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. 

Revenue has published statistics for Local Property Tax (LPT) 2024 indicating compliance of 95 percent for returns filed and 87 percent for tax paid. To date €311 million has been paid for 2024 LPT. Revenue has noted that 10,584 payment arrangements are in place where a return has yet to be filed. Revenue has advised that those taxpayers should file an LPT return as soon as possible in order to avoid issues at a later date.   

Ahead of the 1 May 2024 deadline, the Minister for Finance Michael McGrath TD is encouraging businesses availing of the Debt Warehousing Scheme (DWS) to engage now with Revenue to agree arrangements to repay their warehoused debt. The Minister has noted Revenue’s flexible approach to working with taxpayers to manage their liabilities over a timeline that suits their particular circumstances on a case-by-case basis.   Revenue has stated that there is no expectation on businesses to have all their warehoused debt paid in full by 1 May. They must, however, have engaged with Revenue by submitting an ePPA online via ROS to address their warehoused debt. Where a business plans to use an approved refund/credit to pay some or all of their debt, they must notify Revenue in advance of 1 May 2024.   Revenue has updated its website to include a video recording to outline the key actions businesses need to take now and the payment options available. In addition, Revenue has also updated the Debt Warehousing Information Booklet to outline some key Frequently Asked Questions (FAQs) in relation to the payment of warehoused debt.   Section 997A TCA 1997 operates to deny directors/employees with a material interest in the company a credit for tax deducted from their remuneration until such tax has been remitted to the Collector-General. The credit for tax deducted cannot exceed the tax actually remitted in respect of that person’s emoluments. Revenue has provided clarification on the approach for section 997A TCA 1997 regarding warehoused debt relating to emoluments paid to directors/employees with a material interest in the company. In such circumstances, both the company and the director/employee will need to enter into a formal phased payment arrangement (PPA) for their warehoused liabilities via ROS. However, the director/employee may request a payment break for the PPA until such time as the company has paid its liability in full. Revenue is aware that some companies may need an extended period of time to pay off the warehoused debt. Revenue Legislation Services (RLS) is currently considering the position. It is not intended that the director/employee will be negatively impacted where the company pays its full Employer PAYE liability (i.e. credit for PAYE paid will be available to the director/employee where the Employer PAYE liability is paid in full, even outside of the usual 4-year time limit).   Revenue will continue with its approach to PPAs so long as the taxpayer continues to file their current tax returns and pay current liabilities as they fall due, and they engage with Revenue in advance of 1 May to agree to agree arrangements to address their liabilities. The Minister last week highlighted that the payment of current taxes, mainly employer’s PAYE, PRSI and VAT, and arrears arising outside the warehouse periods is considered to be a key indicator of a business’s viability.  To assist customers as the debt warehouse deadline approaches, the Collector General’s Division will be extending the opening hours for their phone lines from 9.30 to 16.30 from 24 April to 3 May.  The Minister also noted that at the end of March Revenue wrote to customers providing them with a schedule of their debt and highlighting the immediate action required before 1 May 2024 to address the debt and the flexible payment options available.  Warehoused debt of €1.65 billion remains outstanding in respect of 55,490 individual taxpayers, 70 percent of which owe amounts less than €5,000. The bulk of the debt, €1.41 billion, is owed by 5,040 taxpayers, each owing in excess of €50,000. At 31 March 2024 2,760 taxpayers had agreed PPAs for warehoused debt totalling €237 million.  The Minister also noted Revenue’s approach in refunding taxpayers who have paid interest at 3 percent on warehoused debt and by adjusting the terms of PPAs.  Commenting on the latest statistics, Minister McGrath stated:  “The reducing amount of debt in the warehouse and the associated number of customers involved demonstrates that businesses are working with Revenue to pay the amounts due. However, the liabilities of over 55,000 customers remain in the warehouse. Many of these customers have engaged with Revenue, as is evidenced by the increase in numbers of PPAs in place, however, for those businesses that have not already done so, the key message is that they should engage with Revenue now, in order to agree arrangements to address their debts and avail of the flexibilities being offered in relation to this debt. Taxpayers must have submitted their application for a Phased Payment Arrangement (PPA) using Revenue’s online Service (ROS) by 1 May 2024, where appropriate.  It is important to note that, businesses are not required to pay all of their warehoused debt by 1 May 2024. However, in order to avail of the 0 percent interest and flexible payment options, they are required to engage with Revenue to make arrangements to pay the debt over an agreed period of time, based on their individual circumstances and capacity to pay. A key condition of the scheme is that taxpayers continue to file their current tax returns on time and meet their current tax liabilities as they fall due.  Finally, I welcome the pragmatic and fair approach being taken by Revenue and their efforts in assisting their customers agree a realistic payment plan tailored to their particular circumstances.” 

In Irish news, the Department of Finance hosts the third meeting of the Business Tax Stakeholder Forum and the ROS pay & file extension date for 2023 income tax returns is announced. In UK news, read our update on Making Tax Digital for income tax and the Spring Finance Bill is progressing through Parliament. In International news, the European Commission commits funding to the OECD’s carbon mitigation program. Ireland Read our update of the third meeting of the Business Tax Stakeholder Forum hosted by the Department of Finance. Revenue announces the ROS pay & file extension date for 2023 income tax returns. UK Read our update on Making Tax Digital for income tax. The Spring Finance Bill is progressing through Parliament. International The European Commission commits funding to the OECD’s carbon mitigation program. 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 Department of Finance held the third meeting of the Business Tax Stakeholder Forum at Government Buildings on Merrion Street last Friday morning. The meeting was chaired by Clare Costello (Acting Head of Tax for the Department of Finance). A delegation from the Institute, under the auspices of the CCAB-I, attended the meeting. Representatives from the American Chamber of Commerce, the Law Society, Enterprise Ireland, IBEC, and the Irish Tax Institute were also in attendance, as well as representatives from Revenue and the Department of Enterprise Trade and Employment. The agenda for these meetings is driven by the Department of Finance and the meetings are an opportunity to update stakeholders on the latest in tax policy on both the domestic and international fronts. Stakeholders in turn provide feedback to the Department of Finance on the matters raised. On the domestic front, the main topics of discussion were the first Participation Exemption Feedback Statement and the Strawman proposal, the review of interest deductibility (expected in Q3 this year), and the recent public consultation on share-based remuneration. The group was also informed that a report on the Funds Sector 2030 review and public consultation is expected by mid-summer. On the review of interest deductibility, the Department advised that this will be multi-year project. On the international front, the main areas discussed were the recent progress on Amounts A and B of Pillar One, the incoming OECD administrative guidance on Pillar Two, the UN Tax Cooperation initiative, and the latest developments with Ireland’s tax treaty network. Revenue’s Eugene Creighton (Assistant Secretary for International Tax) and John Bradley (Principal Officer – Transfer Pricing) gave a presentation on Ireland’s Competent Authority Function for Dispute Resolution under the Mutual Agreement Procedures (MAPs) and Advanced Pricing Arrangements (APAs).

The European Commission has signed an agreement with the OECD to provide financial support to the OECD’s Inclusive Forum on Carbon Mitigation Approaches (IFCMA). The IFCMA is a project which aims to optimise global emissions reduction efforts by better data and information sharing, evidence-based mutual learning, and inclusive multilateral discussions. The IFCMA was launched in February 2023 and has welcomed 58 members, including some from outside the OECD.

Revenue has announced the extended ROS filing and payment date for self-assessed income taxpayers and taxpayers liable to capital acquisitions tax (CAT). The due date for filing the 2023 Form 11 and the payment of taxes is Thursday 14 November 2024. This is also the due date for CAT returns and payments for beneficiaries receiving gifts/inheritances with valuation dates in the year ending 31 August 2024.  The extension is available to taxpayers who pay and file through ROS only. Where either one of these actions is completed other than through ROS, the deadline for submission and payment is Thursday 31 October 2024. 

Revenue has updated the Tax and Duty Manual on the importation of motor vehicles from the UK to reflect the extension, by the UK, of the VAT second-hand car margin scheme deadline to 30 April 2024. The updated manual outlines the registration requirements (section 10.1 and 10.2) and customs obligations (appendices 1.2 and 1.3) applicable to vehicles imported into the State from Great Britain via Northern Ireland and directly from Northern Ireland. 

Revenue has updated the Tax and Duty Manual regarding the Return Preparation Facility (RPF). The RPF can be used to prepare and save certain tax forms before filing via ROS. It is Revenue’s intention that the RPF will, in time, replace the ROS Offline application for the majority of forms.   The updated guidance advises that, when ROS is unavailable during upgrades, the RPF is available and can be accessed from the “ROS site down” message. It also includes information on two additional forms now available in the RPF, being the Capital Acquisitions Tax Form IT38 and the Excise Licence ROM1 Form. 

Readers are reminded  that there are just over two weeks left to the 1 May deadline for those within the Debt Warehouse Scheme (DWS) to either pay their warehoused debt or engage with Revenue on addressing the debt. Where the debt exceeds €500, taxpayers can enter into a phased payment arrangement (PPA). Revenue will require taxpayers to complete the Form ePPA1 when making a PPA application. 

Revenue has updated the Tax and Duty Manual regarding tax clearance for Standards in Public Office applicants.  The updated guidance reflects a legislative change to judicial appointments which now requires statutory declarations to be furnished to the Judicial Appointments Board not more than three months before a recommendation.