Revenue has updated its guidance in the rent tax credit manual to reflect the increase in the rent tax credit for the 2024 and 2025 tax years. In addition, the following changes introduced by Finance (No. 2) Act 2023 are also reflected: The change in respect of eligibility where a parent is paying rent for a child (Paragraph 5.3 and Appendix 1), Out of year and in year claims (Paragraph 7.3), The inclusion of more examples, and Income tax returns for 2022 and 2023 can be used where taxpayers are seeking to claim the rent tax credit in respect of payments made for digs or rent-a-room type arrangements to facilitate a child’s attendance at an approved course. This change applies retrospectively to 2022 and 2023.

The Institute’s Advocacy and Voice Department is hiring a new Tax Manager. The Department is responsible for the tax and public policy agenda of Chartered Accountants Ireland. We collaborate with expert colleagues drawn from practice and industry, developing, and advocating on policy matters relating to tax, financial reporting, audit and assurance, ethics and governance, and business law. The department numbers over twenty professionals. The successful candidate will report into the Institute's Tax Leader (Head of Tax). You can find more information at the above link. If you are interested in applying, send your CV and a cover letter to hr@charteredaccountants.ie.  

At last week’s Labour Party conference, the Chancellor of the Exchequer’s speech (see from 11.47 on) unveiled a package of tax and other measures which aim to deliver on the agenda of the new government, one of which includes e-invoicing. A press release published after the Chancellor’s speech also provides some more details on the Government’s plans for tax administration and HMRC. The announcements essentially build on proposals set out by the Government before the election in their ‘Closing the Tax Gap’ document and in summary are as follows: HMRC will launch a consultation on electronic invoicing (e-invoicing) which will “gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake”. This suggests that there is no intention to make e-invoicing mandatory however the consultation will provide more information and is likely to be published on Budget Day on 30 October, By Spring 2025, a Digital Transformation Roadmap will be published which will set out “HMRC’s vision to be a digital first organisation underpinned by customer insight”. This “will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally”, An additional two hundred offer letters have been sent out to new recruits to join HMRC’s training programme in November as part of plans to recruit an additional 5,000 compliance staff to help close the tax gap (with no mention made of recruitment to improve HMRC’s services), and The Exchequer Secretary to the Treasury (XST) has become the Chair of the HMRC Board. This aims to help the XST oversee the implementation of his three strategic priorities for HMRC: closing the tax gap, modernising, and reforming, and improving customer service. The Press Release also mentioned the planned development of an Industrial Strategy to be published in Spring 2025 following consultation with business. A green paper is expected beforehand “around Budget in October”. During his speech to the Labour Party Conference, the Prime Minister restated the Labour Party’s manifesto commitment to replace the apprenticeship levy with a new growth and skills levy. According to a press release accompanying the speech, in England this will include new ‘foundation apprenticeships’ and will allow funding for shorter apprenticeships than currently possible under the apprenticeship levy. Employers will also be asked to rebalance their funding towards younger workers. Further information on how the new levy will operate, and implications for funding training in Northern Ireland, Scotland, and Wales (where apprenticeship training is devolved) is likely to be announced at the Budget. The e-invoicing consultation announced last week is of particular interest. HMRC, under the auspices of the Joint Vat Consultative Committee which the Institute participates in, has already begun engaging with stakeholders for their views on this in order to “inform the planned consultation and ensure that we deliver a regime which supports businesses by reducing administrative burdens, speeding up payments and making tax compliance easier.” Chartered Accountants Ireland has already highlighted the significance of this change to HMRC. Ireland has recently been consulting on the modernisation of its VAT regime including e-invoicing which the Institute responded to in January this year highlighting the challenges that SME businesses in particular will face. In a broader context, should this proposal proceed in the UK, the timetable for its introduction will need to be very carefully considered as many SMEs are facing significant change in other areas of the UK tax system in the future; the payrolling of benefits in kind from April 2026 and the mandation of Making Tax Digital for income tax from the same date to name but two.

A few weeks ago we issued a request for support from companies who would like to see a lower rate of corporation tax in Northern Ireland as the Institute kicks off a revived campaign. There is still time to participate in this campaign. Does your Northern Ireland based company or client support a lower rate of corporation tax for the region? If so, read on for how you can participate in our campaign to reignite the path to a lower rate of corporation tax for the region.  The Corporation Tax (Northern Ireland) Act 2015 contains the legislation for how a lower rate of corporation tax would work practically in Northern Ireland. However, this is subject to rate-setting arrangements which mean that this rate-setting power may not be exercised unless Treasury regulations have been made. These Treasury regulations are subject to very specific conditions specifically the continued commitment of the NI executive to “take all the actions necessary to demonstrate that its finances are on a sustainable footing for the long term”. The support of the Institute’s members for a lower rate of corporation tax in Northern Ireland has not waned in recent years with a recent Ulster Society survey showing that approximately two thirds of our members continue to support this initiative. On foot of this ongoing support combined with the restoration of the Northern Ireland Assembly and a new government in Westminster, Chartered Accountants Ireland is embarking on a new campaign to engage with and equip policy makers with the information and tools necessary to pursue a lower rate of corporation tax for the region as one of a range of economic levers to drive growth and employment.  We are seeking companies in Northern Ireland who support this campaign and who are prepared to tell us why they support a lower rate and what it would mean for them and the region. These quotes will be included in a position paper which is expected to be launched before the end of 2024. Contact tax@charteredaccountants.ie to participate.    

Last week we reminded you that the 2023/24 self-assessment registration deadline is approaching. It is now just six days’ away on Saturday 5 October 2024 in order to avoid a failure to notify penalty. Those required to register for self-assessment include anyone who is: self-employed or a sole trader in a business which commenced in 2023/24, ·not self-employed but who had a new source of income or a gain in 2023/24, or became a partner in a partnership or any new partnership which commenced in business in 2023/24. 

Following public consultation IAASA has adopted ISAE (Ireland) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information – Assurance of Sustainability Reporting in Ireland as the standard to be applied by auditors performing sustainability assurance engagements required by the European Corporate Sustainability Reporting Directive (CSRD). The Irish standard is based on ISAE 3000 (Revised) issued by the International Auditing and Assurance Standards Board (IAASB) with limited amendments. Chartered Accountants Ireland responded to the consultation in April. Updates to ISQM (Ireland) 1 ISAE (Ireland) 3000 requires auditors to comply with ISQM (Ireland) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements. IAASA has updated ISQM (Ireland) 1 to reflect the requirements of the CSRD as transposed in Ireland. Additional minor amendments were made to ISQM (Ireland) 1 to make conforming amendments for ISA (Ireland) 600, which was revised in February 2023 and is effective for financial periods starting on or after 15 December 2023. The remaining ISA (Ireland) 600 conforming amendments will be published on IAASA’s website in October. Additional information IAASA’s Statement on Scope and Authority of Audit and Assurance Pronouncements has also been updated to reflect the adoption of ISAE (Ireland) 3000. An explanatory video is available here on IAASA’s YouTube Channel. IAASA published feedback on the Consultation in June. Effective date ISAE (Ireland) 3000 applies to assurance reports issued on or after 15 December 2024. Amendments to firms’ systems of quality management related to the assurance of sustainability reporting must be designed and implemented by 15 December 2024. An evaluation of the updated system of quality management must be performed within one year of this date. Engagement letters for CSRD engagements TA 02/2024 - Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive (“CSRD’’) was issued in June 2024. These sample engagement letter terms were prepared to assist members in drafting engagement letters in respect of limited assurance engagements under the CSRD prior to its implementation. Therefore, they may be useful to implement a contract with the entity but following transposition of the CSRD they are currently being reviewed for any required amendments. Please monitor the Institute’s regular news channels for any updates to this TA. 

In this week’s miscellaneous updates, we bring you news of a new role for the Office of Budget Responsibility (OBR) and the latest HMRC performance data has been published. HMRC’s bank details have changed in respect of paying several taxes and the letter sent to taxpayers when they authorise an agent to act on their behalf via the online agent authorisation service has been updated. And finally, the latest HMRC Stakeholder Digest has been published. New role for OBR The Budget Responsibility Act 2024 received Royal Assent earlier this month on 10 September 2024. The aim of this legislation is to ensure that “future fiscal announcements making significant, permanent tax and spend changes” will be “subject to an independent assessment by the OBR”. More information on what this means is set out in the Press Release published in July when the original Bill was introduced to Parliament. HMRC bank details changed Agent Update 123 highlights that HMRC has changed its bank accounts for payment of the following taxes: the customs declaration service, plastic packaging tax, fuel duty, economic crime levy, soft drinks industry levy, and the trust registration service penalty. Taxpayers who make payments via Faster Payments, BACS or CHAPS should use the new details. Anyone paying by direct debit is not required to take any action. Updated agent authorisation letters In another story from Agent Update 123, HMRC has updated the letter which is sent to taxpayers when an agent is authorised to act on their behalf via the online agent authorisation service. According to HMRC, the changes are intended to clarify the role of the agent and in particular, reinforces that the taxpayer retains responsibility for their own tax affairs.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs Team. We also bring news of changes to excise goods legislation for Northern Ireland which take effect from 1 October 2024 and remind you that the next changes in the Windsor Framework do not commence from 30 September 2024 and have been delayed to 31 March 2025. Changes to excise goods legislation for Northern Ireland Legislation takes effect from 1 October 2024 which makes several changes to the holding and movement of excise goods in Northern Ireland. The purpose of this legislation is to make “technical fixes to the statute book to better implement the EU excise provisions applicable in Northern Ireland under the Windsor Framework of the EU Withdrawal Agreement”. More information is available at the following links: Excise Duties (Northern Ireland Miscellaneous Modifications and Amendments) (EU Exit) (Amendment) Regulations 2024, SI 2024/941, and Policy paper. Miscellaneous updates to guidance and publications CDS Declaration Completion Instructions for Exports, Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS), Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS), CDS Declaration Completion Instructions for Imports, 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports, Tax types for Data Element 4/3 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, CDS Customs Clearance Request Completion Instructions for Inventory Exports, Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS), CDS BIRDS Declarations and Customs Clearance Request completion instructions, National additional codes to declare with Data Element 6/17 of the Customs Declaration Service, Appendix 23 Imports: Declaration Category Data Sets, Upload documents and get messages for the Customs Declaration Service, Moving goods between Great Britain and the UK Continental Shelf, Trade Specialised Committee on Administrative Co-operation in VAT and Recovery of Taxes and Duties, Report a problem using the Customs Declaration Service.

We have compiled the latest updates to various VAT legislation, publications, briefs, and guidance. HMRC has also contacted us to advise that several Revenue and Customs Briefs have been removed from gov.uk and guidance has been updated where applicable. Register for VAT by post, VAT Personal exports - tax-free sales of new motor vehicles for use before export, Charity funded equipment certificates (VAT Notice 701/6 supplement), VAT Assessments and Error Correction, Who should register for VAT (VAT Notice 700/1), VAT domestic reverse charge technical guide, Help with VAT compliance controls — Guidelines for Compliance GfC8, and Value Added Tax (Caravans) Order 2024, SI 2024/910 and policy paper.

The OECD has issued its Interim report for September 2024 which shows that global growth remains resilient, and headline inflation has further declined in most G20 countries.  Projected global GDP growth for 2025 is 3.2 percent, while inflation is expected to be in the region of 3.3 percent. Other key findings globally include the easing of pressures on labour markets, the pace of regulatory reform has declined, and global growth is expected to stabilise amidst robust growth in the USA, UK, Canada, and Spain.

On 19 September 2024, nine jurisdictions signed and a further 10 expressed their intent to sign the Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule (STTR MLI). Jurisdictions can implement the Subject to Tax Rule (STTR) by either joining the STTR MLI or by bilateral amendments to tax agreements. The STTR ensures a minimum level of tax on certain cross-border payments and is designed to prevent circumstances where income is either taxed at very low rates or not taxed at all due to differences in tax regimes between countries.

Chartered Accountants Ireland Leinster Society has announced its shortlist for the 47th Annual Published Accounts Awards. The awards celebrate companies, on the Island of Ireland, for their excellence in corporate reporting. The Awards are sponsored by Euronext Dublin and Arachas.  This year’s shortlist includes a total of 26 public and private companies, and 10 not-for-profit organisations. The winners will be announced at a special gala event, taking place in The Shelbourne Hotel on Thursday 07 November 2024 commencing at 7pm, with special guest Risteárd Cooper overseeing the proceedings. FINALISTS FOR THE 47th PUBLISHED ACCOUNTS AWARDS 2024 Euronext Growth Award Origin Enterprises  Uniphar  Euronext Dublin (SME <€1bn) Dalata Hotel Group  FBD Holdings Glenveagh Properties  Irish Residential Properties REIT Irish Continental Group  Kenmare Resources  Euronext Dublin (Large Cap >€1bn) AIB Bank of Ireland Glanbia Company Listed on a Foreign Market DCC  Flutter Entertainment  Grafton Group Oneview Healthcare Statutory or Unquoted Entity (IFRS) An Post Eirgrid ESB Ervia NI Water Statutory or Unquoted Entity (Non-IFRS) Central Bank of Ireland CIÉ - Córas Iompair Éireann Coillte CGA daa Irish Football Association Tusla Arachas Not for Profit - Large Barnardos Concern Focus Ireland CLG Jigsaw Kare Not for Profit - Small / Medium Barretstown Dogs Trust Irish FA Foundation The Care Trust The Wheel In addition to the category awards, there are also a number of other awards consisting of the: • Overall Winner’s Award,  • Arachas Sustainability and ESG Reporting Award Listed entities, • Sustainability and ESG Reporting Award Unlisted entities, • Branding, Communication and Digital Award, and the • Diversity and Inclusion Award - Not for Profit  • Diversity and Inclusion Award - Listed and Unlisted entities Dedicated PAA webpage: https://www.charteredaccountants.ie/Leinster/PAA Event details Thursday 07 November 2024 in The Shelbourne Hotel, 7:30pm.  M.C. is acclaimed actor, impressionist, comedian and singer, Risteárd Cooper. Tickets are €140 per person / €1400 for a table of ten. Individual tickets are available.  To book or for more information please contact paa@charteredaccountants.ie. Dress: Business / Cocktail