Last week Chartered Accountants Ireland attended a special meeting of the Northern Ireland Joint Customs Consultative Committee at which Government Officials provided an update on the Windsor Framework. The key messages for current goods movements from the first meeting in February after announcement of the WF remain the same. Other matters of interest are outlined below and we will feature more in Chartered Accountants Tax News over the next few weeks. The Institute has been pressing the UK Government on several EU exit matters for some time now. Updates were provided in the meeting on the Trader Support Service (“TSS”) and the long awaited reimbursement scheme, in addition to some other key areas. Trader Support Service (“TSS”) The message remains that the Government recognises both the significant support the TSS has provided to businesses and the large number of traders that have benefitted from its assistance since 2021. The TSS will continue to support traders throughout 2023 to meet the requirements under the Northern Ireland Protocol. Traders will continue to be supported to understand the new Windsor Framework requirements and what it means for them. Reimbursement scheme The timeline for the scheme to open is summer 2023. Claimants will not need to be registered under the UK Trader Scheme or the new UK Internal Market Scheme in order to claim a reimbursement of tariffs. Evidence must be provided to support reimbursement scheme claims and this must retained by claimants. HMRC will provide examples of supporting evidence in guidance. Bulk claims will be possible. We asked what the expected timeframe for refunds is likely to be and HMRC reflected that as the scheme is likely to see significant demand initially, a timeframe cannot initially be provided. The scheme will apply to reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the Windsor Framework. The time limit in which claims must be made will be standardised after a period of time and set out in guidance. However initially, claims will be possible back to 1 January 2021. A new improved customs duty waiver scheme will also be available via a digital process. More information on the scheme is expected to be available in the next few weeks. New UK Internal Market Scheme The expanded UK Trader Scheme will be known as the UK Internal Market Scheme (“UK IMS”) and is expected to open for reauthorisation of existing UK Trader Scheme users in early June with the scheme commencing from 1 October 2023. The UK IMS will underpin green lane movements. More information on the scheme and how to apply will follow in the coming weeks as will more detailed guidance on green and red lane movements and how these will operate, including the data sets required for each (8 digits for red lane and 6 digits for green lane). The new UK IMS will be open to traders established anywhere in the UK and will enable participants to set up a unique goods profile for their movements.

Earlier this month, the Institute made a submission to the House of Lords inquiry into the Windsor Framework (“WF”) which has now been accepted by the Committee as evidence. The submission focuses on the ongoing need for a permanent solution to the lack of customs intermediaries/capacity in the Northern Ireland market, the vital role of the Trader Support Service and it also highlights the importance of guidance. Not enough detail is currently available on how the new Trade Operating Model (“TOM”) will operate on a practical level, particularly regarding customs and the operation of the new processes for red and green lanes. It is therefore important that HM Government provides operational detail on the new TOM as soon as possible, via detailed guidance (developed in conjunction with stakeholders and containing case study examples), and underpinning legislation, so that businesses can assess before it comes into operation how this impacts on their specific supply chain and prepare accordingly, including identifying any challenges. This is especially important given disparities which have been identified between the UK and EU’s publications on the WF. Any new processes to be introduced must also be tried and tested and some uncertainties also remain around the ‘at risk’ test which other bodies have already highlighted; these must be ironed out before the new TOM is introduced. It is also currently unclear how the many and varied types of goods movements from GB into NI will specifically be dealt with, including goods moving from the EU to GB and onward to NI. Unless detailed guidance is available well in advance, trade disruption is likely to occur and there may be further withdrawal from the NI market by some GB traders. Overall, the WF risks fixing problems for some supply chains only to shift new and different problems, burdens and frictions onto others. Ultimately, until accompanying legislation, detailed policy and guidance, and information on new processes is provided, it is difficult for NI businesses to fully assess and consider the practical impact on trading routes and identify any unintended or knock-on consequences.

HMRC recently closed the VAT registration helpline (from 22 May 2023), a subsidiary of the VAT helpline, which was dedicated specifically to helping taxpayers with queries around their VAT registration application. Advisers from this helpline are being redeployed to spend their time processing VAT registration applications instead of answering calls through the helpline. The closure of the helpline was not consulted on in advance of the announcement. Read the full email from HMRC.

The latest Agent Update and News and Information Bulletin are available from HMRC. Agent Update: issue 108 is available now. Get the latest guidance and information, which features the following this month:- Changes to the HMRC VAT online account from 15‌‌‌ May 2023 – are businesses software-ready? Self-Assessment threshold change; Repayment agent registration – check if you need an agent services account to submit repayment claims; and Employment related securities – end of year return deadline.

This month’s tidbits cover the latest bulletins from HMRC and updated guidance in several areas.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. Read the Institute’s submission to the House of Lords inquiry into the Windsor Framework and The Retained EU Law Bill is proceeding through the final stages in the House of Lords. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins are also available and we bring you news of an enhancement to the Goods Vehicle Movements Service (“GVMS”). Enhancement to the GVMS. From 16 May 2023, HMRC introduced an enhancement to the GVMS which means that taxpayers can now upload up to 2,500 Import Movement Reference Numbers for EU to Great Britain movements. Retained EU law bill Report stage of Retained EU Law (Revocation and Reform) Bill took place last week on 15 and 16 May in the House of Lords. Peers in the House proposed amendments to the Bill, with the Government defeated on several occasions. One significant amendment was made for changes to the Bill to be subject to greater parliamentary scrutiny via referral to a Joint Committee of both Houses of Parliament.   Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Schedule of Retained EU law; Pay no import duties or VAT on importing goods for testing; Pay no import duty and VAT on importing commercial samples; Pay no import duty or VAT on donated medical equipment; Pay no Customs Duty or VAT on blood grouping, tissue typing and therapeutic substances; and Pay no import duty or VAT when importing animals for scientific research.

Viet Nam recently deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The MLI will enter into force in Viet Nam from 1 September 2023.

Following a review by Revenue, the decision has been made to decommission seldom-used regional telephone numbers. Instead, taxpayers and their agents seeking service in relation to business taxes can reach Revenue by dialling 01-7383630 (or 01-7383697 to bypass prompts). The decommissioned regional numbers are: BMW01-7383611    DUB01-7383612    ESE01-7383613    SW01-7383614    If callers try to reach these numbers after the effective date, they will receive a message indicating the relevant line is no longer in service.

Revenue has amended its Tax and Duty Manual 'Agent's Guide to the Collector General's Division' to reflect the latest operational processes and current due dates. The updates include: Local Property Tax (LPT) payments can be made by direct debit by accessing the LPT portal on the Revenue website.   An Agent Link for each property is required in respect of LPT.   Direction that agents should not provide their own address as business address of their client.  Clarification that final demands will issue to the business or official address of the taxpayer.   Information regarding the Small Company Administrative Rescue Process (SCARP).   Large Corporates Division (LCD) now deals with Tax Relief at Source (TRS) for qualifying medical insurance premiums.   Information has been inserted in relation to changes to preliminary tax rules for corporate non-resident landlords and the introduction of the interest limitation rule (ILR). Further information is available in eBrief no.123/23.

The Department of Finance has published the responses it has received to its recent feedback statement on Pillar Two Minimum Tax Rate implementation The Institute, under the auspices of the CCAB-I, responded to the feedback statement earlier this month.

Revenue has updated examples in its Tax and Duty Manual regarding the recoupment of overpayments of salary by an employer from an employee to reflect changes to the value of the standard rate tax band and personal tax credits introduced in Budget 2023.

Revenue has updated its Tax and Duty Manual regarding the treatment of employer reimbursed remote working expenses to clarify conditions relating to the €3.20 per diem payment.