Revenue has released a statement following the flooding caused by Storm Babet. It understands that taxpayers may have temporary cashflow difficulties that can impact on the timely payment of tax. Revenue is advising taxpayers facing tax payment difficulties due to the disruption caused by the recent flooding in Counties Cork, Waterford, Limerick, Kilkenny, and Louth to engage early with Revenue.   Revenue advises such taxpayers to contact the Collector-General’s office on 01 738 3663 to agree mutually suitable payment arrangements.  Speaking last week, Mr. Joe Howley, Collector-General, said:  “The disruption caused by severe weather events can give rise to temporary cashflow difficulties, and we are aware that this can be a worrying time for those impacted. Early engagement with Revenue in such cases is key, as we will work with taxpayers to come to a mutually agreeable solution. This will enable good compliance records to remain on track.  Revenue has a proven track record in successfully agreeing flexible payment arrangements with taxpayers, and taxpayers can be confident that we will take their financial circumstances and capacity to pay into account.” 

Revenue has issued a press release following the Supreme Court decision in The Revenue Commissioners v Karshan (Midlands) Ltd (“Karshan”). In Karshan, the Supreme Court outlined the key factors to be considered when deciding if a worker is an employee or a self-employed contractor. In its release, Revenue notes that the judgment provides significant clarity on the issue.  The Supreme Court ultimately ruled that drivers employed to deliver pizzas were employees for the purposes of income tax. Businesses (and their advisors) should familiarise with the details of the judgment, available on the Court Service website, as it is not limited to delivery drivers but is relevant to a broad range of work. 

Last week following publication of Finance (No. 2) Bill 2023 (“the Bill”), the Institute, under the auspices of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I), made representations to Revenue and the Department of Finance on various aspects of the Bill.   At the meeting of the TALC BEPS Sub-committee on Tuesday, there was a detailed discussion on the provisions relating to the implementation of the Pillar Two Minimum Taxation Directive. It will take several compliance cycles for businesses to fully adapt to these complex rules. From an Irish perspective, we will have to trust that our safe harbours have been appropriately designed to withstand international scrutiny.  At the joint meeting of Main TALC and the TALC Direct and Capital Taxes Sub-committee on Wednesday, there was a thorough discussion on all aspects of the Bill other than VAT, Excise and the Pillar Two provisions. On the Angel Investor Relief announced on Budget Day, this is expected to be introduced at Committee Stage discussions in the coming weeks. Practitioners also noted significant concerns with the proposed clarification of section 604A TCA 1997.  At the meeting of the TALC Indirect Taxes Sub-committee on Thursday, there was another detailed discussion on the VAT and Excise sections of the Bill. Practitioners noted concerns with the removal of provisions relating to determinations. Revenue’s view is that the section is no longer widely used. Practitioners also called for detailed guidance on the definition of “emergency accommodation”, expressing the complexity of these arrangements in certain circumstances. 

In Irish news, read our “At a glance” document for a brief overview of Finance (No. 2) Bill 2023 and Revenue updates taxpayers who will be making R&D tax credit claims in the coming weeks. In UK news, read this week’s miscellaneous updates which features the latest bulletins published by HMRC and from 1 April 2023, the reporting requirements for the Trust Registration Service were expanded. In International news, EU Finance Ministers have adopted a directive on tax transparency for crypto-assets.  Ireland Read our “At a glance” document for a brief overview of Finance (No. 2) Bill 2023. Revenue updates taxpayers who will be making R&D tax credit claims in the coming weeks. UK Read read this week’s miscellaneous updates which features the latest bulletins published by HMRC. From 1 April 2023, the reporting requirements for the Trust Registration Service were expanded. International EU Finance Ministers have adopted a directive on tax transparency for crypto-assets.   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.

Readers will be aware that the Institute has been lobbying HMRC from the beginning of September in relation to the 31 October 2023 deadline for selling second-hand motor vehicles under the VAT margin scheme, where these were bought in GB and transferred into Northern Ireland prior to 1 May 2023. HMRC’s VAT policy team has confirmed to us in a meeting that dealers can continue to use the VAT margin scheme for such vehicles that were in stock on 1 May 2023 as long as these are sold by 30 April 2024. Hence the previous deadline has now been extended by six months. According to HMRC, there will be no further extensions to this deadline thereafter. The Institute is pleased to see HMRC have taken the decision to extend this deadline which clearly recognises the difficulties being experienced by dealers in selling these vehicles in the current economic climate. The guidance on GOV.UK has now been updated to confirm this. Once again, the Institute thanks those members and businesses who provided supporting information to assist us in achieving this result. HMRC’s email message confirming the extension says the following:- “We have listened to feedback from businesses about the 31 October deadline, and have now extended the period that you can use the VAT margin scheme for vehicles you had in stock on 1 May 2023 and have not yet sold. You can now use the VAT margin scheme for eligible motor vehicles that you purchased in Great Britain and moved to Northern Ireland before 1 May 2023 and still have in stock,  if you resell them by 30 April 2024. If you sell them after 30 April 2024, you will have to account for VAT on the full selling price. Find out more information about motor vehicles you had in stock on 1 May 2023.”  HMRC has also asked to us to issue a reminder that the new VAT related payment scheme should be used, where the relevant conditions are met, in relation to second hand vehicles bought in GB and transferred to Northern Ireland from 1 May 2023. The relevant guidance for such vehicles is available here. Should you have any queries in relation to the extension to the VAT margin scheme deadline or the new VAT related payment scheme, please get in touch.

Revenue has updated the Tax & Duty Manual for vehicle registration tax (VRT) online payments in ROS and MyAccount to advise that it no longer accepts payment by commercial credit card. 

Revenue has updated its Tax and Duty Manual regarding using online methods to make a payment to Revenue. The updated manual reflects the fact that Revenue no longer accepts payment by commercial credit card. Current bank account details can be accepted from all countries within the European Economic Area (EEA) and certain non-EEA countries that participate in the Single European Payments Area (SEPA). The updated manual includes this list of countries in appendix 3. 

Revenue has updated the Tax and Duty Manual that provides guidance on the Defective Concrete Products Levy (DCPL). The updated manual confirms that certain autoclaved aerated concrete masonry units made to the standard EN 771-4:2011+A1:2015 are not in scope. 

Revenue has advised that taxpayers who submit a claim for tax relief on Additional Voluntary Contributions (AVCs) through myAccount are required to upload their AVC certificate. Revenue has also advised that documents will be accepted where the AVC certificate is not available at the time of filing. 

The Department of Finance has published the responses it received to its public consultation on Ireland’s Personal Tax System. In April 2023 the Institute, under the auspices of the CCAB-I, responded on the basis that any review of the personal tax system must take a holistic approach to the Irish tax system. There were 28 submissions to the Department and the full list can be accessed at gov.ie. 

Revenue has updated the Stamp Duty Manual regarding repayment of stamp duty in respect of certain residential units under section 83DB SDCA 1999 which came into effect on 1 June 2023. The updated manual provides detailed guidance on making a repayment claim using Revenue's eRepayments system.  Section 83DB SDCA 1999 provides for a partial repayment of stamp duty paid on the acquisition of residential property at the higher rate of 10 percent where the property is   let to a housing authority/an approved housing body,  designated as a cost rental dwelling for the purposes of the Affordable Housing Act 2021,  registered as a designated centre under the Health Act 2007 or  registered as children’s residential centre under the Child Care Act 1991.  Under this section, a repayment will apply to the difference between the amount of stamp duty paid at the higher rate of 10 percent and the amount of duty that would have been payable had the standard rate of applied. 

Revenue has updated the Help-to-Buy (HTB) Tax and Duty Manual  to reflect changes to the HTB scheme introduced in Budget 2024. These changes came into effect from 11 October 2023.  As part of Budget 2024 housing measures, the Minister for Finance, Michael McGrath TD, announced that the Help-to-Buy (HTB) scheme is being amended to reflect its interaction with the Local Authority Affordable Purchase Scheme (LAAP). This amendment will enable the use of the affordable dwelling contribution received through the LAAP scheme for the purposes of calculating the 70 percent loan-to-value requirement, thereby facilitating greater access to the HTB scheme to all LAAP purchasers. In addition, the scheme is extended to the end of 2025.  The main updates are:   The inclusion of a new section addressing the Affordable Dwelling Contribution to outline how the loan-to-value ratio is calculated for HTB applicants also participating in the Local Authority Affordable Purchase Scheme.   Section 11.2 now clarifies what documents must be uploaded by a HTB applicant.