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.  

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. 

A joint initiative between the OECD and the United Nations Development Programme continues to make great progress, according to the Tax Inspectors Without Borders (TIWB) Annual Report. The TIWB initiative has been running for over nine years now, resulting in over US$6.05 billion in additional tax assessments in developing countries worldwide. The TIWB initiative assists tax authorities in developing countries build capacity by providing practical, hands-on assistance auditing multinational enterprises.

In a recent visit to Ardmore Studios, the Minister for Finance highlighted recent improvements to the film and television tax incentive section 481 TCA 1997. Readers are reminded that in March 2024 the Minister signed two commencement orders to increase the cap on eligible expenditure from €70 million to €125 million and to extend the scheme to 31 December 2028. Commenting on the visit, the Minister stated: “It is fantastic to be able to see first-hand some of the amazing work being undertaken within our film sector. The industry in Ireland has seen great success in recent years and Irish production companies and talent have been consistently at the forefront of the conversation internationally when it comes to some of the biggest awards the industry has to offer. This has been a great source of pride for Ireland and I believe the recent changes to section 481 will help us capitalise on this recent success and further promote Irish culture internationally and enhance our reputation as a centre of excellence for screen production.”

Revenue has updated the Tax and Duty Manuals which provide guidance on submitting and managing enquiries using the MyAccount and MyEnquiries portals. Revenue guidance on notifications about enquiries and replies has also been updated. Guidance on submitting and managing enquiries in MyAccount includes advice about the correct naming of attachments to avoid an enquiry failing (paragraph 1.9), with updated screens are included in paragraphs 1.10 and 1.11. Guidance on submitting and managing enquiries in ROS includes information regarding the correct naming of attachments (paragraphs 1.10 and 2.11), notifications issued via MyEnquiries (paragraph 1.13), details of the limited options for raising an enquiry without having to specify the Client PPSN/Tax number (paragraph 2.5). Information is also provided about changing an email address and ensuring that the email address is registered in MyEnquiries (paragraph 2.10). Guidance on notifications about enquiries and replies includes updated information regarding Revenue’s replies to submissions about clearance in death cases (paragraph 2.1), CGT clearance for non-residents (paragraph 2.2) and CAT clearance for the distribution of an estate to a non-resident beneficiary (paragraph 2.3).

The Minister for Finance, Mr. Michael McGrath T.D., has welcomed the publication of the 2023 Annual Report of the Tax Appeals Commission (TAC). Headline figures from the report include: 1,521 appeals closed during 2023 valued at €1.386 billion 175 determinations were issued valued €409 million A decrease of 24 percent in the number of appeals on hand (1,139 in 2023 versus 1,504 in 2022) with a 60 percent reduction in the quantum of those appeals from €1.3 billion in 2022 to €519 million in 2023. Noting the significant progress made by the TAC during 2023, which includes a new portal to enable online submission, the Minister said: “The Tax Appeals Commission continues to provide an efficient, fair and cost effective appeals process for the taxpayers of the country which provides citizens with an accessible alternative to the Courts for tax appeals.” Further commentary is available in the Department of Finance’s press release.

Last week, the Department of Finance and the Department of Public Expenditure and Reform published the Fiscal Monitor for April. Tax revenues of €24.8 billion were collected to end-April, an increase of 2.6 percent, or €0.6 billion, on the same period last year. Growth was recorded in income tax, VAT and excise duties, therefore offsetting a decrease in corporation tax. Overall, the Exchequer deficit to the end of April 2024 stands at €1.2 billion. This compares to a deficit of €3.7 billion at the end of April 2023; however the position is distorted due to the transfer of €4 billion to the National Reserve Fund in early 2023. Commenting on the figures, the Minister for Finance, Michael McGrath TD, said: “April is one of the less significant months for tax revenues, but insofar as conclusions can be drawn from today’s figures, the most notable feature of the April performance is the strength in income tax receipts, continuing the trend that has been apparent so far this year. The 6.4% increase in overall tax receipts in April compared to the same month last year is a solid performance, and is in line with budget expectations. The performance of income tax and Vat year to date is encouraging, and points to a domestic economy that is holding up well despite a number of headwinds. The May returns, when further VAT and corporation tax receipts are expected, will provide a clearer indicator of the tax revenue performance. However, overall, tax revenues are ahead of the same period last year even despite the decrease in corporation tax seen last month. This is firm evidence of the fundamental strength of our economy and our labour market, and speaks to the success of Government’s careful and balanced approach to budgetary policy. As outlined in the Stability Programme Update published recently, my expectation is that the economy will experience modest growth in 2024 but importantly living standards will improve for the overwhelming majority of households as incomes rise in real terms. With inflation now moderating quite quickly, interest rates expected to fall over the period ahead, and further reductions in energy prices at the retail level anticipated, the pressures many consumers have faced will likely ease across the year and this will provide a further boost to the domestic economy. I am pleased that we are making progress in relation to the Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024. This is currently at Committee Stage in the Dáil and the legislation is a central part of the Government’s strategy for the long term management of the public finances.”

Revenue has provided an update regarding payment arrangements agreed to address warehoused debt. As of 16:00 on Thursday 2 May, over 10,000 Phased Payment Arrangements (PPAs) have been set up, with Revenue actively progressing a further 1,500 PPA applications. Revenue processed over €65 million in warehoused debt payments last week.  It estimates that, when PPA applications on hand are finalised and incoming payments on the Revenue Online Service (ROS) are processed, 85 percent of the €1.65 billion of debt that was warehoused at the start of April will either have been paid in full or secured under PPAs. Readers are reminded that those businesses who have not yet put arrangements in place to pay their warehoused debt risk losing the 0 percent interest rate and flexible payment options available in respect of their warehoused debt as it will become subject to standard debt collection and the standard interest rate of 8/10 percent will apply. Taxpayers can engage digitally with Revenue via MyEnquiries or ROS or, alternatively, by calling the Collector General (01 738 3663).

Stephen Lowry delves into details of the upcoming referendum on Ireland’s proposed participation in the Unified Patent Court  In the wake of referenda on family and care, voters were due to decide on another important constitutional referendum on 7 June. Although the vote has since been postponed by the Government, voters will be asked whether they approve of Ireland’s proposed participation in the Unified Patent Court (UPC).  First mooted in 2013 with the signing of the Unified Patent Court Agreement (UPCA), the UPC is a new international court with exclusive competence to grant ‘unitary patents’ – a new form of patent that gives uniform protection across all participating European countries on a one-stop-shop basis.  Currently within its jurisdiction are 17 EU Member States, though this number is expected to increase over the coming months as more countries move to ratify the UPCA.  Before Ireland can join the UPC, an amendment to the Constitution is needed as doing so will involve a transfer of jurisdiction in patent litigation from the Irish courts to an international court.  So, what’s to be gained from joining the UPC?  1. Reduced cost and administrative burden  At present, there is no single European patent valid in all Member States. Instead, individual patents must be held in each country where the patent is to be applied.  Applications can be made to either the national patent office in each country or as a single application to the European Patent Office (EPO).   Rather than acting as a one-stop-shop for patent litigation, however, the EPO can essentially only grant a bundle of national patents for the countries designated by the patent application.  If subject to challenge, these patents must then be litigated separately in the national courts of each country in which they are granted – thereby potentially giving rise to legal costs across a number of jurisdictions as well as risking the prospect of different legal outcomes.  By contrast, the UPC will instead allow applicants to apply for a single patent, which will be valid across multiple Member States, upon which it will be the sole arbiter.  2. Boost to FDI and export activity If the referendum is carried, the Government has signalled its intention to establish a local division of the UPC in Ireland. Doing so would mean Ireland would be the only common law, native English-speaking jurisdiction with a UPC.  Coupled with Ireland’s already attractive tax regime for research and development, the establishment of a local UPC would arguably further boost the State’s profile as a location of choice for inward investment.  Moreover, access to a streamlined European patent protection system would likely act as a useful incentive for Irish businesses to expand exports to a greater number of countries previously out of reach because of the costs of securing multi-jurisdictional patent protection.  3. Impact on the domestic economy  Estimates provided to the Joint Oireachtas Committee on Enterprise, Trade and Employment indicate that the establishment of a local division of the UPC in Ireland would contribute at least €415 million, or 0.13 percent in GDP growth, per annum by way of increased patent development activity.  Consequently, the establishment of the UPC can also be expected to generate increased expenditure and employment in legal, professional and other related technical advisory services.  Whether the referendum will be carried  will, however, ultimately depend on the Government’s ability to engage the public on the merits of adopting a streamlined patent court – a difficult task on such a niche subject.  Stephen Lowry is Public Policy Manager with Chartered Accountants Ireland

Welcome to the latest edition of Technical roundup. In developments since the last edition, David Swinburne and Hilary Larkin of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will be speaking at a webinar about the practical issues of the Small Companies Administrative Rescue Process (SCARP) on 29 May at 10:00. The European Parliament has recently adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing. The Anti-Money Laundering and Countering the Financing of Terrorism package consists of a directive and two regulations. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) is hosting a webinar on its recent revisions to FRS 102 on Wednesday, 15 May 2024 11:00-12:00. The International Accounting Standards Board (IASB) has announced that it is launching a comprehensive review of accounting for intangibles. This project will assess whether the requirements of IAS 38 Intangible Assets remain relevant and will be explored and discussed by the IASB in the coming months. The IASB has announced that it expects to issue its next Accounting Standard, IFRS 19 Subsidiaries without Public Accountability: Disclosures, on 9 May 2024. The IASB has issued its April 2024 update which highlights decisions taken and projects affected during the month. It has also published its April 2024 podcast. The IFRS Foundation has also issued its April 2024 monthly news summary. The IASB has announced that it expects to publish the Exposure Draft Contracts for Renewable Electricity on 8 May 2024. Following on from the recent release of IFRS 18 Presentation and Disclosure in Financial Statements, the IASB are holding a series of webinars to help stakeholders gain a better understanding of the new requirements. The UK Endorsement Board has released a webcast which discusses IFRS 18. The IFRS Foundation has published a video explaining what the IFRS Digital Taxonomies are and how they enable information to be prepared in a machine readable format. The IFRS Foundation has published its 10th Compendium of Agenda Decisions by the IFRS Interpretations Committee. This covers the 6 month period to April 2024. The IFRS Foundation has published its 2023 Annual Report for the year ended 31 December 2023. EFRAG, the European Financial Reporting Advisory Group has published its draft comment letter on the IASB’s Exposure Draft ED/2024/03 Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3, IAS 36). The draft remains open for public comment until 28 June 2024. Auditing and Assurance IAASA has published its annual ‘Profile of the Profession’ for 2023 containing statistical data provided by the six Prescribed Accountancy Bodies (‘PABs’). The report presents an overview of the PABs’ members and students and includes statistics about their regulatory and monitoring activities. A video summary is available here. Anti–money laundering and sanctions The European Parliament has recently adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing. The Anti-Money Laundering and Countering the Financing of Terrorism package consists of a directive and two regulations. These are the sixth Anti-Money Laundering directive, the EU “single rulebook” regulation and the Anti-Money Laundering Authority (AMLA) regulation. The laws must be formally adopted by the European Council before publication in the EU’s Official Journal. Click here for a press release from the European Parliament on the package and here to access the Institute’s dedicated pages on anti-money laundering which have recently been updated to include a page dedicated to European Union developments. In the UK the Office of Financial Sanctions Implementation (OFSI) has recently launched a UK Financial Sanctions FAQs webpage. Ninety one questions and answers are listed including featured FAQs “Are UK entities’ subsidiaries located outside the UK expected to comply with UK sanctions? “and “How do the fees and expenses caps apply? Is it per DP (i.e., for all a DP’s matters across all law firms) or is it per law firm being instructed by a DP?”. The UK Financial Conduct Authority is consulting on updates to its Financial Crime Guide. The updates relate to sanctions, proliferation financing and transaction monitoring. It is also proposing to add references to cryptoassets and the Consumer Duty, along with consequential changes throughout the Guide. The consultation closes on 27 June 2024. Insolvency David Swinburne and Hilary Larkin of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will be speaking at a webinar about the practical issues of the Small Companies Administrative Rescue Process (SCARP) on 29 May at 10am. You can register here for this free webinar. Sustainability Accountancy Europe has welcomed the final approval of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Parliament (EP) and the Council. Member States can now start transposing the Directive into national laws in 2024. Accountancy Europe has also issued its April 2024 Sustainability Update. The Department of Enterprise, Trade and Employment (DETE) is consulting on one of the member state options of the CSRD to introduce Independent Assurance Services Providers (IASPs) pursuant to Article 34(4) of Directive 2013/34/EU (‘Accounting Directive’) inserted by Directive 2022/2464/EU as regards Corporate Sustainability Reporting (‘CSRD’). The deadline for responding to the consultation is 19 July 2024. Ahead of the anti-greenwashing rule coming into force on 31 May, the Financial Conduct Authority (FCA) is supporting industry with guidance to help them meet the standard.  It is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained. The International Sustainability Standards Board (ISSB) has announced that it will commence projects to research disclosure about risks and opportunities associated with biodiversity and human capital. The ISSB has issued its April 2024 Update and Podcast. The inaugural IFRS Sustainability Disclosure Taxonomy was published on 30 April. The Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures and their accompanying guidance. The IFRS Foundation and EFRAG have jointly published guidance material which illustrates the level of alignment achieved between the ISSB’s Standards (IFRS S1 and S2) and the European Sustainability Reporting Standards. The International Federation of Accountants (IFAC) has proposed changes to the International Education Standards to improve the training offering for aspiring professional accountants. Central Bank of Ireland The Central Bank of Ireland has completed and published the outcome of a review of the supports that banks, retail credit firms and credit servicing firms provide for borrowers in or facing early arrears. Click here for the press release and here for the Dear CEO letter from the Head of Consumer protection division. Director of Consumer Protection, Colm Kincaid said: “The Central Bank has carried out this review to ensure the financial system is supporting borrowers in or facing early arrears on their mortgage. It comes as we see an increased number of borrowers falling into early arrears, as increased costs of living impact on borrowers’ finances.” New legislation A regulation which transposes the Representative Actions Directive (RA Directive) has recently been signed into Irish law. The RA Directive ensures that groups of consumers can protect their collective interests for an infringement of their consumer rights both in here in Ireland and in the EU, through a representative action. Click here for a DETE press release which provides more information on the RA Directive and the transposing regulation. On the drafting side, the Government recently published its legislative programme for Summer 2024. Read the press release here and the contents of the programme here. The Access to Cash Bill, Companies (Corporate Governance Enforcement and Regulatory Provisions) Bill and a National Cyber Security Bill are listed for priority drafting. The Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill is listed as heads in preparation and the Charities (Amendment) Bill 2023 is on the Dail and Seanad Order Paper. Other The European Securities and Markets Authority (ESMA) has responded to the European Commission request on amendments to the European long-term investment fund (ELTIF) Technical Standards (RTS). In the letter ESMA suggests that there should be a limited number of changes to find the right balance between protecting retail investors and contributing to the capital market union objectives.    Readers are reminded that the Corporate Enforcement Authority’s April newsletter is now available. Highlights include a focus on directors’ disqualification and company law developments. You can read more details here and click to be brought to CEA website where you can sign up for the newsletter. Click here for the European Commission’s news finance hub where readers can subscribe for the newsletter and keep up to date with all the latest EU finance news including digital & sustainable finance, banking, anti-money laundering and sanctions. You can for example read an article on the new AML rules (reported on above) which notes that they will change the EU’s financial crime prevention landscape for good but asks and provides some answers to what will change in practice. On 24 April EU and Member States representatives celebrated 20 years of EU enlargement. President von der Leyen highlighted the many benefits that EU membership brought to the then-new Member States while also underlining the many advantages that the Union itself drew from this enlargement. The Financial Conduct Authority in the UK has issued an Artificial Intelligence (AI) update to outline its approach to AI following the Government’s publication of its pro-innovation strategy on AI. AI The update outlines the FCA’s role and objectives, it’s work so far, its existing approach and its plans for the next 12 months. You can read more about it here. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

In every issue of The Bottom Line, we ask students for their thoughts on a particular topic. This month, we want to know: What do you think of pension auto-enrolment? Becky Maye PwC Many young professionals may not view pension planning as a priority while they navigate other challenges. Many graduates will prioritise their professional exams, housing, and social or sporting commitments. As such, they may not even know of the existence of this scheme.  The new pension scheme operates as an opt-out, lessening the burden of those aged between 23 and 60 who earn over €20,000 but haven’t already enrolled in a pension scheme. It allows a foundation to be laid where an individual may later decide to enrol in a pension scheme while simultaneously allowing those who decide not to opt into a pension scheme access to a sum upon retirement that has accumulated over the years.  Investing in a pension scheme is essentially a tax-efficient investment into your future but it may be seen as an onerous task for many young professionals. The auto-enrolment scheme allows this view to be altered and provides a system where the burden is lifted.  Eoin Hartnett KPMG The auto-enrolment pension scheme is a semi-mandatory retirement savings system expected to be introduced in Ireland in January 2025. It’s a system whereby every €3 an employee contributes to their pension will be matched by their employers. In addition to this, the state will top it up with a further €1. What’s unique about this system is that it is an opt-out system rather than an opt-in one.  So, any employee between the ages of 23 and 60, not already on a pension scheme and earning over €20,000 per annum, is automatically enrolled.  Personally, as a 24-year-old six months into my graduate contract, I see this as a huge positive.  After 19 years in education, and only fresh out of college, there is a lot of change when you enter the working world that you have to deal with, and realistically, when you’re getting started, all your focus is on getting up to speed with the work and getting used to the working environment. Your pension is the last thing on your mind.  It would probably be another five or ten years before I would even think about it. Instead, now, in five or ten years, when I try to put a more comprehensive pension plan in place, I will already have accumulated a tidy lump sum upon which to build. I think that is the true benefit of this scheme, how, with minimum fuss, it helps set a foundation. A foundation that otherwise might not have been laid until years later. Conor Flynn EY Retirement planning is generally not a priority for young workers in their 20s and 30s. This is unsurprising given the other immediate challenges facing young people, such as access to housing, high rents, and the rising cost of living.   A CSO 2023 survey stated that only 32 percent of workers aged between 20 and 69 were signed up to a private pension. As a result, many workers would be solely dependent on their State pension (approximately €13,500 pa) upon retirement. This presents a major challenge for Ireland. An ageing population and rising life expectancy mean that a lack of corrective action, such as auto-enrolment, would result in a significant future burden on the Exchequer.   It is critical that we reshape our thinking around pension and retirement planning. Pension contributions can no longer be regarded as an unnecessary cost but rather a tax-efficient investment in our future!  

When navigating the transition from trainee to qualified accountant, there are a few things you can do to make it easier for yourself. Tanya Thomas explains how In the last few years, you were accepted into a training contract and have lived an extended life as a student while also working full-time. It has been busy as you balanced study with work AND a social life.  You are almost at the finishing line—the end is in sight. The big questions are: what is next and how will you achieve it? We talk to newly qualified accountants daily, and our conversations vary dramatically. Some are 100 percent certain about what their first role will be out of contract, others are still working it out, and there is a continuum of people in the middle. One thing is for sure: while you are completing your training contract, there are things that you can do to make your transition into life as a qualified accountant easier.  Step 1: Remain aware During your time in practice, it’s crucial to stay proactive and adaptable. Keep your senses sharp – ask questions and be curious.  Initially, you might be assigned to a specific industry group, but remember, this doesn’t have to be your niche for the entire contract. If you feel another client or industry group might suit you better, don’t hesitate to discuss it with your manager. They might be open to accommodating a change.  Remember: if you don’t ask, you won’t get. Step 2: Get to know your colleagues Try to maintain a balance between work, study and getting to know colleagues and your broader circle.  Many practices treat trainees to generous nights out. Make the most of these—go out, let your hair down, and find friends. Often, these will become lifelong friendships.  Step 3: Move your body Stay active during your training contract. Make time for exercise. This could be at the gym, a team sport, or yoga. Whatever you choose, own it and enjoy it. You need to be active to remain healthy and relieve stress. Step 4: Present your best self When you begin your job search after qualification, you will be asked to demonstrate:  what types of accounting roles you want. You may not know 100 percent which direction to take, but some initial ideas will make the world of difference as you commence your search. you know what types of industries interest you. It is important to be able to talk about your preferred industries, as each industry has its own nuances.  you can build rapport with managers and partners in an authentic and honest manner. They all started in the same position you are in now and should be able to understand/empathise with your journey. Ask questions, ask for advice, ask about their weekend, and listen to their answers. you have interests and passions outside of accountancy. Chatting about these passions in your interview will bring you and your CV to life.  your awareness of what is happening in the world. Subscribe to a variety of newspapers and read them daily. your evolution and growth. Your LinkedIn profile should not be static – it should reflect you. Make it professional and warm. Make sure the photo does you justice. A smile is always important. you’re always working on your CV. Keep a file of the work that you have been doing – both everyday tasks and special projects. When it comes time to complete your CV, you may find that it is hard to remember all the elements. By keeping a continuous record, you should not have problems completing your CV with relevant and interesting content. that you can upskill. The world is changing, and with the arrival of artificial intelligence and data analysis, required skills are changing. Make sure that you are not only aware of this, but that you are also enrolling in as many relevant courses as you can. There are lots of ways to prepare for that time when you finally qualify as a Chartered Accountant, but start your preparation while you are training and not the day of your final exam. I promise this preparation will be reflected in your first salary out of contract. Tanya Thomas is a Director at A+F Recruitment