. A record level of corporation tax receipts in 2023, just under €24 billion, is a key part of the surplus.  Previously large budgetary deficits were recorded in 2020 and 2021 as the Government provided support to households and firms during the pandemic.  Commenting on the figures, the Minister for Finance, Michael McGrath T.D. said:  “I welcome today’s figures which show the Irish government achieved a significant budgetary surplus in 2023 for the second year in a row. This result is testament to the careful management of our public finances in recent years and gives us options that are not open to many peer countries in the developed world.  It is also noteworthy that General Government Debt fell in 2023 compared to the previous year. Next week, Minister Donohoe and I will publish the Stability Programme Update (SPU) which will again project that our public finances will remain in healthy positive territory this year and in the coming years.  However, it is important not to lose sight of the fact that at least part of the surplus is due to the strength of corporation tax receipts, some of which is likely to prove windfall in nature. While our headline position is strong, this can change quickly given the inherent volatility in our corporation tax receipts and the dependence we have on revenues from a small number of multinational companies.  In this context, it is imperative that transitory revenue streams are not used to finance permanent increases in expenditure or reductions in taxation. With this in mind, Government recently published legislation providing for the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. The Bill has now passed second stage in the Dáil and will proceed to committee stage shortly.  The Future Ireland Fund will help deal with future expenditure pressures including ageing, climate, digitalisation and other fiscal and economic challenges. This is not a rainy day fund because these are costs we know are coming our way. If we don’t make provision for them now, future governments will face very difficult choices in the years to come to ensure revenues match the expenditure commitments of an ageing population. The purpose of the Future Ireland Fund is to support State expenditure from 2041 onwards in a consistent and sustainable manner.  The Infrastructure, Climate and Nature Fund will seek to deal with the historic pro-cyclicality of public spending and to assist with climate change objectives and nature, water quality and biodiversity issues. I want to ensure that no future government ever has to slash investment in critical infrastructure in areas such as housing, transport, health, education and energy, when we encounter an economic downturn or shock. The ‘stop, start’ approach to public capital investment must be consigned to history.  These two new long-term funds will make the future safer for our economy, our public finances and our people. My aim is to have the legislation enacted before the summer recess and have the Funds in place later this year.  I now look forward to the publication of the SPU next week, the National Economic Dialogue next month, and the publication of the Summer Economic Statement before the summer recess, as we work towards Budget 2025 next October.”  *Gross National Income (GNI) is an indicator designed specifically to measure the size of the Irish economy by excluding Globalisation effects. 

In recent weeks we have issued several reminders that 30 April 2024 is the deadline for the end of the VAT margin scheme in respect of second-hand vehicles moved to Northern Ireland from Great Britain prior to 1 May 2023. If these vehicles are sold after 30 April 2024, VAT will therefore be chargeable on the full selling price and not on the margin made.   Readers are also reminded that vehicles moved to Northern Ireland from GB on or after 1 May 2023 can use the new VAT related payment scheme, if certain conditions are met. However, this is not available if the vehicle was moved to Northern Ireland prior to 1 May 2023.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Revenue, in conjunction with the Department of Social Protection (DSP), is hosting in-person information sessions for people over the age of 65 in April and May. The sessions will be held in Dublin, Louth and Donegal from 29 April to 3 May 2024.   Information will be provided on Capital Acquisitions Tax (CAT), PAYE, income tax and DSP Long-term Carers Contribution. There will also be presentations from Citizen’s Information and the Law Society (Wills).  Those attending the meeting must register in advance by calling 085 8582633 or emailing Over65Outreach@revenue.ie, before 24 April if possible.  Further details are available on Revenue’s website. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime. 

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 and InterTrade Ireland is hosting a series of free webinars to help businesses navigate trade between Ireland, Northern Ireland and Great Britain (“GB”). HMRC has also launched a new online service for businesses importing goods into GB and Northern Ireland and we update you on some matters discussed at a recent meeting of HMRC’s Northern Ireland Joint Customs Consultative Committee.  New online service for importers  Businesses importing goods into any part of the UK can now use a new HMRC online service for the following purposes:- view and manage your cash account (top up and withdraw funds);  set up a Direct Debit for and top up a duty deferment account;  request older statements and certificates;  view and manage your general guarantee account;  manage the email address linked to your account;  access secure messages from HMRC related to your account; and  set up, manage, or view account authorities.  You can also view and download:- duty deferment statements;  import VAT certificates (C79);  postponed import VAT statements; and  notification of adjustment statements.  In order to use the service, you must be subscribed to the Customs Declaration service (“CDS”) and can sign in to the new service using the Government Gateway user ID and password used to subscribe the CDS.  Meeting of HMRC’s Northern Ireland Joint Customs Consultative Committee (“NI JCCC”)  The Institute was in attendance at the most recent meeting of HMRC’s NI JCCC, a stakeholder forum to discuss Northern Ireland specific customs issues as a result of the UK’s departure from the EU.  At the meeting HMRC presented on the issue of consumer parcels being sent from GB to NI. A new system will be operational from Spring 2024, the UK Carrier Scheme, before the next phase of the Windsor Framework takes effect from 30 September 2024. In summary, from 30 September 2024, consumer parcels will be able to be sent from GB to NI without customs declarations. However, some information will need to be provided in bulk under the new UK Carrier scheme which aims to remove the burden from the border.  HMRC will issue further guidance and stated that they will not be auditing large movements of parcels. However, if there is a perception of potential abuse of the scheme, for example by moving goods from GB to NI for the purposes of onwards movement into the EU, HMRC will raise this with carriers. A number of upcoming milestones were also highlighted which we will provide more details on in due course.   The consultation on the introduction of the UK’s Carbon Border Adjustment Mechanism (“CBAM”) was also discussed. This will be introduced from 1 January 2027. The Government is considering minimum thresholds and plans to operate this like a domestic tax making the person who is responsible for the goods the person responsible for paying this tax, not the customs agent. This will be implemented by primary and secondary legislation and will also be followed by the development of guidance.   A question was asked if there is a liability to the EU CBAM for Northern Ireland importers if Northern Ireland importers are moving the goods into the EU, but the goods are coming from GB into Northern Ireland. HMRC confirmed that imports into Northern Ireland are not subject to the requirements of EU CBAM. Imports into the EU, including Ireland, are subject to the EU CBAM.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Known error workarounds for the Customs Declaration Service (CDS);  Apply for a voluntary clearance amendment (underpayment) (C2001);  Access trader testing for the New Computerised Transit System Phase 5;  Customs Importer and Exporter Population 2023; and  Customs Importer and Exporter Population.