Both Irish and UK AML legislation requires firms to take the appropriate steps to identify and assess the risk that they could be used for money laundering and terrorist financing, and in the UK, also proliferation financing. The Accountancy AML Supervisors Group (AASG) in the UK has recently updated its Risk Outlook Guidance which identifies those circumstances where there might be a high risk of money laundering, terrorist financing or proliferation financing in the accountancy sector. (Although drafted pursuant to UK AML legislation, many of the risks are also relevant in Ireland.) This Guidance has been updated to include risks associated with the following: Complex supply chains Crypto Register of Overseas Entity verification Services subject to trade sanctions Proliferation financing Contractors or agency workers paid by umbrella companies

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. Miscellaneous updated guidance etc. Recently updated guidance, and publications relevant to EU exit are set out below: External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service Create a goods movement reference CDS Declaration Completion Instructions for Exports Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS) Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS) Appendix 2: DE 1/11: Additional Procedure Codes 4-digit to 3-digit procedure to additional procedure code correlation matrix for exports Appendix 1: DE 1/10: Requested and Previous Procedure Codes Simplified processes for fixed transport installations Get your postponed import VAT statement Known error workarounds for the Customs Declaration Service (CDS) 4. Common/Union Transit 9. Transport Internationaux Routiers (TIR) 5. Simplifications 6. The Business Continuity Procedure 1. Introduction 2. Status of goods - Transit Manual Part II refers 3. Guarantees (Transit Manual Part III refers) 12. Receiving an adverse customs decision from HMRC 11. Specimen Management System (SMS) 8. Contraventions and Civil Penalties (CPs) Imports and exports: general enquiries

The latest UK tax tidbits feature guidance changes in a range of areas. Rates of Stamp Duty Land Tax for non-UK residents Pensions schemes newsletter 160 — May 2024 Find out how to register as a professional tax agent with HMRC Higher rates of Stamp Duty Land Tax Find out the rules about Individual Lump Sum Allowances Register as a sole trader subcontractor, or apply for gross payment status, or both Decisions and appeals for National Insurance Contributions and Statutory Payments Report chargeable event gains for life insurance policies — guidance for insurers; Named tax avoidance schemes, promoters, enablers and suppliers Completing your Company Tax Return

In this week’s miscellaneous updates, we bring you an update from HMRC’s Employer Payroll Group (EPG) on earlier year updates and a reminder of the different ways to notify HMRC that you have been authorised to represent a client. A new form is also now available to appoint an agent to represent the personal representatives of a deceased taxpayer. Update from HMRC’s EPG on earlier year updates HMRC’s EPG has sent the below message on earlier year updates. “At the January bespoke meeting of EPG, feedback was received that Employer liabilities and payments viewer is still using the label ‘Earlier Year Update’ (EYU) for adjustments to previous tax years when this ceased to be a valid submission type for tax years from 2020/21. Year ended 5 April 2018 and earlier years: Adjustments can be made by submission of the EYU only. Year ended 5 April 2019: EYU or FPS will be accepted. Year ended 5 April 2020: EYU or FPS will be accepted. Year ended 5 April 2021 and later years: Adjustment can be made by submission of FPS only. EPG members offered some suggestions for a revised label - one of which was ‘End of tax year adjustment’.  We have now made that change to the online service. When looking in the online account, you will now see the new terminology where End of tax year adjustments have been made for 2020/21 or later years. If you are reviewing 2019/2020 or earlier years, you will continue to see ‘Earlier Year Update’.” Reminder - how to notify HMRC that you have been authorised to represent a client When acting as an agent, there are a number of different ways to notify HMRC that you have been authorised to represent your client, including: The Digital Handshake via the Agent Service Account Other online methods Asking your client to authorise you through their Business Tax Account Submitting Paper Forms such as the 64-8. At present there are a number of different processes for accepting 64-8s, as the authorisations span across multiple tax regimes, hence HMRC is currently reviewing these. However, HMRC caseworkers are guided to ensure that they are satisfied that the client is aware and has agreed to authorise an agent to act on their behalf. They can satisfy themselves in a number of ways e.g. by reviewing the specific taxpayer’s records related to the authorisation, reviewing contemporaneous documentary evidence provided alongside the 64-8 itself and requesting that the client be CC’d when the 64-8 it is provided via email. Authorisation of agent for personal representatives When HMRC becomes aware that a taxpayer has died, HMRC immediately cancels any appointed agent’s authority to act for that taxpayer. Form P1000, which is now available on GOV.UK, should be used, and not form 64-8, to request authority to act on behalf of the personal representatives of the deceased’s estate. This form should be used in preference to the 64-8 because it requires additional information, such as details of the personal representatives, which HMRC may not have. This helps to avoid HMRC having to seek these details later such as in scenarios where a tax refund may be payable to the personal representatives. 

HMRC has recently advised that a new package of Administrative Guidance on Pillar Two, agreed by the Inclusive Framework on BEPS, was published by the OECD last month. HMRC has also commenced its latest series of educational comms on the UK’s Pillar Two rules. The latest OECD administrative guidance on Pillar Two features the following: Use of deferred tax assets and liabilities in the calculation of the effective tax rate (application of the recapture rule, and clarifications in cases of divergences between GloBE and accounting carrying value) Cross-border allocation of current and deferred taxes Allocation of profits and taxes on certain flow-through tax structures Treatment of securitisation vehicles. Further work remains ongoing on the Inclusive Framework on several fronts and a further update will be provided in due course. The latest communication from HMRC on Pillar 2 is the third in the current series. This is being sent to taxpayers which HMRC considers to be in scope of the new Multi-national Top-up (MTT) and Domestic Top-up ( DTT) taxes, as well as those who have asked to be on this mailing list and other interested agents. This update, delayed from its original intended issue date due to the general election, is happening via the following channels: Directly to some large businesses through their Customer Compliance Managers (CCMs) if they have one A bulk email to other large businesses who do not have a CCM and to wealthy/mid-sized taxpayers who have subscribed to receive updates on Pillar Two A letter going to other businesses not already signed-up to receive updates but likely to be in scope.  

The second and final 2023/24 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment in two days’ time on or before midnight on Wednesday 31 July 2024. Each payment on account is half of the previous year’s tax bill. Anyone who is self-employed is required to make two payments on account for 2023/24 unless: their 2022/23 Self-Assessment tax bill was less than £1,000, or more than 80 percent of all the tax owed in 2022/23 was deducted at source, for example via PAYE. If a taxpayer knows that their tax bill for 2023/24 is going to be lower than that in 2022/23, a claim can be made to HMRC to reduce payments on account. Each payment on account made should be 50 percent of the person’s total income tax and Class 4 NICs liability for 2022/23. If the final tax liability in 2023/24 is greater than the total payments on account made, a balancing payment will be due on or before 31 January 2025. By way of reminder, a “Time to Pay” arrangement payment plan can be made online by a taxpayer in relation to self-assessment tax debt, including payments on account. The limit for an individual is £30,000 and £50,000 for a business.  

The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors has been published. The report outlines some of the key developments in international tax reform since February 2024, including on the Two-Pillar Solution to address the tax challenges arising from the digitalisation of the economy and on the implementation of the BEPS minimum standards.    

The European Commission proposes to replace the current paper version of the VAT exemption certificate with an electronic one as it progresses digitalising exemption procedures. The proposal includes implementing measures laying down the technical details and specifications concerning the applicable electronic format of the certificate and the way in which it is to be processed electronically. Member States will be allowed to continue to use the paper version of the exemption certificate for a transitional period until 30 June 2030. The Commission has created a portal where stakeholders can share their views and is inviting feedback until 13 September 2024.  

Revenue has updated its guidance on qualifying health expenses. The main changes include a confirmation that chargeable persons in receipt of PAYE income can use the real-time credit facility for health expenses and nursing home fees, and updating the flat rate amounts allowable in respect of children with life threatening illnesses.

Revenue has updated the Tax and Duty Manual which provides guidance on the incapacitated child tax credit.  The guidance is updated in paragraph 3, to remove references to specific medical conditions.  

The EU Cross-Border Payment Service Provider reporting requirements (CESOP), which took effect on 1 January 2024, require Payment Service providers (PSPs) to return data on cross-border payments every quarter. Readers are reminded that the second quarterly filing deadline for CESOP filers in Ireland is this Wednesday, 31 July 2024. Further information and guidance is available on Revenue’s CESOP webpage.

Last week, the Institute, under the auspices of the CCAB-I, wrote a letter to the Minister for Finance setting out a range of proposals to address various legacy issues within the Employment Investment Incentive Scheme (EIIS) which have been carried forward from the days of the Business Expansion Scheme (BES). The issues highlighted in the letter are not matters arising from differences in the understanding of tax policy. Rather, the issues identified are areas where the legislation could be updated without impacting the integrity of the relief and without conflicting with the General Block Exemption Regulation (GBER). The proposals will, in our view, provide clarity to taxpayers and advisors, and also simplify the legislation by removing obsolete provisions.