The CCAB-I Insolvency Committee has today published a new Creditors Voluntary Liquidation Statutory Meeting Handbook. The purpose of the Creditors Voluntary Liquidation (CVL) Statutory Meeting Handbook is to aid directors in the pre-appointment period and insolvency professionals in the post appointment period. This document provides a compendium of statutory meeting templates and guidance around the various meetings during the course of a CVL. It also assists Liquidators in complying with legislative and SIP requirements when conducting statutory meetings, reporting to creditors and approval of remuneration. Additionally, on 10 June, Derek Wilson, a licensed insolvency practitioner and experienced insolvency monitor, and Sarah-Jane O’Keeffe, director at Azets, along with Chartered Accountants Ireland are hosting a free webinar which will provide an overview of best practice and introduce the new Creditor Voluntary Liquidation workbook. To register for this free webinar, click here.  

On 21 May, the Ulster Society hosted for a legal webinar with A&L Goodbody focusing on legal issues around Secured Lending and Financing.   This session with A&L Goodbody’s finance team covers: Types of facility agreement (Facility letters/LMA) Security types, land/assets Other types of financing Special purpose lends  Other topical issues – ESG, Insurance requirements, ECTEA, NSIA Tips for approaching refinancing (lead-in, diligence etc) A recording of this webinar is available to view HERE A copy of the slides from this presentation are available to view HERE

Costs have increased for almost 80% of small Irish businesses in the past six months, with staff costs the biggest financial challenge faced by SMEs, according to the inaugural SME Business Sentiment Survey from Chartered Accountants Ireland and GRID Finance. The survey, which will be repeated every six months, will measure and track the experiences, confidence and sentiment of a range of SMEs, including small accounting practices, doing business in Ireland today.   Staff costs the biggest financial challenge  3 in 4 (77%) respondents say that business costs have increased in the past six months, with staff costs the biggest financial challenge facing 2 in 5 (37%). Small practices were particularly challenged by staff costs (cost of salaries and other benefits and compensations), with half citing it as their single biggest financial issue.  Operational costs (24%) and regulatory compliance costs (14%) were the other biggest financial challenges facing SMEs, ahead of working capital management and access to funding. 57% identified regulatory compliance as the area in which they most need government support (rising to 75% amongst small practice respondents).  Eoin Christian, CEO, GRID Finance said    "These findings align with our own research conducted earlier this year – rising costs, particularly staff-related expenses are creating significant pressure on Irish SMEs. While these challenges are real, they also represent an opportunity for SMEs to take stock, streamline operations and invest in smart, sustainable growth strategies. At GRID Finance, we continue to advise our clients to be proactive by forecasting future cash flow needs, exploring flexible funding options and staying ahead of regulatory requirements like auto-enrolment.      “We feel that it's vital that both Government and financial providers evolve in tandem with the changing landscape. With the right supports and partners, Irish SMEs can not only weather this period of cost pressure, but emerge from it stronger, more resilient and better prepared for the future” Auto-enrolment, due to come into effect in January 2026 met with a muted response. Only 2 in 5 (40%) of respondents feel that they have been adequately informed of the steps needed to implement it in time for its planned launch.  Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said  “The Government’s announcement that it will defer the launch of auto enrolment to January 2026 is welcome, particularly in view of the feeling of unpreparedness many businesses expressed in this survey.  Many remain very unclear as to what is expected of them in advance of the new system launching. Over the next six months, it is imperative that Government embarks on a concerted communications and awareness campaign to bridge this information deficit and equip businesses with the support and guidance they need to make auto enrolment the success it needs to be.”  Attitudes to & use of Government supports The survey revealed a significant gap between demand for, and uptake of government supports called for by SMEs: Tax relief or incentives – 40% called for these, but only 16% of total survey respondents report availing of them  Access to grants or loans - 31% called for these, but only 30% of total survey respondents report availing of them  Meeting energy costs – 28% called for these, but only 14% of total survey respondents report availing of them.  Attitudes to the effectiveness of the supports are mixed, which may go some way to accounting for the gap between demand and uptake:  5% feel supports for reducing regulatory and compliance burdens are effective.  22% rate access to grants or loans as effective. 23% believe supports for training and upskilling are effective.  Commenting Cróna Clohisey said “There is an evident mismatch between the need for supports and the uptake of those on offer. In the case of tax reliefs and access to grants or loans for example, this may be attributable to a perceived lack of accessibility, particularly for time and resource-constrained SMEs who simply find the application process too cumbersome. While the breath of current Government supports in these areas is positive, further steps need to be taken to ensure that business reliefs such as these are not overly difficult to claim if their effectiveness is to be meaningfully felt by small businesses.”    Mixed profitability and projections for coming year  Almost 3 in 10 (28%) report their business profitability has increased in the past six months, while a similar number (26%) report it has decreased. Small practice respondents reported greater stability, with 56% saying profitability remained the same, and only 15% saying it has decreased. For small business respondents, 30% reported decreased profitability in the past six months.     Despite the various economic headwinds facing the economy, there was a degree of optimism amongst respondents about their prospects for the coming year. 27% of respondents forecasted their business to be either somewhat or significantly better off by this time next year.  Overall, sentiment was more negative than positive however, with 36% saying they will be worse off.  Less optimism in the face of global headwinds   This negative sentiment was also evident when it comes to the broader economic environment, with a majority (74%) feeling less optimistic about the wider economy’s prospects compared to six months ago. Compounding this are ongoing tensions and uncertainty in global trade which have already impacted Irish business sentiment. 62% of respondents report that their business operations have been impacted by global trade tensions and tariffs and only 14% say they are prepared for a further escalation of such tensions.  The SME Business Sentiment Survey from Chartered Accountants Ireland and GRID Finance can be read in full here.   ENDS About the SME Business Sentiment Survey  The SME Business Sentiment Survey is conducted by Chartered Accountants Ireland and GRID Finance, the Institute’s Official Independent Lender Partner. The inaugural survey was conducted by Coyne Research between 4 and 21 April 2025 and will be repeated every six months. Approximately 300 members were surveyed from organisations employing fewer than 250 people.  

In Irish news this week, Revenue has issued updated guidelines for charging interest on late payment of tax and it has also produced a series of information sessions on the Residential Zoned Land Tax ahead of the 23 May 2025 pay and file deadline. In UK news, we want to hear your views on HMRC’s plans to reform behavioural penalties and we highlight a new peer led initiative designed to help agents get ready for Making Tax Digital for income tax. In International news, the EU has agreed to simplify the VAT rules on distance sales and imports.  Ireland Revenue has updated the guidelines for charging interest on late payment through Revenue Debt Management Services.  Revenue has produced a series of information sessions on the Residential Zoned Land Tax ahead of the 23 May 2025 pay and file deadline.  UK  We want to hear your views on HMRC’s plans to reform behavioural penalties.  Read about a new peer led initiative designed to help agents get ready for Making Tax Digital for income tax.  International  The EU has agreed its position on the VAT rules directive to simplify tax collection for imports and certain distance sales.  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 post EU exit corner here. 

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. The UK-EU Trade and Cooperation Agreement Domestic Advisory Group (DAG), which the Institute is a member of, has published a statement ahead of the UK/EU summit which takes place in London today. Miscellaneous guidance updates and publications Apply to import duty-paid EU excise goods into Northern Ireland, as a tax representative, 4-digit procedure to additional procedure code correlation matrix for Final Supplementary Declarations, 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports, 4-digit to 3-digit procedure to additional procedure code correlation matrix for inventory exports, 4-digit to 3-digit procedure to additional procedure code correlation matrix for inventory imports, Simplified Process for Internal Market Movements (SPIMM) or UK Carrier (UKC) Scheme: Customs Declaration Service Data Element Completion Guide, and 4-digit to 3-digit procedure to additional procedure code correlation matrix for exports.

Issue 131 of HMRC’s latest Agent Update is available. HMRC has also shared with us the below additional information in support of this. This is intended to provide useful additional background information/context. Address rejections Investigations are continuing on Self-Assessment (SA) registrations that are being rejected on the basis of the address. This is related to routine enhancements HMRC is continually introducing to ensure taxpayer information is kept secure. HMRC’s hints and tips article in Agent Update 128 details some of the ways in which agents themselves can help reduce the number of rejections, particularly by ensuring that the address from the Royal Mail Postcode Finder is used in the client’s Personal Tax Account and that this matches any subsequent SA repayment claims.   HMRC does not currently envisage being able to adopt a solution to this issue in the short term therefore we have been asked to remind agents to continue to report instances of rejection. Missing PAYE Codes HMRC continues to examine where PAYE codes do not appear on the PAYE Desktop Viewer. It has been established that where there has been no change to a PAYE code, then the previous year’s code is carried forward or uplifted following the start of the new tax year. In these circumstances the code is not visible on PAYE Desktop Viewer.  The PAYE Desktop Viewer will, however, display codes sent to employers.   Auto coding queries It has been confirmed that a taxpayer may still have PAYE expenses coded in their tax code despite ceasing SA because those expenses are still possibly relievable. Ceasing SA will not remove expenses already coded. It is therefore the taxpayer’s responsibility to check their current tax code and notify HMRC if those expenses are no longer relevant. When a taxpayer ceases SA, the link between PAYE and SA is broken and therefore any data relating to employment expenses from the return is sent to be updated. Please note that if a taxpayer or agent has updated HMRC in the current tax year to advise of a change to a tax code, the expenses on the latest return submitted will not alter that code. This is because the tax return is current year minus 1 hence the in-year update from the taxpayer/agent will be the most up to date information. If a taxpayer believes that the tax code is incorrect they should follow HMRC guidance on this. SA returns filed after 30 December: tax code adjustments HMRC processes a vast amount of data each year. To do this, it carries out planning activities and decides the timeline of those processes which depend on resource availability, requirements, and priorities. On some occasions HMRC may need to turn off processing of specific information if it believes it will impact on the delivery of other functions. HMRC processes PAYE codes before the end of the filing deadline for SA as processing in January allows taxpayers to review and advise of any changes needed before the new tax year starts. You can read more about this process on GOV.UK. SA returns which require clerical overview because of an error may miss the deadline for the PAYE code review hence these tax codes will therefore include the latest available information.

In this week’s miscellaneous updates, we bring you the following: HMRC has clarified its position on the claim notification process for certain claims for R&D tax relief and a new tool has been launched which aims to help businesses and individuals understand HMRC compliance checks. A new Brief on the use of VAT grouping within the care industry was recently published and the Scottish Government has published the tax advisory group minutes for November 2024. HMRC has published guidance on how the changes to company size thresholds from 6 April 2025 affect the application of the off-payroll working rules and the latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. R&D tax relief claim notification process HMRC has recently advised us that their published guidance on claim notifications available from 8 September to 17 October 2024 was not correct and could have misled taxpayers (and their advisers) into believing that a claim notification was not needed where a claim for a previous period which began before 1 April 2023 was made via an amended corporation tax return submitted after that date. Recognising this, HMRC recently confirmed that they will accept R&D tax relief claims for periods for which a claim notification was due but has not been received if both of the following two conditions are met: The company made a valid claim in an amendment to a corporation tax return for an accounting period beginning before 1 April 2023, which was submitted to HMRC between 1 April 2023 and 30 November 2024 inclusive, and The accounting period for which a claim notification form was not delivered, but ought to have been, had a claim notification period ending between 8 September 2024 and 30 November 2024. Revenue and Customs Brief 2 (2025) Revenue and Customs Brief 2 (2025): the use of VAT grouping within the care industry has been published. This Brief provides information about the treatment of state-regulated care providers that form a VAT group with non-state-regulated providers of welfare services. It explains: how HMRC treat state-regulated care providers who form a VAT group with a non-state-regulated care provider, actions HMRC will take with new VAT group applications, and actions HMRC will take with existing VAT groups. These VAT group structures involve both: a provider which is not state-regulated, meaning they are not registered with the Care Quality Commission in England or the equivalent bodies in Northern Ireland, Scotland and Wales, and a provider that is state-regulated. HMRC has identified a growing use of VAT grouping structures by state-regulated care providers to recover VAT on costs that relate to supplies of welfare services that would otherwise be exempt from VAT. These structures incorporate an unregulated entity into the supply chain between the state-regulated provider and the local authority or NHS ICB to which the supply is made. Identical supplies made to private individuals remain exempt from VAT. HMRC consider these VAT grouping structures to be a form of tax avoidance. The Briefing therefore sets out the action that HMRC has begun taking as a result.   HMRC processes PAYE codes before the end of the filing deadline for SA as processing in January allows taxpayers to review and advise of any changes needed before the new tax year starts. You can read more about this process on GOV.UK. SA returns which require clerical overview because of an error may miss the deadline for the PAYE code review hence these tax codes will therefore include the latest available information.

HMRC is seeking industry experts in tech development, Artificial Intelligence, life sciences and advanced manufacturing sectors to join its Research and Development (R&D) Expert Advisory Panel.  Apply to join the panel here. The panel’s work will involve: providing insights into innovative R&D methods and projects,  assisting HMRC in improving guidance to ensure it is clear, targeted and offers the support required for specific high growth technical sectors,  providing sectoral feedback by acting as a forum for discussing sector-specific issues related to the administration of R&D tax reliefs, and   supporting HMRC’s communications and messaging on R&D tax relief.  Applications close on 8 June 2025. Email HMRC if you require any further assistance.

The deadline for employers to provide employees with their P60 for 2024/25, either on paper or electronically, is Saturday 31 May 2025. The P60 summarises the employee’s total pay and deductions for the year. By that date, employers must give a P60 to all employees on payroll who were working for them on the last day of the tax year (5 April 2025). If an employer is exempt from filing payroll online, copies of P60s can be ordered from HMRC. 

The Institute has been working with HMRC and the other Professional Bodies to drive readiness for the first tranche of mandation for Making Tax Digital (MTD) for income tax from April 2026. We are also aware of members concerns about this project and will continue to represent your views to HMRC. An Institute strategy is also being implemented to aid preparations which involves a range of resources, webinars and events including a HMRC led event in September which we will share more details of when available. As part of our joint Professional Body collaboration we are pleased to share details of a new initiative by the Association of Tax Technicians (ATT) who have confirmed that you don’t need to be an ATT member to participate. The first event takes place this week on Wednesday 21 May. More details of this new initiative are highlighted below. Join an MTD peer-discussion group. Sign up here. To help you prepare, this is a series of monthly online drop in sessions where you can speak to your peers about tips and practical advice on getting ready. Facilitated by the ATT’s technical team, these sessions aim to serve as an open forum for attendees to share and discuss their practical concerns around MTD and support each other. Topics driven by you could include (but are not limited to): The challenges of getting clients ready, Resourcing and workflow issues, The choice of software, and Pricing MTD services. These one hour sessions are taking place from 12–1pm on the following dates: Wed 21 May, Tue 17 June, Wed 23 July, Wed 20 August, Wed 17 September, and Tue 28 October.

HMRC is consulting on potential reforms to its behavioural penalty regime. The consultation is open until 18 June 2025 and seeks views on options to ‘simplify and strengthen’ the behavioural penalty regime for inaccuracies and failures to notify. The Institute will be responding to the consultation and is seeking your views on the proposals. HMRC has been holding workshops on the proposed changes and have provided a useful document summarising the proposals an overview of which is provided below. Contact us by email by Friday 6 June to share your feedback. For failure to notify penalties, HMRC is proposing to remove the timing of disclosure as a factor in determining the relevant penalty ranges and is also proposing to remove the narrower penalty ranges. There are also proposals to combine consideration of the type and quality of disclosure into one step, so that there is one set of headline rates. ‘Telling’ and ‘helping’ would be combined into one category to reduce overlap. For deliberate and repeated non-compliance, the potential changes are: increased penalty rates for all deliberate behaviour (e.g. same level as category 2 offshore penalties), a new higher tier of penalty rates for repeated deliberate non-compliance (e.g. at the same level as Category 3 offshore penalties) and the potential for higher rates to be 'reset' for new occurrences in the future, the merger of ‘deliberate but not concealed’ and ‘deliberate and concealed’ into a single ‘deliberate’ category, and to codify ‘deliberate’ in penalty legislation, e.g. regarding intent, blind-eye knowledge, and, potentially, recklessness. There are also proposals for offshore penalties and penalty suspension. Alternative approaches are also considered as are a range of potential new non-financial penalties, many of which are very concerning.

The European Commission's Directorate-General for Taxation and Customs Union has published an exploratory study on health taxes from an EU perspective. The study provides an in-depth analysis of the current state of taxes on products high in fat, sugar and salt in the European Union, including their design, implementation, and impact on public health.