This month’s tidbits cover guidance on how to confirm the identity of HMRC representatives and a range of corporation tax return forms have been updated.   

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. 

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. 

The OECD Working Party 1 – a subgroup of the OECD Committee on Fiscal Affairs in charge of the OECD Model Tax Convention – has proposed changes to the application of Article 5 of the Model Tax Convention to extractible natural resources. The proposed changes aim to develop an alternative provision for activities in connection with the exploration and exploitation of extractible natural resources. The OECD published feedback received on the proposals which can be read here.

Last week, the Institute, under the auspices of the CCAB-I, responded to the public consultation on the Standard Fund Threshold (SFT). The SFT was originally designed to limit the level of tax relief available on the capital value of pension benefits accrued by an individual at the time of retirement. When introduced, the SFT was €5 million but had reduced to €2 million by 2014.   In our response, we recommend that the level of the SFT should be linked to changes in the Consumer Price Index. In addition, we suggested that consideration is given to harmonising the treatment of public and private sector pensions as regards the application of the SFT rules when the limits are breached.   

Revenue has published 2023 PAYE statistics which show that over 472,000 PAYE income tax returns have been processed for 2023. This represents an increase of almost 30 percent on the number of returns processed in the same period last year. 275,000 of the returns filed to date have resulted in an overpayment of tax. Health expenses and the rent tax credit account for the largest additional claims returned by taxpayers. The 2023 mortgage interest tax credit is expected to be available to claim later this week.   The Minister for Finance, Michael McGrath T.D., in conjunction with Revenue, has launched a public information campaign to raise awareness among PAYE taxpayers about claiming the range of tax credits and reliefs available. PAYE taxpayers are also reminded that they need to inform Revenue of any additional income which they have earned outside the PAYE system.  Welcoming the launch of this information campaign, Minister McGrath said:  “Since 1 January 2024, €203 million has already been refunded to individuals’ bank accounts as a result of the 2023 returns filed by PAYE taxpayers to date, but Revenue records indicate that a further €480 million may have been overpaid during the year.  I therefore encourage all PAYE taxpayers to log on to Revenue’s myAccount service to finalise their tax position as soon as they can, to ensure that they have claimed all tax credits and reliefs they are entitled to and receive any refund they are due.”  Further information is available in Revenue’s press release. 

Last week, the Institute, under the auspices of the CCAB-I, responded to the public consultation on Ireland’s taxation of share-based remuneration. In our response, we recommend maintaining the exemption from employers’ PRSI on share-based remuneration and legislating for a tax deferral on the exercise of share options.  Other key messages in our response include the requirement for:   Further enhancements to the KEEP scheme to make it more attractive and improve uptake.   Appropriate legislation to enable employees’ benefit from Employee Share Ownership Trusts as a business succession tool.   The introduction of an appropriate safe harbour in relation to the valuation of shares in unquoted companies.   A move from a pre-approval process for Revenue approved share schemes to a pre-notification process. 

Readers are reminded that the first phase of the UK’s Border Target Operating Model for imports from the EU into Great Britain commences later this week from 31 January 2024. These customs changes will impact Irish exporters to Great Britain and will mean UK customs filings must be done prior to the goods departing Ireland and health controls will be imposed on certain foods of animal origin and plants and plant products by UK officials.  Further details of other changes can be found in our EU exit corner below.

Revenue has published statistics on Local Property Tax (LPT) for 2023. LPT collected to date amounts to €511 million, with both return and payment compliance rates of 95 percent indicating that most property owners have met their payment and filing obligations. 

To reflect certain amendments to the TCA 1997 by Finance (No.2) Act 2023, Revenue has updated the following Tax and Duty Manuals:  Stock relief – young trained farmers (Part 23-02-01) and Tax credit for succession farm partnerships (Part 23-02-11) have been updated for the increase in the maximum amount of relief that may be granted under sections 667B (stock relief) and 667D (relief for succession farm partnerships) TCA 1997 and section 81AA SDCA 1999 to €100,000.  Taxation Issues for Registered Farm Partnerships (Part 23-02-09) addresses Regulation (EU) No.1408/2013, setting out the maximum de minimis aid available to any individual farmer, and reflects the increase to €20,000 in the maximum cash equivalent of relief a partner is entitled to receive over a 3-year period. 

Increase of accounting talent in 2–3-year Post Qualified Experience range expected in coming 18 months as professionals return from abroad Qualification now used far more widely outside traditional roles; soft skills increasingly important in profession Chartered Accountants Ireland and Barden announce new partnership to support next generation of students and members   29 January 2024 – The demand for qualified accountants is predicted to reach 10% above pre-pandemic levels in 2024, according to talent advisory and recruitment firm Barden. They also expect an increase in the supply of accounting talent in the 2–3-year PQE range in the coming 18 months, which should alleviate some of the pressure on companies trying to hire at this level.  Commenting Elaine Brady, Managing Partner, Barden Leinster said “Demand for talent is strong locally, and compounding this, the past two years have seen over a 30% increase in newly qualified accountant talent moving internationally after qualifying. An injection of highly qualified talent in the coming months will come as a relief to those hiring. The first five years PQE are a pivotal time for accounting professionals - those that are career orientated should expect to move role, internally or externally, between 2-3 times during this formative period. It’s a competitive space.  “Our data shows us that PQE level and salary level are becoming increasingly disconnected after the 3-year PQE mark - many more variables come into play, and it is no longer about PQE but about the ability to create value for a business outside of the accounting function.”  Chartered Accountants Ireland and Barden have today announced a renewed three-year strategic partnership building and expanding on an existing strong partnership between the two organisations. The partnership is focused on three programmes, the Chartered Accountants Student Society of Ireland (CASSI), Chartered Accountants Ireland Leinster Society and Young Professionals, which have a particularly strong focus on the Institute’s strategic priority of engaging the next generation of students and members. The partnership will build opportunities for connectivity, engagement and belonging in the chartered community.  Commenting Sinead Donovan, President Chartered Accountants Ireland said  “This partnership comes at a time when people skills are becoming increasingly important within the accounting profession, and equally the role that accountants play and the value they create is much wider. For those working in business, many more are having an impact in operational and leadership roles, and in emerging areas such as data analytics and ESG functions. Increasingly Chartered Accountants are using their qualifications to create value outside of the accounting function.  “As a body, it is incumbent on us to ensure that our members are equipped for the expanding remit of our profession. Recruitment data shows that 64% of career opportunity come from your direct network - those you trained with, and those you have worked with, so the importance and direct impact on business growth of the Chartered Accountants member networks cannot be overstated.”  Elaine Brady, Managing Partner, Barden Leinster continued "This strategic partnership between Barden and Chartered Accountants Ireland is the culmination of over a decade of engagement between our two organisations - partnerships of this significance and scale don't just happen overnight.  We're delighted to have built the trust to now support Chartered members from their training through to qualification and through their formative PQE years. Helping people make informed decisions about their future, and enabling those decisions, is what we are all about in Barden; this partnership enables us to be there along each critical step with members as they chart the unknown waters of the future of work.” ENDS