Despite rising inflation and interest rates, Ireland’s SMEs are prioritising innovation to stay competitive in a tough market, writes Neil Hughes Inflation is the number one threat facing Irish SMEs at present (56%), followed by rising interest rates (40%) and the availability of talent (34%). These were some of the main findings of the new Azets SME Pulse Survey undertaken with iReach, surveying senior leaders at 211 SMEs across Ireland in April and May. Forty-three percent said they were expecting the economic climate to worsen over the next 12 months. Only 18 percent are expecting an improvement. If economic uncertainty persists, one-in-three (36%) said they would consider cutting jobs. It is clear that inflation is proving to be a significant challenge for SMEs throughout the country. Every aspect of doing business is becoming more expensive and rising prices are putting a squeeze on already tight operating margins. Given the numerous challenges facing owner-managed and family businesses in Ireland, there is likely to be a greater number of SMEs needing support in the face of financial difficulty.  Rising prices, combined with the significant levels of tax warehoused during the COVID-19 pandemic that will fall due, mean that there are likely to be hundreds of SMEs facing financial difficulty that may need to be restructured.  I would encourage SMEs facing financial challenges to get advice on restructuring and find out if there are funding or finance options that might support their business. The Small Companies Administrative Rescue Process (SCARP) or examinership could help save their business and the jobs they support.  The main sources of funding SMEs expect to avail of in the coming year include their own cash (24%) and government grants or subsidies (19%). Just 13 percent are considering private equity, nine percent bank funding and four percent venture capital.  Forty-six percent of our respondents believe the government should provide additional grants and supports to help navigate the challenges ahead, and 35 percent want additional funding for skilling and upskilling initiatives. Twenty-five percent of our SME Pulse Survey respondents told us they expect the tax burden to increase, while 10 percent expect it to fall. When asked about the outlook for their own business, 19 percent said they expect their revenue and profits to increase in the year ahead, 63 percent expect no change and 18 percent are anticipating a decrease.  Despite the obstacles they are currently navigating, SME leaders believe that innovation will provide the greatest opportunity for their business over the coming six months. It is encouraging to see SMEs remain optimistic about the future of their business and committed to pivoting their business models and embracing digitalisation to fuel growth. There is no doubt that technology, whether for cybersecurity, data analytics, remote working, e-commerce or process automation, will be key to their ongoing resilience and competitive advantage. This will be critical as they continue to adapt to a rapidly evolving world.  The Azets SME Pulse Survey also reveals that only one-in-five Irish SMEs are currently measuring their carbon footprint.  They are beginning their sustainability transformation journey and ESG considerations will increasingly shape their business strategy – whether this is in the reduction of their environmental impact or promoting greater diversity.  Close to one-in-three SMEs are currently reducing the carbon footprint of their business. The main challenge they face in progressing their ESG goals is the cost involved. With Ireland committed to becoming net zero by 2050, however, SMEs will have to adapt.  Neil Hughes is CEO of Azets Ireland

Cloud computing has revolutionised how businesses operate but it has also given rise to new risks, challenging organisations to navigate security breaches, data privacy concerns and governance, writes Jackie Hennessey While cloud computing offers some great benefits such as reduced costs, flexibility, and scalability, it also introduces a unique risk profile, including information security, data protection, service availability and increasing regulatory requirements. Striking a balance between managing this risk and leveraging the power of the cloud is crucial. Effective cloud governance that promotes optimisation and does not create barriers to innovation can help organisations strike this balance. Navigating the key risks of the cloud Risks need to be governed and managed to ensure that cloud technology is being used responsibly and in compliance with regulatory expectations. As a result, it is more important than ever to understand and mitigate these potential risks to leverage cloud computing safely. Your first step to determining your cloud risk exposure is understanding the following six potential risk categories: People: Lack of available resources with the correct skill set; Data security: Failure to implement sufficient and appropriate security controls to protect data and prevent data loss through unauthorised access; Compliance: Failure to meet regulatory compliance requirements (including across multiple jurisdictions); Operational: Failure to implement cloud processes, systems and controls aligned with current policies; Financial: Failure to perform proper cloud spend management around unplanned spikes in transaction volume and traffic; Third-party: Lack of third-party oversight, including failure to acknowledge the increased risk of cloud vendor lock-in, vendor unreliability and dependencies. Cloud management Cloud-focused governance bodies Cloud governance bodies will be required to develop, monitor and evolve cloud governance over time by leveraging existing governance forums or establishing new ones with responsibility for: Cloud governance – formulating initial cloud governance policies, monitoring compliance and reviewing exceptions and proposed changes; Cloud operations – managing day-to-day cloud operations, service provision and related issues. Management of CSPs The approach to managing cloud service providers (CSPs) should be formalised and include processes for: Ensuring CSPs have adequate controls in place; Onboarding and offboarding of cloud services from CSPs; Monitoring of performance in line with Service Level Agreements (SLAs); Oversight of outsourcing arrangements carried out by CSPs (i.e. sub outsourcing); Ensuring exit strategies are in place for the termination of services (both expected and unexpected). Cloud strategy A cloud strategy should be developed or considered as part of the technology and outsourcing strategies. The cloud strategy will need to remain aligned with the business’s strategic objectives and be reviewed and updated periodically. Data privacy and security Data privacy and security policies and processes should be updated to consider the use of the cloud and additional controls that may need to be implemented as a result of this, such as: Sensitive data ownership and classification; Data flows and requirements for data transfer; Data loss prevention and rights management for cloud data at rest, in transit and in use. Cloud capabilities Mechanisms should be implemented to ensure ongoing resource availability with the right expertise and skill set. Cloud policies and processes Cloud policies and processes should be developed to define how the cloud is managed and monitored. These policies and processes should be communicated to appropriate stakeholders across your organisation to support ongoing compliance. Regulatory compliance Regulatory horizon-scanning mechanisms should be in place to identify the regulatory compliance landscape and expectations for cloud services relevant to your organisation. Jackie Hennessey is a partner in Risk Consulting at KPMG

Welcome to this week’s Technical Roundup.    In developments this week, the IFRS Foundation has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements; a new tool from the International Federation of Accountants (IFAC) is now available to help professional accountancy organizations (PAOs) take leading roles in the anti-corruption fight in their jurisdictions. Read more on these and other developments that may be of interest to members below.  Audit IAASA has published its 2022 Annual Audit Programme and Activity Report. This report provides a summary of the activities performed by IAASA during 2022 to oversee the audit profession in Ireland. Financial Reporting The IFRS Foundation has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. While the IFRS for SMEs Accounting Standard does not explicitly refer to climate-related matters, there are many areas of the standard where entities should consider climate-related matters and how this impacts accounting treatment. The educational material has been developed in response to feedback from some members of the SME Implementation Group and respondents to the 2022 Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. This feedback identifies that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. The UK Endorsement Board has adopted Lease Liability in a Sale and Leaseback- Amendments to IFRS 16. The Amendments add subsequent measurement requirements for sale and leaseback transactions to improve the requirements for such transactions in IFRS 16 Leases. These amendments were issued in September 2022 by the International Accounting Standards Board. The amendments have an effective date of 1 January 2024, with early application permitted. The European Council has extended the scope of rules to transfers of crypto assets, with the intention of making it more difficult for criminals to circumvent anti-money laundering rules via crypto currencies. Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of crypto transfers, regardless of the amount being transacted. Sustainability In a EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts on 8 June to discuss the skills and education needed for finance professionals to contribute to a green and just transition. Insolvency The Insolvency Service in the UK is seeking views on proposed changes to its statistics publications to ensure it continues to produce relevant statistics that meet users' needs. The consultation closes on 30 June 2023. Other The FRC is hosting a webinar on the proposed revisions to Technical Actuarial Standard 300 (TAS 300) and the introduction of Technical Actuarial Standard 310 (TAS 310) relating to pensions. The proposed revisions include requirements for providing advice on setting actuarial factors and for bulk transfer exercises including buyout transactions with an insurer and transfers to a pension superfund. TAS 310 sets out the standards for actuarial work in relation to collective money purchase pension schemes.  The CCAB-I Business Law Committee has published a Technical Alert entitled Questions and Answers on the provision of PPSN for directors on certain CRO filings. This document outlines what is required under the new requirement, the potential issues arising and some practical guidance on actions that directors and their advisors can take to prepare for the new requirement which comes into effect on 11 June 2023. The European Securities and Markets Authority has released the latest edition of its Spotlight on Markets Newsletter. This Newsletter includes details of the third edition of the ESMA’s Data Quality report. On 8 May 2023, the Department of Enterprise Trade and Employment (DETE) launched a public consultation on proposals to enhance the Companies Act 2014. DETE has published a press release and consultation paper ion their website. The Institute will be making a submission in response to the consultation on behalf of members and all submissions can be emailed to companylawconsultation@enterprise.gov.ie .The closing date is no later than 5pm on 9 June 2023. A new tool from the International Federation of Accountants (IFAC) is now available to help professional accountancy organizations (PAOs) take leading roles in the anti-corruption fight in their jurisdictions. Global Fight, Local Actions: Anti-Corruption Advocacy Workbook for PAOs equips PAOs and accountancy profession leaders with the background and framework to craft bespoke approaches and messages that best fit their jurisdiction and needs. For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.     

The CCAB-I Business Law Committee has recently published Technical Alert 02 2023 This question and answer document addresses what the new requirement is, how the director’s identity will be verified, the process if a director does not have a PPSN or is non-resident, what the potential issues are that may arise and practical steps that should be taken now.   The effective date for the new requirement is 11 June 2023.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s Public Sector Climate Action Mandate, the European Parliament’s backing of new rules for sustainable products and eliminating greenwashing, and how Europe needs to step up its circular economy efforts. Also covered is the launch of the UK’s Local Industrial Decarbonisation Plans competition, the invitation to Northern Ireland businesses to apply for the King's Awards for Enterprise, the first meeting of the UK government's Net Zero Council, and articles and upcoming events.  Public Sector Climate Action Mandate receives Cabinet approval The Public Sector Climate Action Mandate 2023, which highlights the main climate action objectives for Ireland’s public bodies, received Cabinet approval this week. The mandate sets out a range of actions for the public sector to lead by example. These include removing disposable cups, plates and cutlery from public sector canteens, promoting the use of bicycles and shared mobility options, and phasing out parking facilities in buildings that have access to good public transport and active or shared mobility options. The Public Sector Climate Action Mandate was first outlined in Climate Action Plan 2023, with some of the actions contained in the Programme for Government. The Department of the Environment, Climate and Communications has also developed a Public Sector Climate Action Strategy 2023-2025, which acknowledges the leadership role of the public sector in the broader nationwide net-zero transition. Environmental subsidies in Ireland rose to €1.5 billion in 2021 In 2021, environmental subsidies and similar transfers in Ireland were €1.5 billion, an increase of €327 million, or 29 percent compared with 2020. The figures were outlined in a CSO statistical publication last week, which reported that the increase in environmental subsidies in 2021 was mainly due to an increased level of Public Service Obligation (PSO) Levy support to electricity generation from renewable sources. This rose from €130 million in 2020 to €415 million in 2021. 58 percent (€836 million) of total environmental transfers went to environmental protection activities such as wastewater management, protection of biodiversity, and protection of air and climate, while 42 percent, or €617 million, went to resource management activities, such as production of energy from renewable resources, heat/energy saving, and management of forest resources. Local Industrial Decarbonisation Plans competition for £5 million funding – opening June 2023 The UK’s Department for Energy Security and Net Zero (DESNZ) has announced it will be launching the Local Industrial Decarbonisation Plans (LIDP) competition in June 2023. The LIDP offers grant funding of £5 million funding to support the development of strategic decarbonisation plans for industrial manufacturers located in dispersed sites to kickstart their journey towards a low-carbon future. LIPD will be open to collaborative local cluster project teams formed of industrial manufacturers and other key stakeholders, such as local authorities and Local Enterprise Partnerships (LEPs). Prior to the competition window opening, engagement sessions are being held on the LIDP to support stakeholders interested in forming a local cluster project team.  Northern Ireland businesses are invited to apply for the UK's most prestigious business award Northern Ireland businesses are invited to apply for the King's Awards for Enterprise, which recognises and encourages the outstanding achievements of UK businesses in the fields of international trade, innovation, sustainable development, and promoting opportunity through social mobility. Businesses of all sizes and from all sectors can apply, the awards are free to enter and businesses can apply for more than one award. Applications close at midday on Tuesday 12 September 2023. UK government holds first meeting of Net Zero Council Last week saw the first meeting the UK’s Net Zero Council, a high-level government forum which aims to support industry to help cut emissions and develop greener practices. The key objectives of the Council, which is co-chaired by Energy Minister Graham Stuart and Co-op Group chief executive Shirine Khoury-Haq, are to ensure sectors and companies have a pathway to net zero and to lead a systematic review of the financing challenges and respective roles of government, industry and the financial sector in addressing them. The Council, which will meet once a quarter, also aims to identify key challenges facing SMEs in reducing their carbon footprints and to support their transition with new information and advice. Commenting, Shirine Khoury-Haq said: “We are in the grip of a climate crisis of humankind’s making and this is the single most important issue that the global community faces. It is vital that all businesses actively contribute to the net zero journey with vigour, as failure to seize this opportunity simply cannot be an option.” Europe needs to step up circular economy efforts, report finds A briefing published this week by the European Environment Agency’s (EEA) has found that the EU must make more progress in implementing its circular economy action plan so as to achieve its goal of doubling the share of recycled materials used in its economy by 2030.  The briefing, ‘How far is Europe from reaching its ambition to double the circular use of materials?’ found that enhanced waste recycling alone will not be sufficient for the EU to achieve the target and that less overall use of materials is needed. It also recommended more ambitious measures, for example: increasing the recycling rate of all treated waste from the current 40 percent to 70 percent, decreasing overall material inputs by 15 percent, and reducing the amount of fossil fuels used by 34 percent. It also recommends a special focus be put on non-metallic minerals, such as construction materials, as these account for about half of all materials used in the EU, and on materials with the highest negative impacts in their production, especially fossil fuels and biomass.  European Parliament backs new rules for sustainable products and to eliminate greenwashing Members of the European Parliament last week approved the proposal for a new directive aimed at empowering consumers for the green transition by helping them make environmentally friendly choices and encouraging companies to offer more durable and sustainable products. The directive was proposed on 30 March 2022 by the Commission to empower consumers through better information and better protection against unfair practices. Among the measures foreseen are the banning of the use of general environmental claims like “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco” if not supported by detailed evidence, and the banning of environmental claims that are based solely on carbon offsetting schemes. The proposed directive is part of the first circular economy package and paves the way for a new green claims directive. The Council of the EU adopted its own negotiating mandate on 3 May, meaning that negotiations between the Parliament and the member states on the final content and wording of the directive can start soon. Are you an SME interested in retrofitting your premises (renters or owners)? A National Roadshow to help SMEs take the next step in commercial retrofitting is now underway. The roadshow, organised by ENACT, will be travelling across Ireland to bring in-person and online sessions to Cork, Dublin, and Galway. Sessions are organised by building type and sector. This is a unique opportunity for SMEs either owners or renters of premises: planning to/currently renovating offices, retail space, hospitality venue, leisure facility or warehouse, or have already completed a renovation and want to share their insights. Find out more and sign up here.   ENACT is a 3-year initiative tasked with ‘enabling national action on commercial renovation’.  It is funded by the Sustainable Energy Authority of Ireland (SEAI) and led by the Irish Green Building Council, in partnership with the University of Galway, SustainabilityWorks, Dublin Chambers of Commerce and the Society for Chartered Surveyors of Ireland. It aims to accelerate the rate of energy efficiency retrofits of commercial buildings around Ireland by enabling the commercial sector to overcome the barriers to retrofitting, which include financial, technical, knowledge and behavioural challenges. Technical Update From our colleagues in Professional Accountancy  The IFRS Foundation has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. The educational material has been developed in response to feedback that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. In a EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts on 8 June to discuss the skills and education needed for finance professionals to contribute to a green and just transition. Did you know? Bleeper and Fingal County Council have collaborated to create Dublin's first shared cargo bike. The cargo bike can be hired using the Bleeper app. A €3 unlock fee applies, and then the first 120 minutes are free, after which a fee of €0.05 per minute is charged. Articles What ESG reporting requirements mean for Irish organisations (Accountancy Ireland – Briefly) The rise of the 'Chief Heat Officer' and why it matters (World Economic Forum) Business schools target executives’ green gaps (Financial Times) Greenhouse gas surge distorted, says Government (Irish Times)   Upcoming Events   Department of Enterprise, Trade and Employment Responsible Business initiatives webinar, 10:00 - 11:30 IST, Tuesday, 23rd May Department officials will outline responsible business initiatives which may soon lead to new obligations for businesses. SME Business Briefing, 10am – 11am Wednesday 24th May Join SEAI on Wednesday 24th May at 10am and learn about how your business can save money and energy this year. This webinar will help you understand energy use and how to reduce energy costs, immediate ‘no-cost’ actions you can take to save, benefits of completing an Energy Audit and how SEAI will support you, the Climate Toolkit for Business and how to start your zero-carbon journey. 24 May Chartered Accountants Ireland - Webinar on the Corporate Sustainability Reporting Directive (CSRD) Join Dee  Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in Irish Auditing & Accounting Supervisory Authority (IAASA) to understand more about the Directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions. 25 May Business Post, ESG Summit, Croke Park, Dublin 30 May Dublin Chamber, 2050 Series, Urban Planning: What will Dublin look like in 2050? Dublin Chamber's series of events focusing on sustainable mobility, flexible working practices, a focus on renewable energy, circular economy adoption, and urban density. Dublin Chamber, 7 Clare Street, Dublin 2, D02 F902, Free. 8.30-10.00 1 June Accountancy Europe - Developing Green Skills for Finance Professionals – Building Capacity for a Fair and Sustainable Transition In this EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts to discuss the skills and education needed for finance professionals to contribute to a green and just transition. 8 June Northern Ireland Healthy Working Lives Conference 2023 This free conference, organised by Business in the Community Northern Ireland for 8 June from 8:45am to 1pm in Riddel Hall, Stranmillis Road, Belfast, will bring together expert speakers and key business representatives to discover how businesses can embed a human-centred approach into their organisation’s culture. 8 June The Northern Ireland Energy Summit Delivered in partnership with the Department for the Economy and the Centre for Advanced Sustainable Energy (CASE), the Northern Ireland Energy Summit will take place at the ICC, Belfast, on Wednesday 21 June 2023. The event will focus on building an informed consensus on how best to take Northern Ireland forward in meeting its renewable energy targets and net zero ambitions, whilst driving 10X economic growth across innovation, sustainability and inclusion. 21 June Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 24 May, 2023 (Guest speaker) 14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Retained EU Law Bill and the Trader Support Service has highlighted how HMRC are reviewing businesses with an XI EORI number. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins are also available. Retained EU Law Bill – update on Government Amendments  On Wednesday 10 May, we received the below update from the UK Domestic Advisory Group (“DAG”) secretariat in respect of the Retained EU Law Bill. Chartered Accountants Ireland is a member of the UK DAG. “We are writing to let you know that today the Government is tabling amendments to the Retained EU Law (Revocation and Reform) Bill (the ‘REUL Bill’) at Lords’ Report stage alongside publishing an update on our plans for regulatory reform. This amendment has been tabled in response to the feedback from businesses and other organisations with an interest in Retained EU law during the Bill’s passage.  Alongside this, we are publishing a paper ‘Smarter Regulation to Grow the Economy’ which is the first in a series of updates on how we are reforming sectors across the UK economy. It sets out an ambitious programme of reform to reduce our overall regulatory burden, maximise innovation and growth and support UK businesses and consumers. A copy of this report is available on gov.uk and can be found here.  REUL BILL AND PROGRAMME UPDATE  The ability for an independent UK to forge its own place in the world is one of the main reasons the country voted to leave the European Union. It is why the Government introduced the REUL Bill so that we could end the special status of retained EU law. It ensures that, for the first time in a generation, the UK’s statute book will not recognise the supremacy of EU law or EU legal principles. However, as the Bill is currently drafted, almost all REUL is automatically revoked at the end of 2023, unless a statutory instrument is passed to preserve it.  The Government has already reformed or revoked over 1,000 pieces of REUL. In addition to the list of around 600 coming in the Bill, the Financial Services and Markets Bill and the Procurement Bill will repeal around 500 pieces of REUL. We are committed to lightening the regulatory burden on businesses and helping to spur economic growth, and our Edinburgh Reforms of UK financial services include over 30 regulatory reforms to unlock investment and boost growth in towns and cities across the UK.  Over the past year Whitehall departments have been working hard to identify REUL to preserve, reform or revoke. However, it has become clear that the default of retained EU law sunsetting at the end of this year unless it is preserved has forced departments to focus on which laws should be preserved, ahead of prioritising meaningful reform.  That is why today we are proposing a new approach: the Government is tabling an amendment that will replace the current sunset in the Bill with a list of all of the EU laws that we intend to revoke under the Bill at the end of 2023. This provides certainty for business and other organisations by making it clear which regulations will be removed from our statute book. We will retain the vitally important powers in the Bill that allow us to continue to amend REUL, so more complex regulation can still be revoked or reformed after proper assessment and consultation. This will ensure ministers and officials are freed up to focus more on reforming REUL and doing that faster.  Proposed reforms will, of course, be subject to the appropriate parliamentary scrutiny mechanisms, which will ensure that parliamentarians can scrutinise the use of the powers in the Bill throughout the lifetime of the programme. In particular, all SIs which significantly reform retained EU law will be subject to the affirmative procedure and will be debated by both Houses. SIs which reform retained EU law in any limited way, which revoke retained EU law, or which restate interpretive effects will be subject to the sifting procedure, the procedure which worked well for EU Exit SIs. This is a proven method of parliamentary oversight that draws on the experiences of our parliamentary committees.  REUL DASHBOARD  Today we have also updated the REUL Dashboard, which was first published on 22nd June 2022 and updated in January this year. The dashboard sets out for each piece of REUL its name, type and territorial extent. The Dashboard also provides an overview of the percentages of REUL which have already been amended, repealed or replaced. The data used to populate the dashboard will also be available to download via a file uploaded to our gov.uk page which can be found here.”  Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- 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; Pay no import duty or VAT when importing animals for scientific research; Apply for release of a private vessel on payment of Customs Duty and VAT (C384 (Vessels)); Check simplified procedure value rates for fresh fruit and vegetables; CDS Declaration Completion Instructions for Imports; Tell HMRC if you still need your EORI number starting XI; and Search the register of customs agents and fast parcel operators.

In this week’s public policy bulletin, we take a look at the latest Irish rental market statistics as well as the performance of Ireland’s exports in the first quarter of 2023. In addition we examine the annual rate of inflation across the Euro zone as well as Northern Ireland’s labour market statistics for April 2023.     Rate of rise in rental prices slows in first quarter of 2023 The rate of increase in advertised rents slowed slightly during the first three months of the year, rising just 1 percent compared to the average rate of 3 percent seen in 2021-2022 according to the latest Irish Rental Report from Daft.ie. In particular, the first three months of 2023 saw open-market rents fall in the cities outside Dublin - even as they continued to increase strongly in many rural markets. Nonetheless, market rents still rose by 11.7 percent in the year to March 2023, a high rate historically but a slowdown relative to the peak inflation rate of 14.1 percent seen in 2022. The total number of properties available to rent on May 1st was just 959. While this is up 13 percent on the same date a year earlier, it is one of the lowest totals seen on the site since the start of the report in 2005. Annual inflation up to 7 percent in Euro zone   According to figures published this week by Eurostat (the official statistical office of the EU), overall price growth accelerated to 7 percent in April from 6.9 percent a month earlier, as rising services and energy costs offset a slowdown in food price growth. The lowest annual rates were registered in Luxembourg (2.7 percent), Belgium (3.3 percent) and Spain (3.8 percent) while the highest annual rates were recorded in Hungary (24.5 percent), Latvia (15.0 percent) and Czechia (14.3 percent). Inflation has so far remained above the ECB's 2 percent target for nearly two years now with the bank raising interest rates by a combined 375 basis points since last July to arrest runaway price growth. Latest figures show Irish exports remaining strong in first 3 months of 2023 According to statistical data published this week by the CSO, the value of Irish goods exports came to €18.8 billion in March with exports of medical and pharmaceutical products accounting for nearly 40 per cent of this total figure. While this was down on same period last year, it was strong in historical terms and reflects the ongoing strength of Irish exports more generally. The figures show that total exports for the first quarter of the year were valued at nearly €51 billion. Irish goods imports for March amounted to €11.2 billion. In seasonally adjusted terms, the State’s trade surplus was €6.6 billion. Northern Ireland Labour Market statistics The Northern Ireland Statistics and Research Agency this week released its latest batch of labour market statistics for the region. According to the release, the number of employees receiving pay through HMRC PAYE in NI in April 2023 was 785,500, a 0.6 percent decrease over the month but a 1.5 percent increase over the year. Moreover, HMRC PAYE data indicated that NI employees had a median monthly pay of £2,062 in April 2023, a decrease of £56 (2.6 per cent) over the month and an increase of £128 (6.6 percent) over the year. Meanwhile, the seasonally adjusted number of people on the claimant count was 37,500, representing 3.9 per cent of the total workforce.

All members are invited to attend the 2023 Ulster Society Annual General Meeting, taking place on Monday, 5 June 2023, at 4.30pm in The Merchant Hotel, Belfast. Members can register to attend here   Apologies can be emailed to Karen Hewitt [email] Relevant Documents: Annual Report 2022 AGM minutes 2022 AGM Agenda 2023 Election Report 2023 Rules of Chartered Accountants Ulster Society

Jeff Landers recently relocated to Dubai, with a career journey that has used his qualification in ways he didn't consider. 1. Where did you grow up and where do you live now? I was born in Dublin, and lived in Leopardstown on the south side of the city for my whole life. I did a brief spell in Vancouver, Canada, then went back to Dublin before making the decision to move to Dubai in January 2023 with my partner. 2. What made you choose to become a Chartered Accountant? To be honest, I fell into it based on college and my friend group. I was always good with numbers and business in school, so I ended up doing a degree in Mathematics and Economics in UCD.  After that, I felt the natural next step was to get a professional qualification. Most of my college and school friends went into accounting or law, so at that stage I felt accounting would be a good career where I could put my numeric skills to use.  Chartered Accountants Ireland has always been considered the strongest accounting qualification globally, so when I was offered the chance to join a training firm, (EisnerAmper Ireland), and complete the exams, there was no doubt in my mind that it was the right decision. The chance to get straight into work and start earning instead of pursuing a Masters degree really appealed to me, so when I got offered a firm close to home I jumped at the opportunity. 3. Can you tell us a little about how you got to where you are today – both the geographical location and your career path? At the outset, I wasn't totally sure of the area I wanted to be in. Once I finished my training contract, I realised that working in audit wasn’t for me. I moved on to a great company called JW Accountants to try a different branch. Over the following two years, I got experience specialising in corporate finance, examinership and insolvency. I loved the company and the people but still wasn't sure if I was on the right road. After lots of thinking, I made the decision to move on again. It had been a great few years all round, but it felt right. Dubai had always appealed to me and I was fairly certain I'd like to try it, but Covid forced me to postpone. Not wanting to be idle and just wait, and wanting to keep an income, I decided to start my own business selling cookies online...the natural step for a qualified Chartered Accountant! In ways, Covid steered the direction of the business. I went from selling directly to customers to scaling up to sell to coffee shops around Dublin. The end of the pandemic meant I was back at a crossroads though; I realised that I could scale up to yet another level, investing in a more formal premises and staff, or go back to my previous plan to go to Dubai. It was an incredibly hard decision, but six months in and I can say I don't regret it one bit (and I have stopped eating cookies everyday!) I feel that my Chartered Accountant qualification and training helped with my business skills and decision making so it did enhance that part of my career. On arrival in Dubai, I was still not convinced that straight-up accountancy was the right role for me. I got the opportunity to work in Alchemy Search as a finance recruiter and couldn't say "no". Like running the cookies business, it allowed me to continue to use my accounting experience in a different field. My experience working in various accounting roles and specialisms helps me understand the needs of the candidate as well as the client. It was a huge step for me, and it was a challenging transition, but having settled in and had excellent support from everyone in the team I know I’ve made the right decision. In summary, I took the classic route – audit, insolvency, self-employed baker, recruiter!  4. What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? The profession has given me such a great basis for everything I have done in my career. It gave me the skills and confidence to start my own business – knowing how to register the business with the CRO, file tax returns, maintain my accounts. It helped me get a job in finance recruiting when I relocated to Dubai. What you learn while completing the qualification is transferrable to many parts of life, not just your career. In terms of the economy and society, accountants have a responsibility to support businesses to make better decisions and ultimately help them succeed. It is a privilege to be part of the membership and we need to respect that and give back to society whenever we can. 5. As a member living overseas, can you talk to us about how your membership has been of value to you globally, and what do you value about it now that you're living overseas? I have met some incredible people in Dubai who are also members, and it has a real sense of community, especially abroad. Everyone I have met goes out of their way to make a connection, something I am actively trying to do when I hear of new members moving to Dubai. Whether you stay working directly as an accountant or branch off into a new career like me, the community of Chartered Accountants at home and abroad are always there to help when needed. I have already attended a member event in Dubai, something I recommend for all members living here as it is a great way to network with similar people. I originally came out here with the view of staying for two years (like most…) but having settled now and experienced life out here I think it will be very hard to leave anytime soon. 6. And finally, if you weren't an accountant, what do you think you would be/would have been? I have always loved all types of sport. The dream was always to be a professional in some capacity, however my football skills never matched my desire! I would say now if I had to take a different route, I would have enjoyed sports journalism or media. Considering I have left practicing accounting directly, I think I have definitely ended up in the right profession after taking the scenic route! Jeff Landers is a Consultant with Alchemy Search. Alchemy Search is a dedicated, regional specialist in financial recruitment, focused on accounting, tax, corporate finance and treasury appointments.  

The Institute’s Professional Standards Department recently wrote to all audit compliance principals in relation to the obligations of audit firms with regard to information on the Public Audit Register.  In this letter, audit firms are reminded of the legal and regulatory obligations to: Notify the Institute, within ten business day, of certain changes in relation to an audit firm (specified in Audit Regulation 2.11).  It is not appropriate to wait until the submission of the next firm annual return. Provide complete and correct information in the firm annual return and check standing data for accuracy Provide details of the members of the audit firm’s management board – a firm which does not have a management board separate from the firm principals/shareholders should provide the names of the principals/shareholders in that regard Consider the definition of ‘network firm’ in the Audit Regulations (2.12) and provide details in relation to any network to which the audit firm belongs. It is important to give careful attention to the reminders in this letter.  A failure to provide the appropriate information on a timely basis is a breach of the Audit Regulations which could result in regulatory action, including regulatory penalties, and may also constitute an offence under company legislation. These, and other regulatory matters, were also highlighted in the latest edition of the Regulatory Bulletin.

We all experience anxiety at times, after all, it is a normal and natural response to stressful and dangerous situations. It is our body’s way of keeping us safe and has been critical to our survival as a species. It can focus our attention, helps us react, and even improve our performance in certain situations. Anxiety is described as uncomfortable feelings of nervousness, worry, uneasiness and tension. A healthy amount of anxiety is perfectly ok and expected but what happens when it builds up and becomes difficult to manage? Signs of Anxiety Anxiety is a common state, it is estimated that one in nine people will experience anxiety in their lifetime. Anxiety affects people in different ways, but it has physical, emotional, and behavioural effects and signs. Signs of anxiety include: Being on edge, restless or irritable, feeling a sense of dread Difficulty concentrating or making decisions Repeatedly checking things or seeking assurance from others Avoiding situations or putting off doing things Change in eating habits – increased or decreased appetite, craving junk food Dizziness or trembling Sweating Racing heart Shortness of breath Physical aches or pain – headaches, stomach problems and nausea, diarrhoea, muscle tension or pain, jaw clenching Sleep problems – disturbed sleep, tiredness, nightmare, teeth-grinding Pins and needles A dry mouth Types of Anxiety There are several kinds of anxiety that can affect individuals and have varying symptoms and triggers. Here are the most common types of anxiety: Generalised Anxiety Disorder is the most common type of anxiety where sufferers feel constantly and excessively anxious about a wide range of situations and issues. Social Anxiety is characterized by an intense feeling of anxiety and self-consciousness in everyday social situations. Severe forms can cause a person to experience symptoms almost anytime they are around other people. Panic Disorder is an anxiety which causes regular panic attacks with no particular triggers. It is bouts of intense fear that are often accompanied by physical symptoms such as chest pain, racing hear, shortness of breath, or dizziness. Obsessive Compulsive Disorder (OCD) is repeated unwelcome thoughts and/or a compulsion to carry out repetitive behaviours that can be difficult to ignore. Post-Traumatic Stress Disorder (PTSD) is an anxiety that is triggered by very stressful, frightening or distressing events. PTSD sufferers often relive these traumatic events through nightmares and flashbacks, and may experience feelings of isolation, irritability and guilt. Tips to help with anxiety The causes and kinds of anxiety are complex. Anxiety requires treatment such as psychotherapy in the form of talking therapy, cognitive behavioural therapy (CBT) and/or exposure and response prevention (ERP) or in the short-term, anti-anxiety medication. However, there are many things you can do to help you learn how to manage feelings of anxiety. Keep a mood diary- Check in with yourself on daily basis and take note of how you are feeling at different times, rating how anxious you are feeling on a scale of 1-10. List what you are feeling anxious about and if there are things you can do to ease those feelings. Make time- If you are feeling particularly anxious, set aside some ‘worry time’ to go through your worries. When that time is up, consciously focus your thoughts on other things. Challenge unhelpful thoughts- Our thought patterns can exacerbate our feelings of anxiety and lead to negative and unhelpful thoughts. Challenge these thoughts and do not accept them as fact. Ask yourself: Is there evidence that confirms your thoughts Is there another way to look at it If you were to think positively about the situation, how would you view it Talk about your feelings - Telling someone about how you are feeling can help make things clearer for you. Relaxation techniques – Breathing and mindfulness exercise help keep you in the present moment and help your mind and body take control of a situation. Lifestyle factors- Eating healthy, regular exercise and getting plenty of sleep can improve your mental and physical wellbeing and burn off anxious energy. If anxiety is affecting you or someone you love, the Thrive Wellbeing Hub is here to offer advice, information and support on anxiety and for those who need it, we can arrange professional counselling. You can contact the Thrive wellbeing team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294.

The Minister for Finance, Michael McGrath TD, has published an analysis by his department entitled Future-proofing the Public Finances – the Next Steps. A key recommendation in the analysis is the establishment of a long-term public savings vehicle to ensure that windfall corporation tax receipts are not used to fund permanent expenditure increases or tax reductions. Secondly, such a fund could contribute to meeting budgetary pressures in the future. The report also notes that, under almost all of scenarios simulated, the drawdowns from such a long-term public savings vehicle would still not be sufficient to cover the full increase in ageing-related costs expected by 2030. Therefore further reforms to the pension system – including increases to the rate of PRSI – will be required. Commenting on the scoping paper, Minister McGrath said: “The analysis published by my department today highlights some of the vulnerabilities the public finances face from both revenue and expenditure perspectives. On the revenue side, while the headline budgetary accounts look to be in very good shape, this is largely the result of corporation tax receipts, which have increased more than five-fold in the past decade. My department estimates that around half of these receipts could be potentially transitory in nature. Looking ahead, Government is also aware of the major expenditure challenges on the horizon. Shifting demographics and adapting to the climate and digital transitions will impose large costs on the public finances. While the Irish demographic picture is currently favourable, developments in the coming decades will mean that we will be spending significantly more just to maintain the current level of service, all because of an ageing population. The paper my department published today outlines some of the options available to Government to help to mitigate against these risks to the public finances. Taking into account this analysis, it is my intention to bring forward proposals for a long-term savings vehicle which will be used to pre-fund part of the future costs of structural change. The paper also discusses different approaches to using the windfall receipts including for a new long-term savings vehicle, and using a portion to pay down debt and for additional, targeted capital investment. I was pleased to brief cabinet on this paper yesterday. Subject to government approval, setting up such a long-term savings vehicle will require primary legislation.” Further information is available on gov.ie.