News

Revenue has recently updated two other Tax and Duty Manuals. The updated manuals relate to iXBRL submissions and the completion of corporation tax returns. Details are set out below. The manual Submission of iXBRL Financial Statements as part of Corporation Tax Returns has been updated for a full list of taxonomies accepted by Revenue, together with a reference list of taxonomies that are no longer accepted. The guidance on the completion of Corporation Tax returns -Form CT1 has been updated to include links to the manuals relating to the completion of the corporation tax returns for 2024 and 2023.

Revenue has published new VAT guidance on broiler chicken services following their exclusion from the flat-rate farmers addition with effect from 1 September 2025.  The new guidance applies to the supply to any agricultural service of stock minding, rearing and fattening during the production of broiler chickens. Further details are included in our news item on 30 June 2025. The existing VAT guidance for flat-rate farmers has also been updated to reflect the ministerial order.

Revenue has recently confirmed that the 2024 Form CT1 for corporation tax is available for filing via ROS online and the ROS Return Preparation Facility (RPF) has been available since April 2024. Revenue has published guidance on the completion of the 2024 return and information on the RPF is outlined in related guidance also issued by Revenue. The changes flagged in the guidance on the filing of the 2024 corporation tax return includes: Updates to the company details panel (paragraph 1), including new sections for De Minimis Aid, Outbound Payments Defensive Measures, Group Relief and, S299 Leases, Updates to the Trading Results Panel (paragraph 2) and further guidance on iXBRL filing (paragraph 3.1), Updates to the Irish Rental Income panel (paragraph 4) to include updated guidance on Non-Resident Landlord Withholding Tax (NLWT), Expanded sections in Irish Investment and Other Incomes (paragraph 5) including further guidance on Digital Games Credit (paragraph 5.3), Updates to Research and Development Credit (paragraph 8) to the S766, S766A, S766C, and S766D panels to reflect legislative changes, and Updated guidance on Close Company Surcharge (paragraph 9) and updates to the Recovery of Income Tax panel (paragraph 10).

Revenue has published new guidance on the exemption from income tax or corporation tax for certain categories of national governing bodies (NGBs) of sport. The manual explains how the exemption will operate, outlines relevant definitions and provides examples where the exemption will and will not apply. The exemption applies to income which the body can hold for up to ten years provided the income is ultimately applied for certain qualifying purposes. Qualifying purposes include capital projects, the purchase of certain sporting equipment, supporting elite athletes in competitive sport, and supporting the participation of women and people with disabilities in sport.

Revenue has updated the Irish Real Estate Fund (IREF) Guidance Note to clarify the operation of section 739LB TCA 1997 and to include a relevant example in section 2.2 of the manual relating to other excessive deductions. The example included in section 2.2, example 23, relates to a limited circumstance where Revenue is prepared to accept that a disbursement or expense which is wholly and exclusively incurred in respect of non-IREF property assets, may be treated as not being a disallowed amount for the purposes of section 739LB. The guidance has also been updated in section 5 to highlight reporting obligations where an IREF ceases to be an IREF during an accounting period.

Revenue has updated the guidance on PAYE Exclusion Order to provide details of the new online PAYE exclusion order application portal available through ROS or MyAccount. Revenue is encouraging use of the online application portal to facilitate faster processing times, however written applications for PAYE exclusion orders are still permitted. The guidance has also been updated to remove obsolete information and to update the relevant examples. Contact details for the Department of Social Protection have also been included.  

The EU VAT SME (Small and Medium Enterprise) scheme which came into effect in January 2025 aims to reduce the administrative burden and compliance cost on SMEs, and to encourage cross-border trade. The scheme has both a cross border and domestic element and Revenue has recently published new guidance on the domestic layer of this scheme. The guidance explains how to access the domestic VAT scheme, outlines the relevant VAT registration turnover thresholds in Ireland, and provides instructions on calculating turnover to determine eligibility. Further details on the EU VAT SME scheme are available in earlier news items on 22 April 2025 and 24 March 2025.

Revenue has recently launched a ROS facility for in- scope companies to register for Pillar Two top-up taxes. Entities must register within twelve months following the end of the first fiscal year in which they fall within the scope of Pillar Two. Revenue has also created a dedicated Pillar Two Hub on its website which serves as the central source for updates and guidance related to Pillar Two. The dedicated Pillar Two hub includes details about what is Pillar Two, registration, pay and file, top up tax information return and key dates and updates. The necessary IT developments required to allow return filing and payment of associated liabilities will be available on ROS in early 2026. Similarly, it is also expected that the facility to file the top-up tax information return will be available on ROS in early 2026. This will enable entities to meet the relevant 30 June 2026 pay and file deadline. The Pillar Two registration link can be found on the ROS homepage under ‘Other Services’ and the deadline for in-scope entities with a fiscal year ending on or before 31 December 2024 to register with Revenue for Pillar Two is 31 December 2025. Revenue has written to Irish Ultimate Parent Entities for MNE groups that may be in scope of Pillar Two top-up taxes to advise that both the ROS registration facility and the website hub are now live. A copy of the letter is attached for reference.

Last week, the Institute, under the auspices of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) had the opportunity to meet with Minister for Finance, Paschal Donohoe, and his officials to discuss the CCAB-I’s Pre-Budget 2026 submission. Our conversation focused on the recommendations laid out in the submission as well as other areas of focus of the CCAB-I Tax Committee, including the challenges facing frontier workers in Ireland. We highlighted the work to date through the Tax Administration Liaison Committee and the Business Tax Stakeholder Forum on tax simplification, as well as the importance of tax certainty for businesses. We also highlighted the critical need for investment in infrastructure such as housing and childcare.   In terms of the specific tax measures we raised with the Minister, we discussed the following: Enhanced reporting requirements for employers – we highlighted the operational challenges of real-time reporting of in-scope tax free benefits and expenses, recommending periodic returns on either a monthly or quarterly basis. This has been a consistent area of engagement with both Revenue and the Department of Finance since the introduction of the new reporting regime in Finance (No. 2) Act 2023. Special Assignee Relief Programme (SARP) – We stressed the importance of SARP in attracting global talent and called for its expansion to include SMEs and benchmarking our relief against comparable regimes in other jurisdictions. We highlighted recent reviews of the relief which concluded on a cost-benefit analysis that the relief generates an overall positive return to the Exchequer. Participation Exemption for certain foreign dividends – While welcoming recent progress, we advocated for further enhancements, including completing work on a corresponding foreign branch exemption. In an earlier letter to the Department of Finance this summer, we highlighted the limitations on geographic scope and the five-year ‘look back’ requirement. Concluding the meeting, Minister Donohoe reaffirmed the Government’s commitment to certainty and stability, which are essential for fostering a thriving business environment for both domestic and international businesses. We look forward to continued engagement to ensure Ireland remains a best-in-class location for business.     Pictured with the Minister are Sarah Meredith, FCA, Grant Thornton, Gearoid O'Sullivan, ACA, Cróna Clohisey, FCA, Enda Faughnan ACCA, Grant Thornton 

This month, two Institute CPD events are taking place, each of which will look at Making Tax Digital (MTD) for income tax from different angles. More details on each are available below. As we approach the six months to go mark to the first tranche of mandation from 6 April 2026 for sole traders and landlords with gross income in excess of £50,000, the Institute recommends that members with clients affected book onto both of these webinars. HMRC has recently launched a new agent outreach campaign which allows agents to complete an online form to register to receive support directly from HMRC ahead of April 2026. CPD webinars Tim Palmer’s two hour CPD webinar on Thursday 11 September is open for booking and will deal with the detail of the technical rules and practicalities of MTD. Planning opportunities will also be considered. The following week at 1pm on Tuesday 16 September, HMRC are delivering a 1 hour webinar which will mainly focus on key readiness tips for agents and taxpayers. Spaces are still available to book. The detailed agenda for Tim Palmer’s webinar is as follows: The requirements of MTD for income tax, Which self-employed individuals and landlords will be mandated to comply, The turnover test, Digital record-keeping, The submission of quarterly updates, including what must be submitted, The election to use calendar quarters instead of fiscal quarters, Traders with turnover below the VAT threshold, The submission of the final declaration, Planning opportunities, The software decision, Practical case studies, The transitional rule, Pre-populated income, The impact on the construction industry, and A general overview of MTD for income tax. The HMRC led webinar on 16 September will be delivered by Sam Wood BSc ACA. Sam works with agents within HMRC’s MTD programme and has a background in accounting and digital transformation. Sam is responsible for Cross Cutting Stakeholder Engagement, Policy and Strategy at HMRC and is a Chartered Accountant and a member of ICAEW with wide experience of MTD from its inception. HMRC agent outreach support campaign for agents launched According to the latest data from HMRC, approximately 864,000 taxpayers will be mandated to use MTD for income tax from April 2026. Almost 1,100,000 (£30,000 - £50,000 population) will be mandated from April 2027 and this will be followed by circa. 975,000 (£20,000 - £30,000) from April 2028. In recognition of the scale of this change for taxpayers and agents, HMRC has recently launched a new agent outreach campaign.  This campaign allows agents to register with HMRC for direct and tailored support by completing an online form. Agents who have an Agent Services Account (ASA) can access the form by signing in with the Government Gateway ID and password linked to their ASA. If the agent does not have an ASA, the form can be completed by signing in with their online services for agents account details (which will require contact details to be provided manually). When completing the form, the agent will be asked to:  allow HMRC to make contact them by email; indicate how many clients they must sign up to MTD for income tax and any that are willing to sign up voluntarily for testing, and    express an interest in having a one to one conversation with HMRC about readiness for and testing of MTD for income tax.   HMRC then aims to review the agent’s form and tailor its response, and the support provided, depending on the agent’s specific needs. Priority is being given to agents with a large number of clients who will be required to sign up. HMRC is aiming to offer a wide range of supports which will include information emails, virtual peer group sessions and, if appropriate, a direct support discussion with HMRC’s MTD team. This is a very valuable tool for agents with clients affected by this significant change hence we encourage you to consider availing of this key support ahead of time.

In the last edition of tax news before its summer break in August, we highlighted that on L-day in July, the Government published three technical consultations on draft legislation each of which close later this month. The Institute will be responding to these and is seeking your feedback by close of business on Friday 12 September. Email tax@charteredaccountants.ie to share your views. More details on each consultation are set out below. Raising standards project Under the banner of the ongoing raising standards in the tax advise market project, HMRC published two separate technical consultations with associated draft legislation. Both these consultations close on Monday 15 September. More details on each are set out below. Modernising and mandating tax adviser registration This consultation seeks views on the introduction of a legal requirement for tax advisers who interact with HMRC on behalf of clients to register with HMRC and meet minimum standards. This will begin from 1 April 2026, with a transitional period of at least three months (it is currently unclear exactly what this means). The legislation’s explanatory note provides a useful overview of the key elements of the registration requirement. Clause 5 of the draft legislation sets out the three eligibility conditions which will need to be satisfied in order for an agent or firm to qualify for registration. These are as follows: Condition A will require the tax adviser, and each of their senior managers, to meet specific criteria. These include having no outstanding tax returns or payments due to HMRC, and not being insolvent or subject to certain sanctions, disqualifications or convictions, Condition B stipulates that the adviser and each of their senior managers must adhere to any specific standards set out by HMRC, and Condition C requires that tax advisers are registered with a supervisory authority for anti-money laundering purposes. Clause 21(2) then defines senior manager for these purposes. As agents will also be grappling with the first batch of taxpayers mandated to use Making Tax Digital (MTD) for income tax from 6 April 2026, clearly this will be a very challenging deadline to meet. It also remains unclear whether or not agents which already hold an agent services account with HMRC will need to register under this measure. Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance This consultation seeks views on further measures to ‘support compliance and transparency in the tax advice market’. There are two associated legislative explanatory notes which are useful: M7087_Conduct_of_tax_agents_explanatory_notes.odt, and https://assets.publishing.service.gov.uk/media/687e1cb54d7769a746325fc6/M7087_Publication_of_information_about_tax_agents_explanatory_notes.odt. The measures include: changes allowing HMRC to request information from tax advisers where there is reasonable suspicion of deliberate conduct (amended from dishonest conduct), penalties for tax advisers who engage in deliberate conduct (again, amended from dishonest conduct), calculated based on the tax loss, and a new power allowing HMRC to publish details of advisers where they have been sanctioned (at present this element appears to have very few safeguards). MTD and penalty reform This draft legislation aims to refine and simplify the existing MTD framework and legislates for many of the changes announced in March at the Spring Statement. This includes the following: A deferral from MTD until at least 2029 for some groups, including Ministers of Religion, Lloyds Underwriters, and recipients of the blind person’s allowance, Exemptions from MTD for others, including individuals with power of attorney, and non-UK resident entertainers with no other qualifying income, Technical and policy amendments, including the authority for HMRC to cancel or reset late submission penalty points and cancel associated financial penalties, A requirement for MTD users to submit their end of year tax return using MTD-compatible software, and The mandation of the £20,000 gross income threshold from 6 April 2028. The aim of this consultation is to seek views on whether the draft legislation works as intended.

Earlier this year we highlighted a request from HMRC for agents to participate in phase two of testing the VAT Import One Stop Shop (IOSS) system in Northern Ireland, the system which allows business to report and pay VAT on imports of low value goods to consumers. HMRC continues to work on the phase of delivery of this which will allow agents to register and act on behalf of businesses. HMRC is still seeking agent volunteers to participate in testing during phase two. Read more about how you can get involved in this unique opportunity and email tax@charteredaccountants.ie if you would like to participate or require more information.