Revenue has updated the Tax and Duty Manual which provides guidance on repayments and offsets of taxes and duties. The updated guidance now incorporates the contents of the previous Tax and Duty Manual which provided guidance on interest payable by Revenue. Section 2 of that guidance has also been updated to clarify who is entitled to a repayment of tax. 

Revenue has informed us that there are over 200,000 PAYE taxpayers with PAYE over/underpayments for the tax year 2020. In the coming weeks Revenue will write to them all to invite them to file a return for 2020. Taxpayers wishing to reclaim their overpayment of PAYE must file a tax return via the MyAccount facility. In the case of underpayments of PAYE, where no return is filed, Revenue intends to collect the underpayments via the PAYE system at a later date. 

Revenue has updated its website to include two instructional videos for agents. The first video outlines Revenue’s top tips for agents when they are using MyEnquiries. It has also provided an instructional video outlining how agents can change accounting periods for corporation tax on behalf of the taxpayer. 

Revenue has informed us that its Business Division is commencing a Level 1 bulk compliance project on two cohorts of taxpayer based on 2022 income tax returns. Letters will issue in the coming weeks asking taxpayers to review and amend their returns where appropriate. Revenue’s focus is on:  Taxpayers who may have claimed relief for AVC pension contributions twice (both via payroll and via their Form 11), and  Taxpayers where the turnover per the Form 11 exceeds the VAT registration threshold, but the taxpayer is not VAT registered.  

At a recent meeting of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements (ERR) sub-group, Revenue confirmed that the period of ‘service to support compliance’ is extended to the year end. While no penalties or audits will be imposed during 2024, from 1 July 2024 Revenue expects all employers providing reportable benefits to submit details on or before the provision of the benefit.   As of 31 May 2024 over 36,000 employers have made over 515,000 submissions totalling €566 million in respect of 522,000 employees. During this time, travel and subsistence payments were made to over 33,000 employees totalling more than €500 million.  Revenue is making contact with those employers from whom it would have expected to receive an ERR report but have not done so. Revenue’s Business Division will issue over 79,000 letters this week to remind employers of their ERR filing obligations.  Employers experiencing difficulties complying with ERR are encouraged to contact Revenue through MyEnquiries if they have any queries. Further support is available through the National Employer Helpline, which can be contacted on (01) 738 3638 between 09.30 and 13.30 Monday to Friday.  Feedback on issues or problems you experience with the new ERR reporting regime can be emailed to the Institute and we will continue to engage with Revenue through TALC. 

As businesses navigate technological disruptions, economic fluctuations and global crises, leaders must prioritise investing in resilience, writes Neil Hughes Resilience is defined as the ability to adapt to change positively, recover from difficulties and persist in facing challenges. The pace of change in business today is relentless, and for business leaders, resilience is a more crucial attribute than ever. Organisations need leaders capable of staying focused, being consistent and remaining inclusive under pressure. Building a resilient workforce can help organisations to navigate change more effectively, sustaining competitive advantage, growth and long-term success. Best practice suggests several key areas of focus for leaders and organisations to consider. Prioritising wellbeing and mental health According to a 2023 survey by the Chartered Institute of Personnel and Development, 76 percent of UK employees reported that mental health support at work directly contributes to their overall job satisfaction. Mental health is foundational to resilience. Business leaders should strive to create a supportive environment that prioritises mental health through comprehensive wellness programmes. This includes providing access to mental health professionals and resilience tools to support employees in managing stress and adapting to change. Encouraging open conversations about mental health can foster a culture where employees feel safe and supported. Fostering a resilient and inclusive team culture Resilience should be embedded within the organisational culture. Leaders must foster a workplace culture that encourages collaboration, open communication and psychological safety, where small wins are recognised, feedback is encouraged and acted on and failures are seen as learning opportunities rather than setbacks. Creating an inclusive culture where diverse perspectives are valued can enhance problem-solving and innovation. Regular team-building activities, training focused on resilience, and creating a safe space for employees to voice their concerns can significantly boost team morale and cohesion. Investing in continuous learning and development Continuous learning is critical to building a resilient workforce. By investing in ongoing training and development programmes, leaders can equip employees with the skills needed to adapt to new challenges. Offering opportunities for professional growth helps employees stay current and confident in their roles. Encouraging a growth mindset, where challenges are seen as opportunities for learning, can foster resilience and innovation. Role modelling resilience and self-care To lead effectively, business leaders need to invest in their own wellbeing and resilience. Resilient leaders are those who continuously learn, adapt, and maintain their physical and mental health. This involves regular training, seeking coaching or mentorship, and embracing a growth mindset. Leaders who prioritise self-care practices such as regular exercise, adequate sleep, and mindfulness activities can manage stress more effectively, maintaining mental agility. . Leaders play a critical role in modelling resilience and those leaders who prioritise resilience not only enhance their capacity to grow and move forward in the face of adversity but also inspire their teams to do the same. Whilst building resilience involves effort, commitment and time, it can be the protective layer required to equip leaders, their teams and organisations to face the challenges of the ever-changing landscape of work. Neil Hughes is a Director in People and Change Consulting at Grant Thornton Northern Ireland

Sandra Healy explains the importance of a strong organisational culture and how it can lead to satisfied and long-term employees Organisational culture is the personality of the organisation, shaping how employees interact with each other, management and customers. A strong organisational culture can have a significant impact on employee retention because it creates a sense of belonging and purpose. When employees feel that they are part of a community that shares their values and goals, they are more likely to stay with the company for the long term.  A positive organisational culture can also lead to greater employee engagement. When employees feel that their work is meaningful and that they are making a difference, they are more likely to be motivated and productive. This can lead to better business outcomes, such as increased revenue and customer satisfaction.  On the other hand, a negative organisational culture can have the opposite effect. If employees feel that they are not valued or that their contributions are not recognised, they may become disengaged and demotivated leading to high turnover rates.  Organisational culture can impact employee retention in other ways, as well. A strong culture of work-life balance can help employees feel that they are able to maintain a healthy balance between their personal and professional lives. Similarly, a culture of learning and development can help employees feel that they are growing and developing professionally.  Key components to a good organisational culture  A strong organisational culture is built on a foundation of shared values and beliefs that guide the behaviour of employees. These values and beliefs are communicated through various channels, such as company mission statements, vision statements, and core values. When employees understand and embrace these values, they are more likely to feel a sense of belonging and purpose within the organisation.  Another key component of a strong organisational culture is effective communication. Leaders who communicate regularly and transparently with their employees can help to build trust and foster a sense of community within the organisation. Employee recognition and appreciation are also important components of a strong organisational culture. When employees feel that their contributions are valued and recognised, they are more likely to feel motivated and engaged in their work. Finally, a strong organisational culture is one that promotes work-life balance and employee well-being. When employees feel that their personal needs and well-being are valued by the organisation, they are more likely to feel satisfied and committed to their work. Measuring organisational culture Measuring the current organisational culture can be done through various methods: Surveys can be distributed to employees to gather their opinions on the company's values, communication, leadership, and overall culture. Interviews with key personnel such as managers and executives can provide insight into the company's goals and how they align with the culture. Focus groups can also be conducted to gather opinions from a diverse group of employees. These methods can help identify areas where the company's culture is strong and where it needs improvement.  Another way to measure the organisational culture is to look at employee turnover rates. High turnover rates can indicate a negative or toxic culture, while low turnover rates can indicate a positive and supportive culture. Exit interviews can also provide valuable feedback on why employees are leaving and what can be improved to retain them.  Once the current organisational culture has been measured, the company can identify areas for improvement by analysing the data collected from surveys, interviews, focus groups, employee turnover and exit interviews, then create an action plan to address the areas that need improvement. Improving the organisational culture is an ongoing process. The company should regularly measure the culture and make adjustments as needed. This will help ensure that the culture remains strong and supportive, leading to greater employee engagement and retention.  Best practice One of the best practices for building a positive and inclusive organisational culture is to establish a clear set of values and principles that guide the organisation's actions and decisions and then communicated to all employees and integrated into all aspects of the company's operations. Organisations must also encourage open communication and collaboration among employees by engaging everyone in regular team-building activities, open-door policies, and opportunities for feedback and input. When employees feel that their voices are heard and their contributions are valued, they are more likely to feel invested in the success of the organisation and less likely to seek opportunities elsewhere.  Creating a supportive and inclusive work environment is also crucial for building a positive organisational culture. This means promoting diversity and inclusivity in all aspects of the workplace, from hiring practices to daily interactions among employees. Finally, it is important to create formal recognition programs, such as employee of the month awards or performance bonuses, as well as through informal gestures such as thank-you notes or public praise. When employees feel that their hard work and dedication are appreciated, they are more likely to feel motivated and committed to the organisation over the long term.  Sandra Healy is Founder of Inclusio

Businesses need clever strategies to counter the cyber security challenges arising from the emergence of artificial intelligence, writes Puneet Kukreja The enormous power of generative artificial intelligence (GenAI) and large language models (LLMs) is just beginning to be understood. Its capacity to automate and accelerate business processes is only starting to be explored fully. As is the case with the deployment of any new technology, however, GenAI brings with it new cyber vulnerabilities. Cyber security matters are emerging as a key concern for technology leaders in Ireland amid the surge of AI-enabled cyber attacks. According to the EY Ireland Tech Leaders Outlook Survey 2024, the percentage of respondents who identified elevated cyber risks and the management of data protection and data flows as critical challenges has risen to 61 percent, up from 53 percent in 2023. Like the move to the cloud over a decade ago, the technology will create new cyber exposures and increase the attack surface for cyber criminals. For example, consideration needs to be given to securing the LLMs that gather and analyse data from various departments within the organisation. Ensuring the secure collection and transmission of this data is paramount, as is the fortification and security of the model itself. Monitoring emerging vulnerabilities closely This is not a reason to shy away from the technology. It is simply a reminder that it must be treated in the same way as any new IT investment from a cyber security point of view. Few organisations would risk connecting an unsecured PC or laptop to their network and the same approach should apply to AI. AI in cyber security is a double-edged sword. Where it empowers organisations with enhanced security capabilities, it also equips cyber criminals with similar tools by enabling individuals lacking advanced coding skills to leverage GenAI and create malicious code efficiently. With just a few prompts, GenAI can quickly generate code to identify and exploit vulnerabilities within an organisation's network, a task achievable within minutes. Change approach, not budget The good news for organisations and for Chief Information Security Officers (CISOs) is that they do not necessarily have to make significant new cyber security investments to restore the balance. The first step is to focus on what you already have. It is not a question of a new investment in cyber security, rather a new approach. In the same way as the cloud changed the shape of organisations’ networks and cyber defences had to be extended to cover the new expanded perimeter, existing defence systems will need modification to bring GenAI models within their orbit. Stolen credentials present a grave peril to organisations. To bolster security beyond passwords and multi-factor authentication (MFA), organisations can deploy AI-driven solutions that monitor user behaviour for unusual login patterns or atypical actions. These systems scrutinise user interactions with critical infrastructure and can swiftly detect unauthorised access attempts or transactions. Adopting this strategy enhances cyber security defences by integrating AI technology that can strengthen existing measures and counter new threats with speed and efficacy. Procurement processes will also play an important role. Organisations must ensure that they are not buying trouble when they invest in GenAI. They need to interrogate vendors very closely to ensure that the systems they are acquiring are secure and do not bring increased vulnerabilities with them. Of course, organisations will need to invest in upgrades to guard against the AI-driven increased sophistication of phishing and other cyberattacks, but this can be accommodated within normal cyber budgets. Finally, it cannot be emphasised enough that GenAI will not offer a silver bullet to organisations seeking to bolster their cyber defences. Humans: the last line of defence While organisations exploit the potential of advanced AI, they need to be mindful of the advent of new cyber vulnerabilities. Using existing cyber security measures to protect AI systems and applying rigorous due diligence to the purchase of such systems will help deal with the heightened threat, as will increased awareness of the new environment. While it undoubtedly offers the ability to further automate certain elements of cyber defence and to enhance threat detection, this will not replace any of the existing cyber security systems in place or the human as the last line of defence. Puneet Kukreja is Cyber Security Leader at EY

Check out the North West Society summer newsletter for details of upcoming events. Don't forget to book your space at our social evening on Tuesday, 2 July at 6pm in the Glasshouse Hotel, Sligo. This is a free member event but booking is essential.

In Irish news, Revenue has published statistics on the Debt Warehousing Scheme, and the Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform report robust tax revenues in May’s Fiscal Monitor. In UK news, HMRC has launched a mailbox which can be used by members of recognised professional bodies to report concerns about potential rogue R&D tax relief advisers, and in this week’s miscellaneous updates, HMRC has published guidance on how in-scope multinational groups can register for the UK’s Pillar Two regime. In International news, the European Commission will continue to support the work of the Platform for Tax Good Governance.  Ireland Revenue has published a detailed statistical report on the Debt Warehousing Scheme. Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform report robust tax revenues in May’s Fiscal Monitor. UK Read about the process which should be followed by members of recognised professional bodies to report concerns about potential rogue R&D tax relief advisers. In this week’s miscellaneous updates, HMRC has published guidance on how in-scope multinational groups can register for the UK’s Pillar Two regime. International European Commission will continue to support the work of the Platform for Tax Good Governance. 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 here.

Maintaining and achieving good health is imperative for our physical and mental wellbeing. However, there are barriers that can get in the way of keeping our body and mind healthy, especially for men. Therefore, it is important to recognise what prevents or deters men from seeking help and support when it comes to their health. Here, the Thrive Wellbeing Hub explores these barriers and shares simple but effective steps to keeping healthy both physically and mentally. Knowledge & Awareness Although men are not a homogenous group, there are similarities when it comes to awareness and knowledge of health issues compared to females. Men are prone to engage in more unhealthy habits compared to females. Females on average have a higher life expectancy, males tend to have higher rates of obesity, a greater proportion of males smoke, and there is higher participation in binge drinking and drug use. Poor lifestyles are responsible for a large proportion of chronic diseases. The four main causes of death among males in Ireland are cancer, circulatory system diseases, respiratory system diseases, and external causes of injury and poisoning. It is suggested that men tend to be less informed about the risk factors, causation and symptoms of poor health and certain diseases. This lack of knowledge and awareness may prevent men from seeking help as they are simply unaware of the symptoms surrounding certain illnesses. Therefore, it is important for us to educate ourselves on the signs and symptoms of poor health. Perception As outlined above, men tend to adopt unhealthier behaviours and are at greater risk for all leading causes of death. However, men are less likely to consult or visit a health professional compared to women and perception is a significant barrier to males engaging in health-seeking behaviours. This is where the severity of a health concern is underestimated or brushed off as nothing serious. Late presentation to health services is a cause for concern and can lead to health issues worsening or becoming untreatable. It's important to take action as soon as you notice something isn't quite right. Stigma Gender roles and the construct of masculinity have been cited as barriers to men looking after their health, especially when it comes to mental health. Perceptions associated with masculinity can result in men being more reluctant to speak out on mental health issues or engage in help-seeking behaviour for fear of being seen as weak or not embodying the traditional and frankly outdated attributes of what is considered masculine. This stigma allows for men’s mental health needs to often fly under the radar. This is evident in the high suicide rates of males in Ireland. Of the 504 deaths due to suicide in 2020, 72.6% occurred to males (CSO).    Thankfully, this ideology is shifting, and men’s attitudes and awareness of mental health are changing. Being honest and open with yourself about how you are feeling and communicating this to loved ones or a mental health professional is so important. Proactive Steps Men and those who support them have an active role to play in encouraging and supporting men to take small steps to be proactive in both their physical and mental health. Let’s challenge ourselves to take action and incorporate small changes to help improve our overall health: Eat well Exercise and spend time outdoors Reduce alcohol intake Know the signs of poor mental health, suicidal ideations, and other health conditions Schedule a medical, arrange a blood test and engage in screening services and programmes Talk and Listen – Confide in a loved one or someone impartial, ask if everything is okay, listen and help empower the men in our lives to take action If you are struggling with your mental or emotional wellbeing, Thrive can help you on your journey to better health. For wellbeing advice, contact the team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294.

Institute highlights significant value AI will still add to the work of chartered accountants as automation is embraced   Chartered Accountants Ireland has been transforming its ACA qualification since 2017 using AI powered technologies to produce accountants of the future Institute notes today’s reports from Government on impact of AI on the Irish economy and workforce Chartered Accountants Ireland has highlighted how the profession is embracing the opportunities provided by automation and the critical role that AI is playing in moving its members’ work up the value chain. As businesses grapple with increased data volumes, complex regulations and a growing need for real-time information, AI is a game-changer for accountants by enabling them to focus on critical tasks such as analytics and advisory work.  Recent research from Chartered Accountants Worldwide shows that 75% of Irish financial decision makers surveyed do not ultimately believe that the value that chartered accountants provide could be replaced by automated systems, noting the importance of human judgement and decision making in their work.  The Institute’s comments come as the Department of Enterprise Trade and Employment and the Department of Finance launch new reports today on the impact of AI on the Irish economy and workforce.  Futureproofing education for the next generation  Since 2017, Chartered Accountants Ireland has been transforming the content and delivery of its ACA qualification, using AI powered technologies such as adaptive learning, robotic process automation (RPA), and data analytics. This transformation will continue to evolve.  Crona Clohisey, Director of Public Affairs at Chartered Accountants Ireland said:  “Over the past several years, our education team has carried out extensive research on the learning and training needs of the next generation to ensure that we are producing accountants of the future. The outputs have already been put into practice with students accessing the latest advances in technology and emerging accounting practices using a blend of the most up-to-date technology and teaching methods.  “These initiatives underscore the profession’s early adoption of the benefits AI can bring, and our members’ desire to adopt it in their work. By using AI to prepare accounts and to tackle and streamline more routine tasks, chartered accountants are embracing the positive disruption brought about by AI to focus more on providing strategic business insights for informed decision-making. Accountants who do so will thrive, so our curriculum fully recognises and embraces this reality. “We note the Government’s new reports in this important area, and we look forward to continuing the journey our profession has been on to date.” Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing almost 33,000 members and educating 7,000 students. Institute members provide leadership in business, the public sector and professional practice, bringing experience, expertise, and strict standards to their work for, and with, businesses in every sector.  Commenting, Barry Doyle, President of Chartered Accountants Ireland said:  “As with every technological development over the Institute’s 136-year history, the profession has always adapted and integrated innovations, with AI being just the latest. Moving from the traditional paper ledger to automated bookkeeping for example was transformative in the services that chartered accountants were able to offer. AI will ease the administrative burden on accountants and equip them with reliable data and insights to better serve their industries. “AI will not replace human judgement or strategic decision making, but critically it will throw up a series of ethical dilemmas for organisations in the coming months and years. Our members, bound by strict codes of ethics, are well positioned to navigate these; indeed, this goes to the heart of our dual mandate, working in the interests of both the economy and society.”  ENDS  Research referenced was commissioned by Chartered Accountants Worldwide and conducted by Edelman Data & Intelligence.