Last week, members of the Institute’s Tax and Public Policy team met with senior representatives from the Department of Finance and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland in our continued effort to highlight the disproportionate impact that the April 2026 restrictions to the Inheritance Tax (IHT) reliefs, agricultural property relief and business property relief, will have in Northern Ireland (NI). The meeting followed on from a recent letter from the Minister of Finance in response to the Institute having previously shared with local government its April 2025 letter to the Exchequer Secretary to the Treasury (XST) on this issue. The Institute continues to call on the UK Government to introduce a special derogation for the region from these changes and will be making further representations on this key issue for the agricultural and family owned business sectors in NI ahead of the Autumn Budget on 26 November. During the meeting it was clear that local government shares our concerns in relation to this. Government representatives also outlined the wide range of work being undertaken locally to discuss this, particularly by the Minister of Finance, with Westminster. This includes direct engagement with the Chancellor of the Exchequer at a meeting last month in Stormont Castle. At present, HM Treasury continues to insist in discussions and in the policy paper published with the draft legislation on L-day in July that their data shows these changes will have minimal impact. They are also resisting all representations on how the draft legislation could be mitigated. The Institute set out a range of mitigations in its letter to the XST earlier this year to reduce the impact on genuine farming activity and the family owned business sector. During the meeting, the Institute also took the opportunity to highlight its recently launched refreshed campaign for a lower rate of corporation tax in NI as outlined in the position paper “Enhancing Our Competitiveness”, which was launched in June.

In a recent press release, Revenue advised that it has commenced the final stage of its 2025 PAYE correspondence campaign and intends issuing letters to PAYE taxpayers who, based on information available to Revenue, may have overpaid or underpaid tax in 2023. As part of the campaign, Revenue has highlighted that 31 December 2025 is the deadline for claiming any additional tax credits or reliefs due for the 2021 tax year. Revenue’s letter campaign explains that a Preliminary End of Year Statement (PEOYS) is available in myAccount for all PAYE taxpayers. This statement shows if the taxpayers provisional tax position is balanced or if there may be an overpayment or underpayment. To finalise their tax position, taxpayers review the PEOYS and add any missing information when completing their PAYE Income Tax Return. Addressing concerns that PAYE taxpayers may have if they have an underpayment, Aisling Ní Mhaoileoin, Revenue’s National PAYE manager, commented as follows: “If you owe Revenue money, we’ll work with you to find a suitable payment option. We generally collect any underpayment by reducing the taxpayer’s future tax credits over a period of four years. This means that an underpayment of €400 will be collected by reducing the individual’s tax credits by approximately €2 a week over the next four years. If a taxpayer is entitled to claim any additional tax credits or reliefs, this may reduce any underpayment they have. It is, therefore, vitally important for PAYE taxpayers to file a PAYE Income Tax Return and finalise their tax position.”

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. The topics discussed included an update from Revenue on Local Property Tax (LPT) in relation to the revaluation date of 1 November 2025. Revenue also provided updates on its banking modernisation programme and agent notifications of weekly Payment Demands and Final Demands notices issued to clients. Revenue informed the meeting that it has written to 286,000 PAYE taxpayers with over/underpayments of tax for 2023. It was also agreed that a bespoke meeting to discuss simplification of the Form CT1 2026 is to be scheduled later this year. The Institute has consistently raised the growth in complexity in the Form CT1 in recent years and hopes this meeting will commence a process to substantially simplify the Form CT1 in the future. LPT 2025 is a revaluation year for LPT. Revenue is to begin a communication campaign to 1.5 million property owners regarding revaluing 2.2 million properties from mid-September 2025. Property owners will be required to: Value the property as at 1 November 2025, Submit the property valuation to Revenue and file a return by 7 November 2025, and Confirm the preferred payment arrangement for 2026. The valuation on 1 November 2025 will apply for the years 2026 to 2030 inclusive. The LPT portal and website content are due to be updated from mid-September for the new revaluation period. Banking modernisation programme Revenue has confirmed that Phase 1 of its banking modernisation programme has gone live since 11 August. In this regard, Revenue has written to 23,000 taxpayers that pay preliminary tax by direct debit detailing the new payment mandate number. No action is required by the taxpayers. 11,000 VAT fixed direct debit (FDD) taxpayers have been impacted by the change. Taxpayers who have yet to transition from paying VAT by FDD and who wish to change the FDD amount,  must do so by sending a request via MyEnquiries as the relevant functionality will no longer be available. Taxpayers wishing to migrate to a simplified arrangement must make an application to the Collector General’s Division. Phase 2 has commenced and Revenue intends to redesign the ROS debit instruction (RDI) and single debit instruction (SDI). Non-resident Landlord Withholding Tax, LPT and Vacant Homes Tax will be integrated onto a payment’s hub by January 2026. Agent lists of initial and final demands Revenue acknowledged the positive level of agent engagement since it began issuing agent notifications of client Payment Demands and Final Demands notices to the agent ROS Inbox earlier this summer. 2023 PAYE campaign From 1 September 2025 Revenue has commenced issuing letters to 286,000 PAYE taxpayers with possible under/overpayments of tax for 2023. Taxpayers are required to include details of any income they may have from other sources, including taxable payments from the Department of Social Protection. Revenue reminded the forum that PAYE taxpayers can access a Preliminary Statement from 1 January in the year following the year of assessment via MyAccount. Accordingly, the provisional tax position for 2024 PAYE taxpayers is already available to view.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for August 2025 confirming an Exchequer surplus of €3.2 billion to the end of August. This compares to a surplus of €3.8 billion recorded for the same period last year. Tax receipts collected to the end of August were €64.1 billion, which was €4.4 billion higher than the same period in 2024. Excluding the once off receipts from the Court of Justice of the European Union (CJEU) judgement in the Apple State Aid case, total receipts amounted to €62.4 billion, an increase of €2.6 billion on the corresponding period in 2024. Income tax receipts for the month of August were €2.9 billion which was €0.3 billion ahead of receipts collected in August 2024. On a year-to-date basis, receipts to the end of August of €23.2 billion were up by €1.0 billion (4.7 per cent), when compared to end of August 2024. Corporation tax receipts of €2.1 billion were collected in August, which is down by €1.6 billion on the same month in 2024. The publication notes that this reflects a ‘base effect’ i.e. an exceptionally strong August return last year. On a cumulative basis, receipts of €18.2 billion were up by €1.9 billion on the same period last year. When the once-off CJEU receipts are excluded, cumulative corporation tax receipts to August 2025 amounted to €16.4 billion, up on the same period last year by €0.2 billion. VAT receipts collected in the month of €0.4 billion reflecting the fact that August is a non-VAT due month. Cumulative receipts of €15.2 billion were ahead by 4.8 percent on end of August last year. Commenting on the figures, Minister for Finance, Paschal Donohoe said: “Today’s figures have provided a reminder of the vulnerability in our corporation tax base, with a steep fall this month – while this had been anticipated after a very strong August last year, corporation tax is now only marginally ahead of 2024 (when once-off CJEU receipts are excluded). Other revenue streams, particularly income tax and VAT receipts, have been performing steadily and are broadly in line with expectations for this point in the year, reflecting the underlying strength of our economy”.

This week the first of two CPD webinars, which will look at Making Tax Digital (MTD) for income tax from different angles, will take place. More details on each are available below. Once again, we encourage members with clients affected to book onto both of these webinars. HMRC has also recently launched a new software choices page. CPD webinars Tim Palmer’s two hour CPD webinar takes place later this week on Thursday 11 September and is still open for booking. This webinar will deal with the detail of the technical rules and practicalities of MTD. Planning opportunities will also be considered. Next week at 1pm on Tuesday 16 September, HMRC are delivering a 1 hour webinar which will mainly focus on key readiness tips for agents and taxpayers. Spaces are still available to book. The detailed agenda for Tim Palmer’s webinar is as follows: The requirements of MTD for income tax, Which self-employed individuals and landlords will be mandated to comply, The turnover test, Digital record-keeping, The submission of quarterly updates, including what must be submitted, The election to use calendar quarters instead of fiscal quarters, Traders with turnover below the VAT threshold, The submission of the final declaration, Planning opportunities, The software decision, Practical case studies, The transitional rule, Pre-populated income, The impact on the construction industry, and A general overview of MTD for income tax. The HMRC led webinar on 16 September will be delivered by Sam Wood BSc ACA. Sam works with agents within HMRC’s MTD programme and has a background in accounting and digital transformation. Sam is responsible for Cross Cutting Stakeholder Engagement, Policy and Strategy at HMRC and is a Chartered Accountant and a member of ICAEW with wide experience of MTD from its inception. Software choices page The software decision is a vital one for both agents and taxpayers affected by MTD for income tax. In recognition of this, HMRC has been working in recent months to enhance the support available to users selecting MTD for income tax compatible software. A new and improved software choices tool (which HMRC refers to as a ‘MVP’ (Minimum Viable Product)) was launched over the summer to help users find the right product for their needs. This new tool builds on the existing software choices guidance page, which has also been significantly updated. According to HMRC, it reflects extensive user research and close collaboration with external delivery partners and stakeholders, to ensure it is shaped by real user needs and experiences. Importantly, it is designed to be intuitive and accessible and should be of assistance in helping all taxpayers (including those without an appointed agent) navigate their options. However, HMRC is reminding users that this is an early iteration of the tool. The aim overall is to empower more users to take the next step in their MTD journey independently.

Last week we shared details of three technical consultations which were launched on ‘L-day’ in July that the Institute will be responding to. There’s still time to share your feedback on these consultations, two of which are of particular relevance to tax agents. Share your views by close of business on Friday 12 September by emailing tax@charteredaccountants.ie.

The OECD has published a revised BEPS Action 5 Transparency Framework on tax rulings following its review of the of the effectiveness of the transparency framework. This review has resulted in several changes to enhance the effectiveness. In addition, the report contains revised terms of reference applicable from the 2025 review year, as well as the revised assessment methodology for peer reviews to commence in 2026.

In this week’s detailed miscellaneous updates which you can read more about below, HMRC has sent an update on employee car ownership scheme changes and the latest bi-monthly Employer Bulletin was published recently. In other news this week: Last month HMRC published its internal manual on the administration of the Multinational Top-up Tax and the Domestic Top-up Tax under the UK’s Pillar Two rules,  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 Check HMRC’s online services availability page for details of planned downtime and the online services affected. Update on employee car ownership scheme changes and Euro 6e emissions standard As part of L-day on Monday 21 July the Government published draft legislation on changes to employee car ownership schemes. The decision has since been taken to delay implementation six months to 6 October 2026. The draft legislation on this remains open for technical consultation prior to final legislation being brought forward at the next Finance Bill. The relevant publications are as follows: Written statements - Written questions, answers and statements - UK Parliament, and Finance Bill 2025/26. In addition, the Government will be consulting in due course on introducing the Euro 6e emissions standard for cars and vans from April 2026. This standard will introduce more stringent real-world testing for plug-in hybrid electric vehicles (PHEVs) which in turn will lead to higher official CO₂ emission ratings and thus higher benefits in kind (BIKs). However, it was also announced on L-day that the Government does not intend for this to apply to BIKs until April 2028, in order to avoid significant increases for PHEV company cars. Further details are awaited on how this will work, however the overall intention is to ensure that BIK charges will be based on current emissions standards until April 2028, rather than the new Euro 6e standard.  Latest Employer Bulletin The August edition of HMRC’s Employer Bulletin includes articles on: 2024/25 P11D and P11D(b) forms, PAYE settlement agreements: calculations and payments, Disputed PAYE charges, Preparing businesses for the vaping products duty and the vaping duty stamps scheme, and Implementation of the Employment Rights Bill.

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. DEFRA has also sent an email setting out details of locations which are no longer valid points of entry for plant health imports into Northern Ireland. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Report a problem using the Customs Declaration Service, CDS Declaration Completion Instructions for Imports, CDS Declaration Completion Instructions for Exports, Short shipments at temporary storage locations, Appendix 1: DE 1/10: Requested and Previous Procedure Codes, Appendix 1: DE 1/10: Requested and Previous Procedure Codes, Requested Procedure 10: Permanent Export or Dispatch, Requested Procedure 11: Inward Processing Prior Export Equivalence, Requested Procedure 21: Temporary Export under Outward Processing, Requested Procedure 22: Temporary Export or Dispatch under Outward Processing if not covered by Procedure 21, Requested Procedure 23: Temporary export for return of goods in the unaltered state (Returned Goods Relief), and Requested Procedure 31: Re-export or Dispatch of non-Union goods following a Special Procedure.  

The OECD has published the 2025 edition of Taxing Wages , which enables stakeholders to understand how tax systems affect incomes and income distributions, as well as incentives to work. This publication offers a timely snapshot of how labour taxation is evolving, as real wages recover, inflation eases and the need for higher revenues increases.

In Irish news this week, the Institute, under the auspices of the CCAB-I, met with Minister Donohoe to discuss the CCAB-I’s Pre-Budget 2026 submission, Revenue has published new guidance on the domestic layer of the EU VAT SME scheme, and the Pillar Two registration facility and hub are now active. In UK news, read our latest update on Making Tax Digital for income tax and we’d like to hear your views on three technical consultations on draft legislation. Irish 1. Read about the recent meeting with Minister Donohoe to discuss the CCAB-I’s Pre-Budget 2026 submission. 2. Revenue has issued guidance on the domestic element of the EU VAT SME scheme. 3. Revenue has launched a dedicated Pillar Two hub and the registration portal for Pillar Two in scope companies is now active. UK 4. Read our update on the latest developments in Making Tax Digital for income tax which includes details of two CPD webinars this month, each with a different focus, and news of a new HMRC agent outreach campaign. 5. We’re seeking your feedback on three consultations launched on L Day in July, two of which are of particular significance to tax agents. 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 post EU exit corner here.  

Revenue has recently updated two other Tax and Duty Manuals. The updated manuals relate to iXBRL submissions and the completion of corporation tax returns. Details are set out below. The manual Submission of iXBRL Financial Statements as part of Corporation Tax Returns has been updated for a full list of taxonomies accepted by Revenue, together with a reference list of taxonomies that are no longer accepted. The guidance on the completion of Corporation Tax returns -Form CT1 has been updated to include links to the manuals relating to the completion of the corporation tax returns for 2024 and 2023.