Revenue has recently published the following updated guidance:  Incapacitated Child Tax Credit (updated to reflect Finance (No. 2) Act 2023, and the applicable credit for prior years).  Employed person taking care of an incapacitated individual (refreshed examples).   Forfeitable shares (updates to the examples).  Tax relief on retirement for certain income of certain sportspersons (refreshed examples).  Using online methods to make a payment to Revenue (updated information on Relevant Tax on Share Options (RTSO)).  PAYE/USC regulations – emergency tax (updated to reflect increased tax bands in Finance (No.2) Act 2023).  EU mandatory disclosure of reportable cross-border arrangements (guidance on the operation of DAC6). 

Revenue has published a new Tax and Duty Manual regarding the Directive on administrative cooperation (DAC) in the field of taxation. The DAC provides for the automatic exchange of information between the tax administrations of EU member states. The new manual provides a roadmap to the Irish transposition of the DAC with general guidance on the scope and application of the DAC and amendments to it. 

The filing deadline for entities with EU cross-border payments reporting (CESOP) obligations in Ireland is 30 April 2024. The registration facility for CESOP filers opened in Revenue Online Services (ROS) on 1 February 2024.   Payment Service Providers (PSPs) who register for CESOP reporting in Ireland may use the ROS process to certify agents or service providers to file CESOP reports on their behalf. Revenue has advised that non-resident PSPs should commence the registration process at least one month before the 30 April filing deadline as a two-step verification process must be completed when registering for CESOP in Ireland.   Further information is available in eBrief no.079/24. 

Revenue has updated the Tax and Duty Manual regarding donations to approved bodies to reflect the previously reported amendment to the definition of "sport" in section 235 TCA 1997. That section now defines "sport" as covering competitive and recreational sport. The sporting bodies that were previously granted exemption up to and including tax year 2022, will retain the exemption provided they meet the other conditions of the section. 

Revenue has updated the Tax and Duty Manual regarding the Help to Buy (HTB) scheme to reflect the extension of the relief to 31 December 2025. The updated manual provides further clarity (at paragraph 16) around the raising by Revenue of an assessment and includes new guidance as regards registering as a qualifying contractor (paragraph 9.1). 

Revenue has updated the Tax and Duty Manual to reflect the increase in the home carer’s tax credit to €1,800 for 2024 (from €1,700 in 2023) as provided for in Finance Act 2023, together with a new table to show the credit amount for prior years. The revised guidance also reflects updates to the associated income thresholds and refreshed examples. 

Revenue has updated the Tax and Duty Manual to reflect the increase in the earned income tax credit to €1,875 for 2024 (from €1,775 in 2023) as provided for in Finance Act 2023, together with a table to show the credit amount for prior years and refreshed examples. 

Revenue has published a new Tax and Duty Manual to provide guidance on the reporting obligations under section 895 TCA 1997 for Irish resident individuals and companies who open a foreign account. Guidance is also provided for agents or financial intermediaries who facilitate the opening of a foreign account by an Irish resident individual or company.   This manual incorporates information previously contained in Tax and Duty Manual regarding accounts liable to deposit interest retention tax, company, pension scheme and PEPP provider deposits, which has been updated accordingly. 

Readers are reminded that Thursday 21 March 2024 is Local Property Tax (LPT) deduction date for property owners that opted to pay their 2024 LPT liability by annual direct debit (ADI). 

Earlier today HMRC announced that a series of new and significant permanent changes will take effect on a range of its helplines from 8 April 2024. The announcement comes after previous restrictions to various helplines which first began in December 2022 and continued at various times in 2023 and into the early part of 2024. Members with specific queries are asked to contact us to discuss. The Institute are concerned about these changes, will be monitoring their impact, and welcomes your feedback at any time on HMRC services.  In summary, the changes are:  between 8 April 2024 and 30 September 2024, the Self-Assessment (“SA”) helpline will be closed – callers will instead be directed to use HMRC’s online services;  between 1 October 2024 and 31 March 2025 the SA helpline will be open “to deal with priority queries” – however callers with queries that can be “quickly and easily resolved online will be directed to HMRC’s online services”;  the VAT helpline will only be open for 5 days every month ahead of the deadline for filing VAT returns – outside of this time, callers will be directed to use HMRC’s online services; and  the PAYE helpline will no longer take calls about refunds – callers will be directed to use HMRC’s online services.  HMRC advisers will continue to be available during normal office opening hours to support those who cannot use online services or who have health or personal circumstances that mean they need extra support. HMRC has published a help card on how to access extra support. HMRC advisers will continue to be available during normal office opening hours to support those who cannot use online services or who have health or personal circumstances that mean they need extra support. HMRC has published a help card on how to access extra support. All other helplines will continue to operate as they do currently. At HMRC’s recent Annual Stakeholder Conference attendees heard from HMRC’s Chief Executive Jim Harra about “tough choices about resources” and how HMRC is forging ahead with plans to reduce traditional phone and post contact by moving more taxpayers to “self-serve online”. Mr Harra also confirmed that HMRC’s headcount will significantly reduce in 2024/25.  HMRC has also published an impact assessment in respect of the closures of the PAYE repayment helpline and the VAT helpline in 2023: -  PAYE repayment telephony lines closure  VAT lines telephony lines closure   

Revenue has provided the Institute with an update on R&D tax credit claims for 2022 and 2023 including some matters to be mindful of when completing the R&D panels in the 2023 Form CT1. Revenue is prioritising the finalisation of CT1 2022 claims and will progress to 2023 claims as soon as possible. The note includes a broad summary of the main errors identified regarding the completion of the R&D panels. Revenue advises agents and taxpayers to review their 2023 R&D claims submitted to date and to make any necessary corrections to the R&D panels within the 12-month time limit as the onus is on the taxpayer to ensure a valid claim is made within that time-limit.  Revenue also advises that it is to release an IT update to the Self-Assessment Notice to reflect the R&D cash refund at a later date. 

We recently issued a reminder that second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 can continue to avail of the VAT margin scheme, but only until the extended deadline of 30 April 2024. HMRC has requested details of any such vehicles still in stock and unsold. Please contact us to provide this information by Friday 22 March 2024. Our thanks go to anyone who has already been in touch to provide this information.  The 30 April 2024 deadline means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin.   The six-month extension from the original deadline of 31 October 2023 followed extensive lobbying from Chartered Accountants Ireland in September and October 2023.