Edel Walsh outlines the signs and symptoms of academic burnout and explains how students can overcome it Since the pandemic, we have been hearing and talking more about people suffering with workplace burnout. However, in my own coaching practice, I am seeing the rise of academic burnout, a subject not often discussed. According to the World Health Organization, “Burnout is a syndrome conceptualised as resulting from chronic workplace stress that has not been successfully managed”. Academic burnout is not simply a result of a challenging course load. It can be several factors that overwhelm students, leaving them feeling drained and disengaged.  Common contributors include: Excessive workload – This leads to overwhelm, stress and exhaustion;  Perfectionism – students may have unrealistic expectations causing frustration and disappointment; and Lack of support – students can feel socially isolated where there is a lack of support from their peers, family, friends, and the workplace.  Symptoms of academic burnout The symptoms of academic burnout can present themselves physically, emotionally, and behaviourally.  The physical signs of burnout can include: Feeling tired and drained most of the time; Lowered immunity, frequent illnesses and being unable to shift coughs and colds; Frequent headaches or muscle pain; and Change in appetite or sleep habits. The emotional signs of burnout can include: Sense of failure and self-doubt; Feeling helpless, trapped and defeated;  Detachment; Loss of motivation; and  Increasingly cynical and negative outlook.  Finally, the behavioural signs of burnout can include: Withdrawing from responsibilities; Isolating from others; Procrastinating; Using food, drugs, or alcohol to cope;  Taking out frustrations on others; and  Skipping out on study or even skipping exams. When it comes to burnout, it is useful to think about the “three R” approach. Recognise: Know the signs of burnout. Reverse: Seek support to manage stress and overwhelm. Resilience: Take care of both physical and emotional health Preventing academic burnout As discussed in Dee Frances’s article on page 8, it is important for students to find balance between work, study, and other commitments. At the start of every week, get a bird’s eye view of what the week ahead looks like and plan your week from there. Creating a realistic schedule for your work, study, and other commitments, as outlined by Moira Dunne at page 14, will give you the feeling that you are in control. Ensure you are incorporating plenty of breaks into your routine and be sure to have something in your week that you can look forward to.  I always encourage students to incorporate self-care into their weekly plan and study routines. Prioritising self-care and breaks fuels productivity when it comes to study.  There is no magic formula when it comes to self-care while you study. It will depend on you as an individual. It can be as simple as going for a nice walk, meeting a friend for a coffee or listening to a podcast that is not related to your study.  Seek support if you need it. You can do anything, but you can’t do everything. Develop a strong support system through peer groups, friends and family that will champion and support you.  Overcoming academic burnout For those of you who are grappling with academic burnout there are number of things you can do. Take some time to understand the root cause of the burnout. This will help you identify areas for improvement.  Seek support from a healthcare professional.  Reflect on your goals. Most students will have set a performance goal such as “I want to pass my exam first time around”. When we focus on a performance goal such as this, it can feel overwhelming. Instead, break this goal down into a learning goal. Instead of focusing on the outcome, focus on the lesson. For example, “Today I want to learn the conditions of retirement relief. I will check my understanding of this by doing a past exam question”. This will help reduce that feeling of overwhelm.  Prioritising your sleep, nutrition, exercise, and hobbies will go a long way in helping you overcome burnout.  Incorporate breathing or mindfulness into your study routine. This will help you move from a stressed state to a calmer state. A simple technique is to take a deep abdominal breath in for seven seconds and breathe out for eleven seconds. When the “out” breath is longer than the “in” breath, it is activating the parasympathetic nervous system (rest and digest) and easing the sympathetic nervous system (fight, flight, or freeze). By recognising the signs of academic burnout, implementing preventive strategies, and seeking help when needed, students can navigate the pressures of their exams, while preserving their mental health and well-being.  Edel Walsh is a student and exam coach. She supports her clients with their studies and exams using a holistic approach of focusing on academic success, personal development and looking after their well-being. For more information, check out www.edelwalsh.ie  

Moira Dunne outlines eight top tips to make the most of your study sessions this exam season During exams, it can be hard to manage your time when you are studying alone, concentrate for long periods of time and stay motivated day to day.  Here are some study tips to help you stay calm and ace your exams. The list includes things to do in advance to set yourself up for a day of studying, as well as ideas to stay on track. Tip 1: Have a dedicated study space Set up a good study space; a place that helps you ‘get in the zone’ when you sit down to hit the books.  Not everyone has the luxury of a separate room, but even if you are studying in a shared room in your house, think about the best way to set the space up. Here are some things to consider:  Get a comfortable chair; Have your desk and screen at the correct height to minimise neck or arm strain; Clear any clutter to create a calm, clean area. This helps your mind stay clear; and Add a picture or plant to inspire you to spend time in the space. Tip 2: Get organised New items in our arsenal can motivate us to get started. Plan ahead and get all the stationery and tools you need before you have to put pen to paper. This saves time when you are studying.  This method can also stop you from procrastinating, as we often use basic prep as a reason to procrastinate. Bright stationery stimulates the brain, too. By using these tools to summarise and organise your thoughts, you are making it easier for your brain to retain and recall information.  Tip 3: Make a study plan If you know your exam start date, work backwards and count how many days you have to prepare. Identify some key points to reach (milestones) along the way. Then divide up your work, considering:  What is the best order to study your subjects? How much can you do each day? What are the milestones and when?  By planning your topics for each day, or even each half day, you are breaking up the big pile of work into manageable chunks, making it easier for the brain to get started and stay focused. Whatever study plan you create, make it visible on the wall or your desktop. And make sure you review it and amend it as things change. Staying on top of and updating your plan as you go is key to making your plan work for you. Tip 4: Have a regular routine It helps our mind and our body to have a regular routine.  Study at the same time each day. If you have a full day, start early as that’s when our energy and focus is generally higher. This makes it easier to concentrate and learn, and you will get through elements quicker. If possible, finish early and take a break. This helps your brain to rest and switch off before you try to sleep. Tip 5: Remove distractions We all know how distracting our phones are. Every time there is a notification, we want to check it. We also pick up our devices and check them subconsciously, distracting us unintentionally. Everyone will have a range of distractions in their study space. We can’t easily eliminate humans or pets, so our phone is one thing we can control. To enable a short burst of concentration, leave your phone in another room. Even if only it’s only for 30 minutes, you can focus, concentrate and learn during that time.  Once that 30 minutes is over, take a short break, check your phone if you need to, and return to focus again after five minutes. Out of sight is out of mind, so you are less likely to miss the phone or pick it up without realising it.  Tip 6: Be active – test yourself It is very hard to focus and concentrate if you are just reading for long periods of time. So, make your studying an active exercise. Here are some ways you can do it: Make summary notes at the end of each topic; Highlight key points; Create reference cards for revisions; Take a test or a quiz; or Test yourself with past exam questions. Tip 7: Eat well and hydrate Sometimes, you will need treats and snacks for motivation or even a quick energy boost. Lots of foods are known to help concentration and focus; find out what works for you and include them in your diet when studying.  It is important to keep your brain hydrated, as well. Drink water instead of energy drinks or several cups of coffee as both can be dehydrating. Hydration and eating well will help your brain learn but also retain knowledge. They will also help you sleep better, which sets you up or a productive day of study. Tip 8: Take breaks Our bodies and our minds go through peaks and troughs throughout the day. So, breaks are essential to help recharge and reset. Plan regular, short breaks into your study schedule, along with a longer lunchbreak. Use the longer break to get some fresh air to help clear the cobwebs.  Being outside also free up your mind; the wide-open spaces help to calm the brain too. Don’t overdo your study time. Shorter productive sessions are better than long days. Have an evening routine to wind down. Or change your focus with a movie or some other calming activity. Best of Luck We hope these eight study tips help you. The very best of luck with your exam preparation and your exams this year.  Be kind to yourself and be proud of your hard work. Moira Dunne is Founder of beproductive.ie  

Bryan Rankin, Head of Student Operations, gives guidance on how to put together a great set of notes for open-book exams CAP2 exams are open-book, meaning that you can have as many hard copy (paper) notes and textbooks as you wish. Great! That means these exams will be a piece of cake, right? Wrong.   Open-book exams assess students' understanding of the subject matter and its application to real-world problems. They require students to make connections between various areas of a subject, compare, contrast, or evaluate information with pros and cons rather than simply remember and regurgitate learning principles.   Why is this relevant? The sole objective in an exam is to gain marks from the examiner. Therefore, it’s essential to become very familiar with what skills the examiner is looking for you to exhibit. Your notes play a vital role in this.    In open-book exams, you won’t have time to look everything up. You should be able to verbally summarise the key concepts in sessions without relying on your notes. You should know your basic facts, concepts and definitions by heart. That way, when writing an exam answer, you don’t have to waste time reminding yourself what the question is about. You’re there, you’re ready to go; you just need to reference some formula or past question in your notes to start typing up the answer. Less is more When it comes to the resources for an open-book exam, let’s start with what to avoid.  Tempting as it is, bringing a pile of textbooks into your exam room in June is the wrong approach.  Time is your greatest resource, and every minute is an opportunity to score marks. A pile of folders or textbooks may make us feel more secure but will certainly not deliver what you need in the exam, which is speedy reference points and familiarity with the material.  Effective notes  Going into your open-book exam, it is ideal that you only have one folder of notes for each exam subject. Start your notes folder with a table of contents so that the specific reference item can be found and used quickly. Then, number each page in your notes to get there faster. Using coloured tabs or post-its can also help you find your content. Consider including the Competency Statement for each subject. This document, produced by the exams team, is a list of everything examinable. Work your way down the Competency Statement, highlighting areas you find challenging, and check your notes support you on each topic listed.  In the lead-up to exams, the education team releases two new sessions for students in the Learning Hub. These sessions will include a concise study guide per subject, which gives a high-level summary of the most important concepts covered.   This study guide is another good starting point from which to build out your notes for each subject.  Use sample papers You’ll know at this stage that study revision in preparation for exams should be all about practising exam standard questions from our sample papers or from sessions in the Learning Hub. By practising questions, over time, you will identify the key concepts and themes that may appear in the assessment.  This approach should be carried throughout your notes. Include past questions where it was attempted and you struggled, highlighting the errors made.  The mock exam paper and solutions are another core set of resources to utilise.  Refining your notes The effectiveness of your notes will make a difference to your assessment. If you sit down with a disorderly mass of papers, you’ll waste time sorting them and may feel overwhelmed and stressed.  Is your folder well-organised and laid out in a manner that allows you to find important content quickly?   It’s sensible to compare your notes with friends, but don’t copy someone else’s notes entirely. Their strengths and weaknesses will be represented in their notes, and probably won’t tally with yours.   Refine your notes for each subject as you get closer to exam week, with the objective of making each folder more concise.  Review a small portion of your notes every day. Doing this over a long period of time ensures that what you’ve learned will save you time and improve your recall. Handwritten notes There is a lot of value in handwriting your notes.  Studies have shown that you’ll have far better recall when notes are written in your own hand. You can also use colour for additional recall and mind maps to illustrate how one concept links with related learning principles.  Carefully select key slides from the Learning Hub for your notes folder. Resist the temptation to print out every slide from every session in the subject – most of this won’t help you on exam day.  By investing time now in your notes, you will be well-positioned to find key information quickly on exam day and will feel a sense of achievement by drawing all the knowledge and skills you have learned together.  For more on open-book exams, see the CAP2 videos from Prof. Mike Farrell in the Learning Hub.

Sarah McAleese, CASSI Education Officer, explains her top tips for exam success this summer Preparing for Chartered Accounting exams, be it CAP1, CAP2 or FAE, can feel daunting. While successful preparation demands a high level of discipline and strategy, whether it's an open-book or closed-book exam, understanding the exam structure, including the format, types of questions, and the weighting of each topic, is crucial to effectively prioritise your study efforts and appropriately allocate your time throughout study leave and during the exams themselves. Know your stuff Having a good idea of the scope of what needs to be covered will aid you in developing an effective study plan. Be sure to refer to the Competency Statements and recent examiner reports as they can provide a good indication of key topics which may appear on the exams. Time management Efficient time management is crucial, and practice is vital for building confidence and improving your performance.  Work through a variety of practice questions and sample papers to familiarise yourself with the exam format.  It is vital that you practice answering questions under timed conditions and that you become well versed with the Cirrus platform to improve your speed and efficiency on the day. The misleading ‘open-book’ exam For CAP2s and FAEs, open-book exams can be slightly misleading. Despite having access to study materials, it is still essential that you have a deep and thorough understanding of the core concepts and principles.  Start by organising your study materials in a clear and accessible manner so you can effectively locate and reference the information on exam day. It can be easy to overlook the narrative questions, so be sure to identify any low hanging fruit and not allocate all of your time to the more computational questions. Stay healthy Lastly, ensure that you take care of your physical and mental well-being during exam season. Get regular exercise, eat a balanced diet, and get sufficient sleep to keep your mind and body in optimal condition.  Managing stress and anxiety is also important. Ensure that you are still being social and making time to see friends. Consider forming a study group and utilising the discussion forums to share ideas gain insights and support from peers preparing for the same exams. Effective preparation for both open and closed-book professional exams requires a well-structured study plan, effective time management, and ample practice under exam conditions.  By adopting a strategic and disciplined approach to your preparation and taking care of your physical and mental well-being, you can maximise your chances of success and achieving your goal of passing your exams.

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?”   This information is provided as resources and information only and nothing in these pages 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 pages. 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 these pages, 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 in these pages.

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. 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. We understand from the press release that the laws still need to be formally adopted by the European Council before publication in the EU’s Official Journal. There will also be a process of translation of text and the expectation is that publication of the text will occur in the Official Journal between July and September of 2024. This information is provided as resources and information only and nothing in these pages 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 pages. 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 these pages, 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 in these pages.  

     Climbing your career ladder’ can mean many different things. It can mean adding a new skill set or moving from working with financial services clients into industry or getting into a sector that you're really passionate about. It's worth noting that not everyone aims for vertical career growth—priorities like homeownership, travel, and family can influence the pace of your professional journey. The grass isn't always greener on the other side and the key is to do your research. Then you are much better equipped to build the Career pathway for yourself. I have always been amazed by the fact that the people who have stellar careers are not necessarily the top 10 placed ACA’s but rather the ones who know how to read the market, are always discussing their career, looking for the next building block on their cv, and looking to get to know the right people. What extra skills and responsibilities can you squeeze out of your current employer for example sometimes looking internally to your current employer can be a very strong option. Additionally, if you have an internal sponsor in your current company who has your back and wants to see you succeed that can be very powerful. When building a career most of the ACAs I speak to indicate that increased salary and extra money is not necessarily top of their list - it's usually about third on the list. Why not look to get promoted in your current company? There was a great article in Accountancy Ireland last year on how to get promoted. It's a great thing to be able to say when going for interview that you have been earmarked for advancement to the next level based on your strong performance. Are there internal training courses in your current Organisation to avail of ? for example if you're in BIG4. Have you identified that you need more people leadership experience? If so, perhaps this is an extra responsibility that's your current employer can gift to you! Can you move into another division? Can you gain additional systems or ERP experience? If you're innovative by nature perhaps you can suggest and formulate new procedures and efficiencies for your finance division for Department. Remember all these opportunities will become feathers in your cap or small stories to sing your own praises about at interviews in the years ahead. The key is to make sure that the experience you are gaining constitutes the right building blocks for your chosen path and your ultimate goal ie. Your 5 or 10 year plan. Getting involved in PROJECTS can help you pivot off in a slightly different direction with your career and will give you visibility and profile in your organization. It will also  give you the reputation as someone who wants to get involved and get things done it looks great as a value-add on your CV : You develop a whole new set of management skills You gain exposure to new colleagues and senior management It gives your personal brand a major boost   Lateral moves -  Sometimes, a lateral move proves wiser than a hasty vertical leap, allowing for a more strategic career progression. Lateral moves can also involve less pressure and they reinforce your brand and consolidate your expertise in a sector. I see many members who (in a buoyant market) take on new roles which have super salaries and seniority and prestige but can often work out to be a step too far too quickly. In this context sometimes a lateral move can be the clever option and can be the way to scratch itchy feet so to speak … You can enhance your skill sets Gain exposure to new clients Get a broader understanding of your chosen area So for example, moving from a Senior Accountant role in a technology multinational to a Senior Accountant in a Pharma PLC could give you a whole new toolkit for the role pertinent to that new sector rounding you out as a strong experienced finance manager. It will also help you better understand the transferability of your skill sets. As a recently qualified or young professional the wide variety of opportunities and different types of roles available to you post qualification are extensive. Some of you may be in these roles already but for others it can be nice to see the diversity in different styles of opportunities available.   Branding Personal Brand and Networking go hand in hand ! As a young professional you do have a personal brand whether you realize it or not - you now have to guard it and grow it.  Your personal brand is how others perceive you, shaping your professional reputation and career prospects. Be visible in work but also with recruiters via LinkedIn and through your personal network. Raise your profile in your current job - this will become ammunition for interviews in the time ahead. Make sure you are recording and calling out your key achievements.   Ask your boss at reviews what you are doing well. Above all - Don't slip into a comfort zone and don't become invisible   Learn how to Showcase your outputs Be able to talk through your success stories comprehensively. Learn how to sing your own praises - many Chartered accountants need to learn and develop this skill! Always Try to be positive and passionate when discussing work Spend time deciding what you want your personal brand to be and what you want to be known for! Your personal brand basically forms the foundation of your career. Over the last decade or so I've always been amazed by ACA members who have taken control of their personal brand and promoted it well.  It really is the secret to advancement! Essentially your PB is what your colleagues say about you when you are not in the room : eg. “he's a technical genius” or “she knows everyone in the whole company” Or “he is a real people leader” or “she is a super communicator and presenter!” These “auras” or “brandings” that people attached to you can give you a real edge might be your differentiator when it comes to career steps.    Networking As a Chartered Accountant one of the most important and powerful things you can do at an early stage of your career is to build your personal network! A strong personal network is the spine of a successful career and without one your career climb will be far more challenging! Actively nurturing your network, both online and offline, lays the foundation for future career opportunities. When you reach FCA status the likelihood that you make a career move by leveraging your network is over 80% so start building it now! So how do I build and grow my network? Stay in touch with ex colleagues Find an excuse to touch base or pick their brains on something Like / connect / share / discuss- particularly in specific groups in LinkedIn (LinkedIn has a whole sub section of visibility and networking unto itself) Stay in contact with people who attend the same conferences and events as you.   LinkedIn     Platforms like LinkedIn offer powerful networking opportunities. Regular interaction, participation in industry groups, and endorsing others' skills can enhance your visibility and credibility. Embracing virtual networking events, especially in the current digital era, facilitates connections with peers and industry professionals.   Some brief points I would say about LinkedIn and networking : It's essential nowadays Make it a habitual weekly practice eg. connect with 10 people per week Be polite - use a polite connection message Get into key groups of interest to you and interact, pick brains, say hi, post messages Write recommendations for people Endorse peoples skill-sets Introduce other people to each other – They may refer you to a key contact by return some day. Ultimately the key is to embrace LinkedIn and harness its usefulness : it is your business card nowadays it's the appendix to your CV and it's a powerful online networking tool --------------------------------------------------------------------------------------------- VIRTUAL NETWORKING in general is the new way of interacting of course and so look for online events through the Institute or other organisations where you can interact with your peer groups. Eg IIA conference or Chamber of Commerce events. The ACA Professionals Group always has upcoming events and as a Newly Qual you should definitely get involved with the group.     CV Your CV is your marketing tool, highlighting your achievements and value proposition to prospective employers. Tailoring your CV to showcase your strengths and accomplishments effectively is crucial. It's advisable to seek feedback and refine your CV to ensure it resonates with potential employers. Know it inside out and be able to talk your way through it clearly Why not have a few versions of your CV with differing flavors also even a one page punchy resumé that you can forward to someone informally along with your LinkedIn profile. It should shout out the ‘Value Add’ that you are bringing to the new employer. One of the things we are always asked is whether you should name clients on your CV. I always say that if they are PLC clients there's no harm at all and can often look good in terms of branding on your CV.Alternatively, just describe the sector and size of the organization you worked on. Make sure to detail your key achievements and sell your skillsets. Review your own CV critically as if you are the employer asking yourself ‘So What?’ after each line !   If you need any guidance or review of your cv just send it in to the Careers Team and we can talk it through with you. 2 small points :   Your Profile Summary can be customized for applications but should be short, punchy and speak to what you are seeking eg “aiming to develop my career in Internal Audit”. Also, use the Other Interests section to help with ice breaking discussions and to indicate your personality.   The Interview :   So some basic key points about the interview :   Its my firm belief every single interview needs a customized interview prep Every Interview is different no two are the same ;  some are formal some informal, some competency based some CV based. It's usually best to be prepared for a competency based interview even if that means deciphering the competencies for yourself from the spec and then building your specific story-form answers. Star shaped answering is always ideal giving good structure to your examples..   The advantage of doing virtual interviews nowadays is that you can have your slippers on and your notes beside you and the fire on in the corner and even have your hand on a mug of coffee if that helps relax you! Face to face interviews are  coming back more and more in the market now however.   One thing I always find is a common thread in interviews particularly in a buoyant market is that an employer will hire a person for their attitude, energy, communication style, commercial acumen and or leadership style above all other things. So it's not always about having the right technical answer to an interview question sometimes it's simply how you carry yourself in the interview and what your body language is like in the meeting - Your smile / your eye contact etc essentially the rapport that you build during the interview can be hugely influential and worth  focusing on.    Another thing to remember is that most interviews are a subtle two way interaction with you also judging the interviewer.  Some interviewers are not very good and not very experienced at interviewing and you may need to allow for that. Equally you may be judging subtly whether you want to work for this person and do you like them. If the role is one you are really keen on why not let them know towards the end of the interview that you are being really selective in what you are interviewing for at the moment but this is one of your favourites!   Employers hire humans they ‘like’ as opposed to robots and that’s why I always tell members in Interview Prep to go and enjoy the interview and enjoy singing their own praises for once as you rarely get the opportunity.                                        Upon qualification make sure you connect with your ICAI Careers Team to map out the rest of the plan and review the wide variety of ACA paths and market opportunities. Dave Riordan (ACA) Recruitment Specialist & Career Coach https://www.charteredaccountants.ie/Career-Pathway  

In Irish news, Revenue publishes its Annual Report and Minister McGrath comments on the stability of Ireland’s corporation tax receipts. In UK news, we issue a final request for your views on HMRC’s tax agent regulation consultation, and update you on recent discussions with HMRC in respect of its services in 2024/25. In International news, a new report from the OECD highlights the impact of inflation on wages and after-tax income.  Ireland Revenue has published its Annual Report for 2023 confirming strong levels of voluntary compliance. Minister McGrath comments on the stability of Ireland’s corporation tax receipts. UK Tuesday 7 May is the final deadline for letting us know your views on the tax agent regulation consultation. Read our update on HMRC services. International A new report from the OECD highlights the impact of inflation on wages and after-tax income. 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 new report, Tax Wages 2024, the OECD highlights that effective tax rates on wages rose in most OECD countries in 2023. The report also highlights that workers earning the average wage saw a decline in after-tax income in 21 out of the 38 OECD countries. This decline in after-tax income is driven by the lack of automatic indexation of tax credits and bands across most of the OECD. As such, in periods of high inflation workers’ tax liabilities tend to increase as they are pushed into higher tax brackets.

The Minister for Finance, Michael McGrath TD, and the Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD have published the Government’s Stability Programme Update for 2024. This document sets out macroeconomic and fiscal forecasts for the periods 2024-2025 and 2023-2027 respectively.  Modified Domestic Demand (MDD) is projected to grow by 1.9 percent this year and by 2.3 percent in 2025. The projected rate of inflation is 2.1 percent as a result of declining global energy prices.  A government surplus of €8.6 billion is anticipated, though an underlying deficit would be in prospect in the absence of ‘windfall’ corporation tax receipts.  Commenting on the figures, Minister McGrath said:  “Available evidence suggests the economy is in reasonably good shape, at least in aggregate terms. Looking ahead, some of the headwinds that have dominated over the past year are set to ease as the year progresses and this should support a pick-up in economic activity.  The brightest economic spot is undoubtedly the labour market, which has remained resilient throughout the period of high inflation and rising interest rates. There are now over 2.7 million people in employment. To put this in context, three-quarters of our working age population are in work, a near record level.  Crucially, the energy price shock is dissipating and the disinflation process is now well advanced, with headline inflation expected to average just over 2 per cent this year – consistent with price stability. Against this backdrop, consumer spending is expected to pick-up over the course of the year as lower energy prices and the associated easing in inflation support an improvement in real wages and household purchasing power.  MDD growth is expected to average 1.9 per cent for this year as a whole - a modest downward revision of 0.3 percentage points from the autumn forecast. As economic conditions improve over the course of this year, MDD growth is set to accelerate to 2.3 per cent next year.”  On the public finances, Minister McGrath said:  “On the fiscal side, we are projecting a headline surplus of €8.6 billion for this year, the equivalent of 2.8 per cent of national income. This is based on the assumption of tax revenue amounting to almost €92.1 billion, a growth rate of 4.6 per cent. However, I would caution that this surplus is heavily dependent on volatile ‘windfall’ corporate tax receipts which have grown from €4 billion to €24 billion in the space of a decade. When the windfall element of these receipts – estimated at around €11 billion, or almost half the projected corporation tax yield this year – is excluded, there is an underlying deficit in our public finances.  These receipts cannot be relied upon: we saw a marked slowdown in corporation tax over the course of last year, highlighting the volatility of this revenue stream. We can say with reasonable confidence at this point that the era of corporation tax over-performance is coming to an end.  That is why this Government has decided to establish the two new long-term investment vehicles – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. The objective is to invest windfall receipts to help prepare for future known fiscal challenges. The legislation establishing the Funds is currently progressing through the Oireachtas.  The SPU projections published today reflect the resilience of our economy and Government’s commitment to continuing to invest in our public services and the productive capacity of our economy. However, it continues to be important that we highlight the vulnerabilities that remain just below the surface: it is essential that fiscal policy is framed in a manner that is careful, balanced and sustainable.  The publication of the SPU today is an important milestone in the process of preparing Budget 2025. I now look forward to the National Economic Dialogue next month and then to the preparation of the Summer Economic Statement (SES) before the summer recess. The SES will involve making important decisions concerning the parameters of Budget 2025." 

Readers are reminded that taxpayers currently availing of the Debt Warehouse Scheme have until Wednesday, 1 May 2024, to engage with Revenue to agree arrangements to repay their warehoused debt. Revenue has emphasised that there is no expectation on businesses to have all their warehoused debt repaid in full by 1 May. However, they must have engaged with Revenue, by submitting an ePPA online via ROS, to agree a phased payment arrangement (PPA).  Where a business fails to meaningfully engage with Revenue by 1 May, the balance outstanding will immediately be subject to standard debt collection proceedings and the standard interest rate of 8 percent or 10 percent will apply.   As Revenue reports increasing numbers of businesses making contact to set up PPAs and discuss the flexible payment options, the Collector General’s Division has extended opening hours for its phone lines from 9.30am to 16.30pm on Monday 29 April to Friday 3 May. The Collector General’s Division can be contacted on 01 738 3663 or through MyEnquiries.   Revenue’s online 24/7 Phased Payment Arrangement application system can be accessed through ROS, by clicking on the ‘Other Services’ section. Businesses with warehoused debt of €50,000 or more will be required to submit supporting documents with their applications. Businesses can also pay their debt through one of Revenue’s online payment channels, in full or in partial payments, and can also use an approved refund or credit to pay their outstanding balance.  Speaking about the increasing level of engagement from businesses, Revenue’s Collector General, Joe Howley, outlined:  “Applications for Phased Payment Arrangements are being submitted on a constant basis and customers are also engaging with us via phone and MyEnquiries. As a result of this increased level of engagement, over 6,500 payment arrangements for warehoused debt have now been set up on our system, an increase of over 3,700 in the period since 31 March.   The level of warehoused debt which is not yet subject to an active payment plan is now below €1 billion and this balance will continue to reduce as we approach the key deadline of 1 May. We are actively progressing a further 1,300 Phased Payment Arrangement applications at present and we are aware that many customers have financially planned to pay their warehoused debt in full on or close to 1 May, in order to fully maximise the benefit of the 0% interest rate.”  A summary of the key actions required before 1 May 2024 can be found on the Revenue website, accessible here.  

Revenue has advised us that the facility to record advance payments for employee travel and subsistence expenditure is now available on ROS. As previously reported, the Tax and Duty Manual regarding the enhanced reporting requirements (ERR) for employers provides guidance on an optional administrative practice regarding advance payments of travel and subsistence.   Under this administrative practice, an advance travel and subsistence payment may be treated, in certain circumstances, as not being subject to tax via the payroll when paid, but instead treated as a payment where no tax is deducted in respect of travel and subsistence and therefore subject to ERR reporting at the time of payment. Then, when the expense is incurred and the claim submitted by the employee/director, the employer will be required to update their ERR submission to Revenue to reflect the actual travel and subsistence expense amount in respect of that employee/director.