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 from 12-16 April 2024. Check the relevant page for information on planned downtime.   In particular, we have been advised that as part of regular maintenance, the following services will be unavailable between the stated times below. The HMRC Service Availability pages will be updated to reflect the affected services.  Services unavailable from 5.30pm Friday 12 April 2024 to 9am 16 April 2024:-  Trusts and Estates;  The Annual Tax on Enveloped Dwellings;  CGT Property Disposal;   EPAYE;  VAT Registration Service;    Claim VAT Enrolment;   VAT View and Change;   Plastic Packaging Tax; and  The Agent Services Account. 

Revenue has made a number of updates to the Pensions Manual following amendments introduced in Finance (No) Act 2023. The main updates reflect:  the exemption from income tax of rental income is subject to registration with the Residential Tenancies Board.  cases where assets of an ARF are used as a loan or as security for a loan to a close company where the ARF owner or any person connected with the ARF owner is a participator.  Revenue will no longer approve any applications for new RACs from 1 January 2024, except where an application has been made to Revenue for approval under this section before this date.   There is now no upper restriction on when benefits must be taken, with PRSA holders aged 75 and over having full access to draw down from their funds as they wish. The lower age limit of 60 is still in place.   Further information is available in eBrief No. 109/24. 

Revenue has updated the Stamp Duty Manual to provide comprehensive guidance on the operation of the levy on authorised insurers under section 125A SDCA 1999.    Section 125A SDCA 1999 provides for a stamp duty to be levied on certain health insurance contracts entered into between health insurers and their customers.  

The Minister for Finance, Michael McGrath TD and the Minister for Public Expenditure, NDP Delivery and Reform, Paschal Donohoe TD, have published the Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024.  The purpose of the Bill is to provide for the establishment of two new funds to support future expenditure by the State.   The Future Ireland Fund (FIF) is i is intended to support future expenditure as the economy is likely to face increased pressures associated with climate change, digitalisation, and an ageing population.  It will support State expenditure in any year from 2041 in a consistent and sustainable manner. It  The Infrastructure, Climate and Nature Fund (ICNF) is intended to support State expenditure from 2026 or in any year thereafter, in the event of a significant deterioration in the economic or fiscal position of the State, and between 2026 and 2030, to support State expenditure on certain environmental projects.   The Bill also provides for the control and management of those funds by the National Treasury Management Agency, and for the dissolution of the National Surplus (Exceptional Contingencies) Reserve Fund and the transfer of the assets of that Fund to the Future Ireland Fund and the Infrastructure, Climate and Nature Fund.  Annual contributions of 0.8 percent of GDP will be made to the FIF from 2024 until 2035, after which further contributions can be provided through a Dáil resolution. Approximately €4.1 billion will also be transferred from the dissolution of the National Reserve Fund in 2024.There is no limit on the potential size of this Fund. €2 billion will be invested in the ICNF each year from 2024 to 2030.  Commenting, the Minister for Finance, Michael McGrath T.D. said:  “Ireland’s public finances are currently in a strong position, underpinned by record Corporation Tax receipts, which last year reached nearly €24 billion. It is essential that we take action now to secure the public finances over the long term to ensure we can meet the future expenditure requirements we know will arise.  This landmark Bill will establish the Future Ireland Fund. The Bill provides for an annual Exchequer contribution from 2024-2035 to the Future Ireland Fund which will ultimately provide a revenue stream to help meet demands posed by a wider range of issues including demographic changes, digitalisation, de-carbonisation and de-globalisation.  With annual contributions, GDP growth and potential return from investments, there is a potential for the fund to grow to around €100 billion by 2035, which will give the State substantial firepower to manage the increased demands on expenditure in the decades ahead.  In addition, the Bill will establish the Infrastructure, Climate and Nature Fund, which will provide an essential buffer for expenditure by the State during an economic downturn. This will help smoothen the investment cycle and help support employment at a critical time of economic distress. The fund will also provide support to designated environmental projects that will contribute to a range of climate, water and biodiversity objectives.”  Further information is available on gov.ie. 

Following constructive engagement with Government departments, the Institute has secured a change which should make the process of hiring non-EEA accountants by way of a Critical Skills Employment Permit (CSEP) less burdensome. In recent months, member firms have reported to us a significant increase in the need to apply for bridging CSEP visas for their workers while their residency status is being processed.  New rules announced this week should substantially reduce this requirement. CSEP’s are valid for a period of two years, after which employees holding this permit can typically go on to apply for continued residence in Ireland under what is known as a Stamp 4. Since November 2023, in order to secure a Stamp 4, the holder of a CSEP was required to complete a minimum of 21-months' work following the issuance of a Stamp 1 (a permission to work visa). Delays in issuing a Stamp 1 meant that member firms have had to apply for bridging CSEPs because the 2-year CSEP would expire before accountants could meet the 21-month work requirement. Amplifying our members concerns, we called for a reinstatement of the previous system whereby a Stamp 4 could be secured 21 months from the commencement of employment in the State - rather than from the commencement of a Stamp 1. Following a sustained period of engagement with department officials, this suggestion was formally adopted by the Department of Justice with immediate effect – details of the changes can be found here. Chartered accountants are currently listed on the Government’s Critical Skills Occupations List – meaning that due to capacity shortages in the industry, suitable candidates from non-EEA jurisdictions are eligible to apply for a Critical Skills Employment Permit (CSEP) to come and work in the profession here. The Department of Enterprise, Trade and Employment and the Department of Justice have jurisdiction over the issuance of CSEP’s and Stamp 4 residence permits. Further information on CSEPs can be found here on gov.ie. The previous changes announced by the Department of Enterprise, Trade and Employment (DETE) on November 15 2023 can be found here. Should you have an issue which you would like to bring to the attention of the public policy team, please reach out via our email publicpolicy@charteredaccountants.ie

In Irish news, the recently announced amendments to the film tax credit take effect, a report published by the Parliamentary Budget Office highlights the risks that could impact Ireland’s corporation tax take and employees can now access their ERR data. In UK news, this week we take a further look at HMRC’s Raising Standards in Tax Advice consultation, and we bring you the key tax changes which take effect when the new tax year starts on 6 April.  Ireland The Minister for Finance, Michael McGrath TD, has signed commencement orders that increase the film tax credit project cap to €125 million and extend the tax credit until the end of 2028. The Parliamentary Budget Office has published a report highlighting the risks that could impact Ireland’s corporation tax take. Employee access to ERR data is now available.   UK We want to hear from you about HMRC’s Raising Standards in Tax Advice consultation for a hybrid regulatory model of joint HMRC and industry enforcement. Read the key tax changes which take effect when the new tax year starts on 6 April.   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.  

Following European Commission approval, the Minister for Finance, Michael McGrath TD, has signed commencement orders for two amendments to the film tax credit. The first commencement order provides for an increase in the cap on eligible expenditure from €70 million to €125 million, as announced in Budget 2024. The second commencement order provides for the extension of the credit from its current end date of 31 December 2024 to 31 December 2028, as announced in Budget 2023.  Welcoming the amendments, Minister McGrath stated:  “The increase in the cap on eligible expenditure related to the cost of production of certain films to €125 million signals the Government’s intention to support the industry in capitalising on its success in recent years and to make Ireland a global leader in the area of high quality audio-visual production.  In addition, the extension of the relief provides certainty to the film industry that this important incentive for the sector will be available for a further four years.  I look forward to continued growth and employment opportunities for the Irish film sector in the years ahead.” 

The Parliamentary Budget Office (PBO) has published a report which provides an analysis of corporation tax revenue growth. The report highlights the risks affecting corporation tax, including concentration risk, volatility risk and the implications of international tax reforms. It also discusses tax windfalls, transfer pricing, and places Ireland’s corporation tax yield in an international context.  The report notes that corporation tax revenue is heavily reliant on the foreign direct investment (FDI) sector. Changes in the business operations or tax strategies of those that contribute the most would have significant impact on Ireland’s fiscal health.  Failure to adequately address Ireland’s infrastructural capacity constraints in relation to housing, utilities and transport could impact FDI. The report recommends strategic policy decisions to enhance Ireland’s competitiveness in non-tax areas such as infrastructure to mitigate the systemic risks associated with our corporation tax receipts. 

Revenue has confirmed that the concessional tax treatment for Ukrainian citizens working remotely in Ireland for Ukrainian employers will continue to apply for the tax year 2024, subject to qualifying conditions. The concessional treatment will cease with effect from 1 January 2025. From this date, the Irish-based employee and the Ukrainian employer will be required to comply with the Irish tax requirements arising from the exercise of the duties of the Ukrainian employment in Ireland.   Revenue's concessional treatment applies solely to the employment income paid by a Ukrainian employer to their Irish-based Ukrainian employees performing the duties of their employment remotely from Ireland and who are working in the State as a result of the war in their country. The concession provides that in relation to Ukrainian employment income:  Irish-based employees of Ukrainian employers are not liable to Irish income tax and USC on Ukrainian employment income that is attributable to the performance of those employment duties in the State, and  The Ukrainian employers are not required to operate PAYE on such employment income.  Revenue also disregards the presence of these employees in Ireland for corporation tax purposes in respect of any company resident in Ukraine, where the employee, director, service provider or agent would be present in Ukraine but for the war there.  Any individual or relevant entity that avails of these concessional treatments should continue to retain evidence to support compliance with the qualifying conditions. 

Revenue has advised the Institute that employees can now view enhanced reporting requirement (ERR) submissions in their name via MyAccount from the PAYE Services section under the heading Expenses/Benefits. 

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the UK’s departure from the EU. Who should register for VAT (VAT Notice 700/1); How VAT affects charities (VAT Notice 701/1); Change your VAT registration details; Buildings and construction (VAT Notice 708); Insolvency (VAT Notice 700/56); Group and divisional registration (VAT Notice 700/2); Claim a VAT refund for a new home or charity building if you're a DIY housebuilder; Claim a VAT refund for a conversion if you're a DIY housebuilder; Local authorities and similar bodies (VAT Notice 749); Claim a VAT refund as an organisation not registered for VAT; Insolvency (VAT Notice 700/56); Who should register for VAT (VAT Notice 700/1); Health professionals and pharmaceutical products (VAT Notice 701/57); Registering groups, divisions and joint ventures for VAT; How to fill in and submit your VAT Return (VAT Notice 700/12); Send details to support your VAT repayment claim; Check if you can register for the VAT Import One Stop Shop Scheme; Submit your Import One Stop Shop VAT Return; Register for the VAT Import One Stop Shop Scheme; Insolvency (VAT Notice 700/56); Refunds of UK VAT for non-UK businesses (VAT Notice 723A); Pay the VAT due on your One Stop Shop VAT Return; Burial, cremation and commemoration of the dead (VAT Notice 701/32); Revenue and Customs Brief 1 (2024): Live web streaming of funeral services; and Women's sanitary products (VAT Notice 701/18).  

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 and Cabinet Officer Borders bulletins are also available. Miscellaneous updated guidance etc. Recently updated guidance, and publications relevant to EU exit are set out below:- Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS); Moving parcels from Great Britain to Northern Ireland under the Windsor Framework from 30 September 2024; Check last dates for deferment period adjustments in the Customs Declaration Service; and Simplified Customs Declaration Process: notification of non monetary amendment.