After completing a trial in recent months, it is confirmed that changes to the way HMRC acknowledges an option to tax (“OTT”) notification are now “business as usual”. This means that when a taxpayer notifies an OTT, HMRC will now simply issue a receipt acknowledging that it has been received. Checks on the validity of the notification will no longer be carried out. However, HMRC reserves the right to challenge notifications and take corrective action should an OTT be invalid. The aim of this changes is to ensure that taxpayers do not assume that HMRC’s acceptance of the OTT confirmed that it was valid as it remains, and always has been, the responsibility of the taxpayer to confirm the validity of OTT notifications. The change in process is also designed to allow HMRC’s OTT team to catch up on its backlog with the new process aiming to allow HMRC to acknowledge notifications within 30 working days. In respect of historic OTT notifications, work has been ongoing to identify these. In future, if HMRC cannot locate valid notification of an OTT on a particular property, a request for further information will be made. HMRC has also removed the ‘print and post’ versions of the following forms meaning they can now only be completed online:- VAT1614B: Stop being a relevant associate to an option to tax; and VAT1614E: Notification of a real estate election. The relevant online form can be posted but must be fully completed before printing. It can also be emailed to HMRC at:- optiontotaxnationalunit@hmrc.gov.uk.

HMRC has launched the New Starter Checklist. This online interactive guidance has been developed to allow a new employee to answer a series of questions and select the appropriate answers to their circumstances. This will produce a new starter declaration which can then be downloaded and emailed or posted to the employer. Nearly 3 million Real Time Information submissions for new starters with discrepancies were received in 2021/22. The new guidance is designed to help avoid postage costs, incorrect tax being applied and should save employees and employers time and less contact with HMRC. For those taxpayers that require a print and post service, the new Starter Checklist has been amended to reflect the interactive guidance and can also be printed from GOV.UK 

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 end of the EU transition period. Exclude a new building from an option to tax for VAT purposes; Revoke an option to tax for VAT purposes within the first 6 months; Updates on VAT appeals; Who should register for VAT (VAT Notice 700/1); Insolvency (VAT Notice 700/56); How VAT affects charities (VAT Notice 701/1); Postage stamps and philatelic supplies (VAT Notice 701/8); Postage, delivery and direct marketing (VAT Notice 700/24); Check when you can account for import VAT on your VAT Return; Who should register for VAT (VAT Notice 700/1) Goods or services supplied to charities (VAT Notice 701/58) Notice SIVA1: Simplified Import VAT Accounting; Fuel and power (VAT Notice 701/19); How to fill in and submit your VAT Return (VAT Notice 700/12); Domestic reverse charge procedure (VAT Notice 735) Refunds of UK VAT for non-UK businesses (VAT Notice 723A); and How to value goods for import VAT.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The Northern Ireland Protocol Bill continues its passage through the House of Lords with final committee stage taking place today, Monday 7 November. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Exporting active substances manufactured in Great Britain for use in EEA and Northern Ireland; Trade Specialised Committee on Level Playing Field for Open and Fair Competition and Sustainable Development: second meeting, October 2022; Clearing goods entering, leaving or transiting the UK; Check simplified procedure value rates for fresh fruit and vegetables; Search the register of customs agents and fast parcel operators; Check if a business holds Authorised Economic Operator status; National Insurance for workers from the UK working in the EU, Iceland, Liechtenstein, Norway, or Switzerland; and Social security contributions for workers coming to the UK from the EU, Iceland, Liechtenstein, Norway, or Switzerland.

The Administrative Burden Advisory Board (“ABAB”) published their Tell ABAB Survey report 2022 last month. According to the report, the majority (79 percent) of SMEs and tax agents believe that Making Tax Digital (“MTD”) for Income Tax will increase the time spent and costs incurred in keeping records. 58 percent stated that this increase will be significant. HMRC currently plans to introduce MTD for Income Tax from April 2024 for the self-employed and landlords with turnover over £10,000. The report is one of the key ways ABAB and HMRC gain insight. This year’s survey was conducted in April and May 2022 and achieved over 3,000 responses; 68 percent from businesses and 32 percent from tax agents. ABAB is made up of 13 members with a wide range of relevant and up to date business knowledge and expertise. It is independent, representing a cross section of businesses and professions and offers constructive challenge and support to HMRC by championing the views and concerns impacting the small business community. If you would like to comment on the report or help ABAB with their work, email advisoryboard.adminburden@hmrc.gov.uk .

We are aware from a number of members that an issue has arisen with cheque payments made in respect of the second payment on account deadline for 2022/23 not being allocated to the taxpayer account leading to consequences such as HMRC Debt Management wrongly contacting the taxpayer. This issue has already been raised with HMRC via the Agent Online Forum, issue number 18501 - SA payment not showing on SA online record. It is now being escalated due to the knock on impact of interest charges and the involvement of Debt Management. In order to view the forum, you must be signed up for it and logged in. HMRC will be providing an update on this issue via the Agent Forum. Chartered Accountants Ireland raised the issue with HMRC recently and we are pressing HMRC to fix this urgently.

  In this week’s sustainability/ESG bulletin, read about how businesses wishing to avail of the Temporary Business Energy Support Scheme (TBESS) must tick a box declaring that they have completed a carbon footprint exercise and are taking steps to reduce energy use and environmental impact; our upcoming Ask the Expert interview on calculating your carbon footprint; a new round of funding under the Circular Economy Grant Scheme; how Northern Ireland businesses can add their voices to consultation on a proposed Energy “One Stop Shop”; and a proposal under the European Green Deal for rules for cleaner air and water, as well as the usual podcasts, articles and events. Did you know? The Temporary Business Energy Support Scheme (TBESS) will assist eligible businesses with their electricity or natural gas (energy) costs during the winter months. Under Revenue’s guidelines, businesses wishing to avail of the Temporary Business Energy Support Scheme (TBESS) must tick a box declaring that it has completed a carbon footprint exercise and is taking steps to reduce its energy use and environmental impact. Find out more here. Need help calculating your carbon footprint? It can be hard for businesses to know where to start when calculating carbon their footprint. In a short ‘Ask the Expert’ interview on 10 November, Joe Borza, CEO and founder of Irish company Energy Elephant will talk to Institute’s Sustainability Officer Susan Rossney about measuring your carbon footprint, how you can reduce emissions and how to make better energy decisions. Register free here. Circular Economy Grant Scheme opens for applications A call for applications has been announced for the 2022 funding round of the Circular Economy Innovation Grant Scheme (CEIGS). €650,000 is available to support innovation and circular economy projects by social enterprises, voluntary and community organisations, and businesses with fewer than 50 employees, while up to €100,000 is available for individual projects that demonstrate exceptional impact. Some €490,000 in CEIGS funding was awarded to 10 applicants under the 2021 funding round for the Scheme, which was established in April 2021 by Minister of State at the Department of the Environment, Climate and Communications, with responsibility for the Circular Economy and Communications, Ossian Smyth, TD.  Applications for this round are open until 16 December 2022. European Green Deal: European Commission proposes rules for cleaner air and water The European Commission has proposed stronger rules on ambient air, surface and groundwater pollutants, and treatment of urban wastewater. The proposed new rules will reduce by 75 percent in ten years the number of premature deaths in Europe which result from pollution (currently at 300,000 deaths). The proposals are a key advance for the European Green Deal’s zero pollution ambition of having an environment free of harmful pollution by 2050. They also respond to specific demands of the Conference on the Future of Europe. Northern Ireland businesses can add their voices to consultation on proposed Energy “One Stop Shop” Northern Ireland Economy Minister Gordon Lyons has announced the launch of a new public consultation on the development of an Energy “One Stop Shop”, which aims to be a single point of contact where businesses, as well as consumers and communities, can receive information, advice and support about energy issues. The consultation proposes that the One Stop Shop will begin by offering core services of information and advice and will continue to phase in additional services as specific policies and schemes are developed. The consultation closes at 5pm on 20 January 2023 and can be found on the DfE website. From our colleagues in Professional Accounting... The International Sustainability Standards Board (ISSB) unanimously confirmed this week that companies will be required to use climate-related scenario analysis to inform resilience analysis.  They voted to confirm that companies are required to use climate-related scenario analysis to report on climate resilience and to identify climate-related risks and opportunities to support their disclosures.  The ISSB also agreed to provide application support to preparers including making use of materials developed by the Task Force for Climate-Related Financial Disclosures (TCFD) to provide guidance to preparers on how to undertake scenario analysis. This decision responds to questions from stakeholders about what is meant by the term 'climate-related scenario analysis'. Please see here for further details. Resource ICAEW’s Corporate Finance Faculty in collaboration with Deloitte have published ESG in Deals and Investment, a new guide outlining best practice on incorporating ESG considerations into deal making, and looking into some of the practical considerations for those involved in transactions. It offers access to the latest thinking and best practice to help businesses, advisers and investors to form and refine relevant ESG considerations. Podcast FCA and member of the Institute’s Expert Working Group on Sustainability Laura Heuston from SustainabilityWorks spoke to Daniel Murray for the Business Post’s podcast 5 Degrees of Change about how sustainable finance can help drive change in the private sector and the impact of changing career. Articles Moral Victories: The benefits of sustainable investing: ‘We need to develop a common language around what sustainability is’ (Business Post) Temperatures in Europe have increased more than twice global average – report (Irish Times) ‘The number of people who think climate change still isn’t an issue is shocking’ – Michael D’Arcy (Business Post) Upcoming events Calculate your carbon footprint: ‘Ask the Expert’ interview with Energy Elephant, 10 November 2022, 12.00-12.25, Zoom. SEAI SME Business Briefing webinar, 17 November, 10am. Learn how your business can save energy and money, and how you can fund your energy investments. COP27: 2022 United Nations Climate Change Conference, more commonly referred to as ‘COP27’, Sharm El Sheikh, 6 - 18 November 2022 Accountancy Europe, SMEs' sustainable transition: how to support it? 15 November, 10:00-11:30 CET   Institute of Chartered Accountant England & Wales ICAEW Climate Summit, 21-25 November 2022 (Virtual)   Reuters, Sustainability Reporting and Communications Europe,Nov 22-23 November 2022, London   Biodiversity COP15 Part 2, 7-19 December  You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our onlineSustainability Centre.  

Roundup 4 November 2022 Welcome to this week’s Technical Roundup. In developments this week, the Financial Reporting Council has published its inspection findings into the quality of major local body audits in England, which includes large health and local government bodies; the International Federation of Accountants has issued a call to G20 leaders to cooperate to solve long-term pressing issues including sustainability, public financial management and corruption, and the need to work together for collective prosperity. Read more on these and other developments that may be of interest to members below.  Auditing IAASA has published its October 2022 edition of Standards Newsletter which is available here. IFAC has released the first instalment in a three-part series to help small and medium sized practices implement the IAASB’s new Quality Management Standards. The Financial Reporting Council (FRC) has published its inspection findings into the quality of major local body audits in England, which includes large health and local government bodies. Financial Reporting The International Accounting Standards Board (IASB) has issued amendments to IAS 1- Presentation of Financial Statements. These amendments will provide improved disclosures relating to long term debts with covenants and provide clarity on the treatment of such debt. The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted. The IFRS Foundation has issued its October 2022 news summary. The IFRS Interpretations Committee has published Volume 7 of its Compilation of Agenda Decisions. This brings together agenda decisions published from May 2022 to October 2022. IFAC has issued a call to G20 leaders to cooperate to solve long-term pressing issues including sustainability, public financial management and corruption, and the need to work together for collective prosperity. The FRC has published its annual review of corporate reporting 2021/2022. As part of the 2021/2022 review cycle, the FRC carried out 252 reviews (comprising full scope reviews and thematic reviews). The FRC has highlighted the need for high-quality disclosures from companies during periods of economic uncertainty. The FRC have also published Review of Corporate Governance Reporting. This report looks at how 100 FTSE 350 and Small Cap companies have reported on their governance in line with the principles and provisions of the UK Corporate Governance Code. The European Securities and Markets Authority (ESMA) has published its European common enforcement priorities for 2022 annual financial reports document. This sets out the areas that ESMA and national enforcers will pay particular attention to when monitoring and assessing the application of relevant reporting requirements. Insolvency The Institute is hosting a webinar on SCARP – what we know so far on Tuesday, 15 November 2022 at 10am. Des Gibney of McStay Luby and Hilary Larkin of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will discuss the SCARP process, how to prepare for it, what to look out for and key matters to be aware of when considering it. We will explore some practical issues including how SCARP is working in practice, dealing with creditors and what your balance sheet may look like before entering the process versus afterwards. This is a free event and open to all to attend. The CCAB-I Insolvency Committee responded to the Corporate Enforcement Authority’s public consultation on the draft Information Note on Early Warning Tools and Restructuring Frameworks. The response is available to read here. Sustainability The International Sustainability Standards Board (ISSB) unanimously confirmed this week that companies will be required to use climate-related scenario analysis to inform resilience analysis.  They voted to confirm that companies are required to use climate-related scenario analysis to report on climate resilience and to identify climate-related risks and opportunities to support their disclosures.  The ISSB also agreed to provide application support to preparers including making use of materials developed by the Task Force for Climate-Related Financial Disclosures (TCFD) to provide guidance to preparers on how to undertake scenario analysis. This decision responds to questions from stakeholders about what is meant by the term 'climate-related scenario analysis'. Please see here for further details. Anti-money laundering The European Commission has published a report on the assessment of the risk of money laundering and terrorist financing (“ML/TF”) affecting the internal market and relating to cross-border activities The report analyses the ML/TF risks for the EU internal market based on categories of products and services and proposes actions that can be taken to address this. Other news Accountancy Europe has welcomed the proposed EU regulation to ban products made with forced human labour. This represents a step in the ongoing fight against modern day slavery. Accountancy Europe has also set out some key messages to policymakers in their endeavours to address this issue. It also provides details about the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 which will come into effect on 1 December 2022. The Financial Reporting Council has published its Annual Review of Corporate Governance Reporting which found an improvement in the quality of reporting against the UK Corporate Governance Code. The Department of Enterprise, Trade and Employment has issued its latest Enterprise Newsletter which includes details of the new €200M Ukraine Enterprise Crisis Scheme and was set up to assist viable but vulnerable firms of all sizes in the manufacturing and internationally traded services sectors. The newsletter also gives details about the Payment of Wages (Amendment) (Tips and Gratuities) Act 2022 will come into effect on 1 December 2022 which, amongst other matters, will give employees legal rights over the payment of tips. The Wheel are hosting Charity Trustees week from 14th to 18th November. This includes some free events which charity trustees may be interested in. Opening remarks were made by Governor Gabriel Makhlouf at the Financial System Conference which is designed to bring together diverse perspectives from the Central Bank of Ireland's wide range of stakeholders – including industry leaders, consumer representatives, and policymakers from Ireland and across the EU – to discuss and debate the forces shaping the financial system. The UK government webpage giving information on the changes being introduced by the Charities Act 2022 has been updated as a result of Charities Act 2022 provisions that have come into effect on 31 October 2022. The NI Charity Commission have published a blog which outlines recent changes to the online application for charity registration (opens on YouTube): https://youtu.be/fziaypsqPcg For further technical information and updates please visit the Technical Hub on the Institute website. 

Professional Standards has published the UK AML Supervision Report 2021/2022 in accordance with Reg 46A of the Money Laundering Regulations 2017 (as amended).

IFAC RELEASES ADDITIONAL SUPPORT FOR SMALL FIRMS ON THE IAASB'S QUALITY MANAGEMENT STANDARDS The International Federation of Accountants (IFAC) released the first installment in a three-part publication series to help small- and medium-sized practices implement the International Auditing and Assurance Standards Board’s (IAASB) new quality management standards. The IAASB’s suite of quality management standards were issued in December 2020 and come into effect on December 15, 2022. Installment One: It is time to get ready for the new quality management standards addresses the mindset change the new standards require and the shift in focus from quality control to quality management. It also includes developing a project implementation plan, an introduction to quality objectives, the risk assessment process, and assigning roles and responsibilities. Helpful meeting agenda templates practitioners can use with their colleagues are also included. The three-part series will provide tips and guidance for practical implementation of the IAASB’s standards. Installment two will focus on developing a detailed implementation plan and installment three will address monitoring and remediation. Installment One joins IFAC’s collection of available resources that support quality management implementation, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement.

In this edition:  information on recently adopted standards as well as the standards that are due to become effective shortly, the ISA (Ire) 600 consultation and other developments. The October edition is available here.

In Irish news, Revenue publishes guidelines on the Temporary Business Energy Support Scheme and we provide information for proprietary directors effected by section 997A TCA 1997. In UK news, we remind you that the online VAT portal closed this week for many VAT registered businesses and the Government publishes its response to the consultation on the new alcohol duty system.  In International news, the opening sessions of the OECD 2022 Global Forum plenary meeting will be broadcast live on Wednesday, 9 November. Ireland Revenue has published its guidelines for the Temporary Business Energy Support Scheme (TBESS).   Revenue has confirmed that there is no legislative provision to allow the Schedule E liabilities due to be paid by 31 October 2022 (16 November 2022 where the ROS extension applies) to be warehoused.     UK Read about the online VAT portal closing this week for many VAT registered businesses.   The Government has published its response to the consultation on the new alcohol duty system. International     5.The opening sessions of the OECD 2022 Global Forum plenary meeting will be broadcast live on Wednesday, 9 November. 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.