In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. The latest minutes and slides from the most recent meeting of the HMRC Northern Ireland Joint Customs Consultative Committee, which the Institute participates in, have been published. Miscellaneous guidance updates and publications Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS), Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service, Check if a business holds Authorised Economic Operator status, Claim back an import security deposit or guarantee, and Apply for Designated Export Place approval.

On 19 May 2025 the European Parliament’s HOUS Committee and FISC Subcommittee will host a joint public hearing on the impact of tax policies on the housing crisis in the EU. The public hearing will explore the link between taxation and affordability and how tax policies can shape access to housing in the EU. It will also consider how tax policies can contribute to rebalancing the housing market.

In this week’s miscellaneous updates, the latest Stakeholder Digest from HMRC confirms that it’s new Permanent Secretary and CEO has taken up his office and the expected reductions in HMRC’s interest rates have been announced after the Bank of England Monetary Policy Committee reduced the base rate last week from 4.5 percent to 4.25 percent. The first changes in four years have been made to HMRC’s CEST (check employment status for tax) tool and HMRC has updated their genuine communication guidance to add information about ongoing research into agent and professional standards which means that some tax agents may receive an email or phone call from HMRC inviting them to participate. The latest newsletter from the Federation of Small Businesses (FSB) says that the ‘taxi tax’ must be stopped and small business employers are invited to take part in FSB’s latest survey on the National Living Wage by 19 May. And finally, the Public Accounts Committee (PAC) has published a report on the cost of the tax system which not surprisingly concludes that the cost of administering taxes is increasing for HMRC and taxpayers. New HMRC Permanent Secretary and CEO After the retirement last month of Sir Jim Harra, John Paul (JP) Marks joined HMRC as its new First Permanent Secretary and Chief Executive. JP has been a civil servant for over two decades and previously served as Permanent Secretary of the Scottish Government for three years. In a You Tube video to mark the occasion, JP introduces himself and sets out his key priorities. CEST updated On 30 April 2025 HMRC updated this tool which is used to find out if a worker on a specific engagement should be classed as employed or self-employed for tax purposes. According to HMRC, CEST has been updated to simplify its language; useful links have also been added. The update also features a  new mutuality of obligation question (the obligation on the employer to provide work and the employee to accept the work) which is often key to many decisions at tax tribunal. HMRC has reaffirmed its ongoing commitment to the tool saying it will stand ‘behind the outcomes of this tool where it has been used correctly.’ Updated guidance is therefore expected to be published on how to answer the questions in the tool which have changed. PAC reports on cost of the tax system The House of Commons PAC report on the cost of the tax system concludes that the cost of administering taxes is increasing for HMRC and taxpayers and as a result calls for HMRC to “publish realistic plans to simplify the tax system and establish robust metrics for reporting the impact on its costs, and on taxpayers’ costs, in its annual reports”. The report also says that taxpayers’ trust in HMRC is falling and recommends that HMRC should work with taxpayers and their representatives to understand why this is the case and what it can do to quickly address the decline. HMRC should publish the concerns it has heard and the actions it is taking to address these, as a first step to improving trust.

The Economic and Financial Affairs Council (ECOFIN) will meet on 13 May 2025. At the meeting, the group will be invited to reach a general approach on the directive on VAT rules for distance sales of imported goods and import VAT. The draft directive seeks to improve the collection of VAT on imported goods by making suppliers liable for the VAT paid on import.

HMRC has contacted us to advise that as of 6 May, Unique Taxpayer References (UTRs) are no longer being provided when requested by either agents or taxpayers over the phone. This change is being made for security reasons.   HMRC has asked us to remind taxpayers that they can source this information from the top of the home page of their Personal Tax Account (PTA). If they do not have a PTA, they can find their UTR at the top of any Self-Assessment letter HMRC may have sent. If neither of these methods is available, HMRC will instead send this to them by post after they have successfully answered a series of security questions.   Agents that call on behalf of their client will also be advised of where the client’s UTR can be found. If it’s not possible to retrieve the UTR from one of those sources, then HMRC will issue a letter direct to the agent’s client. This can take up to two weeks to arrive.    

That’s according to the Institute’s Northern Ireland Tax Committee chaired by Janette Burns. The Committee responded last week to the UK Government’s consultation ‘Electronic invoicing: promoting e-invoicing across UK businesses and the public sector’. A series of recommendations featured in the submission including the need to ensure that businesses in Northern Ireland (NI) are not subject to different standards compared to the rest of the UK. Any UK e-invoicing regime should be decentralised and should also be aligned with what is ultimately agreed at EU-level in respect of the Digital Reporting Requirement (DRR) aspect of the VAT in the Digital Age (ViDA) package. The submission also considers the impact on smaller businesses and recommends that grants/tax incentives be introduced to encourage and help fund voluntary uptake. In summary, the key recommendations are as follows: An appropriate lead-in time and extensive testing by and consultation with various stakeholders will be essential in order to successfully implement a UK wide e-invoicing policy, This should begin by encouraging a voluntary approach, in particular for small and micro businesses, by educating taxpayers on the advantages cited in the consultation and by providing grant incentives/tax reliefs to encourage and help fund uptake, Mandatory e-invoicing and real-time reporting should only be introduced in a phased format based on the size of the business, The Government should establish a dedicated e-invoicing support team, A review should be undertaken of the UK’s VAT regime to identify opportunities for simplification ahead of introducing any e-invoicing policy in the UK, Any UK wide e-invoicing system will need to consider the potential impact in the NI context in order to avoid adding further complexity or different standards for different regions within the UK, The UK’s e-invoicing regime should be decentralised and should be aligned with what is ultimately agreed at EU-level in respect of the DRR aspect of ViDA, and Continued open, transparent and broad consultation will be needed with stakeholders to resolve and identify challenges/issues on the journey to a UK wide e-invoicing policy.

The OECD has published its consolidated commentary on Pillar Two. This consolidated commentary incorporates agreed administrative guidance which was released by the Inclusive Framework from March 2022 to March 2025. It also includes guidance on the interpretation and application of the GloBE rules.

Artificial intelligence is rapidly becoming an integral part of daily life, but many organisations have yet to fully grasp its potential, limitations and associated risks, writes David O’Sullivan The introduction of the European Union’s Artificial Intelligence (AI) Act means organisations are now legally required to ensure that employees using AI, as well as those impacted by its outputs, possess adequate AI literacy. AI literacy is the ability to understand, evaluate and interact effectively with AI systems. It encompasses recognising risks and opportunities, interpreting AI outputs and making informed deployment decisions. Ensuring AI literacy within an organisation isn’t just about compliance – it reduces risk, fosters innovation and drives competitive advantage. For businesses seeking to enhance their AI literacy, the European Commission offers detailed guidance, accessible in their online library: AI Literacy Learning Repository. Leading organisations integrate AI literacy into AI governance frameworks, ensuring clear roles, responsibilities and key performance indicators. Here are the six most effective strategies. 1. Tailored training for different levels of expertise A one-size-fits-all approach to training rarely works. Successful organisations provide: Foundational courses for employees new to AI; and Advanced technical training for developers and data scientists. 2. Hands-on learning with practical applications The best way to understand AI is to use it. Companies should offer their employees: Workshops, case studies and simulations to demonstrate AI’s practical impact; and AI sandbox environments for employees to test and experiment with AI safely. 3. Role-specific AI training Different teams utilise AI in different ways. Finance teams, product managers and engineers all interact with AI in various ways. Tailored training can help to ensure employees receive the relevant knowledge necessary to integrate AI into their workflows effectively. 4. AI mentorship and cross-department collaboration Encouraging knowledge-sharing between AI experts and employees helps bridge skill gaps. Some companies establish AI mentorship programmes where experienced employees guide their peers in AI adoption. 5. Embedding responsible and ethical AI practices Many organisations are integrating responsible AI principles into their training, focusing on transparency, fairness and compliance with AI regulations such as the EU AI Act. In Ireland, the Government introduced principles for public sector organisations early in 2024, and these are still relevant today. 6. Continuous learning AI is evolving rapidly. Training should be ongoing with regular updates and refresher sessions to keep pace with advancements. The impact of AI literacy When AI literacy programmes are effectively implemented, organisations experience significant benefits, including: Increased AI adoption and engagement: Companies have seen an increase in employee participation in AI training and a higher usage of AI tools in daily tasks. According to the AI Literacy Learning Repository, one organisation that implemented an AI literacy programme reported a 30 percent increase in AI training participation and a 65 percent rise in AI tool utilisation. Improved workforce confidence and innovation: Employees who are comfortable with AI use it effectively, leading to better decision-making and new ideas. Operational efficiency gains: AI literacy helps automate repetitive tasks, streamline workflows and boost productivity. New AI-driven offerings: Some organisations have leveraged AI literacy training to upskill employees, leading to new AI-driven products and services. Greater consumer trust: Companies that prioritise transparency in AI usage – and educate affected individuals – see higher trust levels. Some businesses even involve clients in AI training sessions. Making AI literacy a business priority Organisations cannot afford to overlook AI literacy, given our rapidly changing world and the requirements of the EU AI Act. Investing in education, practical training and ethical AI practices equips employees with the skills they need to work effectively with AI and allows leadership to make informed decisions on deployment and controls. By addressing challenges and leveraging the best strategies, companies can build an AI-literate workforce that drives innovation, enhances efficiency and ensures responsible AI use while meeting compliance objectives. AI literacy isn’t just about understanding how AI works; it’s about ensuring businesses and employees can utilise AI effectively to create meaningful and positive outcomes. If your organisation hasn’t yet prioritised AI literacy, now is the time to start. David O’Sullivan is Director of Privacy, Digital Trust & AI Governance at Forvis Mazars

Under the new Small-Scale Renewable Electricity Support Scheme, SMEs can turn idle rooftops or land into a 15-year income by exporting renewable electricity, writes Justin Wallace The recently launched Small-Scale Renewable Electricity Support Scheme (SRESS) presents a valuable opportunity for small- and medium-sized enterprises (SMEs) that may have under-utilised rooftop space or land available for long-term passive income. SRESS is an initiative of the Department of the Environment, Climate and Communications, designed to support SMEs, farmers and communities that wish to generate renewable electricity for export to the national grid. It offers support for solar photovoltaic (PV) and onshore wind renewable electricity installations that are not suitable for the larger utility-scale Renewable Electricity Support Scheme (RESS) or the Micro-generation Support Scheme (MSS). Support is offered in the form of a guaranteed tariff for 15 years to export projects ranging in capacity from 50 kw to 6 MW. The scheme opened for applications in January 2025. When a business joins the SRESS scheme, it receives payment through a Power Purchase Agreement (PPA) with a supplier, utilising a special payment system designed to provide certainty to SRESS projects, thereby insulating it from fluctuating market prices. Regardless of the market reference price of electricity, businesses will receive the same amount for the power supplied. When electricity prices are low, the payment received from a supplier is topped up. Conversely, when prices are high, SMEs still receive the standard tariff rate, but their supplier separately pays a surplus into a Government fund, the Public Service Obligation (PSO) levy. This scheme presents a valuable opportunity for SMEs that may have under-utilised rooftop space or land. For instance, a 50 kilowatt peak (kWp) rooftop or ground-mounted installation requires only 125 to 200 solar panels, equivalent to 250 to 300 square metres of roof space, roughly the size of a double tennis court. The SME tariff for solar projects under 1 megawatt (MWh) is €130/MWh (€0.13/kWh), which generates a passive yearly income for your business for 15 years. Further, solar panels are low-maintenance and generally expected to last for 25 to 30 years, so your system should still be capable of generating renewable electricity even after the SRESS support period ends. This could involve entering into a new PPA, without Government support, but with capital costs paid off. If you are interested in joining SRESS, start by assessing your premises to determine its suitability for a renewable energy project. Consider how close your premises is to a grid connection at an ESB substation. Generally, being located closer to a substation brings down the cost of your connection. ESB Networks publishes capacity heatmaps, which indicate the spare transformer capacity available at substations at each voltage level. For generators exceeding 200 kilowatt (kW), ESB Networks provides a minimum cost calculator tool to estimate the minimum costs associated with connecting to the grid. Visit the grid cost calculator tool and grid capacity map on the Department’s website for more information. Consider engaging a renewable energy expert to assist with calculating the financial implications, risk assessment and negotiating agreements. They can assist with estimating the total upfront costs, including equipment, installation, grid connection and other fees, as well as ongoing operational and maintenance costs. A renewable energy expert can also calculate the expected revenue of the project based on the tariff rate and projected energy generation, taking into account variables such as seasonal change and any potential downtime. Generally, most renewable electricity projects are required to have full planning permission in place before applying to SRESS. However, revised regulations, introduced in October 2022, expanded the eligibility of properties for exemptions to include the rooftops of certain premises, such as industrial buildings and businesses. While these exemptions are subject to certain conditions and limitations, your local planning authority will be able to confirm if your premises is eligible for such an exemption. Further information and details on the solar planning exemptions are available on the Department of Housing, Local Government and Heritage’s website. If pursuing an export project is not for you, there are also grants available for renewables self-consumers with projects from 50 kw up to 1 MW under SEAI’s Non-Domestic Microgen Grant. Renewable energy self-consumers are electricity customers who generate their own renewable energy for personal use. They may then sell or store any excess electricity produced, if electricity generation is not their primary business. To apply for SRESS, applicants must complete the application form. Completed application forms and any additional queries relating to the scheme can be directed to sress@decc.gov.ie. SRESS will ultimately contribute to lower long-term energy costs for both households and businesses, enabling them to play a key part in the renewable energy transition. Please see the scheme’s T&Cs and its Non-Technical Summary for more information. Justice Wallace is an Officer in the Department of the Environment, Climate and Communications

Tax has emerged as a powerful tool in the EU’s Clean Industrial Deal. Sinead Kelly explores how policy could unlock investment and drive Europe’s green transition On 26 February 2025, the European Commission unveiled the Omnibus Package, a set of proposals aimed at simplifying EU rules, boosting competitiveness and unlocking investment capacity. A key component is the Clean Industrial Deal (CID), which focuses on raising funds and driving innovation to accelerate decarbonisation and foster a circular economy. The CID strategically focuses on energy-intensive industries and the clean-tech sector, identifying six key business drivers: affordable energy, lead markets, financing, circularity, global markets and skills – all essential for a sustainable industrial ecosystem.  Tax policy is often cited as a potential lever for influencing behavioural change and mobilising the investment needed to fund the clean transition and meet our climate targets. It is interesting that tax policy is noted as a key lever within all six key business drivers, representing a combination of the “carrot and stick” approach. It is also noteworthy that, at the recent EU Tax Symposium in Brussels, Commissioner Hoekstra stated that decarbonisation is a priority on the EU competitiveness agenda and tax measures are needed to help energy-intensive industries decarbonise. Tax as a lever Here are some key areas where tax features within the CID. Affordable energy The European Commission recognises securing affordable energy as crucial for industry competitiveness, with tax playing a role via the Energy Taxation Directive.  Negotiations to revise the Energy Taxation Directive have been ongoing since July 2021 and aim to ensure tax frameworks do not incentivise the use of fossil fuels and are more conducive to electrification. The CID emphasises the urgency of concluding these negotiations. For short-term relief, member states are encouraged to reduce tax levels on electricity, including eliminating levies on electricity that are used by governments to fund initiatives not directly related to the energy sector. The European Commission will issue recommendations to guide member states on how to lower electricity taxation cost-effectively. Lead markets Building a business case for decarbonised products is central to the CID. The proposed Industrial Decarbonisation Accelerator Act (Q4 2025) will introduce resilience and sustainability criteria to foster clean European supply for energy-intensive sectors. This includes a voluntary carbon intensity label for industrial products. Such labels should allow industrial producers to distinguish the carbon intensity of their industrial production and to benefit from targeted incentives. It is suggested that member states could use these labels to design tax incentives and other support schemes in line with state aid rules. This approach aligns with our climate-related pre-budget submissions, suggesting targeted tax incentives linked to greenhouse gas (GHG) emission reductions. Financing Leveraging public and private capital is crucial for funding the substantial investment required for the European clean energy transition. From a tax perspective, the European Commission recommends member states support clean business through corporate tax systems, suggesting: Accelerated depreciation for clean technology assets; and Tax credits for businesses in strategic sectors for the clean transition. Helpfully, the European Commission mentions that to the extent these measures involve state aid, the new state aid framework will integrate these instruments into its compatibility rules. Ireland should proactively review these proposals and consider tax policy changes to encourage faster decarbonisation of the Irish economy, increased investment in decarbonisation measures and position Ireland as a clean tech innovation leader. Circular economy The European Commission recognises the importance of scale and a single market for waste, secondary raw material and reusable materials to promote circularity. VAT has been identified as a potential lever, with a commitment to review the rules on the second-hand scheme contained in the VAT Directive by Q4 2026 to address the issue of embedded VAT in second-hand products (Green VAT initiative). Global markets European clean industrialisation requires global partnerships and open, rules-based trade with access to third markets for goods and capital. Tax can play a role here in seeking to protect a global level playing field. This includes: The Carbon Border Adjustment Mechanism The Carbon Border Adjustment Mechanism (CBAM), operational since 2024 (reporting only), seeks to ensure that the EU’s efforts to reduce carbon emissions are not undermined by the importation of carbon-intensive products into the EU. From 2027, importers of certain carbon-intensive products must purchase CBAM certificates to equalise carbon costs between imported and EU-produced goods. Recognising the complexity in compiling CBAM returns, especially regarding supplier data, the European Commission proposes to simplify administration in 2025 while continuing to incentivise global carbon pricing. A comprehensive review of CBAM in Q3 2025 will explore extending CBAM to other EU ETS sectors at risk of carbon leakage, to downstream products and indirect emissions with the aim of closing potential loopholes. The Foreign Subsidies Regulation Effective July 2023, the Foreign Subsidies Regulation (FSR) impacts businesses operating in the EU, including non-EU-based multinational companies. It requires European Commission notification and approval for merger and acquisition activities or public procurement contracts above certain thresholds if non-EU governments provide 'financial contributions' (including grants, export subsidies or tax credits) that could unfairly advantage companies against EU competitors. By the first quarter of 2026, the European Commission will adopt guidelines on key FSR concepts, including assessing foreign subsidy distortions and clarifying the circumstances in which mergers, which do not meet the thresholds but pose a risk to the level playing field in the single market, may be reviewed. The European Commission has also stated that it will continue FSR ex officio investigations in strategic sectors, such as the ongoing probe into Chinese wind turbine suppliers. Skills The European Commission aims for an inclusive clean transition. As part of the General Block Exemption Regulation review, it will consider whether state aid rules can be updated to provide better incentives to industry to invest in upskilling, reskilling, quality jobs and the recruitment of workers for a just transition. Examples in an Irish context could include different PRSI rates and double tax credits for green upskilling. Sinead Kelly is a Director at PwC Ireland

Our Thriving Stories series dives into the real-life experiences of members in our profession and what they do to prioritise their wellbeing. Here, we hear from Meabh Cahill, Tax Associate at Grant Thornton NI Director and chair of the Institute's student society, CASSI. How do you prioritize your mental health, and what helps you manage stress? Mental health is an important topic to me as I believe it affects us as much as our physical health. I prioritise my mental health by using practices in my life that help me to be mindful such as yoga, being outside or even reading a book. Taking some time away from the stresses of life to be away from stressing thoughts or away from a screen is really key for me to manage stress. What role does physical activity play in your daily routine, and how do you stay motivated to maintain it? Physical activity plays a big part in my daily routine. I enjoy being outdoors whether this is walking, running, alone or in company, even a 20-minute period spent outside can have a big impact on feeling energised and reset. I play team sports such as tag and touch rugby which help me to get out of my head and think about something other than work or study for a few hours. Motivation is hard so I would say focus on how you will feel after getting out, count to 5 and get out the door! You will never regret doing it but you might regret it if you don’t. What are some self-care practices you incorporate into your life, and how do they benefit you? It might sound odd but the biggest self-care practice I do for myself is to plan and follow a routine where possible. I know I feel at my best when I am in a routine, and I give myself time to enjoy the little things in life like watching a move in the evening. If I know I need to do something the worst thing I can do for my self-care is procrastinate and put the task off as this causes two issues: the actual task and now the guilty feeling about not having done the task! By planning and sticking to a routine I can spend time doing things I love like sport or seeing my friends and not feel guilty about the tasks I should be doing. What do you think are the biggest barriers we face when it comes to discussing their health and wellbeing? I think we often don’t want to burden others with our problems, so we don’t share how we are feeling, or we feel embarrassed about our feelings. We might find that if we share more often, the reverse might be true in that people can relate with what we are feeling and it might give a friend or family member to confide in you and open up more about their own feelings. What are some areas of your health and wellbeing that you’d like to focus on or improve in the coming year? I would like to try and focus on trying some new activities and having new experiences in 2025. I believe that trying new things and putting yourself outside of your comfort zones can teach you how to deal with difficult feelings and overcoming fear. Sometimes it is easier said than done but that is the plan!

The Chartered Accountants Ireland second level 2025 “Boot Camp” schools’ programme has drawn to a close, with almost 10,000 students participating nationwide since its launch in 2019. Students from around the country gathered in Chartered Accountants House this week where the winners of the “Be the Boss” challenge, the culmination of Boot Camp, were announced. “Be the Boss”, sponsored by GRID Finance, is a gamified business simulation exercise in which entrants take on the role of CEO of their own fictitious company. They must tackle a business crisis by applying the learnings from Boot Camp, including interpreting financial statements, problem solving, collaboration and leadership skills to develop a solution to overcome the challenge and justify their rationale. Commenting, Boot Camp programme creator Brian Feighan said “The real learning in Be the Boss comes not from working out specific answers but from the decision-making journey. Be the Boss challenges students to research and evaluate information, assess risks and benefits and then think critically about the results. They need to be creative in how they solve problems and exercise good judgement and commercial awareness. “Boot Camp and Be the Boss show what it’s like to run a real business – you must both work with others and think independently. Crucially, you must also be confident in your information. As the world becomes ever more complex, these essential business skills set great business leaders apart and they will serve all these great students well in their lives and professional careers.” Presenting the prize, Immediate Past President of Chartered Accountants Ireland Sinead Donovan said “I congratulate the more than 60 entrants to this year’s challenge. The talent and knowledge evidenced in all these submissions show the students’ vitality and enthusiasm, nurtured by their teachers and schools who are so important in supporting this profession. This opportunity to see the next generation of leaders at work is inspiring, and equally, it gives them the opportunity to see what being a Chartered Accountant is all about. “With the future of the profession in mind, Chartered Accountants Ireland, under the auspices of the CCAB-I, recently contributed our views to the public consultation on the new specification for Leaving Certificate Accounting currently being developed by the National Council for Curriculum and Assessment (NCCA). The publication of a revised specification marks an important step forward in modernising the teaching of accounting at second level and contains a series of new themes in the areas of sustainability, digital technology and ethics that more closely align the curriculum’s subject matter with the work of the modern accountant. The students at our awards ceremony this week truly represent the future of the profession.” Boot Camp can be taken by full class groups or solo students, either independently or with teacher guidance. It can be taken as an introduction to accounting in TY or as revision in 5th and 6th year. Several large employers who take work experience students in their firms have also used Boot Camp as an introduction to their work. Boot Camp is open for enrolment - https://chartered-bootcamp.teachable.com or contact Veronica.Byrne@charteredaccountants.ie Finalists First prize: The winning team were from transition year in Edmund Rice College in Carrigaline, who entered the competition having completed the Boot Camp online course with support from their teacher. Second prize: Kristiana Bogdonova from Mercy College Coolock who completed the challenge with support from her teacher, Rachel Shaughnessy.   Third prize: Olivia Fahey from The Teresian School in Dublin 4 who completed the challenge independently as a solo student. Commendations Jack White, Matteo Binay and Timon Kozlovs – Edmund Rice College, Carrigaline Shreya Rajesh and Martina Gibas – St Mary's,Edenderry Molly Hennessy Murphy – St Mary's, New Ross Jamie Kennedy – Glanmire Community College Nil Sevin – Loreto College, St Stephen's Green (Work experience participant with Grant Thornton) Tristan Sextan, Jacob Molloy and Molly McElroy – Edmund Rice College, Carrigaline You can view photos from the awards event here.