That was just one of the concerns raised by the Institute in its submission to “Consultation on the introduction of a UK carbon border adjustment mechanism” (“CBAM”). The Institute’s full response can be read in the Tax Representations section of our website and also highlighted the urgent need for clarification in respect of the ongoing uncertainty as to how the EU CBAM will apply to Northern Ireland under the Windsor Framework, and specifically the application of the EU CBAM to imports from non-EU countries.  The submission also focused on the need for adequate time to prepare for the introduction of the UK’s CBAM which must be preceded by guidance and systems that have been developed in close conjunction with stakeholders.   HMRC’s compliance approach to this new tax should incorporate a soft landing approach with penalties automatically suspended for two years, unless HMRC has evidence of deliberate behaviour. The Institute also highlighted the importance of providing educational support to businesses and customs intermediaries. 

Ahead of next month’s general election, the main parties in the UK have now published their party manifestos. Links to each of these are set out below. We also take a closer look at the tax policies of the Conservative and Labour parties as the two parties likely to have the most seats in Westminster after the general election on 4 July.  Tax policies – the Conservative Party  The Conservatives have pledged the following:  There will be no increase in the 25 percent main rate of corporation tax;  The rate of employee National Insurance Contributions (“NICs”) will be reduced by a further 2 percent to 6 percent;  Class 4 NICs for the self-employed, currently 6 percent, will be abolished and there is a long-term plan to end NICs altogether;  Income Tax and VAT will not rise;   There will be no increase in the rate(s) of Capital Gains Tax (“CGT”);  The manifesto is silent on Inheritance Tax; and   Child benefit will be assessed at the household level with no high income child benefit charge for couples earning up to £120,000; this would be a doubling of the current £60,000 threshold.  Tax policies – the Labour Party  The Labour Party has pledged the following:  Corporation tax will be capped at the current main rate of 25 percent for the duration of parliament (five years);  There will be no increases in income tax, NICs and VAT. However, the same promise is not made for CGT and pensions tax relief;  There are a range of tax increases aimed at wealthier voters including the closure of what is referred to as “non-dom tax loopholes” and VAT will be applied to private school fees;  A business taxation roadmap will be published;   There are “plans to modernise HMRC and change the law to tackle tax avoidance. We will increase registration and reporting requirements, strengthen HMRC’s powers, invest in new technology and build capacity within HMRC. This, combined with a renewed focus on tax avoidance by large businesses and the wealthy, will begin to close the tax gap and ensure everyone pays their fair share”; and  There is a commitment to only one major fiscal event every year.  Party manifestos are available at the following links:  The Conservative and Unionist Party manifesto;  The Labour Party manifesto;  The Liberal Democrats manifesto; and,  The Green Party manifesto.  The Scottish National Party manifesto has not yet been published. 

Revenue has updated the Tax and Duty Manual which provides guidance on C&E TAN Reports available on ROS for C&E traders. The updated guidance now includes details for TAIN agent (Tax Agent) access in ROS to C&E reports for their clients. Further information in relation to postponed VAT reports where a declaration is invalidated has been included and clarification included where only one transaction and one payment is submitted in a month. 

Revenue has updated the Tax and Duty Manual which provides guidance on the taxation of crypto-asset transactions. The guidance now includes minor clarifications, including confirming that Central Bank Digital Currencies (CDCC) are to be treated as currency assets and not crypto assets for tax purposes. 

Revenue has updated the Tax and Duty Manual which provides registration and filing guidelines for DAC7. The guidance has been updated to reflect information required when registering as a Foreign Platform Operator (section 3).  

Revenue has updated the Tax and Duty Manual which provides guidance on the section 481 Film Corporation Tax Credit. The guidance has been updated to reflect the extension of the operation of the tax credit to 31 December 2028 and the increase in the expenditure cap to €125 million. It also reflects the closure of the Regional Film Development Uplift to new claims from 1 January 2024. 

Revenue has updated the Tax and Duty Manual which provides guidance on repayments and offsets of taxes and duties. The updated guidance now incorporates the contents of the previous Tax and Duty Manual which provided guidance on interest payable by Revenue. Section 2 of that guidance has also been updated to clarify who is entitled to a repayment of tax. 

Revenue has informed us that there are over 200,000 PAYE taxpayers with PAYE over/underpayments for the tax year 2020. In the coming weeks Revenue will write to them all to invite them to file a return for 2020. Taxpayers wishing to reclaim their overpayment of PAYE must file a tax return via the MyAccount facility. In the case of underpayments of PAYE, where no return is filed, Revenue intends to collect the underpayments via the PAYE system at a later date. 

Revenue has updated its website to include two instructional videos for agents. The first video outlines Revenue’s top tips for agents when they are using MyEnquiries. It has also provided an instructional video outlining how agents can change accounting periods for corporation tax on behalf of the taxpayer. 

Revenue has informed us that its Business Division is commencing a Level 1 bulk compliance project on two cohorts of taxpayer based on 2022 income tax returns. Letters will issue in the coming weeks asking taxpayers to review and amend their returns where appropriate. Revenue’s focus is on:  Taxpayers who may have claimed relief for AVC pension contributions twice (both via payroll and via their Form 11), and  Taxpayers where the turnover per the Form 11 exceeds the VAT registration threshold, but the taxpayer is not VAT registered.  

At a recent meeting of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements (ERR) sub-group, Revenue confirmed that the period of ‘service to support compliance’ is extended to the year end. While no penalties or audits will be imposed during 2024, from 1 July 2024 Revenue expects all employers providing reportable benefits to submit details on or before the provision of the benefit.   As of 31 May 2024 over 36,000 employers have made over 515,000 submissions totalling €566 million in respect of 522,000 employees. During this time, travel and subsistence payments were made to over 33,000 employees totalling more than €500 million.  Revenue is making contact with those employers from whom it would have expected to receive an ERR report but have not done so. Revenue’s Business Division will issue over 79,000 letters this week to remind employers of their ERR filing obligations.  Employers experiencing difficulties complying with ERR are encouraged to contact Revenue through MyEnquiries if they have any queries. Further support is available through the National Employer Helpline, which can be contacted on (01) 738 3638 between 09.30 and 13.30 Monday to Friday.  Feedback on issues or problems you experience with the new ERR reporting regime can be emailed to the Institute and we will continue to engage with Revenue through TALC. 

In Irish news, Revenue has published statistics on the Debt Warehousing Scheme, and the Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform report robust tax revenues in May’s Fiscal Monitor. In UK news, HMRC has launched a mailbox which can be used by members of recognised professional bodies to report concerns about potential rogue R&D tax relief advisers, and in this week’s miscellaneous updates, HMRC has published guidance on how in-scope multinational groups can register for the UK’s Pillar Two regime. In International news, the European Commission will continue to support the work of the Platform for Tax Good Governance.  Ireland Revenue has published a detailed statistical report on the Debt Warehousing Scheme. Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform report robust tax revenues in May’s Fiscal Monitor. UK Read about the process which should be followed by members of recognised professional bodies to report concerns about potential rogue R&D tax relief advisers. In this week’s miscellaneous updates, HMRC has published guidance on how in-scope multinational groups can register for the UK’s Pillar Two regime. International European Commission will continue to support the work of the Platform for Tax Good Governance. 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.