Global regulations are increasingly driving a focus on sustainability reporting, requiring companies to disclose their environmental, social and governance practices, writes Miriam Donald When I became an accountant nearly 20 years ago, the intersection of business and sustainability was very different to what it has become today. I remember a university course touching on corporate social responsibility (CSR), but with more of an ethical and community lens than an environmental focus. At that time, CSR was positioned as something that was “nice to do”. Today, the landscape has changed considerably. Sustainability is becoming more and more intertwined with how businesses operate. This shift is being driven not just by voluntary sustainability reporting, but also increasingly by evolving regulatory frameworks. This evolution comes down to demand from international investors who understand that environmental risks can have a significant impact on the financial sustainability of businesses. This means that it is now necessary to upskill and find out what is required in your jurisdiction and report as needed. The International Financial Reporting Standards (IFRS) Foundation has had a busy few years. Its International Sustainability Standards Board (ISSB) released its first two sustainability standards in June 2023. The foundation has also been working hard to consolidate Sustainability Accounting Standards Board (SASB) standards and Integrated Reporting Framework and Climate Disclosure Standards Board into the organisation while also building interoperability with the Global Reporting Initiative and the European Sustainability Reporting Standards (ESRS). This consolidation drive is part of the IFRS Foundation’s goal to create one set of global standards with the aim of facilitating easy comparability of sustainability disclosures globally. Despite these efforts, reporting obligations still differ across the world. It is useful, then, to look to countries like New Zealand and Australia and draw inspiration from their sustainability reporting efforts. New Zealand was one of the first countries to legislate mandatory climate-related disclosures for about 200 businesses from 1 January 2023. These disclosure standards were developed by New Zealand’s External Reporting Board. The first 34 of these entities have now published their first climate statements, which can be viewed on New Zealand’s Companies Office register. These disclosures are mainly qualitative but encourage company boards to think differently about their strategy, with a newfound focus on how climate change might affect their operations and value chains. One of the main purposes of this reporting is to ensure that the effects of climate change are routinely considered in business, investment, lending and insurance underwriting decisions. The hope is that, by bringing these effects to the forefront of board members’ minds, more climate-friendly decisions might be made in the future. Across the Tasman, Australia is also mandating climate-related disclosures for a much broader group of entities, with legislation now before parliament at the time of writing. The Australian Accounting Standards Board is developing these standards, which are expected to be closely aligned to the ISSB standards on climate-related disclosures. Reporting periods for the first entities will begin from 1 January 2025. With new regulations come opportunities. For reporting entities, responsibility for this reporting is increasingly sitting with their finance functions. They also need to be thinking strategically beyond compliance, however, to better respond to the risks and opportunities of climate-related matters. These disclosures will also be assured, and accounting practices will need to build their knowledge in this new and evolving area. As the driving force behind these disclosures and jurisdictions, the IFRS is signalling that while climate is the first focus area for disclosures, it is not the end game. Finding out what is coming down the track for your business will be important. Miriam Donald is Lower North Island Regional Manager with Chartered Accountants Australia and New Zealand

Attracting top graduate talent requires a strategic recruitment plan focused on strong employer branding, fostering internal relationships and academic partnerships, explains Mary Cloonan In today’s highly competitive job market, attracting top graduate talent is more challenging than ever. With a plethora of career opportunities at their fingertips, graduates seek firms that stand out through their values, culture and development opportunities. Organisations need a strategic and well-structured recruitment plan to engage this year’s graduate cohort. This strategy should holistically focus on brand building, celebrating the success of current graduates, nurturing strong internal relationships, establishing collaborations with academic institutions and communicating the recruitment process clearly and transparently. Building a compelling employer brand To attract top graduates, it is important that your organisation’s brand offers them what they are looking for in an employer. There are three elements to focus on in your employer brand: Corporate identity and values: Graduates gravitate towards firms that profess clear values and live by them. Firms must communicate their core values effectively, emphasising social responsibility, sustainability and ethical practices to resonate deeply with potential candidates. Employee testimonials and success stories: Showcasing current graduates’ real-life success stories of through social media, blogs and video testimonials can powerfully augment a firm’s brand. These narratives provide authentic proof of the professional growth and development facilitated by your company, making it an attractive place for ambitious graduates to start their careers. Interactive engagement: Proactive engagement through webinars, virtual career fairs and interactive Q&A sessions enables potential recruits to gain insights into the company’s culture and employee experiences. This level of interaction can significantly boost a firm’s appeal, drawing in candidates who are a good cultural and ethical fit. Fostering strong internal relationships Creating an environment that promotes growth and development is crucial in maintaining a dynamic and supportive workplace. This is achieved by understanding and responding to the current team’s needs and ambitions by: Mentorship and comprehensive training: By implementing robust mentorship programs and offering comprehensive technical and soft skills training, companies can equip graduates with the necessary tools to succeed and integrate seamlessly into the professional environment. Listening to learn: Regular feedback sessions help cultivate a culture of openness and ongoing development, which can be used to tailor training programs and career development initiatives to suit individual and organisational goals. Recognition and advancement opportunities: Publicly acknowledging and rewarding graduates’ achievements helps to foster a motivational workplace atmosphere and demonstrates the firm’s commitment to investing in its employees’ success. Collaborating with academic institutions Forming strategic alliances with universities and colleges is essential to accessing emerging talent and enhancing brand visibility among students. Collaborations that offer students practical experience and internship opportunities allow companies to assess potential employees in real-world contexts, benefiting both students and employers. By participating in educational programs and delivering workshops, companies provide valuable industry insights and help demystify the professional world for students, preparing them effectively for their future careers. Firms contributing their expertise to academic curricula ensure that the education provided is relevant and up to date, enhancing graduates’ employability and ensuring they are well-prepared for their professional journey. Transparently communicating the recruitment process Clear and proactive communication about the recruitment process is crucial for setting correct expectations and creating a positive candidate experience. The firm’s careers page should clearly detail each step of the recruitment process, from application to selection, explaining it and reducing applicant anxiety. A comprehensive FAQ section, along with supportive materials such as year-by-year training breakdowns and process videos, provides candidates with all the necessary information to navigate the application procedure confidently. Finally, videos, photography and tagged posts featuring current graduates talking about their experiences can give insights into the day-to-day realities of working at the firm and showcase the vibrant community and dynamic work environment. A proactive and transparent recruitment strategy is paramount in these competitive times. By effectively building a robust brand, fostering strong internal relationships, empowering graduates, forming educational partnerships and clearly articulating and showcasing the recruitment journey, firms can attract, engage and retain top talent, paving the way for sustained success. Mary Cloonan is the founder of Marketing Clever

Managing a new generation of workers and hybrid working effectively requires regular performance conversations, clear direction and strategic alignment with business goals, writes Seán McLoughney A new generation of workers requires a different approach to managing performance. Younger employees need and expect more frequent conversations about their performance and want clarity and direction in terms of their work and career progression. Another issue facing managers is how best to manage working from home. The debate over hybrid working arrangements is ongoing, but there is a lot of research on the benefits and pitfalls of remote working. While managers may prefer that their team works in the office, people often prefer the flexibility of working from home at least two days a week. This presents a problem when it comes to managing performance, however. Managers tend to manage performance based on what they see and hear and their interactions with their team. There is a lack of visibility when people work from home. This can lead to people feeling that their efforts are not being recognised and valued by management. Here are simple steps managers can take to overcome these issues. Give time and support Show you care about your team by giving them your time and real support. Setting aside at least one hour once a quarter to focus on performance and career progression is the minimum that talented people expect. This investment in your team is important in retaining your best people. On average, people will give you 1,900 hours of their time per year. How much one-to-one time do you give them as their manager? Regular performance conversations are about more than just discussing people’s key targets and objectives. These conversations also allow you to check in with people who work from home and keep up to date with what they are working on. Regular and meaningful conversations and feedback underpin a high-performance culture. Discuss the business plan Give context to your team’s performance by discussing your organisation’s business plan. Your role is to translate the business strategy at its highest level into what it means for the team and each individual within it. People are more engaged when they know that their work matters. Discussing the business plan will show them how they can make a positive contribution to the business. At a team meeting, outline the key areas of the plan and how it impacts the team. Describe what success looks like by the end of the year. Ask the team what they think needs to happen to achieve these expected results. You can also encourage everyone to set goals for themselves based on this discussion. This will increase personal responsibility by fostering a sense of ownership for their performance. Discuss strategy Always explain the business reason when goals change. Surviving in a dynamic business environment requires people to be flexible and agile because companies need to adapt to market conditions. Ensure that everyone’s priorities are aligned with current team goals to stay on top of your ever-changing demands. This will encourage your team to focus on what matters to your business in the present moment rather than spending time working on goals set at the start of the year, which are now outdated. Regular performance conversations will bring clarity and direction to your team. They provide managers with a great platform to communicate expectation levels and ensure that their efforts are focused on the current priorities that matter. Show real support If the achievement of your business goals is dependent on how you manage your team and new team members, then it is important to show real support. Set aside regular time for meaningful performance conversations regardless of where your team members are located, bring context to their efforts and ensure everyone is focused on current priorities. Seán McLoughney is the founder of LearningCurve and author of Time Management, Meaningful Performance Reviews and Slave to a Job, Master of your Career, all published by Chartered Accountants Ireland

In Irish news, the Government’s Summer Economic Statement 2024 has been published and Revenue has published the report of the TALC sub-committee on Administrative Simplification of Business Reliefs for SMEs. In UK news today, the new Financial Secretary to the Treasury has now been appointed and the deadline is approaching to make the second self-assessment payment on account for 2023/24. In International news, the OECD has released data on statutory corporate tax rates in the last three years. Ireland The Government’s Summer Economic Statement 2024 has been published. Revenue has published the report of the TALC sub-committee on Administrative Simplification of Business Reliefs for SMEs. UK Read about the appointment of the new Financial Secretary to the Treasury. The deadline is approaching to make the second self-assessment payment on account for 2023/24. International The OECD has released data on statutory corporate tax rates in the last three years. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner.  

Last week it was confirmed that Lord Livermore has been appointed to the role of Financial Secretary to the Treasury (FST) in the new Labour government. The FST is the Minister responsible for a range of areas, including HMRC and tax policy. Accountancy Daily sets out more on what might be expected from the new Minister and his previous roles and experience in government. As the dust begins to settle after the UK General Election with new Ministers sworn in last week, the Labour government began preparing for the opening of parliament which took place earlier this week.  This took place on Wednesday 17 July with the King’s Speech outlining the new Labour government’s legislative agenda for the next year. More on this will feature in Monday's edition of Chartered Accountants Tax News. The date for Labour’s first budget is also expected to be confirmed before MPs break up for summer recess at the end of next week. 

The second 2023/24 self-assessment payment on account for income tax and Class 4 National Insurance Contributions (NICs) is due for payment on or before midnight on Wednesday 31 July 2024. Each payment on account is half of the previous year’s tax bill. Information on time to pay arrangements and how to apply is available on GOV.UK.  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.   

In this week’s miscellaneous updates, HMRC has launched a new VAT registration estimator tool, and it is also confirmed that from next month, VAT registration changes will only be able to be made by agents online. A webinar is being held later this week on the new additional information form for the creative sector reliefs and guidance has been published on the abolition of stamp duty land tax (SDLT) multiple dwellings relief (MDR). Scotland’s visitor levy legislation has completed the necessary legislative stages in the Scottish parliament and finally, in an update on GOV.UK, HMRC no longer automatically issue PAYE refunds.  HMRC launches VAT registration estimator tool  HMRC has now launched its new VAT registration estimator guidance tool. A Welsh version of the tool is also available. The tool is designed to help businesses estimate what registering for VAT may mean for them and has been developed after feedback from small businesses suggested that an online tool would be helpful to show when their turnover could require businesses to register for VAT and the potential effect on profits.  The estimator also links to further information about the registration process and aims to assist businesses when considering voluntary registration by allowing the business to experiment with different levels of inputs and outputs in the tool.   The accompanying Press Release confirming the tool’s launch also contains a helpful reminder of the UK’s VAT registration rules.  VAT registration changes online only by agents from 5 August  From Monday 5‌‌‌ August‌‌‌ 2024, any request by an agent to change a client’s VAT registration details should only be made using their online Agent Services Account, and not by using the VAT484 form or any other postal or electronic means. HMRC has set out more details on this upcoming change in an email.  Webinar on creative industry tax reliefs  HMRC is holding a webinar later this week on 18 July which is specifically covering the new  additional information form for creative industry tax reliefs. This new  online HMRC form must be used from 1 April 2024 by a company claiming creative industry tax relief by way of providing supporting evidence for the claim.  Abolition of SDLT MDR   As announced in the Spring Budget 2024, Finance (No. 2) Act 2024 contains the legislation which has abolished SDLT MDR. This applies to land transactions in England and Northern Ireland if the effective date is on or after 1 June 2024, subject to transitional arrangements. HMRC has therefore updated its SDLT manual to include guidance on this.   MDR is still available in Scotland under its land and buildings transactions tax regime. Wales is currently consulting on the potential abolition of its corresponding legislation within the land transactions tax regime.   Scottish visitor levy passed   The legislation which will implement Scotland’s new visitor levy has passed all stages in the Scottish parliament. The Visitor Levy (Scotland) bill will enable local authorities in Scotland to apply a levy on overnight stays. All revenue raised is to be reinvested in services and facilities largely used by tourists and business visitors. Councils that will be seeking to introduce the levy will only be able to do so after having consulted with local communities, businesses, and tourism organisations. It is expected that the earliest the levy could come into force is spring 2026.   HMRC no longer automatically issue PAYE cheque refunds  In an update on the GOV.UK page on tax overpayments and underpayments, HMRC has essentially confirmed that it no longer automatically issues PAYE refunds by cheque. Individual employees must instead register a claim online to ensure they receive any refund due. This change is another strand in HMRC’s ongoing strategy to drive services online usage.   Cheques are still available if requested, but these will take up to 42 days or six weeks to issue compared to five working days if the refund is instead claimed online.   The July 2024 Employer Bulletin was also recently published and sets out updates on a range of areas for employers. 

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:  Moving processed or repaired goods into free circulation or re-exporting them  Transit newsletters — HMRC updates  Declare your goods to authorised use and completing authorised use  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status  List of customs training providers  Search the register of customs agents and fast parcel operators 

Statutory corporate tax rates have stabilised worldwide after a lengthy period of falling rates, according to new OECD data released last week. The 2024 edition of OECD Corporate Tax Statistics shows that average statutory corporate income tax (CIT) rates have remained steady at 21.1% over the past three years. This follows a two-decade period that saw average statutory CIT rates decline from 28% in 2000 to 21.1% in 2021.  

Revenue has incorporated the contents of the Tax and Duty Manual - “Self Assessment – processing/screening of returns of companies in liquidation, death  cases, capital gains tax returns of non-residents and returns on which an expression of doubt has been made”- into a number of manuals impacted by the new guidelines.  The updated manuals are:  Part 46-01-01 Dealing with death cases  Part 46-01-02 Requests for clearance in death cases Collection Manual - Liquidation of Companies and other Company Law Issues Part 45-01-05 - Requests for Clearance – Capital Gains Tax and Non-Resident Vendors Part 41-00-09A - Self-assessment: processing/screening of returns on which an expression of doubt has been made.

Following the recent publication of Revenue's new guidelines for determining employment status for taxation purposes (which applies the new test outlined in Karshan), Revenue has since updated a number of Tax and Duty manuals which are impacted by the new guidelines.  The updated manuals are:  Taxation of Couriers Code of Practice on Determining Employment Status (Employed or Self-Employed) Part-time Lecturers/Teachers/Trainers Agency Workers Individuals described as ‘locums’ engaged in the fields of medicine, health care and pharmacy Taxation of Exam Setters, Exam Correctors, Exam Attendants, Invigilators, etc. National Co-op Farm Relief Service Operators

Revenue has updated the Tax and Duty Manual regarding the taxation of foreign retirement lump sums.   The updated manual includes:  Guidance to the effect that when determining the tax-free amount which is available on a foreign pension lump sum, this should take account of the value of all foreign lump sum payments paid on or after 1 January 2023, whether or not such payments are chargeable to Irish tax under section 200A TCA 1997 (Paragraph 4.1). A new example 8 has also been included.  Guidance that the value of a foreign pension arrangement, as defined in section 200A TCA 1997, is not taken into account for Standard Fund Threshold purposes (Paragraph 4.3.1).  Guidance on Revenue’s treatment of foreign pension lump sums paid to resident taxpayers before 1 January 2023 (paragraph 12).