The National Crime Agency has issued a new Red Alert warning UK businesses on the common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. These ‘high-risk goods’ refers to Western items critical to Russian weapons systems and its military development. The Red Alert lists the common risk indicators in this area that the regulated sector should be aware of.

The Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.   The research shows that companies are grasping the spirit of the Wates Principles in their governance reporting. They are using the principles as a tool for self-reflection and improvement, and seeing the yearly governance reporting as an opportunity, not a burden. This research also includes examples of good reporting and acknowledges that it is too early to draw too many conclusions as most companies were in their first cycle of reporting. The financial sector was the biggest adopter of the Wates Principles.

IAASA has published a Consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024.  This is required by the European Corporate Sustainability Directive (CSRD). The European Commission has indicated that it intends to adopt a European assurance standard by October 2026, at which time that standard will apply in Ireland. In the absence of a mandatory standard in Ireland, assurance providers could voluntarily perform their work in accordance with an assurance standard such as ISSA 5000 or ISAE 3000. IAASA considers that it is in the public interest that it adopts a single sustainability assurance standard, to promote consistency in approach by assurance providers, provide clarity to users as to the level of assurance being provided, ensure an adequate standard of assurance work and assist IAASA and the recognised accountancy bodies in their regulatory approaches. IAASA has identified three possible options for a sustainability assurance standard in Ireland and is now seeking stakeholders’ views on the appropriate standard for sustainability assurance in Ireland.  These are: the proposed International Standard on Sustainability Assurance 5000 (ISSA 5000),  the extant International Standard on Assurance Engagements 3000 (ISAE 3000) or a local standard. Each of these options is set out in the consultation paper. The consultation paper is available here. Stakeholders and interested parties are invited to provide your response using the response template available on this link or email your response to submissions@iaasa.ie by 19 April 2024.

The Credit Union (Amendment) Act 2023 ("2023 Act") was signed into law in December 2023 and is being commenced in phases. See statutory instrument No. 57 of 2024. Below we set out some provisions of the amending legislation which may be of interest to our members. Provisions relating to the accounts. The requirement that the annual accounts be signed by a member of the board oversight committee is removed and they are to be signed by the manager of the credit union and member of the board of directors acting on behalf of the board (commences 8 April 2024). Section 6 of Credit Union Act 1997 ("1997 Act") is amended in relation to common bond provisions. It now provides that where a credit union has no website, the credit union must include in its annual accounts a description of the common bond or where the common bond is or includes “residing or being employed in a particular locality “a map on which the locality concerned is marked (commences 8 April 2024). Some changes are made to allow for electronic delivery of information including a provision permitting electronic delivery of notice of general meetings to the auditor and a new provision 188A has been added allowing distribution, subject to the conditions in the new section, of information including annual accounts by electronic means (both commence 22 February 2024). Board of directors Changes are made in relation to the board of directors of a credit union including one whereby a credit union manager can be appointed to the board of directors (new section 63A added to 1997 Act and commences 8 April 2024). Environmental social and governance policy has now been included as a policy for the board to approve, review and update at least every 3 years. This is by virtue of an amendment to section 55 of the 1997 Act where the board has obligations to approve review and update plans policies and procedures. These obligations were annual but with the commencement of the 2023 Act the obligation will be every 3 years (no commencement date yet). There will be a requirement for the credit union to consider gender in the identification of prospective candidates for appointment to the board of directors (commences 8 April 2024). The provision for approval of expenses is changed from requiring approval of a majority of the board of directors to approval by at least 2 directors (excluding a director whose expenses are to be included) (commences 8 April 2024). In section 32 of the 1997 Act which deals with restrictions on withdrawal of shares/deposits, a change is made whereby a decision (about withdrawing savings) does not have to be mandatorily approved by the board (commences 8 April 2024). There are changes to the provisions on approval of loans in section 36 of the 1997 Act. The approval of two thirds of the special committee is deleted and approval of the board of directors is substituted (commences 8 April 2024).   Corporate credit unions The 2023 Act provides for existence of corporate credit unions. New provisions have amended section 6 of the 1997 Act. A new schedule 6 is now included in 1997 Act setting out matters to be provided for in the rules of a corporate credit union including provision for the audit of accounts by one or more auditors appointed by the credit union. This is consistent with the requirements for non-corporate credit unions. By amendment of section 81 of the 1997 Act, the quorum for general meetings of corporate credit unions is two members. There is no commencement date yet for the provisions for corporate credit unions. Other changes Section 35 of the 1997 Act is amended so that a credit union can now agree to participate in a loan to a member of another credit union (the amendments are partially commenced on 8 April 2024). Section 38 of the 1997 Act is amended so that on commencement of the provisions of the 2023 Act, the maximum interest rate that may be charged on loans made by a credit union to its members will be set by the Minister (for Finance) (commences 8 April 2024). Under the 2023 Act, the form of the annual compliance statement a credit union has to make to the Central Bank of Ireland (CBI) can be prescribed by CBI (commences 8 April 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.             

Next week on Wednesday 6 March, Chancellor Jeremy Hunt will deliver the Spring Budget 2024. The Institute will be conducting its usual analysis of the tax measures contained in the Budget and will issue a newsletter to members on Wednesday afternoon with the key tax highlights. This will be followed by more detailed analysis in Chartered Accountants Tax News on Monday 11 March.  As the Budget is taking place in an election year, it is expected that some tax cuts will feature, however this is likely to be tempered by the recent news that the UK tipped into recession in the last quarter of 2023. 

Since we reported last week on HMRC changing the income tax treatment of certain double cab pick-ups from 1 July 2024, the UK Government has announced that after listening to the views of farmers and the motoring industry, there will be no change in treatment, hence HMRC has withdrawn the revised guidance. This week updated guidance has been published on the marriage allowance with changes made to the sections on ‘how to apply’ and ‘how to cancel’.   HMRC is consulting on updated guidance for R&D tax relief and is holding a series of webinars on the relief. The 2024/25 rates and thresholds for employers have been published and the members of HMRC’s Joint Vat Consultative Committee have received notification that Revenue and Customs Brief 2/23 is being withdrawn. And finally, the latest Agent update: issue 117 is available as is the most recent News and Information Bulletin from HMRC.   R&D tax relief   HMRC has published draft guidance for consultation on the changes to R&D tax relief in relation to overseas expenditure and contracted-out R&D both of which take effect from 1 April 2024. The consultation closes on 1 March 2024. Readers are reminded that the new merged R&D tax relief regime also commences from 1 April 2024.  HMRC is also running a series of webinars on R&D tax relief which will cover the following:-  what qualifies as R&D;  how to claim correctly; and  what the new merged scheme entails.   The webinars will also include information on the enhanced support available for R&D intensive companies via the higher payable tax credit.  Register for the first webinar which takes place tomorrow, Tuesday 27 February, at: https://register.gotowebinar.com/rt/2324882589787388000?source=February-HMRC-External.  Withdrawal of Revenue and Customs Brief 2/23   Revenue and Customs Brief 2/23 “VAT and value shifting consultation update – apportionment of consideration” which was published in March 2023, is being withdrawn as HMRC now consider that the most effective way to address valuation concerns is to provide improved guidance, rather than legislative change. Amendments have therefore been made to the relevant guidance at section 31 of Notice 700 and HMRC manual section VATVAL3000.  In addition, a new Guideline for Compliance (2/2023) has been published which outlines HMRCs’ recommended approach to apportionment of consideration and approaches that in HMRC’s opinion increase or lower tax compliance risk. Guideline for Compliance 2/2023 can be accessed via the link in HMRC manual at VATVAL3700.   Latest Agent Update  Agent Update: issue 117 is available now. Get the latest guidance and information including:-  National Insurance contributions rates reminder;  HMRC and the Border Force are publishing a new Illicit Tobacco Strategy;  HMRC’s Agent Forum – important information for all users;  Registering for the new digital system that manages 'Union goods'; and  The Corporate Interest Restriction – an update from HMRC. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. HMRC has sent a further email reminder about changes to how goods are imported into Great Britain from Ireland as a result of the first phase of implementation of new import controls from 31 January 2024. And finally, HMRC has confirmed that the VAT Import One Stop Shop (“IOSS”) scheme in Northern Ireland will open for registrations from 1 March 2024.  VAT IOSS  We previously reported in our EU exit corner that HMRC had confirmed to Chartered Accountants Ireland that the delivery of the VAT IOSS in Northern Ireland (“NI”) would commence from 1 March 2024.   IOSS is an optional VAT accounting scheme that VAT registered businesses can use when they import low value goods (non-excise goods with a consignment value of £135 or less) from countries outside the EU and NI, to consumers in the EU, NI, or both. HMRC has confirmed that as planned, the scheme will be available for direct registrations in NI from 1 March 2024  Last week, HMRC published guidance on the scheme and the changes on how to report VAT on sales of low value goods that are located in Great Britain at the point of sale to consumers in Northern Ireland.   Find more information on GOV.UK at: - https://www.gov.uk/government/collections/vat-import-one-stop-shop-scheme.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018;  Apply to use simplified declarations for imports you entered in your records without authorisation;  Making a simplified frontier declaration;  Check how to move goods through ports that use the Goods Vehicle Movement Service;  Manually arrive your goods in the UK;  Making a full import declaration; and  Trading and moving goods in and out of Northern Ireland. 

Revenue has recently published the following updated guidance: Tax Exemption and Marginal Relief Part 07-01-18 (updated to reflect Finance (No.2) Act 2023) Capital Acquisitions Tax Consolidation Act 2003 – Notes for Guidance (updated to reflect all amendments to 2003 Act by subsequent Acts up to and including Finance (No.2) Act 2023) Certain benefits payable under Social Welfare Acts – increase for qualified adult Part 05-05-33 High-income Individuals’ Restriction Tax Year 2010 onwards Part 15-02A-05 (updated to reflect Finance (No.2) Act 2023)

HMRC is holding its Annual Stakeholder Conference later this week in London which the Institute will be represented at. The theme of this year’s conference is “Today, Tomorrow, Together”. The Institute will be reporting key themes and issues discussed at the conference in next Monday’s edition of Chartered Accountants Tax News. You can read about last year’s conference in a news item.

This month’s tidbits cover the updated publication of HMRC’s organisation structure and the most recent newsletters and bulletins in several areas. Updated information is available on HMRC’s organisation structure:- Senior posts in HMRC's organisation structure, Summary of junior posts in HMRC's organisation structure, and HMRC organisation information and supporting datasets; Several newsletters and bulletins across a range of areas have recently been published as follows:- Employer Bulletin: February 2024, Alcohol Bulletin, Tobacco Bulletin, Pension schemes newsletter 156 ― February 2024, and Lifetime allowance guidance newsletter — February 2024;  HMRC has updated its guidance on what will happen if you do not pay your tax bill and  the HMRC tax debt strategy has been published which sets out how HMRC intends to improve the management of tax debt from 2023/24 onwards;  The following factsheets have been updated:- Compliance checks: penalties for failure to notify — CC/FS11 and Compliance checks: third party information notices — promoters of tax avoidance schemes — CC/FS74  A range of publications relevant to agents have been updated:- Create an agent services account, Find out how to register as a professional tax agent with HMRC, How to choose a tax agent, HMRC email updates and webinars for tax agents and advisers, Change or remove your tax agent's authorisation and Authorise a tax agent (64-8); and  The following documents have been updated:- Appeals reviews and tribunals guidance, Check if an email you've received from HMRC is genuine, Sign in to your HMRC business tax account, Receive Income Tax or PAYE repayments on behalf of others, Send an Income Tax relief claim for job expenses by post, Named tax avoidance schemes, promoters, enablers and suppliers, Tax support for overseas businesses investing in the UK, Set up as self-employed (a 'sole trader'): step by step, Apply for a certificate to confirm you pay UK National Insurance when working in 2 or more countries (CA8421), Negligible value claims and agreements, Changes in your annual allowance following the public service pensions remedy, and Check if your client has been affected by the public service pensions remedy.

Revenue has updated the Tax and Duty Manual regarding full self-assessment time limits for making enquiries and making or amending assessments. Finance Act 2022 amended section 959AA(2A) TCA 1997, which provides that assessments may be amended outside of the normal four-year time limit as a result of a Mutual Agreement Procedure (MAP) determination. The updated manual also outlines that tax returns may be amended outside of the four-year time limit to account for the knock-on effects of a MAP or correlative adjustment, even if the company whose return is amended was not directly a party to the MAP or correlative adjustment. The MAP is a means through which competent authorities consult to resolve disputes regarding the application of double taxation conventions.

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place.