Are you a finance professional with governance responsibilities looking to boost your career prospects and become a leader in governance too? If so, you may be interested in the Fast Track Programme offered by the Chartered Governance Institute UK & Ireland (CGIUKI), the leading professional membership body for governance, with over 130 years of experience. The Fast Track route to our Qualifying Programme is a shortcut to achieving chartered status as a governance professional, opening up a range of exciting and rewarding career opportunities. The programme is designed for professionals who already have relevant experience and qualifications in the accountancy field. Instead of completing the full seven modules of the Qualifying Programme, eligible professionals only need to complete two modules and pass the exams to become chartered members of CGIUKI. “By qualifying in governance you get to see how a company runs from behind the scenes – from the top down to the bottom up.” Francesca Goddard, Joined CGIUKI in 2017 Why qualify to become a Chartered Member of CGIUKI? Becoming a Chartered member of CGIUKI, in addition to your status in the accountancy field, has many benefits, such as: Accelerated career advancement: You can obtain chartered status within a year* and stand out from the crowd – governance expertise will enhance your professional profile.  Dynamic and exciting career path: You can access diverse roles in various sectors, from board-level positions to strategic advisory roles, and make a positive impact on the organisations you work with. Boardroom-ready: You will be recognised as a qualified governance expert, commanding respect, and leading to greater earning power. “I joined CGIUKI  to progress my career in governance.” George Mills, Joined CGI in 2020 By joining CGIUKI, you will also become part of a second professional body, adding another string to your bow. You will gain access to our expert guidance on governance, as well as our events, webinars, and publications.  What if I don't want to study for exams? If you are not interested in gaining chartered status in governance, but still want to join our governance community to access our resources and expertise, you can apply for Affiliated Membership, a non-chartered route that does not require any exams or CPD. Affiliated Members enjoy a range of benefits, such as access to our guidance notes, technical briefings, and events/webinars. Affiliated Membership may be suitable for those who are responsible for governance to some extent in their roles, but do not want to pursue Chartered status. How can I find out more? If you are curious about the Fast-Track Programme or Affiliated Membership, click here for more information. Our website also features testimonials from our members. We are happy to book a consultation with you to answer any questions you may have and guide you through the application process.  Don't miss this opportunity to fast track your career and join the leading professional body for governance. Contact us today and discover how CGIUKI can help you achieve new heights.  “The Fast-Track course has been so beneficial. Learning about the structure of Governance has been invaluable.” Shami Nathoo, CGI Fast Track Student Find out more about the Fast-Track Programme or Affiliated Membership at cgi.org.uk. *Two postgraduate-level modules with exams offered June and November each year This article is sponsored by CGIUKI

In Irish news, the Minister for Finance publishes the first feedback statement on a participation exemption for foreign dividends and Revenue publishes updated guidance for phased payment arrangements (PPAs) and for certain amendments to the CAT Manual. In UK news, we take a look at the third and final tax agent regulation option in HMRC’s Raising Standards in Tax Advice consultation, regulation by a separate statutory government body, and also provide an update on a recent meeting with HMRC to discuss the 30 April 2024 deadline for the end of the second-hand car VAT margin scheme in Northern Ireland. Ireland Minister for Finance, Michael McGrath TD, has published a first feedback statement on the development of a participation exemption in Irish corporation tax for foreign dividends. Following recent amendments to the Debt Warehouse Scheme, Revenue has updated the guidelines for Phased Payment Arrangements (PPA). Revenue has updated the CAT Manual following amendments introduced in Finance (No.2) Act 2023 including an individual’s obligation to file a CAT return when they are in receipt of certain interest-free loans. UK In the third article in this series, option 3 of the tax agent regulation consultation, regulation by a separate statutory government body, is examined in more detail. Read our update from a recent meeting with HMRC which discussed the 30 April 2024 deadline for the end of the second-hand car VAT margin scheme in Northern Ireland.   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.  

Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Introduction to members of the Insolvency Committee Welcome to another edition of the series which will introduce members of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Insolvency Committee over the coming months. We hope to provide information on the work of the Insolvency Committee and insights into the careers and experience of our Committee members. Today we will hear from Shane McAleer. Shane is a Director in Insolvency at Somers Murphy & Earl with over 15 years of experience of advising on a variety of formal and informal restructurings. Shane jointed the CCAB-I Insolvency Committee in 2018. Tell us about your career to date and your route to being an Insolvency Practitioner I grew up in Belfast and from a young age worked with my Dad in the family business. I learned a lot of my good and bad business habits from Dad. As my wife would say “Shane has never paid full price for anything.” Accountancy, never mind Insolvency, was far from radar growing up. Sitting in a lecture theatre in St. Malachy’s College at 17 years old deciding what University courses I should apply for on my UCAS Form was a daunting thought. For some reason Accountancy was my decision. And, I have to say I have never looked back. During a summer term in University, I did some work experience in BDO Belfast where I was given my first taste of insolvency having worked on a few liquidations. Roll forward to 2000, I joined BDO Simpson Xavier where that piece of work experience landed me in the Restructuring department where my insolvency journey began. After qualifying as a Chartered Accountant in BDO, and a short stint in BDO Sydney, I moved to Moore Stephens Caplin Meehan and then Farrell Grant Sparks, finally ending up in Somers Murphy & Earl with Derek Earl. I took over the Insolvency practice in 2019 and business has been continually growing and developing.        Are you where you expected to be in your career? I can say that I am very happy with where I am in my career today. If anything, I have learned in my 24-year career to date is, to always expect the unexpected! What was the best career advice you got along the way? In two words “Stop” and “Listen.” Throughout my career I have been lucky to have worked in several practices and in each one got the benefit of working and learning alongside some of the most experienced insolvency practitioners in the country. Based on your own experience, what advice do you have for young professionals looking to build a career in corporate insolvency? In my experience working in Corporate Insolvency, no two days are the same. If you want to challenge yourself and develop new and broader skills, then Insolvency is a path worth considering. There are many paths to working in Corporate Insolvency you should consider a professional qualification which will give you a strong knowledge and basic skills base but more importantly the ability to grow and develop professionally. In today’s market many firms are looking for enthusiastic and energetic young professionals keen on building a career in corporate insolvency. How would you define your work style, and how has this evolved over the years? I am not sure I know what my style is! I am at heart a people person. Unfortunately, in our world of insolvency I come across a lot of difficult and emotional stories which has had an impact on my approach to dealing with people. Notwithstanding the emotional side of insolvency, it is important to have a structure and plan in place of what you need to do along with a realistic period of achieving your plan. In terms of managing teams and individuals, what are your insights and views? In Insolvency, everyone must ‘roll up their sleeves.’ In any assignment, it is important that there is clear delegation to the team and each person knows what their role is and reasons for what they are doing. Promoting and encouraging personal and professional development is essential. This should be worked one with each person on an individual basis to ensure that the best path forward is agreed upon. A person’s growth will not only benefit them personally but will provide additional skills to the team. What about communication and negotiating the typical ups and downs of working life? Effective communication is always important. Do not assume that someone knows or should know something. Whether you are communicating with someone or waiting on a response from someone be clear at all times of what your point is or what you require. Has networking played an important part in your career? Your reputation is key to any future success and building a career. Effective networking with the right contacts and people allows you access to the ability to get work and refer work and developing your reputation. Networking has been an essential part of my 24-year career, I am still in contact with many friends and colleagues who I trained and worked with along my career because you just never know where the next referral will come from. What is the current position with regards to the level of insolvencies in Ireland? If only I had a crystal ball! Covid, an energy crisis, interest rate increases, increased minimum wage, increased costs and €1.7bn of warehouse debt to be repaid. The current level of insolvencies based on the current climate appear low. From chatting with other insolvency practitioners there is an expectation that there will be more insolvencies, the question is when?   Disclaimer: The views of contributors to this series of articles may differ from official Institute and Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) policies and are not necessarily endorsed by the Institute of Chartered Accountants in Ireland, its Council, its committees or any other person or entity associated with the Institute. The publishers, editor, and authors accept no responsibility for any errors or omissions or any loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in this publication.

Minister for Finance, Michael McGrath TD, has published a first feedback statement on the development of a participation exemption in Irish corporation tax for foreign dividends. Ireland currently differs from most EU and OECD member states who have already adopted a territorial approach in exempting foreign dividends from domestic tax.  The purpose of this feedback statement is to further progress work on the key building blocks of the participation exemption, which the government has committed to introducing in Finance Bill 2024, to come into effect from 1 January 2025. A public consultation has been launched on the ‘strawman’ proposals which closes on 8 May. Any comments can be emailed to  tax@charteredaccountants.ie.   The feedback statement has been informed by stakeholder responses to the public consultation on the introduction of a participation exemption to Irish corporation tax, including our own under the auspices of the CCAB-I, together with research work undertaken by officials in the Department of Finance and Revenue.  It includes a hypothetical example, a strawman proposal,  for how a participation exemption for foreign dividends might work in Ireland, in order that individual elements can be discussed within the context of the regime as a whole.   On publication of the feedback statement, Minister McGrath stated:  ‘‘The introduction of a participation exemption will be a very important step towards simplification of the Irish corporate tax system and reflects Ireland’s continued efforts to promote a business environment characterised by certainty and clarity. In a time of unprecedented change in international taxation, this move will give confidence and foresight to key stakeholders, maintaining Ireland’s reputation as a business-friendly destination and encouraging companies to establish and expand their operations in Ireland.  We have already introduced significant reforms in the area of Corporate Tax, with Finance (No.2) Act 2023 introducing the new 15% minimum effective corporate tax rate for in-scope companies, giving legislative effect to Pillar Two of the OECD Two-Pillar Agreement.  Against this backdrop, the introduction of a participation exemption for foreign dividends reflects Ireland’s commitment to ensuring that our corporation tax code is competitive and attractive to business investment and aligns with international best practice.  The publication of the feedback statement is a further significant step in the process and I look forward to engaging with stakeholder in relation to the strawman proposal ahead of Finance Bill 2024.”   

Over the course of the last few weeks, we have examined two of the proposals in HMRC’s long planned consultation “Raising standards in the tax advice market” which contains three potential options to regulate the UK tax agent market. This week we are seeking your feedback on option three, regulation by a separate statutory government body, in addition to approaches to strengthen the controls on access to HMRC’s services for tax practitioners. HMRC is also seeking to draft a legislative definition of a tax practitioner to support implementation and sets out the categories of who should be regulated in Chapter 8. Please share your views on this consultation by Tuesday 7 May 2024.   Regulation by a separate statutory government body   More information on this option is set out in Chapter 6. This option would see the introduction of a new independent regulator or expansion of the remit of an existing regulator to regulate tax practitioners. According to the consultation, “a single independent regulator would provide consistency across the market. Having an arm’s length body would avoid potential conflicts of interest arising from HMRC acting as a regulator and avoid a potential race to the bottom.”  The government regulator would set standards, carry out checks on tax practitioners seeking to be regulated, and ensure they meet the required criteria. This could include conducting an annual renewals process to ensure all information is up to date and correct. As is common with professional regulators, this body could have a role in supervising tax practitioners including inspections of tax practitioners on a risk-assessed basis to check they continue to meet expected standards, investigating issues and complaints, and enforcing sanctions.  This regulatory body could introduce “customer support routes” including establishing a complaints process, ensuring transparency, and supporting redress claims. The regulator could be responsible for providing support and guidance to the profession and ensuring tax practitioners receive updates on the latest changes in the tax system.  Within this model there are options about how the regulator could be set up and the role that current professional bodies could play. Current professional body members could be automatically registered with the regulator as they have already undergone a series of checks and professional bodies could retain their role as providers of qualifications and ongoing practice support for their members.  The consultation considers that establishing a new regulator in this way “would provide the opportunity to create a tailored regulatory solution for the market which is adaptable for future needs.”  However, potential problems with this model include that adding a new regulator to an already complicated regulatory landscape for tax and accountancy may cause confusion, and this is likely to be the most expensive of the potential approaches, as it would involve costs for the government and for all tax practitioners. The government sees this approach as a fallback option if the professional body lead approach is not practical or effective. Questions 8-10 specifically seek feedback on this approach.  Access to HMRC’s services for tax practitioners   This aspect of the consultation examines the first step of mandating registration with HMRC for tax practitioners who wish to interact with HMRC on behalf of their clients, and the requirements that HMRC should establish to enable registration.  Alongside the broader proposals on raising standards, the government wants to improve the way that tax practitioners register with HMRC and intends to mandate registration for all tax practitioners who wish to interact with HMRC.   Together with mandated registration, HMRC would automate and streamline the existing registration routes for tax practitioners, with the aim of providing a better service. At the point of registration, HMRC would check that the tax practitioner is compliant with requirements to register for anti-money laundering supervision and is up to date with their tax affairs. HMRC would then periodically reconfirm ongoing compliance with these requirements.   This would aim to provide assurance that registered tax practitioners continue to meet basic standards while interacting with HMRC on behalf of a client.  The government therefore intends to improve registration now, assuring that basic standards are in place for all agent services and is asking for views on the proposal to mandate registration, alongside providing an automated, streamlined way for tax practitioners to register with HMRC.   The consultation recognises that whilst this step by itself is unlikely to fundamentally raise standards in the tax advice market, it would be an essential enabler for a strengthened regulatory framework. It could also be implemented if the broader proposals for a strengthened regulatory framework are not taken forward.  Legislative definition of tax practitioner   As part of this project, the Government also intends to draft a legislative definition of a tax practitioner “as a provider of tax advice and services.” This aspect will be subject to further consultation however the definition will include the following provisions:-  it will cover the full range of business entities operating in the market, that is, individuals, firms, and sole practitioners;  the advice or assistance caught will be  given by way of business, so that friends and family are not inadvertently captured;   provided in relation to UK taxation; and  provided directly, indirectly, or at the request of someone other than the client.  The definition will also set out what is meant by advice or assistance. This will include acting on behalf of a client in their dealings with HMRC or another UK tax authority in relation to tax. Depending on the scope of the regulatory framework, it may also include advising a client in relation to tax. Questions 25 and 26 of the current consultation specifically deal with this aspect.   

In recent weeks we have issued several reminders that 30 April 2024 is the deadline for the end of the VAT margin scheme for second hand vehicles moved to Northern Ireland from Great Britain prior to 1 May 2023. If these vehicles are sold after 30 April 2024, VAT will therefore be chargeable on the full selling price and not on the margin made. At the request of HMRC, Chartered Accountants Ireland gathered evidence recently from local car dealers which demonstrates that many dealers are still experiencing delays in selling these vehicles for a range of reasons, including the economic environment and delays in MOT testing. Click read more for an update on our recent meeting with HMRC on this issue. The Institute met at the end of last month at the request of HMRC with their VAT policy team to discuss and present the evidence gathered from local dealers. The Institute also explored the potential for either removal of the deadline, a type of amnesty, or another extension.  Readers are advised that HMRC is insistent that the deadline remains 30 April 2024 and that there will not be a further extension. According to HMRC, a deadline is required for “legal certainty”. Despite presenting evidence of the ongoing difficulties being experienced in selling these vehicles, it is disappointing that the cliff edge deadline of 30 April 2024 remains in place.    

The Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform have published the Fiscal Monitor for March 2024. Tax revenues to the end of March were €20.1 billion, €0.3 billion ahead of last year but behind target due to decreased corporation tax receipts. The Exchequer surplus for the first quarter of 2024 of €0.3 billion compares to a deficit of €2.1 billion in the same period last year, with a surplus of €3.5 billion recorded on a 12-month rolling basis.  Notably, corporation tax receipts decreased by €0.7 billion to €1.9 billion, with indications suggesting this reflects timing issues. At €7.9 billion, income tax receipts remained solid, up 7.6 percent and reflecting continued resilience in the labour market. VAT receipts increased by 5.4 percent to €7.1 billion but were slightly behind target.  Commenting on the figures, Minister McGrath noted:  “The first quarter figures are, in many respects, a continuation of the pattern evident in the second half of last year, with steady growth in income tax and VAT receipts but with significant volatility in corporation tax revenues.  The performance of the income tax and VAT tax heads provide evidence of a domestic economy that is performing well, notwithstanding continuing international headwinds. With record employment levels, the labour market remains in robust shape. As inflation continues to fall, the vast majority of households will experience a gain in income in real terms across this year, resulting in improved living standards overall.  While it is expected that the fall in corporation tax this month relates to timing issues and is likely to be made up later in the year, it serves to remind us of the inherent unpredictability in what is a highly concentrated revenue stream.  This volatility, and the concentration of these receipts, underpin the Government’s policy of establishing longer-term savings vehicles – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund – that will help future-proof our public finances.” 

Following recent amendments to the Debt Warehouse Scheme, Revenue has updated the guidelines for Phased Payment Arrangements (PPA). The updated guidance highlights the necessity for Debt Warehouse customers to either pay their liability in full or enter into a PPA prior to 1 May 2024 in order to avail of the reduced interest rate of 0 percent (sections 1 and 5).  The 'Key features of a PPA' are detailed in Section 6 for ease of reference, with all sections updated to reflect Revenue flexibility in terms of a PPA, including reduced down payments, longer repayment periods, and the option to take a payment break. 

The Defective Concrete Products Levy (DCPL) applies to the ‘first supply’ of certain concrete products on or after 1 September 2023. The levy is chargeable on the open market value of the concrete products that are within the scope of the levy, on the date of their first supply. The person who makes a first supply of a concrete product which is within scope of the DCPL is the chargeable person in respect of the levy. Revenue has updated the Tax and Duty Manual regarding the DCPL to provide for a simplification measure in certain circumstances.   For the purposes of determining the levy due in respect of a supply of ready to pour concrete where the price includes related delivery and haulage costs, the chargeable person may apply a fixed average percentage rate to calculate the portion of the cost which relates to delivery and haulage which is not subject to the levy. The percentage applied to the haulage and delivery costs may not, in general, exceed 25 percent of the overall cost.  The chargeable person must maintain evidence for the basis of the cost apportionment between the ready to pour concrete product and the related haulage and delivery costs.  

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 and Cabinet Officer Borders bulletins are also available. Readers are advised that this bulletin contains important information on the next phase in the implementation of the UK’s new import controls, known as the Border Target Operating Model, which commences from 30 April 2024 when  documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin imported from the from the EU will begin.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs Declaration Service: service availability and issues;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS);  CDS Declaration Completion Instructions for Imports;  Customs declaration completion requirements for Great Britain;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS);  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service;  Data Element 2/3 Documents and Other Reference Codes (National) of the CustomsDeclaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020; and  Customs, VAT and excise UK transition legislation from 1 January 2021. 

Revenue has updated the Tax and Duty Manual regarding the Single Person Child Carer Tax Credit. The updated guidance reflects the increase in the tax credit from €1,650 to €1,750 for the 2024 year of assessment as amended by Finance (No.2) Act 2023. The manual contains a new table which provides an overview of the tax credit amount for 2023 and prior years and examples have been refreshed.  

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.