Revenue has issued a press release to remind residential property owners about their Vacant Homes Tax (VHT) and Local Property Tax (LPT) obligations. Readers are reminded that tomorrow, Tuesday 7 November 2023, is the return filing date for the VHT. Property owners are also reminded that, where a residential property was newly built or has become occupied or suitable for use as a dwelling between 2 November 2022 and 1 November 2023, it is liable for LPT in 2024.  The VHT is due on residential properties that are liable to LPT and are occupied for less than 30 days in the year ending 1 November 2023. Further information is available on the Revenue website.   VHT returns can be submitted via Revenue’s myAccount, ROS or the LPT Portal. The system will guide property owners through the three-step process to review their details, submit their return and make a payment if necessary.   Revenue is writing to 800,000 property owners to remind them to set up their LPT payment option for 2024. The LPT on a residential property for 2024 is based on the valuation of the property at 1 November 2021.   Where a residential property has been newly built, or it has been refurbished and has become occupied, or suitable for use as a dwelling, between 02 November 2022 and 01 November 2023, the property is newly liable for LPT in 2024 as of 1 November 2023. A taxpayer who owns a property which is newly liable for LPT is required to value their property as at 1 November 2021. Guidance on conducting this valuation is accessible here with further information on LPT available on Revenue’s dedicated LPT webpage. 

The October Exchequer figures show that tax revenues of €66.5 billion were €2.5 billion ahead of the same period last year, primarily driven by income tax and VAT. However, an Exchequer deficit of €0.9 billion was a recorded to end-October, €8.2 billion down on the same period last year. Cumulative corporation tax receipts of €15.7 billion in the first ten months of the year are €0.4 billion, or 2.7 percent, below their level in the same period last year. This reflects the weakening of exports over the past year and, in particular, the decline in pharmaceutical exports.  The Department of Finance press release on the publication of the October Exchequer figures, notes that corporation tax receipts declined for the third consecutive month year-on-year. October 2023 corporation tax receipts of €1.3 billion were down €1 billion on October 2022.  Commenting on the figures, the Minister for Finance, Michael McGrath T.D. said:  “The end-October Exchequer returns present a mixed picture of our public finances. While income tax and VAT remain steady, demonstrating the underlying strength of our economy, we have now seen corporation tax decline for a third consecutive month.  A fundamental building block of the Government’s fiscal strategy is the assumption that a large part of the increase in corporation tax receipts in recent years is windfall in nature.  This is why it is so important that permanent fiscal commitments are not made on the basis of windfall revenues; instead, running a budgetary surplus is the correct approach.  It is also why, in Budget 2024, I announced the establishment of two new long-term investment funds – the Future Ireland Fund and the Infrastructure Climate and Nature Fund – that will allow us to invest temporary ‘windfall’ corporation tax receipts to provide resources for known future fiscal challenges and ensure that these receipts do not become part of the permanent expenditure base.  I am working with my officials to progress the necessary legislation and this is a key priority for the Government in the year ahead.” 

Revenue has updated the Pensions Tax and Duty Manual which provides contact information for pensions governance authorities. The useful contacts document has been updated to include the new address for Revenue's Large Cases - High Wealth Individuals Division Pensions Branch, situate at Castle View, South Great George's Street, Dublin 2. 

Platform operators must register with Revenue for the purpose of the Council Directive (EU) 2021/514 (DAC7) by 30 November 2023. Irish based platform operators should register via ROS. Non-EU based platform operators, carrying out relevant activities, or relevant activities involving immoveable property located in a member state, should register using the non-resident registration portal which opened on 1 November 2023.   Revenue expects the DAC7 reporting portal to be available from 1 January 2024. Further information is available on Revenue’s dedicated DAC7 webpage. 

In Irish news, Revenue issues a press release following the Supreme Court judgment on key factors when classifying employment status for income tax, offers advice for taxpayers adversely impacted by Storm Babet and outlines the ROS permissions required by employers and agents for the Enhanced Reporting Requirements of employers. In UK news, read this week’s miscellaneous updates which features the latest bulletins published by HMRC. In International news, the EU Commission publishes a study on the VAT gap for 2021. Ireland Revenue has issued a press release following the Supreme Court judgment on key factors when classifying employment status for income tax. Revenue offers advice for taxpayers adversely impacted by Storm Babet. Revenue has outlined the ROS permissions required by employers and agents for the Enhanced Reporting Requirements of employers. UK Read this week’s miscellaneous updates which features the latest bulletins published by HMRC. International The ‘VAT Gap’ in the EU is narrowing according to the EU Commission. 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.        

In a recent study analysing the VAT gap published by the European Commission, the VAT lost by Member States in 2021 was €61 billion, over €30 billion less than the comparable figure in 2020. The VAT gap is a measure of the difference between what should be collected and what is actually collected. The unprecedented year-on-year improvement is likely due to a variety of factors, although the uplift in electronic payments and online shopping in 2021 is likely a significant driver. The rate of VAT compliance tends to be greater online and with e-payments.

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.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the UK’s departure from the EU. VAT: Introducing a new zero rate to extend the scope of patient group directions; Revenue and Customs Brief 7 (2023): change to the VAT treatment of drugs and medicines supplied under patient group directions; Interpretation of VAT and excise legislation; Buildings and construction (VAT Notice 708); Revenue and Customs Brief 6 (2023): VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd; Fuel and power (VAT Notice 701/19); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994 Insolvency (VAT Notice 700/56); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994; and Insolvency (VAT Notice 700/56).

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit and the latest Trader Support Service bulletin is also available. We also remind you to that the Institute will be attending the next UK Domestic Advisory Group meeting on Monday 6 November and would welcome your feedback by Friday 3 November on specific areas of concern which arise in relation to the Trade and Co-operation Agreement. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Importing bananas you have to pay duty on into the UK; Authorisation type codes for Data Element 3/39 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); and Upload documents and get messages for the Customs Declaration Service.

This week we bring you news about planned outages to certain HMRC services over this coming weekend and updated guidance is available for companies claiming the super-deduction or special rate first year allowances. HMRC has also published its most recent performance reports and HMRC’s Insolvency Team is commissioning a series of surveys to obtain feedback from insolvency practitioners. Planned outages to HMRC services Read the below message from HMRC about outages to some services over this coming weekend. “From 10:30pm on Friday 3rd November until 07:00am on Monday 6th November 2023 HMRC is making planned upgrades to some of our IT, moving our internal systems that support our tax credits work, and other services that rely on this infrastructure, to cloud-hosting. This means a small number of internal and external services will be either fully unavailable or have limited functionality during the migration. This will take place from 10:30pm on Friday 3rd November until 07:00am on Monday 6th November and will improve the reliability, resiliency, and security of the service. As per our business opening hours, there’s no impact across our telephone lines as they are closed for the weekend. Our Customs and International Trade line is open and this migration has no impact. The webchats that are operational during this weekend (Saturday only) and may be impacted are listed below.  Depending on the query, our advisors may only be able to provide generic advice. Needs Extra Support Online Services Helpline Self-Assessment Customer-facing impact  Impacted digital services detailed below will have suitable messaging explaining that the services is unavailable either on GOV.UK, PTA or HMRC’s App and will advise customers to check back from Monday at 07:00am. Services: Marriage Allowance Employee Expenses Tax Credits Service Help to Save PAYE Income Tax History SA – Set up a Payment Plan EPAYE – Set up a Payment Plan VAT - Set up a Payment Plan Exercise Environment Insurance Transport Taxes Service (amendments) Online Tax Registration Service Services and internal operational impacts are subject to change. We do expect services to be up and running by midday on Sunday 5th November if the migration is successful.” Super deduction and special rate first year allowance guidance The guidance on claiming the super-deduction or special rate first year allowance (“FYA”) on plant or machinery costs for companies has been updated. Readers are reminded that these capital allowances incentives came to an end on 31 March 2023 but were replaced by full expensing and a new 50% FYA for special rate and long life assets. The updated guidance on the super-deduction and 50% FYA is still relevant to companies making claims in respect of such expenditure incurred up to 31 March 2023 and will also be relevant thereafter to disposals of such assets in accounting periods either straddling 31 March 2023 or falling wholly after that date. HMRC performance reports HMRC’s has published its most recent monthly performance reports and specifically the report for August 2023.. From 2 October, HMRC is no longer aiming to operate to a 10-minute service level on the Agent Dedicated Line. The Institute regularly discusses HMRC performance at stakeholder forum meetings and welcomes your feedback at any time. HMRC’s performance continues to be under pressure due to ongoing budgetary constraints and high inflation Insolvency survey HMRC’s Insolvency Team announced in its September 2023 edition of Insolvency Guidance that it is commissioning a series of surveys to obtain feedback from insolvency practitioners. The first survey, which is now open, examines the experiences of insolvency practitioners’ in contacting HMRC’s VAT helpline and will remain open until 1 December 2023.