HMRC’s latest schedule of live and recorded webinars is now available for booking. Spaces are limited, so take a look now and save your place. Agent services account access groups: book now This webinar looks at access groups within the agent services account including about access groups; clients lists and transacting with clients; adding team members; managing access groups; examples; and error messages, filters, and client references. An overview of the new alcohol duty structure and rates: book now From 1‌‌‌ August‌‌‌ 2023, alcohol duty will be charged in relation to the strength of the product as opposed to the product type. This webinar will explain the new alcohol structure and rates, including the reduced rates for draught products An overview of the new alcohol duty structure and small producer relief: book now This webinar will provide a background into the new small producer relief, including eligibility criteria, and how to calculate this. Capital allowances and vehicles: book now This webinar is part of HMRC’s annual Self-Assessment programme covering the rules for cars, qualifying expenditure, pools and rates, and vehicle hire purchase. A recording is also available to register to view of the webinar UK freeports – examples of tax and customs benefit.

The European Commission is calling for feedback on its proposal to amend to Council Regulation (EU) No 904/2010 regarding VAT administrative cooperation and combating VAT fraud. The feedback period will run until Thursday 3 August.

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.

As cyber threats continue to evolve, businesses must prioritise proactive measures to safeguard their operations. Eleanor Barlow highlights four critical cyber-attacks organisations should be prepared for this summer Given the scope of cyber threats over the past several years, it is more important than ever for businesses to take proactive measures to protect themselves. Here are the four cyber-attacks I feel organisations should be aware of and ready to protect themselves against this summer. AI-powered social engineering attacks  Artificial intelligence (AI) has entered almost all spheres of the business world. While AI brings numerous benefits and advancements, it also introduces new cybersecurity risks, such as social engineering attacks. These attacks use manipulative tactics to deceive the victims into revealing sensitive information or trespassing security structures of the organisations. To execute these attacks, cybercriminals rely on AI-based natural language processing (NLP) algorithms to generate more realistic and human-like phishing emails, chatbot interactions or voice calls. Detecting these malicious campaigns is getting harder for the average employee, which is why significant training is required to know what to look for and how to prevent escalation. Cloud-based breaches Cloud computing has become a norm in today’s digital landscape, offering scalability, flexibility and cost-efficiency to businesses. Nevertheless, the widespread adoption of cloud services exposes organisations to new cybersecurity threats, making them a major concern in 2023. Cybercriminals target cloud environments to exploit misconfigurations, weak access controls or insecure APIs. A recent example of the consequences of cloud misconfigurations is the Toyota data leak, in which the personal information of over two million customers was exposed after an access key was leaked on GitHub for almost five years.  Enhanced phishing attacks  Phishing attacks involve cybercriminals posing as trustworthy entities with the intention of deceiving individuals into divulging sensitive information or performing malicious actions. With over 500 million phishing attacks reported in 2022, the number is expected to rise further this year. In fact, threat actors continuously refine their techniques to make phishing emails and messages appear more genuine and convincing, which takes a trained eye to spot. Zero-day vulnerabilities in supply chain attacks With the increasing complexity of supply chains and the interconnectivity of various systems, zero-day vulnerabilities are anticipated to be a significant cybersecurity threat during the summer of 2023. A zero-day attack is a strategic exploitation that involves using previously unknown vulnerabilities in the supply chain and has no available patches or fixes. These vulnerabilities in the supply chain can have severe consequences, allowing attackers to compromise the integrity and security of products and services. They can lead to data breaches, unauthorised access and the potential for sabotage or manipulation of systems. Awareness is key By being aware of these possible threats, organisations can arm themselves appropriately to prevent them. To effectively deal with the cybersecurity challenges of 2023, organisations need to adopt a customised and agile cybersecurity strategy. Eleanor Barlow is Head of Content at SecurityHQ  

The Young Professionals Committee elected Brendan Brophy as the chairperson at the AGM on Thursday 6 July. Brendan was elected alongside Niamh McCarthy as Vice chair for the 2023 / 2024 term. We sat down with Brendan to learn more about him and his plans for the 2023 / 2024 term. While I am often referred to as the ‘Australian’ among my Irish friends, I personally identify as blend of Australian and Irish, and I am a proud dual citizen. My parents emigrated to Australia from Belfast during the height of the Troubles, meaning I have Irish and Australian citizenship, and I was raised with a deep appreciation and love for both cultures. I qualified as an Australian Chartered Accountant in 2016 through Chartered Accountants Australia & New Zealand (CAANZ). After gaining valuable experience as an accountant and tax professional in Australia, I decided to embark on a new journey and relocate to Dublin in mid-2017. I was able to obtain membership with Chartered Accountants Ireland through the reciprocal agreement between the two bodies. I had four years of valuable tax experience in Australia, but when I landed in Ireland, I quickly realised that Australian tax regulations and expertise was not as highly sought after in the local market. I subsequently transitioned into diverse financial management and reporting roles and currently work as a Cost Accountant at Square. Not long after my move to Dublin, I recall receiving an email from Chartered Accountants Ireland promoting an event organised by the Young Professionals Committee. Intrigued by the prospect of networking and connecting with fellow young professionals, I rallied a few of my co-workers to attend the event and the rest is history! Little did I know at the time that this would mark the beginning of my involvement with the committee. I am honoured to be elected as Chairperson of the Committee and look forward to a great year ahead. This year my primary goal is to prioritise the establishment and nurturing of meaningful connections. While attending exceptional events with notable speakers and engaging entertainment can be valuable, I believe the true significance lies in sharing those experiences with others. As young professionals, we play a pivotal role in bridging the gap between senior management and junior staff, fostering connections and collaboration within the organisation. Furthermore, it is essential to maintain a strong connection with the Institute and the great resources such as CA Support and Thrive that our available to all members. I would like to take this opportunity to congratulate Peter Gillen on a fantastic year as chairperson of the Young Professionals Committee. Special thanks to my fellow committee members, as well as Institute staff Karin Lanigan and Linda McGee who work tirelessly behind the scenes to support all our initiatives.  I look forward to the year ahead and hope that many young professionals will join us virtually and in person at our upcoming events. Keep an eye on our LinkedIn and Instagram accounts to hear the latest developments. Brendan Brophy  Brendan Brophy on LinkedIn Visit the Young Professionals homepage  

Quality breaks in the workday play a crucial role in boosting productivity and enticing employees back to the office, says Deirdre O’Neill Napoleon established 200 years ago that an army marches on its stomach. Now employers who encourage longer, better quality, more frequent breaks are key to unlocking productivity, improving employee well-being and enticing people back to work. New research by Compass Ireland and Mintel found that the time workers spend on their main lunch break varies worldwide.  It averages 54 minutes in China, one of the world’s fastest-growing economies, but just over 20 minutes in Poland. In Ireland, though, lunch breaks average 33 minutes. Analysing insights from 35,000 workers across 26 countries, the Compass Global Eating at Work Survey 2023 shows that, on average, workers take just 35 minutes daily for their main lunch break if they have one.   Full-time employees (working five days a week) were found to skip one lunch break a week, including those surveyed in Ireland, while a third of workers eat their lunch alone, reducing opportunities for socialising. One percent of Irish workers report taking no breaks during their working week, risking burnout. However, this figure is considerably below the global average of 5 percent. Better breaks equal better results The research indicates that employers who invest in good breakout areas and better-quality food and drink offerings can significantly increase productivity, well-being and colleague collaboration and reduce feelings of isolation among employees.   Eighty-one percent of Irish workers said taking a lunch break makes them more productive, while 88 percent agree that regular breaks throughout a workday improve their overall productivity.   Generational differences Globally, Gen Z and Baby Boomers take the shortest lunch breaks, and how employees spend their personal time varies across different age groups. This indicates employers should tailor breakout areas to match unique workforce demographics. While eating and drinking during a break is the top priority for every age group (Baby Boomers, most of all), younger Gen Z and Millennial workers want the time for things that support their mental health. These include socialising with colleagues, relaxing, hobbies and personal interests. The research also found that employees are significantly more likely to socialise and network with colleagues during breaks if they have food and drink facilities at work. The more advanced the food offer provided, the stronger this trend becomes. In workplaces with a restaurant, cafeteria, canteen or coffee shop, 70 percent of workers eat lunch with colleagues, with only 23 percent eating alone. In contrast, when no food and drink facilities are provided, just 38 percent spend their main break with colleagues, while nearly half (48 percent) choose to eat alone. Competing with home While the length of main breaks is largely consistent across home-based, hybrid and work-based employees, those working from home report having more frequent and higher quality breaks than when in the workplace. This presents a considerable challenge for employers trying to encourage workers back to the office. In Ireland, 50 percent of hybrid workers say they take more breaks when working from home. With recruitment and productivity a key challenge facing businesses today, employees taking time out of the working day to relax and recharge with colleagues can make a huge difference. It may seem counterintuitive, but good quality breaks are a win-win for employees and employers, enhancing productivity, collaboration and mental health. Taking a lunch break is no longer a routine event at a set time of day either, our research shows. With the rise of flexible working, employees now expect to refuel when and where suits them best. They want convenient, good-quality food and drink to boost energy and comfortable places to relax and socialise with colleagues. Employers looking to motivate their teams, attract new talent and encourage hybrid workers back into the workplace are investing in what is known as the ‘hotelisation’ of workspaces. Comfortable breakout areas and some form of entertainment, such as ping-pong or TVs, are becoming much more common, as are rooftop gardens and patios for coffee breaks. Employers are conscious of meeting the needs of workers by providing food and refreshments, combined with social interaction, that people can’t replicate at home. Wise employers are creating a workplace culture where breaks are encouraged, not frowned on. Deirdre O’Neill is Managing Director at Compass Ireland 

The latest KPMG Enterprise Barometer reveals a positive outlook among Ireland's indigenous businesses, with over a third planning workforce expansion. These entrepreneurial firms prioritise sustainability but seek clarity on costs and benefits, says Alan Bromell KPMG Enterprise Barometer 2023 highlights confidence among Ireland’s indigenous businesses, with over half (55 percent) expecting to increase turnover in the next 12 months.  The majority of survey respondents, 83 percent, support the need for more action on climate change, and 7 out of 10 are actively pursuing sustainable measures, demonstrating the proactive approach these entrepreneurial businesses are taking to incorporate environmentally friendly practices into their operations.   The research reveals overall optimism among Irish businesses, with over half (55 percent) expecting to increase turnover in the next 12 months and 38 percent expecting to expand their workforce, demonstrating a belief in their growth potential and job creation. Balancing the costs and benefits of sustainability While the majority of survey respondents support more action on climate change, two-thirds express concern about the need for more clarity on the costs and benefits of these measures, and three-quarters say no stakeholder groups are exerting pressure on them to develop decarbonisation strategies. This poses a significant challenge for companies as they strive to make informed decisions on sustainability measures and allocate resources effectively. The survey showed resilience and measured confidence in the future amongst Irish businesses and entrepreneurs. Notwithstanding the challenges in areas such as costs and interest rates, Irish entrepreneurs are resourceful and robust. Private Irish business and entrepreneurship are critical pillars of the Irish economy, providing employment, sustaining tax revenues and acting as role models for future entrepreneurs. In addition, their ingenuity and innovation can be instrumental in solving various challenges, from technology, health and nutrition to sustainability and environmental protection. The survey also shows that sustainability has become a fundamental aspect of business operations, and it’s encouraging to see businesses in Ireland actively pursuing sustainability measures. However, they need help understanding the costs and benefits of decarbonisation. Tax suggestions for Budget 2024 When asked for their views on the current tax regime, less than a quarter (24 percent) said they believe it encourages entrepreneurship and growth. At the same time, three-quarters feel that the Irish tax regime is more challenging for domestic businesses.  The top three tax changes businesses would like to see in Budget 2024 are introducing tax measures to encourage sustainable behaviour (83 percent), amending capital gains tax rates or rules to encourage investment in Irish companies (79 percent) and introducing a reduced tax rate for dividends for entrepreneurs (74 percent ). These highlight a desire for tax incentives and reforms that promote sustainable business practices, stimulate investment and reward entrepreneurship. Recruiting challenges Sixty percent of private Irish businesses and entrepreneurs face difficulties recruiting the right individuals to fill key company positions. Nearly half (45 percent) consider the current tax regime in Ireland a disadvantage to recruiting and retaining skilled employees. The availability of residential accommodation is another primary concern; over three-quarters (77 percent) say lack of accommodation is an issue, suggesting that the housing situation in Ireland could impact recruitment and competitiveness. Alan Bromell is Head of Private Enterprise at KPMG

ICAEW has shared a recording of a recent webinar titled ‘Bounce Back Loan SARs: what good looks like’ This is free of charge but requires registration via the link below. Bounce back loan SARs: what good looks like (icaew.com)

Credit Review has just published its 22nd report, covering the period 1 January 2021 to 31 December 2022. The report provides a comprehensive overview of Credit Review’s activities and insight into the credit landscape, highlighting its commitment to transparency, accountability, and promoting fair lending practices for SME and farm businesses. Origins of Credit Review Credit Review was established in 2010 by the Minister for Finance to ensure the flow of credit to viable Irish businesses and farms. Its key function is to examine credit decisions for SME or farm borrowers who have had an application for credit of up to €3 million declined or reduced by participating banks (currently AIB, Bank of Ireland, PTSB and Ulster Bank), and who feel that they have a viable business proposition and apply for a review. While Credit Review cannot instruct a participating institution to provide credit, most of the cases Credit Review has supported were approved credit. In addition, Credit Review has monitored lending and provides market intelligence to the Minister for Finance by receiving monthly loan data from banks and observing lending behaviour and credit risk appetite by each bank through its work on borrowers’ appeals. Credit Review Office 2022 Report Business environment Despite COVID-19, the war in Ukraine and Brexit, Irish SMEs have remained resilient, with low levels of business failures to date, low unemployment, and profits and revenues recovering to pre-pandemic levels, helped by the government pandemic support and the positive banking sector response. Businesses during the COVID-19 lockdowns sought to conserve cash and reduce costs and expenditures, but this may have led to a lack of investment. There are sectoral disparities, and government support may have been providing life support for weaker non-viable businesses. SMEs seeking finance have fewer options due to the exit of Ulster Bank and KBC. Strategic Banking Corporation of Ireland (SBCI) schemes have been successful, but eligibility criteria now have a narrower focus. Microfinance Ireland continues to support micro-businesses with a cap on lending of €25,000. Formal restructuring mechanisms such as SCARP are welcomed. Revenue's tax warehousing scheme has enabled many businesses to maintain a cash buffer, but repayments will commence in 2024. Credit Review expects debt restructuring and refinance requests to accelerate by year-end due to exiting banks and COVID-19 creditor legacy. Credit Review recommends that banks provide written advice to borrowers on the future credit implications of restructuring decisions. Banking overview and outlook The Irish banking system has undergone a major upheaval in the last two years, with the exit of two banks from the market – Ulster and KBC. Customers seeking to migrate from exiting banks with credit blemishes will find it difficult to get credit approval – the reduced number of banks operating in the Irish SME market makes it more difficult for business borrowers with credit challenges to refinance. Ulster and KBC will likely sell challenged debt as part of a portfolio loan sale at the end of the exit process. Irish banks are targeting a reduction of the non-performing loans/exposures ratio to three percent by 2023, which will require remaining banks to work with SME borrowers to restructure SME debt sustainably. Monitoring bank lending Credit Review has received monthly loan sanction figures from the three banks that continue to lend to Irish SMEs and farms. These figures show that the banks' loan books have stabilised after shrinking for most of the last decade. SME demand for bank debt and expectations of future demand remains low, with just 17 percent of SMEs seeking credit in the last six months or expecting to borrow in the next six months. See the full report on Creditreview.ie This article is sponsored by Credit Review

In Irish news, we bring you an update from last week’s meeting of Main TALC and the Minister for Housing, Local Government and Heritage opens a public consultation to review the private residential rental sector. In UK news, there’s still time to tell us your views on some consultations and HMRC has published Pillar Two draft guidance for comment. In International news, the implementation of the VAT One Stop Shop is proving successful.  Ireland The Institute represented members at last week’s meeting of Main Tax Administration Liaison Committee (TALC). The Minister for Housing, Local Government and Heritage opens a public consultation to review the private residential rental sector. UK There’s still time to tell us your views on some consultations. HMRC has published Pillar Two draft guidance for comment. International The implementation of the VAT One Stop Shop (OSS) is proving successful. 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.  

In every issue of The Bottom Line, we ask students for their thoughts on a particular topic. This month, we want to know: what are your thoughts on Irish neutrality? Karen Chandrakanth PwC Ireland’s policy of military neutrality has long been an important strand of Ireland’s independent foreign policy.  'Change' does not necessarily mean drastic; it can also mean to evolve – joining NATO is not the only option that confronts us.  We must also consider strengthening what we have and evolving our stance to further develop cyber, airspace and naval defences.  For every decision made regarding our neutrality and defences, there will be two sides to the argument. Whichever way we fall, our decisions must have an  impact for the better.  Change can happen in phases, but drastic or lack of change should not be an option. Sarah Byrne Browne RBK Chartered Accountants Ireland's neutrality has been questioned many times over the years, especially in recent times. I think we also need to question: has Ireland's neutrality been slowly eroded? For example, our governments have been encouraged to let America and other European countries use Shannon Airport as a stopover on their way to the Middle East. Our army also has peacekeepers in Africa. If this is a permanent arrangement, could our island be seen as a threat, and are we opening ourselves up to possible attacks from other countries with a grievance against the US or NATO?  Going forward, should Ireland have more safeguards in place? More and more nowadays countries are victims of cyber-attacks; how ready are we for these?  We remain neutral, so there wouldn’t be too much of a threat regarding the above but it begs the question of how we keep our neutrality whilst also trying to help others. Clodagh Murphy PwC Irish neutrality is a phrase which has been frequenting headlines in recent times.  Due to international events, most prominently the war in Ukraine, many have questioned  if Ireland’s neutral stance is still the best way forward.  This past June we watched with interest as a group of experts discussed this topic at the Consultative Forum on International Security.  A potential change to the current ‘triple lock’ process is an interesting development which has the potential to alter Ireland’s current peacekeeping abilities.  While discussions are still in the early stages, any policy change in this area has the potential to alter Ireland’s relationship with foreign powers. I will be following this story closely over the upcoming weeks and months!