Last month, HMRC published the outcome of the consultation seeking views on the requiring disclosure of certain arrangements to HMRC. At the same time draft regulations have been published which seek to implement the OECD mandatory disclosure rules, sometimes known as DAC6, for common reporting standard (“CRS”) avoidance arrangements. The rules come into effect from 25 June 2018 rather than the original 2014 start date. As an EU member state at the time, the UK implemented DAC 6 in January 2020. Now that the UK has left the EU and the transition period has ended, the Government will implement the OECD model rules to replace the EU version of the rules. According to the draft regulations, the reporting requirement will only be necessary where the value of the financial account that is subject to the CRS avoidance arrangement immediately prior to the implementation of the arrangement was more than $1,000,000 (or sterling equivalent).

30 December 2022 is the deadline for submitting 2021/22 self-assessment tax returns online if the taxpayer wishes to avail of coding out for tax debt of less than £3,000. You can pay your self-assessment bill through your PAYE tax code (known as coding out) if all of the following apply:- you owe less than £3,000 on your tax bill; you already pay tax through PAYE, for example you’re an employee or get a company pension; and you submit your paper tax return by 31 October or your online tax return online by 30 December.

At a recent HMRC forum meeting, HMRC asked two questions on simplification and requested that these be circulated to our members. Chartered Accountants Ireland flagged to HMRC that it is busy Self-Assessment season so it may be some time before our members can properly consider this request. The requirement to consider legislative complexity and how the tax policy making process is increasing complexity was also highlighted in the meeting. HMRC is keen to hear your feedback on the following two questions:- What is your top priority for tax admin simplification which could be delivered within the next 12 months?; and. What is your top priority for tax admin simplification over the longer-term? Please contact us with your suggestions.

HMRC has advised Chartered Accountants Ireland that agents should only use the Agent Dedicated Line for Self-Assessment queries between now and the 2022/23 Self-Assessment deadline on 31 January 2023. This is to ensure that important SA queries get answered as quickly as possible. Agents should use the other HMRC helplines for non-SA queries.

We are aware from reports to us by members that long delays have been experienced in obtaining certificates of residence from HMRC. Chartered Accountants Ireland has expressed to HMRC how damaging this can be for taxpayers and businesses from a cash flow perspective. Last week HMRC provided the below update on certificates of residence. Please get in touch if you continue to experience delays above and beyond the timelines set out below by HMRC. “Update from HMRC on certificates of residence This link below is the GOV.UK page which should be used by all entities applying for a certificate of residence:- How to apply for a certificate of residence to claim tax relief abroad - GOV.UK (www.gov.uk). Individuals and sole traders can apply using the online service.  These are currently dealt with in 7 days Agents may apply using the online service on behalf of individual or sole trader clients Individuals may e-mail a form without signing into an online account.  These flow into our KANA system and the current oldest working date is 3rd October 2022 (there is a current piece of work to bring this process into the online service without the need for PTA, which would improve the service to online levels) Partnerships use the online RES1 form.  These are currently dealt with in 5 days Companies where the Large Business Service deal with their tax affairs should use the RES1 online service There is the option for all entities to post a form to the respective addresses in the guidance if the online and e-mail services are not possible. The turnaround time for posted items is much longer.  For individuals and partnerships, these applications come to PT Operations and there are currently long delays in dealing with posted items The Certificates of Residence project is looking to address all the difficulties in the service, but recommendations are not due to be made until around April 2023.  In the meantime, there are some guidance issues being addressed and progress-chasing improvements made.  We have deployed more resource onto KANA to get it more up to date and will aim to hold at 30 days which would avoid repeat contact.”

HMRC has set out the top five reasons for delays in agent submitted VAT registrations and updated guidance has also been published which clarifies that agents must use their Agent Services credentials, and not HMRC online services credentials, when registering a client for VAT. This means the agent will not be required to verify their own identity. The list of information required to register a client for VAT has also been updated and HMRC has confirmed the process for obtaining agent authorisation for the income record viewer. Top five reasons for delays in VAT registrations HMRC set out the below tips in a recent Representative Body Steering Group meeting:- Business verification failed or not completed – ensure you have all the client’s details to hand when completing the application, include their SA/CT details; Same address used for the business and either the applicant’s home address or the agent’s address – ensure the correct addresses are entered in the correct part of the form. If your client genuinely works from home, that’s fine but if they have a separate business address, declare it; Bank details provided for VAT repayments don’t appear to relate to the business – bank details for VAT repayments must be a UK bank account, in the name of the business, one of the partners or the sole trader. If the name does not match, this can be fixed after registration once fixed with the bank; ID evidence required and applicant has chosen by post rather than attach – use the digital attachments option wherever possible. Whilst this won’t stop the need for a caseworker to look at the application, it makes it quicker and easier for them to make their decision; and Applicant’s details need further verification – like 1. above, make sure you have the required information ready to go. Use the “what you’ll need list” on GOV.UK to ensure you have everything. Income record viewer agent authorisation In order to obtain agent authorisation, agents are required to first generate a link from their agent services account which should then be emailed to their client who must then complete the digital handshake. Clients are required to do so using their Government Gateway credentials. It has now been confirmed that the agent authorisation link for the income record viewer service is agent specific, not client specific. This therefore means that once an agent obtains a link for the first time, this simplifies the process for obtaining authority from multiple clients as the link can be copied and pasted into an email and then sent to multiple clients for them to individually complete the digital handshake.

On Wednesday, 14 December Revenue hosted a live webinar on the Temporary Business Energy Support Scheme (TBESS). The webinar was recorded and is now available to view online, along with the slides provided  to participants on the day. Revenue has published a number of resources which are available to taxpayers including the Guidelines on the operation of the TBESS, the Understanding Your Bill Guide, and Revenue’s TBESS Calculator. At the Q&A section of the webinar, Revenue clarified several queries raised by participants, including the following: Revenue confirmed that all businesses making a claim, including charities and sporting bodies, must hold an active income tax or corporation tax registration. Revenue clarified that any trades not registered should now do so and noted this will not trigger a requirement to file a tax return. Revenue advised that the term “single undertaking” is set out in paragraph 5.5.1 of the TBESS Guidelines and the term has the same meaning as outlined in the de minimus aid legislation under EU State aid rules. Entities which are controlled on a legal or on a de facto basis by the same entity are considered a “single undertaking”. Where a business holds several MPRNs/GPRNs, Revenue advised that each MPRN/GPRN should be included in the registration process. The TBESS system will determine if there has been a 50 percent increase in the average unit prices. Revenue advised that a Temporary Business Energy Payment (TBEP) will be offset against outstanding tax amounts, however it will not be offset against liabilities in the Debt Warehousing Scheme or in a Phased Payment Arrangement. DAC6 (EU Mandatory Disclosure) Guidance updated Revenue recently updates its guidance on EU Mandatory Disclosure of Reportable Cross-Border Arrangements. Appendix III of the guidance has been amended to include a reference to countries which were on the EU list of non-cooperative jurisdictions for tax purposes during the lookback period only.

On Wednesday, 14 December the OECD published its Economic Survey of Ireland 2022. The survey reviews Ireland’s structural policies which have the potential to improve the economy’s long-run performance and individuals’ living standards.

Last week, the Government reminded landowners that Sunday, 1 January 2023 is the deadline for making submissions to local authorities on land identified on the Residential Zoned Land Tax (RZLT) draft maps, or for making requests to have their land rezoned. Only land identified on the draft RZLT maps can be subject to requests for re-zoning.

Apart from bank holidays (26-27 December 2022 and 2 January 2023) Revenue will generally provide normal services over the Christmas and New Year holiday period. 

Revenue has updated its guidance on MyEnquiries. The guidance now includes new text in Part 37-00-36A under paragraph 3.6 on ‘Removing Email Addresses’ to advise ROS users that when a ROS Inbox email address is deactivated, this is highlighted to Revenue staff replying to active enquiries or initiating enquiries.

Revenue recently updated its guidance on EU Mandatory Disclosure of Reportable Cross-Border Arrangements. Appendix III of the guidance has been amended to include a reference to countries which were on the EU list of non-cooperative jurisdictions for tax purposes during the lookback period only.