Today’s Autumn Budget and the second for Chancellor of the Exchequer Rachel Reeves, as predicted, featured tax rises, £26 billion in total to be exact (down slightly from £32 billion in the last Budget), which appear to be mostly financing additional spending and providing additional fiscal headroom. According to the Chancellor, the Budget will build ‘fiscal headroom’ of almost £22 billion, up from £9.9 billion after last year’s Budget. The rises come on the back of the Office for Budget Responsibility’s downgraded productivity forecast, which had been published online early by mistake and saw Parliamentarians poring over the document on their phones as they sat in the House of Commons chamber before the Chancellor stood up to speak. Disappointingly, the only mitigation that has been announced to the controversial changes to agricultural property relief and business property relief is that the £1 million allowance will be transferable between spouses and civil partners, albeit that this was among our recommendations on this issue made here, here and most recently in our evidence submission to the House of Lords Finance Bill Sub-Committee inquiry into draft Finance Bill 2025/26. This, and a range of other mitigations, were also highlighted by the Institute’s UK Tax Manager, Leontia Doran, in last month’s oral evidence session to that Committee. Whilst this is a welcome mitigation, it does not go far enough to ensure the changes are targeted at wealthier farms and businesses. Further, there have been none transitional measures announced to protect older farmers in particular. The Institute will continue to call for a special derogation from these changes for Northern Ireland. You can read our full reaction to the Budget in our Press Release. Buried in the Budget publications was also the news that in 2026/27 there will be no late submission penalties for Making Tax Digital (MTD) for income tax quarterly updates. The Institute has been continually calling for the Government to announce a soft landing for MTD and did so as recently as last month in our Pre-Budget submission and in a letter in September to HMRC’s new CEO. Also hidden on page 110 of the Budget Red Book was the news that the Government will not regulate tax advisers. What this precisely means is not yet clear, however this a welcome confirmation that our members are not facing dual regulation which we recommended in our response to the consultation ‘Raising standards in the tax advice market – strengthening the regulatory framework and improving registration’ in 2024. On the personal taxes side, several thresholds will continue to be frozen until 5 April 2031, and, commencing from April 2026, there will be an increase to the income tax rates for dividends of 2 percent for both the basic and higher rate, followed by a 2 percent increase for all rate bands for property and savings income from April 2027. This will apply in England, Wales, and Northern Ireland. On the business front, e-invoicing will be mandatory for business from April 2029. There are also proposals to require income tax Self-Assessment taxpayers with PAYE income to pay more of their tax liability in-year via PAYE from April 2029. The Northern Ireland Executive will receive an additional £240 million resource funding and £130 million capital funding through the operation of the Barnett formula. The Government also announced the proposed sector, geography, and co-investment for the Northern Ireland Enhanced Investment Zone. And to boost trade between Northern Ireland and Great Britain, £16.55 million will be provided over three years from 2026/27 to “create a ‘one stop shop’ support service that will help businesses navigate the Windsor Framework, unlock opportunities for trading across the UK internal market, and enable businesses based in Northern Ireland to take advantage of their access to UK and EU markets”. The Institute will continue its campaign for a lower rate of corporation tax for Northern Ireland and last week wrote to the Exchequer Secretary to the Treasury ahead of the Budget on this issue. The analysis herein is based on the publications of HMRC and HM Treasury. More detail on the key tax announcements features in the remainder of this newsletter and will continue in next Monday’s edition of Chartered Accountants Tax News.

Personal taxes measures It was again confirmed that there will not be any increases in the basic, higher, or additional thresholds for income tax, or the rates of employee National Insurance Contributions (NICs). However, the freeze on certain personal tax thresholds will now continue to 2031 and the rates of income tax will increase by 2 percent for property, savings, and dividend income, commencing for dividend income received from April 2026. The deep freeze continues…. The expected continued freeze on personal tax thresholds was confirmed. The income tax thresholds and the equivalent NICs thresholds for employees and self-employed individuals will stay at their current levels for a further three years until 5 April 2031. The inheritance tax nil rate bands are also frozen for a further year to the same date. The £5,000 secondary NICs threshold for employers will also be frozen until 5 April 2031 after dropping from £9,100 from 6 April 2025. Property, savings, and dividend income From 6 April 2026, the basic rate of tax for dividend income will increase from 8.75 percent to 10.75 percent, and the higher rate will increase from 33.75 percent to 35.75 percent. There will be no change to the dividend additional rate which will remain at 39.35 percent. For both property income and savings income, the 2 percent increases will take effect from 6 April 2027.The property basic rate will be 22 percent, the higher rate will be 42 percent, and the additional rate will be 47 percent. The tax rates on savings income will also increase by 2 percent points across all bands from 6 April 2027 which would appear to include the 0 percent band for the first £5,000 of savings income which would increase to 2 percent. These increases are likely to act as a disincentive to investment, and for property income will most likely be passed on by landlords to their tenants via higher rents. Earlier self-assessment payments From April 2029, Self-Assessment (SA) taxpayers with PAYE income will be required to pay more of their SA liability in-year via PAYE. The Government will publish a consultation in early 2026 on delivering this change, and also on timelier tax payment for those with only SA income. This changes comes as a surprise given discussions in the last few years in the context of Making Tax Digital that the Government was not seeking to target earlier payments of SA tax.

A soft landing for Making Tax Digital (MTD) for income tax, no changes to corporation tax rates, e-invoicing from 2029, more timely payments of VAT and PAYE, and a pensions salary sacrifice cap were the main features with some minor changes to capital allowances. MTD for income tax As lobbied for by the Institute, the Government announced a soft landing for MTD for income tax. Late submission penalties for quarterly updates will not apply during the 2026/27 tax year. However, from 6 April 2027 the new penalty regime will apply for late submission and late payments for all taxpayers. The penalties due for late payment of income tax self-assessment and VAT will increase from 1 April 2027. These changes will be legislated for via secondary legislation. E-invoicing from 2029 From April 2029, all VAT invoices will need to be issued in a specified electronic format. The Government will work with stakeholders to develop an implementation roadmap to be published at Budget 2026. The decision to mandate from April 2029 follows the announcement on e-invoicing in Ireland’s most recent Budget when, on 8 October 2025 after Minister Donohoe’s Budget Speech announcement, Revenue’s paper “Implementation of eInvoicing in Ireland” was published. VAT and PAYE A consultation will be published in early 2026 to consider ways that VAT and PAYE liabilities can be paid promptly without the taxpayer falling behind on payments, including requiring more tax payments by direct debit. Pensions salary sacrifice cap From 6 April 2029, both employer and employee NICs will apply on pension contributions above £2,000 per annum made via salary sacrifice. These changes will be legislated for through primary and secondary legislation which will be introduced in due course. At present, what exactly will be classed as salary sacrifice requires clarification. However again, this is another change which will disincentivise saving for retirement and reduce the attractiveness of employer contributions. Capital allowances From April 2026, the rate of writing down allowances in the main pool will be reduced from 18 percent to 14 percent. However, from 1 January 2026 a new first-year allowance (FYA) of 40 percent will be available for main‑rate assets. Cars, second-hand assets and assets for leasing overseas will not be eligible. The benefit this new FYA will have remains to be seen given that 100 relief is already available for all main pool expenditure via the annual investment allowance limit of £1 million and with unlimited 100 percent relief available for new main pool expenditure via full expensing.    

Chartered Accountants Ireland has reiterated its concerns about the proposed changes to agricultural property relief (APR) and business property relief (BPR), due to come into effect in April 2026, and the disproportionate impact these changes will have on Northern Ireland. The largest professional body on the island of Ireland that represents over 5,500 members in Northern Ireland has advocated extensively for a specific carve out from the rules to be included in the draft legislation to protect Northern Ireland’s economy. UK Tax Manager with Chartered Accountants Ireland, Leontia Doran said  “The proposed changes are already having massive ripple effects across the UK economy, but most notably for the farming community. These changes are disappointing and particularly damaging in Northern Ireland where family-owned businesses and farms are the heartbeat of the economy. 84% of businesses here are either family owned or managed, and they support over 325,000 jobs.  “A carve-out is needed to exempt genuine farming activity and protect family-owned businesses in NI. The Government could have included a threshold which would have continued to provide smaller farms and businesses with 100% relief if their farming and/or business assets comprise a minimum proportion of their overall estate. It is also disappointing to see that no transitional measures have been announced to protect older taxpayers. The announcement that any unused allowance will be transferable between spouses is welcome. This is the minimum that could have been done to remove the legislation’s cliff edge effect for smaller farms and businesses. More is needed to support genuine farming activity and family-owned businesses here in NI.” Personal tax thresholds The Chancellor has confirmed that the income tax and National Insurance Contributions (NICs) thresholds will remain frozen at their current level until 2031. Doran noted “The continuing freeze on personal tax thresholds is having an ever-increasing effect on people’s net after tax income and is expected to bring many more taxpayers into the higher rate tax bracket by 2030/31, a phenomenon known as "fiscal drag". This is likely to have a strong disincentive effect on decisions to take on extra work and will reduce household spending power. Coupled with the changes to employers’ NICs from April 2025, this is likely to lead to a more stagnant labour market, damaging productivity further.  “Policy measures are seriously needed to drive Northern Ireland’s productivity, the profitability of its businesses, and by extension boost both corporation and income tax takes so that we can make this a thriving place to live and work for all our citizens.” Northern Ireland Corporation Tax To unlock the economic potential of the region and its dual market access, and drive FDI, the Institute has been engaged in a campaign for a reduced rate of corporation tax which is more closely aligned with the rate across the rest of the island.    Leontia Doran concluded “At a time when the Government has been grappling with how to grow the economy, it might initially appear counter-intuitive to seek a reduction in the corporation tax rate in Northern Ireland. However, a reduction in this rate would in the longer run ultimately increase tax take by driving the creation of better jobs and incentivising business growth.  “Add to this higher value FDI and the gains for Northern Ireland would set a real benchmark for what can be achieved with ambitious tax policies. This is something our members want and which we will continue to advocate for in 2026.”  

Artificial Intelligence (AI) is increasingly being used in recruitment processes to modernise candidate screening, assess skills, and predict job fit. AI-driven interviews can include automated video assessments, chatbot interactions, and algorithm-based scoring. Preparing for such interviews requires understanding the technology, adapting communication strategies, and ensuring compliance with best practices. Understand AI in recruitment AI tools in interviews typically perform: Video analysis: evaluates facial expressions, tone, and speech patterns. Natural Language Processing (NLP): assesses word choice, clarity, and relevance. Skill testing: automated coding challenges or scenario-based questions. Predictive analytics: matches candidate profiles to job requirements. Tip: research the specific AI platform used by the employer. Prepare for video-based AI interviews Technical setup: Ensure a stable internet connection. Use a high-quality webcam and microphone. Test lighting and background for clarity. Presentation: Dress professionally. Maintain eye contact with the camera. Speak clearly and at a moderate pace. Practice: Record yourself answering common questions. Use AI-based mock interview tools to simulate the experience. Optimize communication for AI Structured responses: Use the STAR method (Situation, Task, Action, Result) for behavioural questions. Keyword alignment: Incorporate relevant industry and role-specific keywords. Avoid ambiguity: AI systems favour clear, concise answers over vague statements. Demonstrate emotional intelligence While AI may analyse tone and sentiment, authenticity matters: Show enthusiasm without exaggeration. Maintain a calm and confident disposition. Prepare for gamified or cognitive assessments Some AI-driven processes include: Problem-solving games. Personality assessments. Tip: practice logic puzzles and familiarise yourself with game-based assessments. Address bias and fairness Be aware that AI systems can have biases. If concerned, ask the recruiter about fairness measures and appeal processes. Post-interview follow-up Send a thank-you email to the recruiter. Reiterate interest and highlight key strengths. Conclusion AI-enhanced interviews require both traditional preparation and technical awareness. By understanding the tools, practicing structured responses, and ensuring a professional setup, candidates can maximize their chances of success.

Artificial Intelligence (AI) is no longer a science fiction, it’s a present-day reality redesigning recruitment practices across a variety of industries. One of the most significant areas of transformation is the job interview process. From initial screening to final interviews, AI is influencing how candidates are assessed and how employers make decisions. But what does this mean for hiring practices, candidate experience, and fairness? Let’s explore. AI-powered screening and scheduling Recruitment teams would traditionally spend hours reviewing resumes and coordinating interview schedules. AI tools now automate these tasks, using algorithms to: Scan resumes for keywords and skills aligned with job descriptions. Rank candidates based on experience and qualifications. Schedule interviews through integrated calendar systems. This efficiency reduces time-to-hire and frees recruiters to focus on strategic decisions. However, it also raises questions about whether keyword-based filtering overlooks unconventional but qualified candidates. This is one of the reasons why tailoring your CV prior to job applications is more important than ever. Video interview analysis AI-driven platforms are now recording interviews using machine learning. These systems assess: Tone and sentiment to gauge enthusiasm. Speech patterns for clarity, confidence, and pacing. Facial expressions and micro-gestures to infer engagement. While these understandings can help identify strong verbal communicators, critics argue that such analysis may disadvantage neurodiverse candidates or those from cultures with different communication norms. Also another potential pool of disadvantaged candidates are those who are speaking in their non-native language. Chatbots and pre-interview engagement AI chatbots are increasingly used to: Answer candidate FAQs prior to the interview taking place. Provide interview preparation tips. Conduct preliminary Q&A sessions. This creates a more responsive candidate experience and reduces recruiter workload. However, candidates often wonder whether they’re interacting with a human or a bot, which can affect trust, as many of us have experienced in when dealing with customer services chatbots. Bias reduction—or amplification One of AI’s core promises is reducing human bias by focusing on objective data. Yet, algorithms trained on historical hiring data can perpetuate existing biases, as those algorithms are developed and based on human process. For example: If past hires favoured certain demographics, AI may replicate that pattern. Language models might misinterpret dialects or accents as mentioned when discussing the AI screening process. To mitigate this, companies must implement ethical AI practices, including: Regular audits for bias. Transparent criteria for decision-making. Diverse training datasets. However, as it has been shown these types of audits can be difficult to conduct, as a company may not be willing to face that it has inherited biases. Candidate perception and trust Many candidates experience discomfort when they know an algorithm or AI system is evaluating them. This unease often stems from a few key concerns: Lack of transparency Candidates may not understand how the system works, what criteria it uses, or whether it’s fair. This uncertainty can feel intimidating. Fear of bias People worry that automated systems might reinforce biases or overlook qualities that a human interviewer would appreciate, such as personality or cultural fit. Loss of human connection Interviews are traditionally relational. When technology replaces or mediates that interaction, candidates can feel depersonalized. Perceived inflexibility Machines are seen as rigid—unable to interpret nuance, humour, or creativity the way humans can. The future of interviews AI will continue to evolve, integrating with: Virtual Reality (VR) for immersive job simulations. Gamified assessments to measure problem-solving and creativity. Predictive analytics to forecast long-term performance. Despite these advances, human reasoning remains essential for evaluating cultural fit, emotional intelligence, and nuanced communication, qualities that algorithms struggle to measure accurately. Key takeaways AI enhances efficiency but must be implemented ethically. Transparency and fairness are vital to maintain candidate trust. Human oversight will remain indispensable in final hiring decisions. AI cannot: Research the role and the organisation as effectively as you can. AI may provide information that is inaccurate or unrelated. You must research thoroughly yourself. If AI does offer information, be critical of this, can you check this is up to date? Provide personalised, informed feedback. AI output may be based on out-of-date information, it is often generic, and it can’t reflect on how your personal employability aligns with the role. Be aware that employers can use AI to see what information it generates about them. It is important that you do not directly copy material that AI produces. Implement your own insights. Final thought AI is not replacing interviews—it’s redefining them. Organisations that balance technological efficiency with human empathy will lead the way in creating fair, inclusive, and effective hiring processes.

Every year on December 3rd, the world marks the International Day of Persons with Disabilities, a day to celebrate the achievements of people with disabilities, raise awareness, and promote inclusion across all areas of society. In 2025, the theme continues to emphasise the importance of accessibility, equity, and dignity, especially in the workplace. However, for people with disabilities, the workplace can often be a space of exclusion or missed opportunity. That’s why disability inclusion in the workplace isn’t just a matter of compliance, it’s a matter of wellbeing, rights, and organisational success. Globally, over a billion people live with some form of disability, that’s about 15% of the world’s population. In Ireland, 1,109,557 people reported having a disability in Census 2022, representing 22% of the population.  Yet, people with disabilities are twice as likely to be unemployed compared to those without disabilities. Even when employed, they often face barriers such as inaccessible environments, lack of accommodations, unconscious bias, and limited career progression. These barriers don’t just affect the individuals themselves, they impact teams, culture, and the bottom line. Why Inclusion Matters for Wellbeing Workplace inclusion directly influences wellbeing. For employees with disabilities, feeling seen, heard, and valued can significantly improve mental health, job satisfaction, and overall quality of life. Here’s why it matters: Psychological Safety Inclusive workplaces foster environments where people feel safe to express themselves without fear of judgment or retaliation. For disabled employees, this means being able to disclose their disability, request accommodations, and contribute authentically. Sense of Belonging Belonging is a core human need. When disabled employees are included in decision-making, leadership, and social activities, it reinforces their sense of worth and connection. Reduced Stress and Burnout Constantly navigating inaccessible systems or hiding one’s disability can be exhausting. Inclusive policies and practices reduce this burden, allowing employees to focus on their work and wellbeing. Empowerment and Growth Inclusion isn’t just about access, it’s about opportunity. When disabled employees are given equal chances to grow, lead, and innovate, it boosts confidence and career satisfaction. Practical Steps Creating a truly inclusive workplace requires intentional action. Here are some key strategies: Accessible Recruitment - Ensure job postings are accessible and inclusive. Use plain language, offer alternative formats, and make application platforms compatible with assistive technologies. Reasonable Accommodations - Accommodations aren’t special treatment, they are tools that enable equal participation. This could include flexible hours, assistive tech, quiet workspaces, or remote options. Inclusive Culture - Foster a culture where disability is not just accepted but celebrated. Encourage open conversations, provide disability awareness training, and challenge language or assumptions. Representation Matters - Include people with disabilities in leadership roles, committees, and decision-making processes. Visibility helps break down stigma and inspires others. Review Policies and Practices - Review and develop policies to ensure they support inclusion. This includes everything from onboarding to performance reviews to emergency procedures. Allies  You don’t need to have a disability to support inclusion. Allies play a crucial role in creating safe, respectful, and empowering workplaces. Listen and Learn - Engage with disabled colleagues, and educate yourself on disability rights and etiquette. Speak Up - Challenge exclusionary practices or language. Use your voice to advocate for accessibility and fairness. Support Accommodations - Normalise the use of accommodations and support colleagues in accessing what they need.  Institute Supports Strategy27 emphasises the importance of trusted business leadership, and delivering for all members. This encompasses the need for a sense of belonging, mobility and diversity and ongoing learning.  The purpose of special network groups is to achieve this in the context of specific member and student profiles and representation needs. They focus on bringing greater awareness and promotion of inclusion across Institute staff, members, students, and member businesses and encouraging senior members to be visible and engaged role-models. The Institute has its own D&I committee, made up of volunteers with the objective of raising awareness of D&I topics, promoting inclusion, educating and supporting members and students and ensuring that the profession is accessible to all. Find out more about the committee here.  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.

In Irish news, the Minister for Finance has published a feedback statement on the reform of the taxation regime for interest and Revenue has published new guidance on VAT groups. In UK news, we bring you an update on recent developments relating to the research and development (R&D) tax relief, and in this week’s miscellaneous updates you can read about HMRC’s statement outlining the standards it expects from intermediaries (tax agents). In International news, the European Commission published the second evaluation of the Directive on Administrative Cooperation (DAC). Ireland 1. The Minster for Finance has published a feedback statement to initiate a consultation on phase one of the reform of Ireland’s taxation regime for Interest. 2. Revenue has published several guidance documents on VAT groups including new guidance on the territorial scope of VAT groups. UK 3. HMRC has published a new tool to assist in making R&D tax relief claims and its new R&D advisory panel is now operational. 4. This week’s miscellaneous updates feature, inter alia, the publication by HMRC of a statement outlining the standards expected of tax agents and the measures it will take to address the small minority who harm the UK tax system. International 5. Read about the second evaluation of the Directive on Administrative Cooperation (DAC) recently issued by the European Commission. 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.

In November 2025, the Financial Conduct Authority (FCA), published findings from a 2025 FCA multi-firm review focusing on business-wide risk assessment and customer risk assessment processes. The FCA fed back its findings on firms identifying, understanding and assessing risk, mitigating risk and managing risk. The findings highlight good and poor practice to help firms reflect on how they are meeting the existing risk assessment requirements. While firms involved in this review are part of FCA regulated population such as building societies, e-money payments firms and wealth management firms, there are general learnings which can be taken from the findings. 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.      

Revenue has published several new guidance documents on VAT groups covering the territorial scope of VAT groups, transitional VAT groups and relevant general information on VAT groups. In the guidance Revenue has outlined that VAT grouping is available to establishments located within the State which means that only a head office or branch established in Ireland is entitled to be a member of an Irish VAT group. The guidance has immediate effect for any VAT Groups formed after its publication and must be implemented by all existing VAT Groups no later than 31 December 2026. The general guidance on VAT groups outlines the conditions required to form a VAT group, the application of VAT group provisions and the consequences and deductibility of the group together with other relevant information.  The transitional VAT groups guidance contains similar information and will remain in place until 31 December 2026. It relates to existing VAT groups which are impacted by the new guidance on the territorial scope of VAT groups

Revenue issued a press release, ahead of Black Friday and Cyber Monday advising consumers to confirm whether advertised prices include all applicable taxes and duties before purchasing. If these costs are excluded, additional charges such as VAT and Customs Duty may apply when goods are delivered in Ireland. As outlined in the press release, Ms Maureen Dalton, Head of Revenue’s South East Frontier Management Branch, advised: “Import VAT is payable on all goods arriving into Ireland from outside the EU, no matter how small the purchase. For example, if you buy a Christmas decoration online for €15 from a non-EU country, and the postage is €3.50, VAT at 23% will apply to the combined amount, resulting in €4.26 VAT to be paid before delivery.” If the purchase price of the goods alone exceeds €150, both Customs Duty and VAT may apply.”

Revenue has updated Appendix 2 of the VIES Traders Manual Version 2 to include a link to the guide to preparing VIES returns on the Return Preparation Facility (RPF) which replaces the ROS Offline Application. Appendix 2 also includes a link to the VIES CSV template (Excel).