Revenue has updated its guidance on the taxation of payments made to home tutors by the Department of Education and on the tax treatment of remuneration of members of State & State sponsored committees, boards, commissions and other bodies to remove references to specific PRSI classes. The manuals also confirm that the Department of Social Protection is responsible for determining PRSI classes and the relevant contact details for any PRSI related queries are provided.

Statutory Instrument S.I. No. 69/2025 - European Union (Value-Added Tax) Regulations 2025 introduced a new basis for assessing eligibility for businesses to avail of VAT registration thresholds when determining the requirement to register for VAT in Ireland. As outlined in our newsletter of 24 March 2025, the Statutory Instrument transposed the special VAT scheme for small business into Irish law, the ‘Cross Border SME Scheme’. In addition, the Statutory Instrument also made a change to the conditions to be satisfied when determining if the turnover of a business exceeds the annual registration thresholds in Ireland. Prior to the change, VAT registration was required if turnover exceeded the relevant thresholds for goods and services in any continuous period of 12 months. Since the change, VAT registration is required where turnover exceeds the threshold limits in the current calendar year or did so in the previous calendar year. From 1 January 2025, the relevant VAT registration thresholds in Ireland for services is €42,500 and €85,000 for goods.

Revenue’s Online Service (ROS) will be down this evening from 6.00pm to 10.00pm due to scheduled maintenance.

The Minister for Enterprise, Tourism and Employment, Peter Burke recently announced the development of a new whole-of-government Action Plan on Competitiveness and Productivity, together with a range of measures aimed at enhancing business resilience and fostering competitiveness. The Programme for Government mandated the development of the Action Plan on Competitiveness and Productivity and by expediating this plan, the Government intends to align key decisions with the upcoming budgetary process.  The Government has also approved certain high-level short-term measures for implementation by May 2025, some of which are mentioned below: Enhancing International Trade Promotion: Actions will include a focus on implementing enhanced advisory supports for exporters facing disruption, developing a strategic approach to market diversification, and bringing forward a National Semiconductor Strategy. Addressing Business Costs:  Measures announced include adjusting the implementation timeline for the Living Wage to 2029 while outlining the Government’s continued commitment to the introduction of a Living Wage during its term. Amongst other measures announced, a new Cost of Business Advisory Forum will be established, and a Small Business Unit will be created. Improving Energy Infrastructure: Steps are to be taken to provide policy certainty regarding data centres, publish plans for connecting large energy users to the grid and to accelerate the deployment of critical electricity grid infrastructure. Commenting on the Action Plan, Minister Burke said: “We are living in a time of significant global change, marked by growing geopolitical tensions, trade uncertainties, and persistent cost pressures affecting businesses both large and small. To safeguard our economic future and support our enterprises, we must act decisively on the domestic factors we can influence. Therefore, the government has today agreed to fast-track the creation of a vital Action Plan on Competitiveness and Productivity, aiming to produce a draft within 12 weeks for discussion at a Ministerial Summit in July. This plan will identify concrete, actionable reforms across government to enhance our competitive edge. As part of this plan, we are implementing a range of immediate, targeted measures by May 2025. These actions focus on key areas including enhancing international trade promotion supports for firms facing disruption, addressing business costs through regulatory adjustments and targeted initiatives, and improving energy security and infrastructure delivery.”

Revenue has issued new guidance on the General Anti-Avoidance Rule and Protective Notifications providing guidance on the General Anti-Avoidance Rule (GAAR) and outlining the protective notification procedure. The manual provides guidance on the GAAR contained in section 811C TCA 1997 and it sets out the implications of entering into a ‘tax avoidance transaction’. The manual confirms that claiming a tax advantage from such a transaction can give rise to a tax avoidance surcharge, interest and additional tax arising on the withdrawal of the benefit by Revenue. Taxpayers have the option of filing a protective notice with Revenue to mitigate the consequences of Revenue assessing that the taxpayer has entered a tax avoidance transaction. Filing a protective notice affords the taxpayer a few benefits including protection from paying the tax avoidance surcharge in the event of the transaction being found to be a tax avoidance transaction under the GAAR. The new manual provides information on the protective notification procedures, including details on the forms to be completed to file a valid notification.

In Irish news this week, the US administration has announced a temporary suspension of tariffs on EU imports and a public consultation on the Research and Development tax credit has been launched. In UK news, the closing date for our short survey on Making Tax Digital for income tax is approaching and this week is your last opportunity to let us know your views on the UK e-invoicing consultation. In International news, the OECD/G20 Inclusive Framework on BEPS has issued a public statement. Ireland 1. Read about the temporary suspension of the recently announced US tariffs on EU imports. 2. The Department of Finance has launched a public consultation of the Research and Development tax credit and on options to support innovation. UK 3. There's still time to take our short survey on Making Tax Digital for Income Tax which closes next week. 4. This is your final opportunity to let us know your views on the UK e-invoicing consultation. International 5. Read the public statement issued by the Inclusive Framework on BEPS following a recent successful meeting. 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.    

Revenue has updated its guidance on the VAT Repayment Offset removing the option to offset a VAT repayment against a debt warehouse period as the debt warehouse scheme has ended.

Revenue has published new guidance on the Tax Treatment of CervicalCheck Payments outlining details of relevant tax exemptions announced by the Minister of Finance in Budget 2025. The tax exemptions relate to payments made to certain women impacted by failures in the CervicalCheck national screening programme and include payments made under the CervicalCheck non-disclosure ex-gratia Scheme, the CervicalCheck Tribunal Act 2019, and claims concluded by way of settlement and court order.

The accelerated wear and tear allowances scheme for farm safety equipment was expanded by Finance Act 2024 to provide for an expanded list of eligible farm safety equipment. The expanded scheme was launched last week by Minister for Agriculture, Food and the Marine, Martin Heydon TD, and Minister of State with responsibility for Farm Safety, Michael Healy-Rae TD. The accelerated capital allowance scheme complements grant aid which is available under TAMS3 for safety-related investments. Any grants received for qualifying equipment should be deducted from the qualifying expenditure hence only the net cost qualifies for the accelerated capital allowance scheme. A certification process applies to the scheme. Farmers who receive a qualifying certificate can avail of 50 percent capital allowances per annum on qualifying investments to be claimed over an accelerated two-year period. This compares to the standard period of eight years for plant and machinery. The allowance should be claimed on the farmer’s tax return. At the launch of the scheme, Minister for Finance, Paschal Donohoe said: “This scheme of accelerated capital allowances for farm safety equipment and the recently expanded list of eligible equipment shows the commitment of this Government to farm safety. This scheme will assist farmers in safe proofing their farms and I encourage all farmers to avail of this scheme.”

Revenue has issued a further warning of fraudulent emails, text messages and phone calls appearing to come from them seeking personal information from taxpayers.  Revenue confirmed that they never correspond with taxpayers through traditional email or text and will never request personal information by phone. The secure online service, MyEnquiries, is used by Revenue to send, receive and track correspondence. Examples of fraudulent emails and texts are included in the release. Revenue advises individuals to reset passwords if account details have been provided in response to an email, text or phone call and to contact their bank or credit card company if bank details have been provided.

Revenue has published the Residential Zoned Land Tax (RZLT) - Quick start guide which aims to provide land and property owners with information to assist in fulfilling their RZLT obligations. The return and payment of the RZLT for 2025 is due to be filed and paid on or before 23 May 2025. The guide includes a flowchart which outlines the steps owners should follow to determine if, and when, RZLT obligations may arise. The guide also discusses the role of the local authority in issuing ‘annually revised maps’ and the interaction between the RZLT and Local Property Tax. The guide includes information on a number of exclusions, exemptions and deferrals from the RZLT and outlines the self-assessment process for registering and filing a return. The existing Tax and Duty Manuals RZLT Registration and RZLT Return provide further details on the related registration and compliance obligations.

The Department of Finance has launched a ‘Public Consultation on the Research &  Development Tax Credit and on Options to Support Innovation’. The consultation aligns with the commitment in The Programme for Government 2025  “Securing Ireland’s Future”  to examine options to enhance the R&D tax credit, reward innovation and digitalisation, and encourage innovation by domestic and international companies. The consultation is centred around questions relating to the R&D tax credit regime, grouped into the following areas: General queries, Subcontracting activities to universities or institutes of higher education, Spill-over effects of collaborating with universities or institutes of higher education, Subcontracting R&D to unconnected third parties, Grant funding, and The future of R&D. In the context of innovation, the consultation notes that a key first step in considering support options for innovation will be to develop a clear and robust definition of innovation. As the Department explores and considers its policy on innovation, feedback is requested from stakeholders in this area. The consultation period runs until Monday, 19 May 2025. The Institute will be responding to this consultation, and we welcome any input from members to this process by email to tax@charteredaccountants.ie by 25 April 2025.