Although not featured in the Chancellor’s speech, buried in the Autumn Statement 2023 publications is the outcome of HMRC’s recent small business review. This comprises what is referred to as a “package of changes to simplify the design of Making Tax Digital”. A separate corporate report with more detail was also published which provides details of further work and next steps. The package of changes announced includes maintaining the current MTD turnover threshold at £30,000 and design changes which aim “to simplify and improve the system”. These changes will take effect from April 2026 when MTD for income is initially scheduled to commence for self-employed business and landlords with turnover of more than £50,000. Earlier this year, Chartered Accountants Ireland met with HMRC to discuss the review and highlighted several concerns, including the need for HMRC to increase the exemption threshold. We are pleased to see that HMRC has decided, at present, to maintain the turnover limit at which MTD will be mandated to £30,000, effectively increasing this from the original exemption limit of £10,000. Taxpayers with turnover from £30,000 to £50,000 are still mandated to join MTD from April 2027. However, the government will keep under review the turnover less than £30,000 population. These changes specifically:- simplify the requirements for all taxpayers providing quarterly updates, and for taxpayers with more complex affairs, such as landlords with jointly owned property; remove the requirement to provide an End of Period Statement; exempt some taxpayers, including those without a National Insurance number, from MTD; and enable taxpayers using MTD to be represented by more than one tax agent.      

In Irish news, the Institute wants to hear members views on the proposal for real-time digital reporting of VAT, while Revenue  has provided contact details for platform operators with DAC7 registration queries and it is to hold a further webinar on the Enhanced Reporting Requirements for employers. In UK news, this week’s miscellaneous updates brings news about the publication of new Guidelines for Compliance for R&D tax relief claims. In International news, the European Commission has published the Autumn 2023 Economic Forecast which shows that the European economy has lost momentum. Ireland Revenue’s public consultation on real-time digital reporting for VAT – we want to hear from you. Revenue has provided useful contact information for DAC7 registration and filing queries for platform operators that are obliged to register with Revenue by 30 November 2023. Revenue is holding an online webinar on Thursday 30 November on the Enhanced Reporting Requirements (ERR) for employers which is scheduled to commence from 1 January 2024. UK Read about the new Guidelines for Compliance in respect of R&D tax relief claims. International The European Commission has published the Autumn 2023 Economic Forecast which shows that the European economy has lost momentum. 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.

On 17 November 2023 HM Treasury published guidance on Ownership and Control: Public Officials and Control guidance. The guidance sets out that the Foreign, Commonwealth and Development Office  does not generally consider designated public officials to exercise control over a public body in which they hold a leadership function, such that the affairs of that public body should be considered to be conducted in accordance with the wishes of that individual. However, if there was sufficient evidence to demonstrate that the designated individual exercises control over the public body within the meaning of the relevant regulations, then the relevant legal test under UK sanctions regulations may be met. The guidance follows on from a notable decision of the UK Court of Appeal Mints & Ors v PJSC National Bank Trust & Anor [2023] EWCA Civ 1132 which was handed down 6 October 2023. Please click here for our recent news item on the judgment. Please also see the recent UK High court case of 15 November 2023 Litasco SA Claimant, Der Mond Oil and Gas Africa SA and Locafrique Holding SA. There the High court judge appears to create a test that distinguishes between actually existing control and prospective control, stating his belief that the better interpretation of Regulation 7(4) is that it is concerned with an existing influence of a designated person over a relevant affair of the company …. not a state of affairs which a designated person is in a position to bring about. Were matters otherwise, it would follow that President Putin was arguably in control, for Regulation 7(4) purposes of companies of whose existence he was wholly ignorant, and whose affairs were conducted on a routine basis without any thought of him. Readers can also listen to a recent (20th Nov 2023) interesting webinar on the subject entitled “Webinar with UK government on sanctions ownership/control”. The webinar was hosted by UK firm Peters & Peters and the UK deputy director of sanctions David Drake and deputy director in OFSI Beth Davis spoke on the topic. Acknowledgement that any links to BAILII website (above) are free. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.    

We are delighted to announce that McSharry Foley Insurance brokers are the sponsors of our Christmas lunch this year. Siobhan McSharry and her team at McSharry Foley are no strangers to the North West Society, and have joined forces with us many times through the years. Supporting local business and local businesspeople is a key pillar of their business values. Serving the Northwest and located in Sligo for over 40 years, McSharry Foley provides an experienced, professional and personal local Insurance Broker service. Accessing the Irish & London Markets they specialise in liability / property / fleet / professional indemnity insurance for all commercial sectors, including manufacturing / engineering / building / hospitality / retail & office / heritage / social & community. They work with clients, supporting them with underwriting advice, market rates and competitive cover on the phone or in person. They also trade as whoops.ie providing car / van / home insurance nationally over the phone or online.  Please join the North West Society committee in welcoming Siobhan and her team at McSharry Foley insurance brokers & whoops.ie to our Christmas lunch.  The lunch is now sold out, for waitlist enquiries, click here to enquire.

The European Commission has published the Autumn 2023 Economic Forecast which indicates that the European economy has lost momentum this year against the background of a high cost of living, weak external demand and monetary tightening. Although economic activity is expected to gradually recover, the Autumn Forecast revises EU GDP growth down compared to its summer projections.

The OECD is to publish Corporate Tax Statistics 2023 tomorrow Tuesday 21 November, alongside a new working paper on effective tax rates of multinational enterprises. The publication provides comprehensive insights into corporate tax systems and the tax and economic activities of thousands of multinational enterprises operating around the world.

The OECD is to publish new evidence on global low-taxed profit of multinational enterprises (MNEs) as part of its series of OECD Taxation Working Papers. Using a new dataset on the global activities of large MNEs, the paper provides new estimates of the distribution of effective tax rates of large MNEs across and within jurisdictions.  The results show that low tax profit is common, and that substantial low-taxed profits exists outside low tax jurisdictions.

Kuwait has joined the OECD/G20 Inclusive Framework on BEPS, an international collaboration with over 140 member countries and jurisdictions. Kuwait will participate in the implementation of the Two-Pillar Solution to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.

Revenue has updated the Tax and Duty Manual regarding Securitisation Regulation: Notification of Investment following publication of the updated EU list of non-cooperative jurisdictions for tax purposes on 23 October 2023. The updated manual reflects the revised list, with relevant examples, and links to official journals of the EU also updated.

Revenue has published an updated Tax and Duty Manual to provide information for PAYE taxpayers on how to review their tax using MyGovID or MyAccount. The screenshots and guidance on the Employment Detail Summary have also been updated.

Later this week, Chancellor Jeremy Hunt will deliver his second Autumn Statement on Wednesday 22 November. On the day, the Institute will be reporting on key tax announcements with detailed analysis to follow in next Monday’s Chartered Accountants Tax News. It has also been confirmed that the 2024/25 Scottish Budget will take place on 19 December 2023 and the Welsh Government has announced that it is planning to publish the outline and detailed draft budgets on 19 December 2023, with the final Budget scheduled for 27 February 2024. In last week’s cabinet reshuffle, Nigel Huddleston MP was appointed as Financial Secretary to the Treasury.  The recent King’s speech provided little insight into what the government’s future tax policy may look like, though perhaps this is not unexpected as a UK general election looms in 2024. However, one thing we do expect to hear about on Wednesday is the outcome of HMRC’s review into Making Tax Digital for income tax for the smallest businesses. Earlier this year, Chartered Accountants Ireland met with HMRC to discuss the review and highlighted several concerns, including the need for HMRC to increase the exemption threshold. 

As previously reported, Revenue has published general guidance for platform operators on how to register with Revenue for the reporting obligations in Ireland for the purpose of DAC7.  Registration must be completed by 30 November 2023. In addition, Revenue has included the relevant contact details relating to registration queries on its Automatic Exchange of Information (AEOI) webpage.  Filing queries may also be placed here and they will be directed accordingly.