Revenue has updated the Tax and Duty Manual which provides guidance on domestic implementation issues relating to the Common Reporting Standard (CRS). The updates consist of editorial changes and the deletion of obsolete material at paragraphs 18 and 19.   

Revenue has amended Chapter 29 of the Pensions Manual which deals with the encashment option for members of both private and public pension schemes. The updated material provides clarification over who qualifies for the encashment option and how declarations should be submitted to Revenue. Revenue’s relevant contact address is also updated.  

The Northern Ireland Tax Committee is still accepting feedback on the consultation examining potential new tax incentives for occupational health. Get in touch by Friday 29 September. This consultation is open until 12 October 2023 and specifically seeks views on how expanding the existing benefit in kind exemption for medical benefits could help employers provide more services, essentially helping people back into work.

Revenue has advised, at a recent meeting of the TALC MyEnquiries subgroup that the size of individual files that can be uploaded as part of the eCG50 process is increased to 11 MB. Where files are greater than 11 MB they must be zipped into parts to facilitate the upload. Revenue will amend its Tax and Duty Manual to reflect this development and to provide guidance on the zipping process. 

As reported last week, Revenue is continuing to issue notices to employers’ ROS inboxes, inviting them to register for webinars on the new Enhanced Reporting Requirements (ERR) for employers. The notice will contain a link to Eventbrite where a free ticket can be booked to attend a webinar on a suitable date and time. These webinars are scheduled to take place over the next 8 weeks. A sample event invitation can be viewed here.  The Institute has emphasised to Revenue the need for detailed and timely guidance for employers to prepare for the new reporting requirements. We will continue to liaise with Revenue and inform members via Tax News.   

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Windsor Framework and the latest Trader Support Service bulletin is available. The Institute was also in attendance last week at the latest UK Domestic Advisory Group meeting. Windsor Framework update The House of Lords Protocol Sub-Committee on the Protocol is holding a follow-up evidence session on the implementation of the Windsor Framework. The UK Government has also now responded to the Committee’s report published in July. Various pieces of secondary legislation (set out below) have recently been published to implement the Windsor Framework and specifically the new trade operating model including the green and red lanes for agri-food and retail scheme which are due to commence later this week from 1 October. The House of Commons Library has published a briefing on the new rules for trading with the EU. The secondary legislation published is as follows:- Windsor Framework (Retail Movement Scheme: Public Health, Marketing and Organic Product Standards and Miscellaneous Provisions) Regulations 2023; Windsor Framework (Enforcement etc.) Regulations 2023. Windsor Framework (Retail Movement Scheme) Regulations 2023; Windsor Framework (Plant Health) Regulations 2023; Customs (Northern Ireland) (EU Exit) (Amendment) Regulations 2023 Windsor Framework (Financial Assistance) (Marking of Retail Goods) Regulations 2023; and Postal Packets (Miscellaneous Amendments) Regulations 2023. UK Domestic Advisory Group meeting Last week, the Institute was represented at the latest Domestic Advisory Group (“DAG”) meeting. The UK DAG is a consultative body designed to enable the government to hear from those most affected by the operation of the UK-EU Trade and Cooperation Agreement (“TCA”). The DAG has now established five sub-groups as follows, each of which reports back to the DAG on key issues with implementation of the TCA:- Trade and Customs; Regulatory Co-operation and Level Playing Field; Business and Labour Mobility; Energy and Climate Change; and Nations and Regions. Chartered Accountants Ireland participates in the Nations and Regions sub-group and would welcome your feedback on any issues specific to Northern Ireland. Readers are advised to note that the Windsor Framework is outside the remit of the UK DAG. In November, a further DAG meeting is scheduled to be held in advance of the annual UK-EU Joint DAG which the Institute will be attending. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Smart watch straps, watch bands and watch bracelets (Tariff notice 11); Transit newsletters — HMRC updates; Register with the UK ID issuer if your business is involved in the supply of tobacco products; Simplified rates for bringing personal goods into the UK; and Moving goods out of Great Britain using transit: step by step. Search the register of customs agents and fast parcel operators Transit newsletters — HMRC updates Delaying declarations for goods brought into Great Britain List of goods imported into Great Britain from Ireland that are controlled Moving qualifying goods from Northern Ireland to the rest of the UK; and Apply to use simplified declarations for imports.  

Readers are reminded that the Temporary Business Energy Support Scheme (TBESS) claims deadline is 30 September 2023. As previously reported, claims cannot be made after this date. 

Tax news readers will be aware from previous news that the new non-resident landlord withholding tax (NLWT) system enables tenants or collection agents to make Rental Notifications (RN) when making payments to a non-resident landlord. Validation rules in the system require collection agents to enter the Tax Reference Number (TRN) of the non-resident landlord they represent while both tenants and collection agents are required to submit the local property tax (LPT) identifier of the property, depending on who is filing the RN.  Revenue is aware of validation issues arising in relation to the input of incorrect tax reference numbers or local property tax identifiers. Where an error message is returned, and following confirmation of the TRN/LPT details provided by the landlord, the tenant or collection agent should contact Revenue through MyEnquiries. Revenue has advised that the tenant or collection agent should also email the NLWT team directly at info_NLWT@revenue.ie quoting the Enquiry ID number. As this is not a secure channel, client data should not be included in the email.  

Last week, Institute representatives attended an information meeting hosted by the Department of Finance in conjunction with officials from Revenue. An update on the revised EU “Green Deal” General Block Exemption Regulation (GBER), which was adopted on 1 July 2023 and comes into effect from 1 January 2024, and its impact was provided.  GBER is a European Commission regulation that allows Member States to put certain State aid schemes into place without prior notification to the EU Commission, provided certain conditions are met. The Employment Investment Incentive (EII), the Start-Up Relief for Entrepreneurs (SURE) and the Start-Up Capital Incentive (SCI must comply with GBER for all shares issued on or after 13 October 2015.   A copy of the slides from the meeting are available here. 

Revenue has updated its process to automatically offset relevant contracts tax (RCT) credits against tax liabilities as they fall due and tax returns are filed. Upon receipt of the RCT deducted by a principal contractor from a sub-contractor Revenue will automatically credit the subcontractor’s tax record. Automatic RCT offsets apply to employer’s PAYE, income tax, corporation tax, preliminary tax and VAT liabilities.   All automatic system offsets happen no later than seven days from the date the liability becomes due following submission of the relevant tax return. The taxpayer will receive a statement of account to their ROS inbox confirming an offset has been made.   Automatic offset of RCT credits does not apply to liabilities covered by the debt warehousing scheme or a phased payment agreement. Such an offset must be requested via MyEnquiries.

Last week, the Institute, under the auspices of the CCAB-I, wrote to the Taoiseach, Leo Varadkar T.D., and the Minister for Finance, Michael McGrath T.D., to express our members’ concern about the tax treatment of General Medical Services (GMS) income of General Practitioners (GPs) which will change from 1 January 2024. The CCAB-I and other bodies have been discussing this matter with Revenue over the past two years through the Tax Administration Liaison Committee (TALC) forum.  As previously reported, GPs in a medical practice, be they principals, partners or employees, will be required to self-assess for tax purposes on the GMS income earned in their name, with a credit for the attaching professional services withholding tax (PSWT).    Our members are concerned that taxing the GMS income of GPs in this manner does not make provision for the practice-wide scope of the GMS contract and will result in complex administrative procedures for medical practices where income is allocated between GPs and the practice depending on who treats certain categories of patient.   In addition, certain GPs employed by medical practices, that previously were simply subject to PAYE on their salary, will now also be subject to self-assessment on their GMS income. They will be required to file income tax returns and pay preliminary tax, while at the same time continuing as an employee of the practice. They may also be exposed to the 3 percent USC surcharge as self-employed individuals.   In light of such practical difficulties, CCAB-I requested that the tax treatment of income earned under contract by individuals acting on behalf of a practice be assessed on the principal or partners of the practice.  Revenue has confirmed that it will publish an updated Tax and Duty Manual in the coming weeks, in relation to the tax treatment of GMS income of GPs. CCAB-I will continue to liaise with Revenue and will inform members via Tax News.  

Chartered Accountants Ireland Leinster Society has announced its shortlist for the 46th Annual Published Accounts Awards. The awards celebrate companies, on the Island of Ireland, for their excellence in corporate reporting. The Awards are sponsored by Euronext Dublin. This year’s shortlist includes a total of 28 public and private companies, and 10 not-for-profit organisations. The winners will be announced at a special gala event, taking place in The Shelbourne Hotel on Thursday 09 November 2023 commencing at 7.30pm, with special guest Colm O’Regan overseeing the proceedings. FINALISTS FOR THE 46th PUBLISHED ACCOUNTS AWARDS 2023 Euronext Growth Award Origin Enterprises Uniphar Euronext Dublin (SME <€1bn) Glenveagh Properties plc Irish Continental Group plc Cairn Homes plc Dalata Hotel Group plc Kenmare Resources plc IRES REIT FBD Holdings Euronext Dublin (Large Cap >€1bn) CRH plc Bank of Ireland Kerry Group Flutter Entertainment plc Company Listed on a Foreign Market Grafton Group C&C Group plc DCC plc Oneview Healthcare Statutory or Unquoted Entity (IFRS) An Post Eirgrid Northern Ireland  Water ESB Statutory or Unquoted Entity (Non-IFRS) CIÉ  Tusla Central Bank of Ireland Coillte CGA DAA Home Building Finance Ireland Irish Football Association Not for Profit - Large Barnardos Jigsaw Concern Kare Focus Ireland CLG Inspire Wellbeing CLG Not for Profit - Small / Medium The Care Trust The Wheel Dogs Trust Barretstown In addition to the category awards, there are also a number of other awards consisting of the: Overall Winner’s Award, Sustainability and ESG Reporting Awards, Branding, Communication and Digital Award, and the Diversity and Inclusion Awards. Dedicated PAA webpage: https://www.charteredaccountants.ie/Leinster/PAA Event details Thursday 09 November 2023 in The Shelbourne Hotel, 7:30pm. M.C. is critically acclaimed broadcaster, author and comedian, Colm O’Regan. Tickets are €130 per person / €1300 for a table of ten. Individual tickets and tables are available. To book or for more information please contact LeinsterSociety@charteredaccountants.ie. Dress: Business / Cocktail This event is sponsored by: