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. Readers are advised that this bulletin contains important information on the next phase in the implementation of the UK’s new import controls, known as the Border Target Operating Model, which commences from 30 April 2024 when  documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin imported from the from the EU will begin.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs Declaration Service: service availability and issues;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS);  CDS Declaration Completion Instructions for Imports;  Customs declaration completion requirements for Great Britain;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS);  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service;  Data Element 2/3 Documents and Other Reference Codes (National) of the CustomsDeclaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020; and  Customs, VAT and excise UK transition legislation from 1 January 2021. 

Revenue has updated the Tax and Duty Manual regarding the Single Person Child Carer Tax Credit. The updated guidance reflects the increase in the tax credit from €1,650 to €1,750 for the 2024 year of assessment as amended by Finance (No.2) Act 2023. The manual contains a new table which provides an overview of the tax credit amount for 2023 and prior years and examples have been refreshed.  

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

Earlier in the year we informed you that Revenue was aware of issues with the pre-population of Department of Social Protection information in the 2023 ROS Form 11. Revenue has released a fix effective 2 April 2024 to resolve the matter.  

Revenue has updated the Capital Acquisitions Tax (CAT) Manual following amendments introduced in Finance (No.2) Act 2023.   The updated guidance reflects:  The extension of the Group B tax-free threshold to apply to benefits received by a person from certain relatives of their foster parent or from other individuals fostered by the same foster parent. (section 1.2.3);  an individual’s obligation to file a CAT return when they are in receipt of certain interest-free loans (section 1.2.7).  The updated manual also includes an example of the CAT aggregation rules. 

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   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 which provides guidance on issues relating to the domestic implementation of the CRS in Ireland.  The updated guidance provides further detail on the requirements for the reasonableness test of self-certificates (question 16). In addition, the manual provides guidance regarding the date of deregistration from CRS for Irish regulated Funds (question 19).  Ireland is one of over 100 jurisdictions that has committed to the Common Reporting Standard (CRS), the agreed global standard for Automatic Exchange of Information (AEOI) of financial account information. 

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