The OECD has published the seventh annul peer review report on exchange of information on tax rulings. The 2022 report indicates that over 54,000 exchanges of information took place in respect of over 24,000 tax rulings across the 131 jurisdictions profiled. Of the 131 jurisdictions included in the report, 100 are fully aligned with BEPS Action 5.  

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. 

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.  

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. 

This month’s tidbits cover updated guidance in several areas and the publication of the Administrative Burdens Advisory Board’s 2022/23 report.   

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 the fourth meeting of the EU-UK Parliamentary Partnership Assembly took place recently in London. As the reimbursement scheme which allows traders to reclaim duty on goods moving into Northern Ireland which do not subsequently move into the EU is now approaching six months old, we would like to hear your feedback on how the scheme is operating.  Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Search the register of customs agents and fast parcel operators;  Known error workarounds for the Customs Declaration Service (CDS);  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Manage your email address for the Customs Declaration Service;  Importing SPS controlled goods that interact with ALVS;  Attending an inland border facility; and  Car wiring kits for motor vehicles (Tariff notice 13).   

This week, we bring you news of guidance on the new UK reporting rules for digital platforms which come into operation from 1 January 2024 and HMRC has also published new guidance on the VAT treatment of local authority leisure services. The most recent notes of HMRC’s Guidance Strategy Forum are available and the Public Accounts Committee has recently released its report “Progress with Making Tax Digital”, which is highly critical of the programme. HMRC has also contacted us about work which has been ongoing with the Advertising Standards Authority specifically in relation to some repayment agents.  UK reporting rules for Digital Platforms  From 1 January 2024, UK digital platform operators will be required to report details of their sellers to HMRC. Last month HMRC published detailed technical guidance in its International Exchange of Information Manual (part IEIM900000) which aims to assist platform operators in complying with the new rules.  UK resident platform operators may also be required to report under the OECD’s DAC 7 rules which took effect from 1 January 2023. However, DAC 7 contains a provision to prevent double reporting by platforms that are within the scope of both DAC7 and the UK’s new reporting rules. As a result, UK platforms can report directly to HMRC rather than reporting to an EU Member State but only if that Member State has signed up to exchange information with the UK. If that is the case, the platform only needs to report to HMRC from 1 January 2024 as HMRC will subsequently exchange information with the relevant EU Member State’s tax authority.   Note that as DAC 7 has been in force since 1 January 2023, UK resident platforms are still required to report transactions 1 January 2023 and 31 December 2023 under DAC7, i.e. to the relevant EU Member State.   New guidance on the VAT treatment of local authority leisure services   HMRC has published new guidance for local authorities that deals with the treatment of supplies of sport/leisure services. According to an email from HMRC, the guidance has been developed in conjunction with local authorities via The Chartered Institute of Public Finance and Accountancy and other local authority VAT forums.   HMRC therefore says that the guidance achieves the aim of giving local authorities the information they need to implement the recent change in treatment of their supplies of sport/leisure services.   Advertising Standards Authority joint work with HMRC   HMRC has been working with the Advertising Standards Authority (“ASA”) to publish an enforcement notice related to misleading adverts by some repayment agents. The enforcement notice which published earlier this month on 5 December 2023, was jointly-issued with HMRC and provides guidance to promoters of tax repayment agent services. The notice applies across all media which targets UK consumers and sets out that those who fail to comply will be subject to sanctions.   This was followed by the publication of a Press Release which provides more information on the ongoing collaborative work between HMRC and ASA in this area. 

30 December 2023 is the deadline for submitting 2022/23 self-assessment tax returns online if the taxpayer wishes to avail of coding out for tax debt of less than £3,000.  You can pay your self-assessment bill through your PAYE tax code (known as coding out) if all of the following apply:-  you owe less than £3,000 on your tax bill;  you already pay tax through PAYE, for example you’re an employee or get a company pension; and  you submit your paper tax return by 31 October or your online tax return online by 30 December. 

Following the signing of a Commencement Order by the Minister for Finance yesterday, all employers will be required to make returns of certain non-taxable benefits and expenses in real-time under the Enhanced Reporting Requirements (ERR) from 1 January 2024. Revenue has however advised that “a service for compliance approach will be taken until the 30 June 2024”. During this period, Revenue will not be operating any compliance programmes in relation to the ERR and will not seek to apply any penalties for non-compliance. Since the measures were first announced in last year’s Finance Act, the Institute, under the auspices of the CCAB-I, has consistently raised our members’ concerns with the new requirements. In addition to several submissions to Revenue, we wrote to the Minister for Finance on two separate occasions (here and here), seeking the abolishment of the real-time reporting requirement and more recently a delay to the implementation date. While disappointed with yesterday’s announcement, we urge members to ensure they are enabled to commence reporting under ERR from 1 January 2024. For the avoidance of doubt, the non-taxable benefits which will be reportable in 2024 are: Non-taxable reimbursements of travel and subsistence Benefits provided under the small gift exemption The remote working daily allowance. You can find more information on the measure on Revenue’s website and we will keep you up to date on developments in Tax News.

In Irish news, Revenue has confirmed that ERR (Enhanced Reporting Requirements) will go ahead from 1 January 2024, and has published updated guidance on the small benefit exemption. In UK news, earlier this week HMRC introduced restrictions to the types of queries dealt with on its Self-Assessment and Agent Dedicated Line helplines, and a technical consultation has been launched on draft regulations for Making Tax Digital for income tax. In International news, the European Commission has concluded negotiations with Norway to update the EU-Norway VAT agreement.  Ireland  Revenue has confirmed that ERR (Enhanced Reporting Requirements) will go ahead from 1 January 2024. The Institute, under the auspices of the CCAB-I, wrote last week to the Minister for Finance to ask that he reconsider the implementation of Enhanced Reporting Requirements (ERR) for employers. Revenue has updated the Tax and Duty Manual that provides guidance for the Small Benefit Exemption. UK Earlier this week HMRC introduced restrictions to the types of queries dealt with on the Self-Assessment and Agent Dedicated Line helplines; HMRC has launched a technical consultation on draft regulations for Making Tax Digital for income tax. International The European Commission has concluded negotiations with Norway to update the EU-Norway VAT agreement. 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.

Revenue has updated the Tax and Duty Manual that provides guidance for fund administrators regarding the calculation of tax due on income and gains from investments in domestic investment undertakings and the completion of prescribed declaration forms.  The manual has been updated to make reference to the Pan-European Pension Product (PEPP) provisions introduced by section 21 Finance Act 2022. References to Approved Minimum Retirement Funds (AMRFs) have been removed, reflecting Finance Act 2021 amendments.  Other updates include:  updated contact information for Large Corporates Division; and  clarification that section 189 relief does not extend to the estate of an individual upon death, who during their lifetime was entitled to section 189 relief.  Further information is available in eBrief no.255/23. 

The Department of Enterprise, Trade and Employment has published the new national minimum wage rates that come into effect on 1 January 2024. The hourly rate for employees aged 20 and above will be €12.70. Further details on rates and conditions are available here.