Revenue has updated the Stamp Duty Manual which provides guidance on the stamp duty relief, under section 81AA SDCA 1999, in respect of certain transfers of agricultural land to young trained farmers. The manual has been updated to clarify the circumstances in which the relief can apply where the land is conveyed or transferred into joint ownership.  The updated guidance also addresses the application of limit on the relief in certain circumstances including where the land has been acquired by a young trained farmer and their spouse/civil partner who is not a young trained farmer.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. We also take this opportunity to remind you that HMRC is currently conducting an exercise in which it is asking members of the forum to confirm they wish to continue to as a registered user.   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 has updated the Tax and Duty Manual for Remote Working Relief. The manual now reflects that payments to employees of the remote working daily allowance of up to €3.20 must be reported by employers under the Enhanced Reporting Requirements (ERR) which came into effect on 1 January 2024.  In addition, the updated guidance confirms that the remote working daily allowance applies to directors, including proprietary directors, where the director has incurred and defrayed relevant expenses ‘out of’ the relevant emoluments, that are subject to tax under the PAYE system, and all other conditions must be satisfied. 

In Irish news, Revenue provides an update on the implementation of the enhanced reporting requirements for employers and in UK news, the Autumn Finance Bill has completed all stages in the House of Commons. In International news, members from the European Commission’s VAT team discuss the new Central Electronic System of Payment Information (CESOP).  Ireland Revenue has published details of compliance with the enhanced reporting requirements (ERR), which came into effect on 1 January 2024. Revenue has updated the Stamp Duty manual which provides guidance on company reconstructions and amalgamations. UK The Autumn Finance Bill has completed all stages in the House of Commons. From 1 July 2024, HMRC is changing the income tax treatment for certain double cab pick-ups from vans to cars. International The European Commission’s VAT team discuss the new Central Electronic System of Payment Information (CESOP). 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.

On 5 February last, the report stage and third reading of the latest Finance Bill took place in the House of Commons. The Government’s proposed amendments to the Bill were passed, as was a new clause which had been tabled to introduce a new investment exemption for the electricity generator levy.  The Bill has now moved to the House of Lords where second reading was scheduled to take place on 21 February 2024. As the Bill is a ‘Money Bill’, it should be noted that this is a formality only as no changes can be made to the Bill by the House of Lords. This therefore means that, for UK GAAP/IFRS purposes, the Bill is now classed as ‘substantively enacted’. 

HMRC has published a new section in its Employment Income manual which sets out that from 1 July 2024, certain double cab pick-ups will no longer be treated as vans for income tax purposes leading to significantly higher benefits in kind as a result of being treated as cars. The UK Government has agreed to update the terms for transitioning from the Digital Services Taxes to Pillar One and HMRC has published the latest performance data for the quarter ended 31 December 2023. And finally, this week, the National Audit Office has published its report on tax measures to encourage economic growth.   Change in treatment of double cab pick-ups  HMRC has confirmed in its Employment Income Manual that from 1 July 2024, certain double cab pick-ups will no longer be treated as vans and will be classed as cars for income tax purposes.   According to the guidance in the Employment Income Manual, from 1 July 2024, HMRC will no longer interpret the legislation that defines car and van for tax purposes in line with the definitions used for VAT purposes. This VAT approach for double cab pickups differentiated the treatment based on payload, with anything under one tonne classified as a car, and anything a tonne or more as a van. This rule was replicated as a pragmatic way of resolving the primary suitability and classification of double cab pickups. Going forward, classification of double cab pickups will therefore need to be determined by assessing the vehicle as a whole at the point that it is made available to determine whether the vehicle construction has a primary suitability as per the two-part test outlined at EIM23115 onwards.   As a result, from 1 July 2024, most if not all double cab pickups will be classified as cars when calculating the benefit in kind. This is because typically these vehicles are equally suited to convey passengers and goods and have no predominant suitability.   Transitional arrangements will apply for employers who have purchased, leased, or ordered a double cab pickup before 1 July 2024, meaning that they will be able to rely upon the previous treatment until the earlier of disposal, lease expiry, or 5 April 2028. The position prior to 1 July 2024 remains unchanged as outlined at EIM23150.   Digital Services Taxes and transition to Pillar One  The UK, together with Austria, France, Italy, and Spain, has agreed to update the terms for transitioning from their Digital Services Taxes to Pillar One and have also published a joint statement on the transitional approach.  In 2021, 130 countries of the G20/OECD Inclusive Framework agreed on a two Pillar package of reforms to the international tax framework. In support of that, in a joint statement in the same month, the US, Austria, France, Italy, Spain, and the UK announced the terms of a political compromise on the transition from existing Digital Services Taxes to the new multilateral solution and to continuing discussions through constructive dialogue.  In light of the continuing multilateral negotiations at the G20/OECD Inclusive Framework, those same countries recently announced an extension of the political compromise set forth in the October 2021 joint statement through to 30 June 2024 which is consistent with the revised timeline.   Latest HMRC performance data  The latest HMRC quarterly performance data has been published and specifically data in relation to the quarter ended 31 December 2023. Monthly performance data is also available for the month ended 31 December 2023.   The Institute continually discusses HMRC service levels with HMRC and welcomes your feedback at any time by email. We recently requested feedback in relation to the most recent self-assessment filing deadline and are still accepting feedback on this until the end of this month. Members are encouraged to get in touch and share their experiences to enable the Institute to engage more effectively on their behalf with HMRC. 

Revenue is urging PAYE taxpayers to finalise their 2023 tax position as soon as they can, to ensure that they have claimed all tax credits and reliefs they are entitled to and receive any refund they are due. Health expenses, rent tax credit and mortgage interest tax credit can all be claimed via Revenue’s online MyAccount service. PAYE taxpayers are also reminded that they need to inform Revenue of any additional income which they have earned outside the PAYE system.  

Last week, the Government published two documents as part of the Tax Administration Framework Review (“TAFR”) which represent the next steps in delivering the Government’s commitments to reform areas of tax administration. As outlined in the Government’s Tax Administration Strategy, the ambition is to create a tax system fit for the challenges and opportunities of the 21st century.  The two documents published last week are as follows: A Summary of Responses to the Simplifying and Modernising HMRC’s Income Tax Services through the Tax Administration Framework Discussion Document. Chartered Accountants Ireland response to this Discussion Document is available in the Tax Representations section of our website as document 2023/12.   This outlines the next steps in relation to the three sections in the Discussion Document:-   developing and promoting the use of HMRC’s digital services by implementing a digital by default approach whilst making alternative provisions for digitally excluded taxpayers;   improving Pay as You Earn processes which cause frustration for taxpayers; and   moving to digital registration for Income Tax Self-Assessment and reviewing the criteria used to determine which taxpayers are required to file a tax return.  A new Call for Evidence on Enquiry and Assessment Powers, Penalties and Safeguards has been launched.   This will run for 12 weeks and closes on 9 May 2024. According to the Call for Evidence, reform in these areas has the potential to simplify and modernise the tax administration framework relating to HMRC’s role to promote and enable compliance and respond appropriately to non-compliance whilst ensuring taxpayers’ rights are protected.   The Government welcomes engagement from any individual, business, or organisation with views on how these powers, penalties and safeguards can be made more efficient, effective, and simpler to understand.  HMRC is holding an online introductory session via Microsoft teams to discuss this Call for Evidence on Friday 1 March from 11-12. Please email HMRC if you would like to attend.   Further workshops will be held during the second half of the consultation period to focus in detail on the different parts of the Call for Evidence. HMRC will communicate separately about these workshops.

Readers are reminded that taxpayers availing of the Debt Warehousing Scheme (DWS) have until 1 May 2024 to either pay their warehoused debt in full or engage with Revenue on addressing the debt, including arrangements for a Phased Payment Arrangement (PPA). Revenue is encouraging taxpayers to engage now in agreeing an appropriate repayment schedule and benefit from flexible payment options and the revised 0 percent interest rate.   Taxpayers must continue to file their current tax returns and pay current liabilities as they fall due to remain in the DWS. Failure to adhere to these conditions will result in the revocation of the warehouse facility, which will result in the imposition of the standard interest rate of 10 percent, backdated to when the debt arose, and the immediate enforcement of all outstanding debt, including interest.   

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. Now that the first phase of the UK’s new import controls has commenced, we take this opportunity to remind you of the various phases in both the UK’s Border Target Operating Model and implementation of the Windsor Framework which are set out in a flyer prepared by the Institute’s Public Policy and Tax team. More guidance is set out below on the first phase of the UK’s new import controls in the context of certain meat products which confirms an extension to certain transitional arrangements until 30 April 2024, and we also take a look at the outcome from the recent Call for Evidence on Expanding export support.  Guidance on the UK’s new import controls – certain meat products  The Foreign and Commonwealth Directorate Office has asked us to share recently published guidance on minced meats, meat preparations and mechanically separated meat in the context of the UK’s new import controls which commenced from 31 January 2024 which effectively extends the transition period until 30 April 2024.   The default position is that imports of meat preparations and minced meat into Great Britain must be deep frozen. Imports of minced poultry meat and pig or poultry mechanically separated meat are not permitted.  In 2022, Ministers announced a delay in applying these prohibitions and restrictions to imports from the EU. Consequently, the government extended the statutory transition for meat preparations until 31 January 2024.   The guidance note now published confirms that the statutory transition for meat preparations did not end on 31 January 2024 and has been further extended until the end of April 2024 in line with the timetable for checks under the Border Target Operating Model (“BTOM”).  Call for evidence outcome: Expanding DBT export support in Northern Ireland, Scotland, and Wales  In this Call for Evidence, the Department for Business and Trade (“DBT”) proposed increasing its export support in Wales, Scotland, and Northern Ireland by introducing one-to-one support to complement existing services.  The DBT proposes increasing its export support in the Nations by introducing one-to-one support that complements existing services in the form of DBT International Trade Advisors (“ITAs”). ITAs are currently available in the English regions, and introducing this support to Northern Ireland, Scotland, and Wales, will ensure that DBT offers consistent export support across the UK. This rationale is set out in the corresponding document Exporting for Growth, DBT Services in the Nations.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  CDS Declaration Completion Instructions for Imports;  Customs declarants and declaration volumes for international trade in 2023;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Notices made under the Customs (Export) (EU Exit) Regulations 2019;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Simplified procedures exclusion list of procedure and additional procedure codes for CDS;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service. 

The Oireachtas Joint Committee on Finance, Public Expenditure and Reform and an Taoiseach has released a reasoned opinion on the European Union’s proposals for a directive on Business in Europe: Framework for Income Taxation (BEFIT). In the Committee’s view, the BEFIT proposals do not comply with the principle of subsidiarity which requires that for a directive to have direct effect, the aims of that directive must not be achievable at national level and instead be better achieved at EU level.   The Committee stated that while it supports efforts to simplify tax systems and reduce the complexity of doing business in Europe, proposals of this nature must bring with them benefits that outweigh the cost and complexity of introducing them.   In our response to a public consultation on the BEFIT proposals last year, we highlighted that direct taxation should remain the sole responsibility of the national legislators on the basis of the principle of subsidiarity, as well as the principle of sovereignty. 

Revenue has updated the Stamp Duty Manual which provides general guidance on the application of section 80 SDCA 1999 to include more comprehensive guidance on the application of this section. Section 80 provides for an exemption from stamp duty on the transfer of certain property in connection with a scheme for the bona fide reconstruction of a company, an amalgamation of companies or a merger of companies undertaken in accordance with Chapter 3 of Part 9 or Chapter 16 of Part 17 of the Companies Act 2014.