Revenue has published a new Tax and Duty Manual on the VAT treatment relevant to Taxi drivers outlining the various VAT rules which apply to taxi drivers. The manual outlines the VAT registration obligations of taxi drivers, and the VAT recoverability rules for relevant services received. The VAT implications for taxi drivers using the services of an online platform provider for taxi booking are outlined in the guidance.

Revenue has updated its guidance on the VAT Treatment of heat pump heating systems to provide additional details on the application of the second reduced VAT rate. For the second reduced VAT rate of 9 percent to apply, the supply of the heat pump heating system and its installation must be completed by the same business in the same supply (i.e. a supply and install contract). The supply and installation of a heat pump heating system can include key equipment required to facilitate the efficient operation of a heat pump. The Tax and Duty Manual Fixtures and Fittings has also been updated to refer readers to the above-mentioned manual for details on the VAT treatment of heat pump heating systems.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. 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. Below we also feature a range of resources to help businesses in their preparations for the changes to business-to-business parcel movements from Great Britain to Northern Ireland under the Windsor Framework from 31 March 2025.  Useful resources for parcels changes  Here are some of the links to guidance and resources:  Future arrangements for moving parcels from Great Britain to Northern Ireland under the Windsor Framework  Simplified processes for Internal Market Movements (SPIMM)  Moving goods into Northern Ireland as ‘not at risk’  UK Internal Market Scheme (UKIMS)  Customs Duty Waiver Scheme  Duty Reimbursement Scheme  Categorising goods for Internal Market Movements from Great Britain to Northern Ireland  Miscellaneous guidance updates and publications Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service, Manage your Trader Goods Profile, Applying to use simplified declarations for imports, Apply to operate a temporary storage facility, Pay less Customs Duty on goods from a country with a UK trade agreement, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Simplified processes for fixed transport installations, Apply for a customs comprehensive guarantee to cover customs debts, Apply for Designated Export Place approval, Apply for authorised consignor or consignee status, Apply to import multiple low value parcels on one declaration, Importing bananas you have to pay duty on into the UK, Apply to use simplified procedures for import or export (C&E48), Transfer the rights and obligations of a customs special procedure to someone else, Apply to pay less duty on goods you import for specific uses, Apply to delay or pay less duty on goods you import to process or repair, and Apply to operate a customs warehouse.

The OECD has published a working paper on taxing capital gains. The paper analyses the rationales, challenges, and implications of offering more favourable tax treatment to capital gains compared to other forms of income. This paper lays the groundwork for evaluating potential policy reforms.

Revenue has published new Guidelines for Agents and Customers regarding the Agent e-linking process outlining the new e-linking process for both agents and customers. As outlined in the earlier news item on our update from the meeting of the TALC Collections Subcommittee, the new e-linking system will be available from 25 March 2025. The new e-linking system will involve the agent initiating the linking process online and the client actioning the request.  As the requirement and responsibility lie with the client to approve the link request, greater digital security and transparency is provided to both the agent and client. The system will facilitate viewing, approving and rejecting agent links functionality and should provide customers and their agents with a quick, secure, and cost-effective method to conduct their business electronically with Revenue.  Customers without a ROS or myAccount registration will continue to be processed under the existing linking rules.

The OECD has published its consolidated report on Amount B  as part of the Two Pillar Solution. This consolidated report includes all publications on Amount B by the Inclusive Framework in 2024.

The delegation from the Commission’s Tax Matters subcommittee, concluded its mission to Finland and Estonia. Regina Doherty, MEP and leader of the delegation, stated that is time to review the EU’s legal framework in the area of taxation to identify remedies which can reduce the administrative and regulatory burden on EU companies.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. Among the issues discussed, Revenue provided an update on the new agent e-Linking process, advised of the withdrawal of the facility to file draft financial statements under any circumstances, and confirmed that agents will be copied on final demand notices issuing to their clients. Revenue also confirmed that issues with the 2024 Form 11, for taxpayers claiming the Residential Premises Rental Income Relief, will be fixed later this month . Minutes of the meeting will be available in due course. New Agent e-Linking Revenue confirmed that its new agent e-linking system will be available from 25 March 2025. Under the new system, where a taxpayer has an online registration in ROS or myAccount, the agent will no longer be required to generate a client consent letter. Instead, upon submission of the agent-client link request by the agent, the taxpayer will receive an approval notification in their ROS/MyEnquiries inbox. The agent will be notified when the taxpayer has approved the link. Revenue will issue a letter to agents outlining the new e-linking system containing a QR code for access to further guidance. A letter is also to issue to ROS taxpayers. iXBRL In certain limited circumstance Revenue accept, by concession, the filing of draft iXBRL financial statements. Revenue has advised that it intends to withdraw this concession, and the upload of draft financial statements will not be permitted under any circumstances, from the end of May 2025. Final accounts with full tagging of directors’ and auditors’ reports are required. Debt Management Services A new notification system for the issue of final demand notices to agents will go live by the end of March 2025. By end of day each Monday an agent will receive a listing of their taxpayers who have been issued with a final demand notice that week. The notification will be sent as a priority email to the agent’s ROS Inbox. ROS issues Revenue is aware of issues with the ROS Form 11 calculation of Residential Premises Rental Income Relief (RPRIR) including PRSI. A fix for RPRIP in the Form 11 will be released on 24 March 2025. Revenue will correct any submissions that are made before 24 March. If the matter is urgent Revenue can be contacted for a manual fix. Practitioners outlined the frustrations and concerns of advisors and taxpayers regarding the perceived unreliability of ROS and the accuracy of its calculations. Revenue, acknowledging the negative impact of multiple releases and ROS downtime on taxpayers and their agents, has confirmed that there will be a single CT1 release in April 2025. The main ROS release is scheduled for 6 September 2025, with the proposed release on 22 September 2025 cancelled to avoid issues around the corporate tax filing deadline. Modernisation Revenue provided an update on its bank payments modernisation project. With fixed direct debits (FDD) for PREM no longer being a payment option, Revenue advised that there are still 3,000 taxpayers who have not switched from FDD. Next month will be the first month that FDD will not apply to VAT payments. FDD only applies to those that file VAT returns annually. Revenue expects to see the transition complete by December. The review of simplified VAT filings continues as a separate project.  

The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors has been published. This report sets out recent developments in international tax co-operation and tax transparency, as well as updates on initiatives to enhance tax certainty, and tax administration.

Ireland’s transport sector is becoming more sustainable, yet sales of electric vehicles fell in 2024. Tackling affordability, infrastructure and incentives will be key to regaining momentum, writes Sean Casey Ireland’s transport sector is responsible for about one-fifth of the total carbon emissions generated in Ireland, with close to half coming from passenger cars. This makes the decarbonisation and electrification of passenger cars and other road vehicles critical to Ireland’s ability to meet our climate targets. Despite this, The Society of the Irish Motor Industry (SIMI) reported a 23.6 percent drop in EV sales in Ireland in 2024 compared to the previous year. So, what are the roadblocks impacting Ireland’s EV uptake? The fifth annual EY Global Mobility Consumer Index report highlights consumer concerns regarding: EV affordability; Subsequent battery replacement costs; The sufficiency of adequate public charging infrastructure; Duration of charging time; Battery range; Depreciation; Future trade-in value; and The environmental effects of EV battery production. Although there are some indications of recovery in Ireland’s EV market, immediate improvements in state-backed measures—including those recently proposed in the draft Programme for Government 2025—are essential to recharging the EV adoption drive. Legislative and regulatory landscape Part of the wider Fit for 55 initiative, The Alternative Fuels Infrastructure Regulation (EU) 2023/1804 (AFIR) introduces measures designed to ensure: The minimum infrastructure necessary for the adoption of alternative fuel vehicles across all transport modes; Full interoperability of this infrastructure; Comprehensive user information and adequate payment options at alternative fuel infrastructure (such as EV charging points). The regulation establishes several mandatory targets for the deployment of this infrastructure. To support the implementation of AFIR in Ireland, the Department of Transport has opened a public consultation seeking feedback to develop an updated National Policy Framework for Alternative Fuels Infrastructure in Transport. The updated framework has yet to be published but is expected to complement: Existing frameworks, including the National Road Network EV Charging Plan and Regional and Local EV Charging Network Plan; Existing legislation, including S.I. No. 535/2022, the ‘Part L Amendment’ to Building Regulations 1997 to 2022, which sets out new regulations on charging infrastructure in building developments. The framework will also support the delivery of 2030 Climate Action Plan (CAP) targets, including 845,000 passenger EVs, 95,000 light goods vehicles, 3,500 heavy goods vehicles and 1,500 EV buses. Despite the continued rise in the overall number of EVs on Irish roads, sales dipped by 23.6 percent in 2024, year-on-year. The current rate of new EV registrations is below that needed to meet Ireland’s ambitious CAP targets.  Measures needed for acceleration State-supported measures are now required to boost EV adoption rates and we recommend that policymakers: Identify and address barriers to utilising available en route charging infrastructure funding. Additionally, subsequent grant scheme phases should aim to include all national single and dual-carriageway roads. Review all open market selling price thresholds and consider increasing vehicle registration tax (VRT) relief. Review customs duties on second-hand EV imports, as set out in the draft Programme for Government 2025. Consider a capped increase in EV purchase grants, restoring the amount available to motorists to pre-July 2023 levels (€5,000), and consider extending financial incentives to used EVs. Work with the regulator and system operators to launch a flexibility awareness campaign, consistent with actions set out in the Commission for Regulation of Utilities’ National Energy Demand Strategy, to reduce barriers to entry and support conditions in which  battery EVs can participate readily and flexibly. Ireland’s electric future The decarbonisation and electrification of transport will be essential to Ireland’s delivery of its climate targets, per the CAP. Sales of EVs in Ireland slowed in 2024, however, prompted by concerns about affordability, charging infrastructure and future trade-in values. Last year’s fourth quarter sales suggest a positive turnaround may be on the way for the EV market in 2025, but enhanced state-backed measures are needed now to boost EV adoption. A rebound is possible, but only if policymakers act swiftly to remove barriers and reinvigorate consumer confidence in Ireland’s electric future. Sean Casey is Partner and Consulting and Head of Energy and Assets at EY Ireland

Ornaith Giblin outlines the essential steps to achieving a healthy work-life balance for high-level executives striving to manage heavy schedules and competing priorities A high-powered executive who runs a multi-million euro business, also sits on the boards of several not-for-profits, is raising two kids and has just run a second marathon. How do they do it? How is it possible to lead a business, contribute pro-bono time and have a work-life balance that prioritises family and fitness? This “art” of time management and efficiency doesn’t come easy. We have all developed, read about, adopted and rejected various methods—some successful and some not—to try to boost our productivity. However, people often still find themselves frustratingly short of time. What is absolutely clear is that the people who rise to the top usually have the art of time management nailed—often to a level that puts the rest of us to shame. So, what principles do they employ that we could all learn from? Learn to let go and delegate If you are a new manager, you will understand first-hand the battle here. You hold on to the tendency to “do” because you’re the best one to do the job, and taking the time to train someone else doesn’t seem any more time efficient. Even for senior managers, this is an issue. You might have strengths that place you as the best project manager, process improver, statutory reporter or deep-dive analyser, but if you did all of this all the time, you would have no time for team leadership, strategy or driving commercial objectives. Approach this situation from another viewpoint: what do you do that no one else is qualified to do? You were hired to take care of the higher-level aspects of your job and this must be prioritised. Business-as-usual can be delegated. Not only will it boost your team, but you might be pleasantly surprised by what others can do when asked to step up to the challenge. Make a plan and then a contingency plan I write the next day’s plan the evening before. This practice helps me assess my progress and gain insights into my productivity patterns over time. I remove what I’ve completed from my earlier plan, reschedule unfinished tasks for the next day and note a few new priorities requiring attention. Even more critical, however, is the need for a contingency plan to help manage the unknown. It is crucial to set aside a “free” hour each day to manage unforeseen issues. If you find you don’t need this hour, use it to speed up the delivery of other outlined priorities. Focus on results rather than hours People focus on the time it will take to complete a task. Task completion will invariably expand to fill the allocated time. In accounting, you are even more susceptible to this mindset, even if you work in industry, due to the industry-accepted practice of “billable hours”. Instead of analysing a task in terms of how long you anticipate it will take, allocate the time to the task in a way that aligns with the value of the end result. Your success will not be measured by how long you work, but rather what results you deliver. Set your hours and create distance At first glance, it may seem arbitrary to set working hours for the sake of having a work-life balance. If you have nothing planned, why not work into the evening and get a few more things done? Because working all the hours you have available will dull your shine. Frequently, ambitious people work more because they’re always “on”, driven by the buzz, and feel that the more work they get done, the better. However, taking the time for yourself means you can show up the next day fresh and full of ideas. Whether it’s setting hours so you can get out and exercise, spend time with your family, or just kick your feet up, distance is essential for idea generation, innovation and creativity in your work. Ornaith Giblin is a consultant at Barden

Strong leadership isn’t just about strategy—it’s about trust. Michael O’Leary explains how leaders can build lasting trust to the benefit of their organisations If we expected that the post-pandemic era would stabilise employee/employer relationships, we were mistaken. Remote work, hybrid working, the “great resignation”, quiet quitting, falling employee engagement, staff shortages, wellbeing challenges and the rise of artificial intelligence all present challenges to organisation cultures and leadership. These pressures may also impact the engagement, purpose and satisfaction experienced by management. According to a LinkedIn survey, the actions of disaffected or poor leaders account for 70 percent of the reasons employees decide to engage or disengage at work. People don’t leave organisations, they leave managers. In Neurosicence of Trust, Paul J Zak shares how employees in high-trust companies enjoy their jobs 60 percent more, are 70 percent more aligned with their organisation's purpose and feel 66 percent closer to their colleagues. Empathy and a sense of accomplishment are higher in such firms, while burnout is 40 percent below that in low-trust cultures. Not only does trust improve organisation performance, but, according to Zak’s report, employees in high-trust companies are paid, on average, 17 percent more than those in other firms. In his research, Zak identified eight management processes that build trust for leaders: 1. Recognise excellence Research indicates that recognition has the most impact when it occurs immediately after the task or goal has been achieved. Recognition from management is most powerful when personalised to the employee and occurs in a public setting. 2. Assign difficult but achievable challenges to teams Pressure to achieve releases neurochemicals which intensify employee focus and strengthen social connections. Zak explains that when team members need to work together to reach a desired outcome, this brain activity coordinates their behaviours efficiently. 3. Employee autonomy Autonomy promotes innovation that management control can inhibit. Being trusted to find solutions to problems is a big factor in an employee’s engagement. Encourage staff to question established practices, especially those that have persisted for years. 4. Enable job crafting Encourage employees to focus their energies towards projects about which they are passionate while ensuring clear expectations, accountability and 360-degree evaluations are in place. 5. Share information broadly Poor management communication remains one of the big employee bugbears. Uncertainty about company direction can lead to stress, which in turn inhibits the release of oxytocin, a natural hormone which drives the social connections necessary for collaboration. Organisations that communicate plans broadly reduce uncertainty and increase teamwork effectiveness. 6. Intentionally build relationships Too often, managers communicate the message to “focus on your tasks” rather than encourage social connections. Zak cites neuroscientific experiments that show that when people intentionally build social bonds at work, their engagement and performance improve. Social events, which may appear to some to be “forced fun”, significantly enhance employee connectivity, particularly when such events include competitive team elements. 7. Facilitate whole-person growth High-trust workplaces help people develop personally as well as professionally. Though setting goals, learning plans and reviewing progress are key to professional growth, understanding how an employee is managing work-life balance or well-being is equally important. Leaders aware of personal challenges their employees face can often help through flexibility, rather than lose a valued contributor. 8. Show vulnerability Asking for help from colleagues is a sign of a confident leader and fosters trust and collaboration from those colleagues. It indicates that the leader is someone who involves everyone in achieving goals while valuing the opinions and expertise of others. High-trust culture boosts inclusion Building trust is a continuous process, and many colleagues and reports will start from different points in their willingness to believe the trust is authentic. Taking the time to understand that starting point and being patient while the trust emerges is essential. Being self-serving, not meeting commitments, being assumptive and jumping to conclusions are sure ways to breach any trust built. A culture characterised by high trust is more inclusive, performs better and is central to organisational success. Michael O'Leary is Chair of HRM Search Partners