The Financial Reporting Council (FRC) announced a package of measures regarding audits of small and medium-sized enterprises (SMEs). This includes an updated practice note (PN 28) regarding 'Guidance for audits of small and medium-sized entities' and the final report regarding the FRC's SME Audit Market Study. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

This week, the Institute attended the inaugural Annual Savings and Investment Forum held at the Central Bank. The Tánaiste and Minister for Finance, Simon Harris T.D. addressed the Forum announcing his intention to introduce a Savings and Investment Account in Ireland. It is intended that legislation will be drafted this year with a view to products being established in 2027. Savings and investment accounts form a fundamental pillar in Europe's Saving and Investment Union proposals to increase levels of investment among citizens. Statistics from the Central Bank of Ireland show that Ireland has a long way to go when it comes to households and individuals investing in capital markets. This week’s announcement has the real potential to increase retail participation in capital markets and empower workers and households to create wealth over their working lives. The savings and investment account proposed by the Tánaiste is similar in nature to the Swedish model which was first introduced in 2012. Simplicity is at its core, with one simple tax applied which is administered solely by the financial provider and not the individual investor. This means there are no reporting obligations placed on the investor and individual transactions are not taxed. As a consequence, investors can focus on making the right investment decisions for themselves. At the Forum a strong emphasis was placed on financial literacy. Improving understanding and confidence among individuals will be critical to increasing participation in capital markets over the long term. In Ireland, nearly €170 million in household deposits is held in low return deposit accounts which diminish in terms of purchasing power over time. The Institute made the point that without financial literacy, the savings and investment accounts will not be as successful as they can be. The Institute also pointed out that the savings and investment account should be seen as one element of a wider reform plan which should include tax reform and the removal of the deemed disposal tax which penalises investors. The Tánaiste indicated that the roadmap on taxation of investment products will be published in the coming months. Chartered Accountants Ireland is hopeful that the roadmap will contain commitments to remove the deemed disposal tax along with other tax measures to improve the overall investment environment in the economy. We will continue to engage with Government on this issue over the coming months including as part of our Pre-Budget Submission.   You can read our earlier response here. You can read about the Investment Tax Guide published in conjunction with Goodbody here.

  Research published by the Central Statistics Office (CSO) has found that almost a third of Irish enterprises used ICT in 2025 to reduce their environmental impact, slightly ahead of the EU average. It also found that investing in technological innovation can support enterprise resilience, efficiency and competitiveness as well as environmental sustainability within enterprises, allowing enterprises to use fewer resources while producing the same or greater output. Commenting on the release, Morgan O’Donnell, Statistician in the Sustainability, Circular Economy & Transport division of the CSO said: “Sustainability is of increasing importance to enterprises, in terms of meeting environmental regulations and expectations, but also from an economic and social perspective. There is increasing national and international recognition that economic growth alone is not a sufficient measure of success, and that long term prosperity depends on achieving a balanced integration of economic, environmental, and social outcomes.” The research, titled Business in Ireland 2025 - Sustainability Through Innovation and Technology, is the second in a series of releases that brings together relevant enterprise economy statistics from a variety of outputs and looks at them through the lens of sustainability to provide greater insights around sustainability and climate targets.

The Climate Change Advisory Council’s latest report: Annual Review 2026 - Our Changing Climate in 2025, finds that climate change is having measurable impacts in Ireland, with growing risks for communities, infrastructure, essential services and the economy. The economic damage from the five named storms that affected Ireland in 2025 amounted to almost €360 million, following estimated losses of €4.1 billion from flood and windstorm events in Ireland in 2024. The storm also exposed vulnerabilities in critical infrastructure and essential services, including energy, water and telecommunications. The Council identifies gaps in how the economic, social and environmental consequences of extreme weather events are monitored and notes that robust data and evidence are essential to inform effective policy, planning and investment; it also calls for coordinated Government action, including investment in climate monitoring and infrastructure systems, strengthened policy and legislative frameworks, and a systemic approach to improving national resilience.

Moving away from fossil fuels is key to reducing the impact of the current crisis and future crises, according to Taoiseach Micheál Martin TD. The Taoiseach was commenting in a  recent Government announcement of temporary and targeted measures to reduce fuel prices for households and businesses in order to shield them from the recent hikes in fuel prices. The measures provide for temporary reductions in the rates of Mineral Oil Tax (MOT) applying to petrol, auto diesel and Marked Gas Oil (MGO), and are in effect from 25 March to 31 May 2026. Separately, Tánaiste and Minister for Finance, Simon Harris TD, warned that Ireland and the European Union remain exposed to fossil fuel price shocks: “As long as we rely on imported fossil fuels, events far beyond our shores will continue to impact in a real way on households and businesses. That is not a sustainable position. And it is not a secure one.” The Tánaiste further commented that reducing that dependence as “the only lasting answer”, by accelerating Ireland’s transition to renewable energy and improving efficiency, and building a system that is more resilient and more within our own control. Energy was also a core pillar of Ireland-UK Summit 2026 which took place in Cork in March. A key focus of the Summit was closer cooperation between both countries to deploy offshore wind at scale, as well as increased electricity interconnection and securing critical infrastructure in shared maritime space. An expanded Memorandum of Understanding was signed at the Summit between the electricity transmission system operators of Ireland, Great Britain and Northern Ireland (EirGrid, NESO and SONI), to increase knowledge-sharing and cooperation. Commenting, Minister for Climate, Energy and the Environment Darragh O'Brien TD said “This Summit has come as Ireland reaches 8GW of onshore renewable electricity generation, which is a significant milestone. We're building on this both in Ireland and with our near neighbours, creating opportunities for jobs, investments, and a more stable economy." Ireland has doubled wind energy capacity over the past decade, receiving more electricity from onshore wind farms than any other country in Europe. A new peak for wind energy was reportedly recorded in Ireland during February 2026, according to provisional data from EirGrid, with almost 50 percent of Ireland’s electricity came from renewable sources last month. 

In this week’s bulletin read about the Institute’s shortlisting for an ESG award, the importance of strong capital markets for the green transition, warnings from the Climate Change Advisory Council, and CSO new data on enterprise sustainability. Updates from Northern Ireland include the publication of its latest Climate Change Adaptation Programme and the extension of the public consultation on Draft Nature Recovery Strategy. The UK’s new energy security measures are covered, along with the greenlighting of negotiations on UK participation in the EU’s internal energy market. This plus the usual articles, resources and upcoming events. CHARTERED ACCOUNTANTS IRELAND Institute shortlisted for ESG award Chartered Accountants Ireland has been shortlisted for the ESG Company Award (SMEs) in the Business & Finance Media Group ESG Awards 2026, in partnership with Grant Thornton Ireland. Congratulations to all our fellow nominees across over 15 categories and we look forward to the Awards on 16 April! IRELAND Strong capital markets needed for green transition The Governor of the Central Bank of Ireland, Gabriel Mahklouf, has described strong capital markets as necessary to fund innovation, infrastructure, and the digital and green transition. Speaking at the first Annual Savings and Investment Forum Governor Mahklouf went on to say that only a fraction of EU household wealth is currently held directly in capital markets instruments. The forum, which was convened this week by Tánaiste and Minister for Finance, Simon Harris TD, brought together stakeholders, including Chartered Accountants Ireland, from across the financial services sector, consumer representatives, and policymakers to support the continued evolution of Ireland’s savings and investment landscape. It aims to focus on advancing a framework for a Personal Investment Account in Ireland, and to support greater retail participation in capital markets, enhance long term financial resilience and provide individuals with improved opportunities to grow their savings. Moving away from fossil fuels "key to reducing impact of future crises" Moving away from fossil fuels is key to reducing the impact of the current crisis and future crises, according to Taoiseach Micheál Martin TD. The Taoiseach was commenting in a  recent Government announcement of temporary and targeted measures to reduce fuel prices for households and businesses in order to shield them from the recent hikes in fuel prices. The measures provide for temporary reductions in the rates of Mineral Oil Tax (MOT) applying to petrol, auto diesel and Marked Gas Oil (MGO), and are in effect from 25 March to 31 May 2026. Read more. Climate change causing significant damage in Ireland, new Council report finds The Climate Change Advisory Council’s latest report: Annual Review 2026 - Our Changing Climate in 2025, finds that climate change is having measurable impacts in Ireland, with growing risks for communities, infrastructure, essential services and the economy. Read more here. CSO’s findings on enterprise economy statistics through sustainability lens Research published by the Central Statistics Office (CSO) has found that almost a third of Irish enterprises used ICT in 2025 to reduce their environmental impact, slightly ahead of the EU average. It also found that investing in technological innovation can support enterprise resilience, efficiency and competitiveness as well as environmental sustainability within enterprises, allowing enterprises to use fewer resources while producing the same or greater output. Read more here. Research finds no evidence linking minimum wage increase to low-paid worker job-loss Recent increases to the minimum wage in Ireland did not lead to low-paid workers losing their jobs, according to research published by the ESRI. A key concern for minimum wage policy – which saw Ireland’s minimum wage in Ireland increase every year from 2016 to 2025 – is whether raising the minimum wage would cause low paid workers to lose their jobs if employers reduced their workforce due to higher labour costs. The ESRI study found no evidence that recent minimum wage increases in Ireland increased the likelihood of minimum wage employees losing their jobs in the six-month period following a minimum wage. The research also addressed concerns that employees under 20 years (who can be paid less than the full adult minimum wage) would lose their jobs once they ‘aged into’ a higher minimum wage band. NORTHERN IRELAND/UK Northern Ireland’s third Climate Change Adaptation Programme published Northern Ireland’s third Northern Ireland Climate Change Adaptation Programme (‘NICCAP3’) has been launched by DAERA Minister Andrew Muir. The adaptation action plan brings together actions from across government and a range of key stakeholders in response to the latest UK Climate Change Risk Assessment (CCRA), setting out over 280 actions to help all sectors of society to adapt to and building the region’s resilience to the impacts of climate change. Commenting Dr Lisa McIlvenna, Managing Director at Business in the Community NI, stressed the importance of climate adaptation for the economy. Referring to the 2025 NI Environmental Benchmarking Survey report which showed that 67 percent of respondents from businesses had experienced direct or indirect impacts from climate change in the past five years, Dr McIlvenna commented: “The impacts of climate change on businesses are escalating, disrupting productivity and supply chains, damaging premises and infrastructure, increasing insurance costs, and posing physical health risks to employees through severe weather and flooding. Many businesses across Northern Ireland are already experiencing the damaging effects of these events, and climate projections suggest the risks will only increase. Building resilience to climate change now is critical to protecting our business sector and the wider economy.” Extension of public consultation on Draft Nature Recovery Strategy Northern Ireland’s DAERA Minister Andrew Muir has extended the public consultation for the draft Nature Recovery Strategy by four weeks to 15 April 2026. The draft Nature Recovery Strategy contains five strategic objectives and clear actions to help deliver transformation across government, business and society to safeguard and restore nature and biodiversity. Identifying the loss of nature and ecosystems as having economic implications globally and locally, the Strategy cites the landmark Dasgupta Review of the Economics of Biodiversity (2021) which asserted that nature is a blind spot in economics, and called for nature to be treated as an asset to be valued, protected, and restored. UK Government announces energy security measures UK Energy Secretary Ed Miliband has set out an accelerated package of energy interventions to boost the UK’s energy security. Measures include easy-to-use ‘plug-in solar’, low-cost solar panels to be made available for the first time at supermarkets for placing on balconies or outdoor space. The government is also working with the Competition and Markets Authority (CMA) to ensure that fuel suppliers cannot engage in unfair practices towards consumers such as price gouging, and is consulting on new powers to clamp down on speculative electricity grid connection applications.  The measures aim to support the government’s “clean energy superpower mission” and maintain energy security by tackling backlogs in the queue, while unblocking projects that are vital to innovation, economic growth and decarbonisation. EUROPE Negotiations for UK’s participation in EU’s internal energy market gets green light The European Council has formally authorised the European Commission to open negotiations with the UK on two agreements regarding the UK’s participation in the EU’s internal electricity market and on an appropriate UK financial contribution to the EU’s cohesion policy. The aim of the electricity agreement is to allow the UK’s participation in both the wholesale and retail EU internal electricity market. It envisages alignment of UK laws to EU rules to create a level playing field between the parties, “significantly contributing to energy securityfor both parties, especially amid the current geopolitical turmoil”.  It aims to improve the efficiency of the electricity trading between the parties, and facilitate investments in electricity infrastructure, including renewable electricity generation that is necessary to achieve both sides’ net zero ambitions. The agreement on the UK’s financial contributionis part of a consistent EU policy that couples the granting of market access to a third country with a fair financial contribution reflecting the benefits derived from such access. RESOURCES Technical Roundup (from our colleagues in Professional Accounting) The European Commission (EC) has published draft Commission Delegated Regulations (draft delegated acts) proposing amendments to the EU Taxonomy climate and environmental delegated acts. The comment period ends on 14 April 2026. The International Sustainability Standards Board (ISSB) new webcast Climate resilience and climate-related scenario analysis requirements in IFRS S2 discusses some of the requirements of the S2 standard and how companies might meet their reporting requirements in relation to climate resilience and the use of climate-related scenario analysis. This factsheet also provides an overview of the webcast. As the number of companies preparing their Sustainability Report using the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) increases, EFRAG is asking preparers to contribute to the development of the standard by completing a survey and submitting their report. The feedback received from this initiative will be used to develop their VSME Ecosystem. EFRAG has launched its new interactive version of their Technical Advice on the Draft Simplified ESRS on their Knowledge Hub. This allows users to explore the advice and understand how the proposed simplifications connect to the 2023 version of the ESRS. Accountancy Europe – Sustainability Update The March issue of Accountancy Europe’s Sustainability Update this month includes the following highlights: EC proposes changes to EU Taxonomy Environmental and Climate Delegated Acts EC calls for technical advice on Taxonomy Disclosures delegated act Omnibus Directive amending sustainability reporting and due diligence requirements enters into force Council adopts amended Climate Law CEAOB comments on revised ESRS UN Global Compact resources EU Sustainability Navigator: On-Demand Recording Now Available: recording, presentation slides, and answers to key questions from the session 'From Regulation to Results: Navigating EU Omnibus I to Drive Ambition and Impact' are now available on the UN Global Compact Academy platform. EU Corporate Sustainability Regulation: Overview & Reference Guide: comprehensive reference guide covering key EU sustainability regulations and recent developments — a useful resource for companies mapping their obligations under CSRD, CSDDD, and related legislation. New e-Learning Modules: Science-Based Targets: five new and enhanced e-learning modules from the Science Based Targets initiative (SBTi) guide companies through every step of target setting and validation — from an introduction to science-based targets, through to specialist modules for SMEs and the Forest, Land and Agriculture (FLAG) sector. Available on the UN Global Compact Academy. Business & Human Rights Navigator: Digital & Emerging Technologies: a new issue page on Digital and Emerging Technologies and Human Rights for companies seeking to understand and manage human rights risks in the digital space. Procurement as a Catalyst for Sustainable Growth: 40 practical tools and frameworks, global case studies, and company insights to help organisations embed sustainability across the procurement lifecycle — including how collaboration between buyers and suppliers, particularly SMEs, drives results.  ARTICLES IPSASB SRS 1, Climate-related Disclosures Marks a Milestone in Advancing Climate Finance and Public Sector Transparency (IPSASB) Clarifying and consolidating EU Taxonomy FAQs (Accountancy Europe) Europe’s Green Power Revolution Softens Iran Energy Price Shock (Bloomberg) Ireland must prepare ‘evacuation’ plans for coastal areas as climate change intensifies, says expert (Irish Times) EVENTS Enterprise Ireland, Sustainability Kickstarter Workshops A half‑day workshop series designed to support business leaders in recognising the strategic importance of sustainability and decarbonisation. The sessions provide practical skills to integrate core sustainability principles, identify competitive opportunities, and build actionable plans to meet rising customer expectations for sustainable products and services. Workshops | Dates & Times • Friday, 17 April 2026 | Half‑day workshop • Friday, 8 May 2026 | Half‑day workshop IBEC, Briefing: Voluntary Sustainability Reporting for SMEs - VSME At this briefing Lorraine McCann, Managing Director, Sustainability Reporting Lead, KPMG will provide an overview of the voluntary sustainability reporting standard (VSME), the key reporting requirements and how it can assist SMEs in responding to requests for information from companies in their value chain. The briefing is for any SME business that wishes to become more informed on the voluntary sustainability reporting standard (VSME) and the potential benefit to their business, as well as senior leaders, owners, compliance managers, risk managers, sustainability managers, environmental and EHS professionals, accountants, operations managers, employees with sustainability reporting as part of their role Virtual |Monday 27 April | 3.00pm – 3.45pm |  Free, booking required UN Global Compact, Climate Ambition Accelerator — 2026 Applications Now Open The UN Global Compact's Climate Ambition Accelerator is now accepting applications for 2026. This six-month programme equips companies with the knowledge and tools to accelerate progress toward setting science-based emissions reduction targets aligned with the 1.5°C pathway — putting them on track for net-zero by 2050. Application Deadline: 30 April 2026  |  Programme: May–November 2026 Climate Cocktail Club, The Climate Heist Hacking the system to save nature... and ourselves. Exploring the tools, levers, products and more of the modern interconnected world to drive radical and urgent action on climate and nature - through entrepreneurship and innovation. A special event partnering with Entrepreneurs' Organization (EO). 14 April, The Sugar Club, Dublin 2 UN Global Compact Network Canada, Annual Sustainability Reporting Peer Review Group (ASPiRe) — Now Open for Registration This structured peer review programme offers an exceptional opportunity for sustainability and communications teams to strengthen the quality and credibility of their sustainability disclosures — including Communications on Progress (CoPs). Registration Deadline: 5 June 2026 | Programme: July–October 2026 Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre. 

In Irish news, the Institute has given evidence to the Oireachtas on proposals to substantially alter the right to elect for a private hearing at the Tax Appeals Commission, and a delegation from the Institute attended the seventh meeting of the Department of Finance’s Business Tax Stakeholder Forum. In UK news, with the start of Financial Year 2026 and ahead of the 2026/27 tax year, we are launching a series of articles on various key changes. We are also seeking your views on an HMRC consultation on a proposal for new reporting requirements for close companies in respect of transactions with participators. In International news this week, the EU Council and Parliament have agreed on landmark reform of the EU customs framework. Ireland 1. Read about the evidence given by the Institute to the Joint Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach outlining the importance of protecting taxpayer privacy. 2. Read the updates from the recent meeting of the Business Tax Stakeholder Forum which was attended by representatives from the Institute. UK 3. Read the first in our series of articles looking at various key changes due to commence at the start of the new Financial Year 2026 and the tax year 2026/27. 4. HMRC is consulting on two areas relevant to companies and we are particularly seeking your views on the proposal requiring close companies to report additional information on transactions with participators. International 5. The European Council and Parliament have agreed to a reform of the EU Customs Union including the establishment of a new single EU customs data hub. 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 Cross-border developments and trading corner here.  

Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland, said: “The Forum is an opportunity to advance the recommendations of the Funds 2030 report and to simplify and enhance the tax framework for retail investment, now expected as part of Budget 2026. Together with the anticipated focus on Savings and Investment Union as part of Ireland’s EU Presidency this year, this emphasis on activating hard-earned savings is timely and hugely welcome.  “The Minister’s announcement that the proposed Investment Accounts are being developed with a simplified approach to tax is a positive development. A model based on a low, easily administered annual charge has the potential to reduce complexity and improve accessibility for retail investors.” Grant Sweetnam, Head of Public Policy at Chartered Accountants Ireland, said: “We welcome the strong emphasis placed on financial literacy by the Minister at today’s Forum. Improving understanding and confidence among individuals will be critical to increasing participation in capital markets over the long term. However, it is essential that these reforms are delivered as part of a coherent overall strategy to address fundamental barriers to investment. Addressing wider barriers, including the deemed disposal rule and inconsistencies in tax treatment across products, will be critical to ensuring the full benefits are realised.  “We look forward to engaging constructively with Government and stakeholders at the Savings and Investment Forum and throughout the implementation process to help ensure the roadmap delivers a simple, effective and competitive investment framework for Ireland.”

Over the next few weeks in a series of articles we’ll be taking a look at the key changes to UK tax legislation which have come into operation due to commencement of the new Financial Year 2026 from earlier this week on 1 April 2026, or when the new tax year 2026/27 starts next week on 6 April 2026. Part 1 of this series focuses on Making Tax Digital (MTD) for Income Tax and measures affecting tax agents. MTD for Income Tax 6 April 2026 marks the go live mandatory start date of MTD for Income Tax. Mandation commences from this date for self-employed individuals and landlords with qualifying gross income (not profit) which exceeded £50,000 in the 2024/25 tax year. The mandation limit subsequently falls from 6 April 2027 to £30,000, and then to £20,000 from 6 April 2028. MTD requires those mandated to keep digital records and submit quarterly summaries of income and expenses to HMRC via compatible software. The first deadline for submitting MTD 2026/27 quarterly updates for quarter 1, which for most mandated taxpayers will run from 6 April 2026 to 5 July 2026, is 7 August 2027. Members can access the Institute’s MTD hub for support on this key change. Ahead of the start date, HMRC has published breakdowns by industrial sector and geographic region of the taxpayers expected to be within scope of MTD for Income Tax from April 2026. The data is based on information from 2023/24 Self-Assessment returns.  Last week the Government laid the final regulations in Parliament on the requirements and scope of MTD for Income Tax. The regulations were laid after further amendments based on feedback from stakeholders, including Chartered Accountants Ireland. Key aspects of the regulations include the phased introduction of MTD for Income Tax based on income, including those with qualifying income over £30,000 from April 2027 and those over £20,000 from April 2028, the requirement to keep digital records and submit quarterly updates, and annual returns through MTD-compatible software. The regulations also offer practical features, such as the option to align reporting to calendar quarters and targeted exemptions for those for whom digital use would not be reasonably practicable.  A new Tax Information and Impact note (TIIN) on the £20,000 to £30,000 mandation cohort that will be joining MTD for Income Tax from April 2028 has also been published to supplement the TIIN published in 2024 for those with qualifying income above £30,000. The TIIN sets out the Government’s view on the taxpayer impact of MTD for Income Tax, including the cost to transition to and operate new software to comply. According to HMRC, although this is broadly comparable to those with qualifying income in excess of £30,000, the new TIIN reflects a different demographic, and revised ‘assumptions’ that underpin the estimated software costs, agents’ costs, training, and familiarisation time and free software take-up.   Measures affecting the tax adviser market From 6 April 2026 HMRC will have a range of enhanced powers to sanction tax advisers, in addition to new powers to tackle promoters of tax avoidance arrangements. Broadly, for the latter, there will be a statutory ban on promoting tax planning arrangements with ‘no realistic prospect of success.’ Regulations also will prohibit the promotion of arrangements ‘likely to cause harm to participants.’ The sanctions under this legislation will be severe and include significant penalties, a strict liability criminal offence, and the ability of HMRC to suspend an agent’s registration. Legislation will also take effect from 6 April 2026 which will amend the tax agent ‘dishonest conduct’ rules introduced by Finance Act 2012. Essentially, dishonest conduct will be downgraded and the rules will apply to tax advisers who facilitate non-compliance by their client. The associated penalty framework will also be substantially enhanced and will also require HMRC to publish information about any adviser charged a penalty exceeding £7,500. From May 2026 new rules will also require those providing tax advice, including overseas advisers, to mandatorily register with HMRC. Readers may recall that the timetable for registration was published last month. By way of reminder, registration is expected to officially open online from 18 May 2026. Importantly, if an agent already has an agent services account (ASA), the agent does not need to register again. Instead, HMRC will subsequently contact the agent via its ASA when more information is required in order to check that the agent meets certain conditions. Agents who do not have an ASA and who meet the conditions to register will need to register for an ASA from 18 May 2026, unless one of the following applies: if the agent already has a Self-Assessment or Corporation Tax account, registration is required from 18 August 2026, and if the agent only provides third-party payroll services on behalf of clients and does not interact with HMRC in any other way, registration is required from 18 November 2026. Note that irrespective of the registration date which applies, a transition period of at least three months is available. The legislation implementing this is contained in Finance Act 2026. According to statements made by government ministers in the House of Commons, whilst the draft legislation moved through the Parliamentary process, the measures which will directly affect tax agents, including mandatory registration, are expected to be implemented in a reasonable and proportionate manner. Dan Tomlinson MP, Exchequer Secretary to the Treasury (XST) specifically addressed comments on the draft legislation to the House of Commons during its scrutiny of the Finance Bill in early February 2026 which acknowledged engagement on these issues by the Professional Bodies, which includes Chartered Accountants Ireland, and the important role that agents play in the tax system. At column 223 the XST said “I have been engaging in detail with stakeholders on the changes we are making, because it is important that legitimate and good tax advisers see that the Government have confidence in them and the work they are doing”. He went on to say that agent registration is “specifically about stopping harmful tax advisers who do not meet the basic minimum standards” and that it does “not give HMRC new powers to investigate whether applicants breach the standard for agents”. On HMRC’s powers to suspend an agent’s registration, the XST said at column 224 that HMRC will: “suspend a tax adviser only after due process, including offering opportunities to comply and a chance for the adviser to explain whether there is a good reason why they are unable to do so”, and “not use these powers for minor breaches”. At column 230 the XST further said that HMRC will “always work with a tax adviser who is genuinely trying to comply, will never suspend a tax adviser when doing so would be unreasonable or disproportionate, and will always consider the nature of any potential breach and how a suspension would impact the tax adviser and their clients”. On sanctionable conduct, at column 235 the XST said that “the powers will not affect advisers who act in good faith, or who take a credible view as to what the law requires of their clients, including where they use extra-statutory concessions or HMRC guidance to form that view”. Furthermore, the measures “do not affect advisers who make mistakes while trying, as the vast majority do, to do the right thing”. The XST’s comments were echoed by Lucy Rigby MP, Economic Secretary to the Treasury (EST), when speaking about the prohibition on promotion. The EST confirmed at  column 204 that the powers “are not intended to be directed against legitimate tax advisers who are operating to a high professional standard but, while acting in good faith, make genuine mistakes” and that ministers have “asked HMRC officials to work with stakeholders in developing published guidance to address the fine detail of exactly how the prohibition will work in practice”.

From the Professional Accountancy team…... Draft legislation has been introduced by UK Parliament related to improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The draft regulations are the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 (“draft Regulations”). Click to read the draft Regulations Click to read the draft explanatory memorandum . The draft Regulations are subject to Parliamentary scrutiny and approval, so may be subject to change. They are expected to come into force later this year with the draft Regulations specifying various dates for the coming into force of various pieces of the legislation .The Institute will do a review of the draft Regulations in the coming weeks to provide more information to members on them . This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

Last Thursday, a delegation from the Institute attended the seventh meeting of the Department of Finance’s Business Tax Stakeholder Forum (BTSF) at the Department of Finance’s offices on Upper Merrion Street. The Department provided updates to stakeholders on a range of business tax issues both domestically and internationally, as well as providing an update on the work ongoing around the Irish Presidency of the European Council later this year. On the domestic front, the Department explained its business tax priorities for 2026 and provided updates on various ongoing projects, such as Phase One of the reform of the taxation of interest in Ireland. One of the key priorities for 2026 on the business tax front is the Research & Development (R&D) tax credit and the recommendations arising from last year’s public consultation. Key to any changes which will be considered by the Department will be to identify the potential for additionality to the economic activity in Ireland. In terms of the now well publicised proposals for an Irish Savings and Investment Account, the Department acknowledged its consideration of the Swedish model in particular. As part of this work, a roadmap is expected to be published very shortly. We will have more details in due course once this is published. On the international front, the Department provided an update on the work to implement the Pillar Two Side-by-Side Package, and provided more detail into the work to commence on addressing the tax complexity faced by cross-border/hybrid workers on the island of Ireland. The work on Pillar Two is being addressed at a subgroup of the BTSF, which the Institute attends also. On the issues currently facing cross-border workers, we are due to meet the Department separately on this in the coming weeks and we will have a full update for readers at that point. Finally, on the EU Presidency, there is a substantial amount of work ongoing as the Government prepares to take up the role this summer. From a tax point of view, the Tax Omnibus Directive and the Directive on Administrative Cooperation (DAC) Recast Directive will be two files which the Government will be keen to progress during its term. From an overall perspective, the Government will be aiming to highlight the need for simplification in light of the impact of the current complexity on EU competitiveness. In closing, a short note on the BTSF for readers who may not be familiar with the forum. The BTSF was established as a forum between the Department of Finance and key stakeholders to discuss business tax policy. The meetings are chaired by senior Department officials and are attended by representatives from various trade and professional organisations, as well as other key governmental stakeholders. It has proven so far to be a very productive and engaging forum and we look forward to the continued success of the forum into the future.

Over the next few weeks, we’ll be taking a look at the key changes to UK tax legislation which take effect due to the commencement of either the new Financial Year 2026 from later this week on 1 April 2026 or the new tax year 2026/27 which starts next week on 6 April 2026. Part 1 of the series focuses on Making Tax Digital (MTD) for Income Tax and measures affecting tax agents. MTD for Income Tax 6 April 2026 marks the go live mandatory start date of MTD for Income Tax. Mandation commences from this date for self-employed individuals and landlords with qualifying gross income (not profit) which exceeded £50,000 in the 2024/25 tax year. The mandation limit subsequently falls from 6 April 2027 to £30,000, and then to £20,000 from 6 April 2028. MTD requires those mandated to keep digital records and submit quarterly summaries of income and expenses to HMRC via compatible software. The first deadline for submitting MTD 2026/27 quarterly updates for quarter 1, which for most mandated taxpayers will run from 6 April 2026 to 5 July 2026, is 7 August 2027. Members can access the Institute’s MTD hub for support on this key change. Ahead of the start date, HMRC has published breakdowns by industrial sector and geographic region of the taxpayers expected to be within scope of MTD for Income Tax from April 2026. The data is based on information from 2023/24 Self-Assessment returns.  Last week on 24 March 2026 the Government laid the final regulations in Parliament on the requirements and scope of MTD for Income Tax. The regulations were laid after further amendments based on feedback from stakeholders, including Chartered Accountants Ireland. Key aspects of the regulations include the phased introduction of MTD for Income Tax based on income, including those with qualifying income over £30,000 from April 2027 and those over £20,000 from April 2028, the requirement to keep digital records and submit quarterly updates, and annual returns through MTD-compatible software. The regulations also offer practical features, such as the option to align reporting to calendar quarters and targeted exemptions for those for whom digital use would not be reasonably practicable.  A new Tax Information and Impact note (TIIN) on the £20,000 to £30,000 mandation cohort that will be joining MTD for Income Tax from April 2028 has also been published to supplement the TIIN published in 2024 for those with qualifying income above £30,000. The TIIN sets out the Government’s view on the taxpayer impact of MTD for Income Tax, including the cost to transition to and operate new software to comply. According to HMRC, although this is broadly comparable to those with qualifying income in excess of £30,000, the new TIIN reflects a different demographic, and revised ‘assumptions’ that underpin the estimated software costs, agents’ costs, training, and familiarisation time and free software take-up.   Measures affecting the tax adviser market From 6 April 2026 HMRC will have a range of enhanced powers to sanction tax advisers, in addition to new powers to tackle promoters of tax avoidance arrangements. Broadly, for the latter, there will be a statutory ban on promoting tax planning arrangements with ‘no realistic prospect of success.’ Regulations also will prohibit the promotion of arrangements ‘likely to cause harm to participants.’ The sanctions under this legislation will be severe and include significant penalties, a strict liability criminal offence, and the ability of HMRC to suspend an agent’s registration. Legislation will also take effect from 6 April 2026 which will amend the tax agent ‘dishonest conduct’ rules introduced by Finance Act 2012. Essentially, dishonest conduct will be downgraded and the rules will apply to tax advisers who facilitate non-compliance by their client. The associated penalty framework will also be substantially enhanced and will also require HMRC to publish information about any adviser charged a penalty exceeding £7,500. From May 2026 new rules will also require those providing tax advice, including overseas advisers, to mandatorily register with HMRC. Readers may recall that the timetable for registration was published last month. By way of reminder, registration is expected to officially open online from 18 May 2026. Importantly, if an agent already has an agent services account (ASA), the agent does not need to register again. Instead, HMRC will subsequently contact the agent via its ASA when more information is required in order to check that the agent meets certain conditions. Agents who do not have an ASA and who meet the conditions to register will need to register for an ASA from 18 May 2026, unless one of the following applies: if the agent already has a Self-Assessment or Corporation Tax account, registration is required from 18 August 2026, and if the agent only provides third-party payroll services on behalf of clients and does not interact with HMRC in any other way, registration is required from 18 November 2026. Note that irrespective of the registration date which applies, a transition period of at least three months is available. The legislation implementing this is contained in Finance Act 2026. According to statements made by government ministers in the House of Commons, whilst the draft legislation moved through the Parliamentary process, the measures which will directly affect tax agents, including mandatory registration, are expected to be implemented in a reasonable and proportionate manner. Dan Tomlinson MP, Exchequer Secretary to the Treasury (XST) specifically addressed comments on the draft legislation to the House of Commons during its scrutiny of the Finance Bill in early February 2026 which acknowledged engagement on these issues by the Professional Bodies, which includes Chartered Accountants Ireland, and the important role that agents play in the tax system. At column 223 the XST said “I have been engaging in detail with stakeholders on the changes we are making, because it is important that legitimate and good tax advisers see that the Government have confidence in them and the work they are doing”. He went on to say that agent registration is “specifically about stopping harmful tax advisers who do not meet the basic minimum standards” and that it does “not give HMRC new powers to investigate whether applicants breach the standard for agents”. On HMRC’s powers to suspend an agent’s registration, the XST said at column 224 that HMRC will: “suspend a tax adviser only after due process, including offering opportunities to comply and a chance for the adviser to explain whether there is a good reason why they are unable to do so”, and “not use these powers for minor breaches”. At column 230 the XST further said that HMRC will “always work with a tax adviser who is genuinely trying to comply, will never suspend a tax adviser when doing so would be unreasonable or disproportionate, and will always consider the nature of any potential breach and how a suspension would impact the tax adviser and their clients”. On sanctionable conduct, at column 235 the XST said that “the powers will not affect advisers who act in good faith, or who take a credible view as to what the law requires of their clients, including where they use extra-statutory concessions or HMRC guidance to form that view”. Furthermore, the measures “do not affect advisers who make mistakes while trying, as the vast majority do, to do the right thing”. The XST’s comments were echoed by Lucy Rigby MP, Economic Secretary to the Treasury (EST), when speaking about the prohibition on promotion. The EST confirmed at  column 204 that the powers “are not intended to be directed against legitimate tax advisers who are operating to a high professional standard but, while acting in good faith, make genuine mistakes” and that ministers have “asked HMRC officials to work with stakeholders in developing published guidance to address the fine detail of exactly how the prohibition will work in practice”.