In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. HMRC has sent a further email reminder about changes to how goods are imported into Great Britain from Ireland as a result of the first phase of implementation of new import controls from 31 January 2024. And finally, HMRC has confirmed that the VAT Import One Stop Shop (“IOSS”) scheme in Northern Ireland will open for registrations from 1 March 2024.  VAT IOSS  We previously reported in our EU exit corner that HMRC had confirmed to Chartered Accountants Ireland that the delivery of the VAT IOSS in Northern Ireland (“NI”) would commence from 1 March 2024.   IOSS is an optional VAT accounting scheme that VAT registered businesses can use when they import low value goods (non-excise goods with a consignment value of £135 or less) from countries outside the EU and NI, to consumers in the EU, NI, or both. HMRC has confirmed that as planned, the scheme will be available for direct registrations in NI from 1 March 2024  Last week, HMRC published guidance on the scheme and the changes on how to report VAT on sales of low value goods that are located in Great Britain at the point of sale to consumers in Northern Ireland.   Find more information on GOV.UK at: - https://www.gov.uk/government/collections/vat-import-one-stop-shop-scheme.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018;  Apply to use simplified declarations for imports you entered in your records without authorisation;  Making a simplified frontier declaration;  Check how to move goods through ports that use the Goods Vehicle Movement Service;  Manually arrive your goods in the UK;  Making a full import declaration; and  Trading and moving goods in and out of Northern Ireland. 

Revenue has recently published the following updated guidance: Tax Exemption and Marginal Relief Part 07-01-18 (updated to reflect Finance (No.2) Act 2023) Capital Acquisitions Tax Consolidation Act 2003 – Notes for Guidance (updated to reflect all amendments to 2003 Act by subsequent Acts up to and including Finance (No.2) Act 2023) Certain benefits payable under Social Welfare Acts – increase for qualified adult Part 05-05-33 High-income Individuals’ Restriction Tax Year 2010 onwards Part 15-02A-05 (updated to reflect Finance (No.2) Act 2023)

HMRC is holding its Annual Stakeholder Conference later this week in London which the Institute will be represented at. The theme of this year’s conference is “Today, Tomorrow, Together”. The Institute will be reporting key themes and issues discussed at the conference in next Monday’s edition of Chartered Accountants Tax News. You can read about last year’s conference in a news item.

This month’s tidbits cover the updated publication of HMRC’s organisation structure and the most recent newsletters and bulletins in several areas. Updated information is available on HMRC’s organisation structure:- Senior posts in HMRC's organisation structure, Summary of junior posts in HMRC's organisation structure, and HMRC organisation information and supporting datasets; Several newsletters and bulletins across a range of areas have recently been published as follows:- Employer Bulletin: February 2024, Alcohol Bulletin, Tobacco Bulletin, Pension schemes newsletter 156 ― February 2024, and Lifetime allowance guidance newsletter — February 2024;  HMRC has updated its guidance on what will happen if you do not pay your tax bill and  the HMRC tax debt strategy has been published which sets out how HMRC intends to improve the management of tax debt from 2023/24 onwards;  The following factsheets have been updated:- Compliance checks: penalties for failure to notify — CC/FS11 and Compliance checks: third party information notices — promoters of tax avoidance schemes — CC/FS74  A range of publications relevant to agents have been updated:- Create an agent services account, Find out how to register as a professional tax agent with HMRC, How to choose a tax agent, HMRC email updates and webinars for tax agents and advisers, Change or remove your tax agent's authorisation and Authorise a tax agent (64-8); and  The following documents have been updated:- Appeals reviews and tribunals guidance, Check if an email you've received from HMRC is genuine, Sign in to your HMRC business tax account, Receive Income Tax or PAYE repayments on behalf of others, Send an Income Tax relief claim for job expenses by post, Named tax avoidance schemes, promoters, enablers and suppliers, Tax support for overseas businesses investing in the UK, Set up as self-employed (a 'sole trader'): step by step, Apply for a certificate to confirm you pay UK National Insurance when working in 2 or more countries (CA8421), Negligible value claims and agreements, Changes in your annual allowance following the public service pensions remedy, and Check if your client has been affected by the public service pensions remedy.

Revenue has updated the Tax and Duty Manual regarding full self-assessment time limits for making enquiries and making or amending assessments. Finance Act 2022 amended section 959AA(2A) TCA 1997, which provides that assessments may be amended outside of the normal four-year time limit as a result of a Mutual Agreement Procedure (MAP) determination. The updated manual also outlines that tax returns may be amended outside of the four-year time limit to account for the knock-on effects of a MAP or correlative adjustment, even if the company whose return is amended was not directly a party to the MAP or correlative adjustment. The MAP is a means through which competent authorities consult to resolve disputes regarding the application of double taxation conventions.

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Revenue has updated the Capital Acquisitions Tax (CAT) Manual which provides an overview of the various exemptions from CAT. The updated guidance includes: Clarification that the small gift exemption may apply where a gift becomes an inheritance by reason of the death of the disponer within 2 years of the date of the gift. Amendment regarding the exemption for certain policies of insurance to follow the structure of the legislation. Further details on the qualifying conditions for the exemption of certain securities Further information is available in eBrief No.047/24.

Director-General Gerassimos Thomas has published an opinion piece on the Carbon Border Adjustment Mechanism (CBAM) and how carbon pricing supports the long-term investment needed for the green transition. In the article, he notes that since the introduction of the EU Emissions Trading System in 2005, there has been a 37 percent reduction in power and industrial emissions up to 2021, with EU GDP growing more than 50 percent in the same period. The CBAM is the next phase in the EU’s commitment to a greener, brighter future for Europe and its global trade partners.

Revenue has updated the Tax and Duty Manual regarding the Charitable Tax Exemption following the changes announced in Finance (No.2) Act 2023. The updated guidance confirms that: The tax exemption available under section 208 TCA 1997 is extended to include professional services income of a charity; and Revenue will withdraw the charitable tax exemption from the date in which the charity is no longer eligible, where withdrawn, Revenue will notify the Charities Regulator. The updated guidance also addresses applications for the tax exemption under section 208A TCA 1997 by overseas charities and under section 209 TCA 1997 for certain bodies established for the promotion of human rights.

The Bahamas, Belize, Seychelles, and Turks and Caicos Islands have all been removed from the EU list of non-cooperative jurisdictions, following agreement by Member States. While the Bahamas and Turks and Caicos Islands have been fully delisted, Belize and Seychelles have been moved from Annex I to Annex II (pending the results of a supplementary review). This is another important milestone in the Union’s ongoing efforts to promote tax transparency.

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