Finance Bill 2023-24 continues its passage through the parliamentary process with report stage having taken place yesterday, Monday 5 February 2024. This will be followed by the Bill’s third reading in the House of Commons after which the Bill will proceed to the House of Lords. Last week the House of Lords Finance Bill Sub-Committee published its report into the Bill after thanking those who contributed to its inquiry into the Bill’s draft clauses. The Institute’s submission to the inquiry, which can be viewed on the Tax Representations page of our website, focused on the impact of merging the SME and large company R&D tax relief schemes and restrictions to the geographical scope of agricultural property relief from April 2024.  Last week the Government published details of amendments and new clauses ahead of report stage. These were accompanied by an Explanatory Note and Tax Information and Impact Note, where applicable, and are summarised as follows:-  New Clause 5 — Electricity generator levy, new investment exemption;  Amendments 7 to 8 to Schedule 1 — R&D intensity ratio and preventing double counting of amounts in total relevant expenditure;  Amendment 1 to Schedule 1 — R&D: avoidance of double-claiming and gaps in entitlement during transition;  Amendments 3 to 5 to Schedule 6 — imposing information requirements for creative sector relief to provide for consequences of non-compliance short of the total invalidity of the claim. 

The Minister for Finance, Michael McGrath TD, has announced that, from 31 January 2024, PAYE taxpayers can claim the Mortgage Interest Tax Credit for 2023 through Revenue’s myAccount service. Self-assessed taxpayers will be able to claim the tax credit via the ROS Form 11 by mid-February 2024.  The 2023 Mortgage Interest Tax Credit is based on the increase in interest paid in 2023 over interest paid in 2022 and is available for homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022 and who are compliant with Local Property Tax. The tax credit is the lower of 20 percent of the increased interest paid in 2023 compared to 2022, or €1,250.   To claim this tax credit, taxpayers are required to file a 2023 Income Tax Return and upload their certificates of mortgage interest for 2022 and 2023 together with confirmation of their mortgage balance at 31 December 2022.   It is estimated there are approximately 208,000 mortgages eligible for the tax credit. The projected cost of this temporary tax credit, introduced in Budget 2024, is €125 million on a once-off basis.  Speaking today, Minister McGrath said:  “The Government is acutely conscious of the impact increases in interest rates have had on many mortgage holders. In light of this, I introduced a temporary one year, targeted Mortgage Interest Tax Relief scheme as part of Budget 2024.  This forms a further element of a comprehensive package of cost of living supports in Budget 2024 which include energy credits, income tax and USC reductions, and welfare increases which are helping households throughout the country.  I am pleased to announce that PAYE taxpayers can now submit a claim for this relief by logging on to Revenue’s myAccount service and filing an income tax return for 2023. Self-assessed taxpayers will be able to claim the relief in mid-February.  Last week, I launched a public information campaign to raise awareness among taxpayers of the range of tax credits and reliefs available and how they can claim those credits and relief. As I have stated many times, I encourage all taxpayers to avail of the full suite of credits and reliefs available to them, including Mortgage Interest Tax Relief.” 

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 and Cabinet Office Borders bulletins are also available. HMRC has also asked us to advise that the UK intends to open the Import One Stop Shop Scheme for businesses established in Northern Ireland for registration from 1 March 2024. Full guidance is due to be published soon. And finally, Saturday 3 February 2024 saw the return of the Northern Ireland Assembly after a two-year absence. Deal with DUP sees return of Northern Ireland Assembly  Last week the DUP and UK Government reached a deal which culminated on Saturday in the return of the Northern Ireland assembly. After the deal was announced earlier in the week, the UK Government published the accompanying Command Paper and associated documents, including legislation, which sets out more detail. The agreement and corresponding legislation were then debated in Parliament.  Essentially, the Windsor Framework (UK Internal Market and Unfettered Access) Regulations 2024 will amend the UK Internal Market Act 2020 in order to provide protection in law against exit procedures on goods moving from Northern Ireland to Great Britain. The regulations amend the Definition of Qualifying Northern Ireland Goods (EU Exit) Regulations 2020 to ensure that unfettered access benefits Northern Ireland traders only, not businesses which may divert goods to Northern Ireland to obtain the same benefit.   The Institute expects UK Government officials to provide more information in due course on what this specifically means for traders and will advise accordingly in Chartered Accountants Tax News in future.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  CDS Declaration Completion Instructions for Imports;  Appendix 23 Imports: Declaration Category Data Sets;  Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Receive goods into and remove goods from an excise warehouse (Excise Notice 197);  Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text;  Simplified Procedures Exclusions List of Procedure and Additional Procedure Codes for exports  CDS Declaration Completion Instructions for Exports;  Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes;  Appendix 24: Declaration Category Data Set; and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

Revenue has issued notices to employers advising them of free online webinars it will host in February 2024, using Eventbrite, to give an overview of the Enhanced Reporting Requirements (ERR). The notice, issued to employers’ ROS inboxes, contains a link Revenue’s ERR webpage where a ticket can be booked to attend additional webinars on a date that suits them.    This presentation, which will be followed by a Q&A session, will address:   An overview of ERR and employer responsibilities   eRegistration for ERR  Requesting Employer Reporting Notifications (ERN)   Submission of expense/benefit details by file upload or by online form  Viewing expenses/benefits by submission type and   Feedback on issues or problems you experience with the new ERR reporting regime can be emailed to the Institute and we will continue to engage with Revenue through the TALC forum. We will keep you up to date on developments in Tax News.  

After some weeks of speculation, the Minister for Finance, Michael McGrath TD, has announced that the interest rate applicable to warehoused debt will be reduced from 3 percent to 0 percent. Revenue has confirmed that, where a taxpayer has already paid warehoused debt subject to interest at 3 percent, they will get a refund of that interest. Pending the legislative change, Revenue has confirmed that it will operate the reduced interest rate on an administrative basis.   Minister McGrath also noted the flexibility in the approach Revenue is taking in working with taxpayers in relation to warehoused debt. Such flexibility will be applied on a case-by-case basis and could include the extension of payment arrangements beyond five-years and the removal of the requirement to make an initial downpayment.  As previously reported, taxpayers availing of the Debt Warehousing Scheme (DWS) have until 1 May 2024 to either pay their warehoused debt in full or engage with Revenue on addressing the debt, including arrangements for a Phased Payment Arrangement (PPA). Taxpayers must continue to file their current tax returns and pay current liabilities as they fall due to remain in the DWS and benefit from the 0 percent interest rate and flexible payment options. Failure to adhere to these conditions will result in the revocation of the warehouse facility, which will result in the imposition of the standard interest rate of 10 percent, backdated to when the debt arose, and the immediate enforcement of all outstanding debt, including interest.  Commenting on the change to the scheme, Minister McGrath stated:  “This Government is acutely aware of the ongoing cost pressures faced by businesses and is determined that viable businesses are given every chance to succeed in a challenging trading environment.  Acknowledging this, I have today announced that the interest rate applicable to outstanding warehouse liabilities will be reduced from 3 percent to 0 percent. I will be bringing forward the necessary legislation to give effect to this and Revenue has confirmed that it will implement the 0 percent on an administrative basis in the meantime. Where a business has already paid warehoused debt, which was subject to interest at 3 percent, it will get a refund of that interest. This will ensure that all taxpayers are treated fairly.  My Department has engaged extensively with Revenue on this matter and I welcome their statement in relation to flexibility on Phased Payment Arrangements in respect of warehoused debt including offering extended durations for payment and accepting much reduced, or minimal, levels of down payment.  Although the total debt warehoused has decreased by €1.4 billion since January 2022, €1.72 billion remains outstanding. I also note that the number of businesses in the warehouse has reduced from approximately 105,000 at its peak to just under 57,500 and this demonstrates that businesses are doing their best to pay the amounts due but some businesses need additional space and time to address their liabilities.  Warehoused debt arose during the periods when businesses were significantly impacted by public health restrictive measures imposed during the COVID-19 pandemic. These changes to the scheme have been agreed in recognition of the unique nature of the warehoused debt and in light of the Government intention to support otherwise viable businesses to continue to trade while having the opportunity to reduce their warehoused liabilities in a structured and manageable way.  The key message is that businesses should engage with Revenue: Businesses availing of the Tax Debt Warehousing scheme need to engage with Revenue prior to 1 May 2024. To avail of the flexible approach to tax debt warehousing we are outlining today, they must also file their current tax returns on time and meet their current tax liabilities as they fall due.  As the Revenue statement said, Revenue will be pragmatic and flexible in relation to the payment plans on warehoused debt and will work with businesses in the scheme so that they can secure the viability of their business into the future.”  Speaking about Revenue’s approach to the payment of warehoused debt, Revenue’s Collector General, Joe Howley, said:  “Revenue has a proven track record in successfully agreeing flexible payment arrangements and over 2,100 businesses have already entered payment arrangements for an aggregate €158 million of warehoused debt.  The Debt Warehouse Scheme was an unprecedented measure introduced in an exceptional period to give viable businesses an opportunity to survive an emergency. Many of the businesses involved had never before built-up debt with Revenue. We are firmly committed to supporting viable businesses that have warehoused debt.   We will provide businesses, having regard to the circumstances of each individual business, with every possible flexibility in managing the payment of their warehoused debt, including the level of down payment, if any, to commence the payment arrangement, an extended payment duration, and the availability of payment breaks and payment deferral if temporary cash flow difficulties arise during the arrangement term.  The essential conditions for success are that current returns and payments are kept up to date and that there is engagement with us about their plans to deal with the warehoused debt.  We want viable businesses to survive and thrive. The purpose of the supports, such as the Wage Subsidy Schemes and the Debt Warehouse Scheme, was to maintain viable businesses and support employment. The success of those supports is clear. We recognise that most businesses continued to be timely compliant through the period and many have paid some or all of their warehoused debt. We are determined that, as we work through the warehoused debt, we will continue to support viable business.  I therefore encourage individual businesses to get ready now and engage with Revenue on addressing their warehoused debt, having regard to their individual circumstances. We are ready to work with businesses so that they can secure the viability of their business into the future, whilst ensuring that their current tax liabilities are filed and paid on time.”  Revenue guidance will shortly be updated to reflect the change announced today. In the interim, an information booklet outlining possible payment options for warehoused debt is available here.  

The Financial Reporting Council has released a thematic review entitled “Reporting by the UK’s largest private companies”. The thematic review seeks to develop the understanding of the quality of reporting by some of the UK’s largest private companies. The thematic review is a useful document for preparers of financial statements as it highlights areas of good quality reporting, which companies are encouraged to consider in preparing their annual reports, as well as omissions and areas for improvement identified during their research.

  In this week’s Sustainability/ESG bulletin, read about the new Desposit Return Scheme, new funding available for sustainable disruptive technologies, the survey for signatories to the Women in Finance Charter, the report from the Platform on Sustainable Finance, ESG policies in credit unions, Renewable Energy and Net Zero in Northern Ireland, the ECB stepping up its climate work and the new EU law against greenwashing as well as technical roundups, resources, articles, and upcoming events. IRELAND Deposit Return Scheme launches in Ireland   The Deposit Return Scheme is now launched across Ireland, meaning that anyone buying a plastic bottle, or an aluminium or steel can with the Re-turn logo will pay a small refundable deposit, which can be returned in full when they bring it back to participating shops and supermarkets. Full details of how the scheme works is on this video (4 min).  Funding of €6.8 million announced for sustainable disruptive technology  Funding of €6.8 million has been announced for a project under Call 6 of the Disruptive Technologies Innovation Fund (DTIF) in Ireland. The €500 million fund was established under the National Development Plan (NDP) in 2018, and is managed by the Department of Enterprise, Trade and Employment with administrative support from Enterprise Ireland. This brings to €371 million the amount that has been awarded to projects across six DTIF Calls. All projects under Call 6 are expected to demonstrate a positive contribution to the sustainability targets in the Climate Action Plan.   Sustainable infrastructure investment manager fund closes  The leading listed private equity and sustainable infrastructure investment manager Foresight Group has announced the second close of the AIB Foresight SME Impact Fund. This Fund provides investments of €2-€5 million to companies across Ireland and Northern Ireland, and provides operational guidance, support on implementing sustainable best practices and creating high-quality, local jobs across Ireland. The Ireland Strategic Investment Fund (ISIF) made a commitment of €25 million to the Fund and has so far committed over €600 million as part of its €1 billion climate investment programme.  EPA publishes 2023 highlights  The Environmental Protection Agency (EPA) has published EPA Highlights 2023, showcasing its work in addressing environmental challenges across Ireland. Highlights include a recorded drop in Ireland’s greenhouse gas emissions in 2022, but a projected shortfall of 21 percent in overall emissions reduction by 2023. Upcoming events for 2024 noted in the publication include the Reporting of annual EU Emissions Trading System results in April, and September’s Circular Economy Conference.  Women in Finance Charter survey open  The ESRI, the data partner for Ireland’s Women in Finance Charter, has announced it is now collecting, analysing, and reporting on data from signatories to the Women in Finance Charter. Data from this survey will feed into the Women in Finance Chater 2024 report. Firms that signed the Charter committed to achieving greater gender balance across their organisations, setting targets appropriate to the company, and formulating an action plan to achieve these targets. The closing date for the survey is 2 February.  Sustainable finance report shows positive impact  A new report published by the Platform on Sustainable Finance, an advisory body to the European Commission, shows that the EU sustainable finance framework is being picked up by different market actors as an effective toolkit to navigate the transition to net zero, and has already had a positive impact on the ground. The Platform on Sustainable Finance will present the report “A Compendium of Market Practices” during a webinar on Tuesday 6 February, 13:00 – 14:20 (Brussels time).  Credit Unions and ESG policy  An amendment to the Credit Union Act 1997 (1997 Act) will see environmental social and governance (ESG) policy for the first time being included as a policy for the boards of credit unions in Ireland to approve, review and update. The new Act amends section 55 of the 1997 Act where the board has obligations to approve review and update plans policies and procedures at least every three years, instead of annually. The amending Act – the Credit Union (Amendment) Act 2023 (2023 Act) - was signed into law in December 2023 but has not yet been commenced.   NORTHERN IRELAND Renewable Energy and Net Zero in Northern Ireland    A Northern Ireland Affairs Committee inquiry into Renewable Energy and Net Zero in Northern Ireland was held this month into barriers to renewable energy across the region. Recent figures have shown that Northern Ireland is not on track to meet this target, as renewable energy expansion has stalled in the last year. MPs were reportedly concerned that the sector will fail to meet its legally-binding target of 80 percent of energy consumption from renewable sources by 2030, and there were calls for reform to legislation and support for renewable energy development.   2024 Responsible Business Awards in Northern Ireland open for entries  Entries are now being accepted for the Responsible Business Awards in Northern Ireland 2024. The Awards showcase transformational stories of businesses taking real action to build thriving communities and innovate to tackle pressing social issues and to repair and rebuild our planet. The 2024 Awards are open for entries until 26 April.  EUROPE EU Sustainable Investment Summit  Speakers from across the world gathered in Brussels on 24 January to take part in EU Sustainable Investment Summit, the European Commission’s flagship annual event on sustainable investment.  The summit discusses the delivery of the green transition in the European Union and beyond. This is the fourth such summit, which began in 2021 following the launch of the European Green Deal – which sets the objective for Europe to become the first climate-neutral continent by 2050 – and the European Green Deal Investment Plan, which aims to unlock the investments and finance needed to achieve this goal.  ECB steps up climate focus   The European Central Bank (ECB) has decided to expand its work on climate change, identifying three focus areas that will guide its activities in 2024 and 2025: implications of green transition, physical impact of climate change, and nature-related risks for the economy and financial system. The work planned for these focus areas will complement the ECB’s current climate-related actions in its ongoing tasks, including monetary policy and banking supervision. A comprehensive overview of the planned work programme for 2024 and 2025 is available in the Annex and more information can be found on the ECB’s website.  New EU law against greenwashing  MEPs have adopted a new law banning greenwashing and misleading product information. Under the new Greenwashing Directive, generic environmental claims (such as “environmentally friendly”, “natural”, “biodegradable”, “climate neutral” or “eco”) and other misleading product information will be banned, and only sustainability labels based on approved certification schemes or established by public authorities will be allowed. It will ban claims that a product has a “neutral, reduced or positive impact on the environment because of emissions offsetting schemes”, and it will make producers and consumers focus more on the durability of goods.   The Directive is meant to work together with the Green Claims Directive, currently being discussed at committee stage in Parliament, and which will be more specific and elaborate the conditions for using environmental claims in greater detail. The Greenwashing Directive now needs to receive final approval from the Council and be published in the Official Journal after which Member States will have 24 months to transpose it into national law.  Technical Roundup   (More from our colleagues in  Professional Accounting)  EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024.   The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April.  The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year.  The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability.  Resources  Accounting 4 Sustainability (A4S) Academy opens  The A4S Academy is now open for applications. The 18-month online learning and implementation programme is for senior finance leaders to embed sustainability.  It equips finance teams with the skills needed for their businesses to succeed in the face of environmental and social risks and opportunities.   Energy audit  The Sustainable Energy Authority of Ireland (SEAI) is promoting a voucher of €2000 for eligible businesses to seek a professional energy audit. The eligibility criteria, along with a more comprehensive overview of the scheme, are available on the SEAI website.  Opportunities and approaches for Sustainable Public Procurement  A new resource on Sustainable Public Procurement is available online for practitioners and policy makers. The guide describes opportunities and approaches for Sustainable Public Procurement and is intended to be of use to procurement practitioners and budget-holders in the public sector, as well as to policy developers interested in how public procurement can be used strategically to address key sustainability policy objectives.  Micro-qualifications for sustainability training  Green Further Education and Training micro-qualifications are now available to employees who want to contribute to sustainability in the workplace.  Created by industry for industry, the programmes provide short, stackable accredited qualifications tailored to fit employees’ schedules at little or no cost to employers. Programmes are delivered nationwide by the Education and Training Board network under the Skills to Advance initiative and are funded by SOLAS.   Articles  Businesses called to embrace corporate social justice (RTÉ)  Ireland can reduce impact of extreme climate events by transforming economy, experts suggest (Irish Times)  Warrior accountants: leading the green revolution? (Financial Times)  Upcoming Events   Platform on Sustainable Finance,  Launch of report “A Compendium of Market Practices”  Webinar, 6 February, 13:00 – 14:20 (Brussels time).  Chartered Accountants Ireland, CSRD – Building Finance & IT partnerships   Webinar on how Finance and IT Teams can partner to deliver sustainability reporting programmes compliant with the Corporate Sustainability Reporting Directive ('CSRD') requirements. Wednesday, Zoom, 7 February 2024 12:00 – 12.45  Sustainable Energy Authority of Ireland (SEAI) Energy Management: Creating an Energy Action Plan    Free online workshop next week teaching the basics of implementing energy management within your business.   8 February, 14:00-16:00.   Accountancy Europe Supporting SMEs with sustainability information  Environmental, Social and Governance (ESG) data requests that SMEs are getting from financial institutions and large value chain partners, voluntary initiatives such as the planned non-listed SME standard for sustainability reporting, the OECD’s work and industry-led initiatives, and SMEs’ support requirements for their sustainable transition  21 February, 17:00 - 19:00 Brussels time  A4S Sustainability In Action Webinar: Management Information  An interactive webinar focusing on techniques to help finance professionals develop and integrate information needed to respond to social and environmental risks and opportunities into core management information processes.  27 February, 08:00    A4S Sustainability In Action Webinar: Capitals Accounting  An interactive webinar exploring various aspects of capitals accounting and how it is being applied in practice. The discussion will explore the information needed to tackle a range of impacts.  28 March, 08:00 GMT  Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI)  Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape.  18 April, 08:30 – 13.00  National Sustainability Summit 2024  Dates: May 28-29  Locations: RDS    Network for Chartered Accountants working on ESG projects  Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities?  Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting.  When: Wednesday, 28 February, 14:00-15.30  Where: Teams  If you would like to attend, please email sustainability@charteredaccountants.ie  You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has published some useful reports covering large private companies in the UK as well as a report to support companies applying the UK Corporate Governance Code 2024, which launched last month. EFRAG and IESBA have launched public consultations on sustainability standards and the European Securities and Markets Authority has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA). Read more on these and other developments that may be of interest to members below. Auditing The FRC has issued an update to the Ethical Standard for Auditors. The standard will become effective on 15 December 2024. The FRC has issued a report which highlights some of the key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.    Financial Reporting The Irish Auditing & Accounting Supervisory Authority (IAASA) has published a summary of the outcomes of its 2023 financial statement examinations. The European Financial Reporting Advisory Group (EFRAG) has published a Feedback Statement on its response to the International Accounting Standards Board (IASB’s) request for information on the Post-Implementation Review of IFRS 15. The Feedback Statement summarises constituent's feedback, including responses to EFRAG’s draft comment letter and explains how the feedback received was considered by EFRAG in reaching the positions reflected in their final comment letter. The IASB has issued its January 2024 update, as well as a joint update with the International Sustainability Standards Board (ISSB). Podcasts covering both of these updates have also been released by the IASB and IASB/ISSB. The IFRS Interpretations Committee has released a podcast which provides an update on its recent activities, including details of two recent discussions relating to climate-related commitments and disclosure of revenue and expenses for reporting segments. The Financial Reporting Council (FRC) has published a thematic review entitled “Reporting by the UK’s largest private companies”. This report provides details of the quality of reporting in these companies, including areas where the standard could be improved. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments with comments requested by 29 April 2024. Anti – money laundering Would you like to know more about trust and company service providers (TCSPs)? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published. Sustainability EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024. It is intended that the listed SME standards will be effective from 1 January 2026 (with a 2 year opt-out) while the voluntary non-listed SME standards are intended to assist SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner. The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April. The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year. The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability. The European Environment Agency (EEA) have issued their 2024 update briefing of  ‘The costs to health and the environment from industrial air pollution in Europe’ which presents the latest assessment of the trends in externalities of industrial air pollution from over 10,000 facilities in Europe, from 2012 to 2021. These facilities report data on pollutant releases and transfers to the European Industrial Emissions Portal. The European Central Bank (ECB) has set out its focus areas for 2024 and 2025 which will guide its activities on climate change. The ECB have also set out their planned measures to address the focus areas. The European Parliament has adopted a directive which seeks to protect consumers from greenwashing and misleading marketing practices relating to environmental claims. Other news The 2018 Corporate Governance Code (the Code) was updated in January 2024 following a consultation which concentrated on a limited number of changes. The 2024 Code will apply to financial years beginning on or after 1 January 2025. The FRC has also published guidance to support companies in applying the Code. The Charity Commission of Northern Ireland has announced 31 January 2024 as the first mandatory filing deadline for 1,983 charities registered prior to May 2019. There is also a further 279 charities, registered after May 2019, which have the end of January deadline.  President of the European Commission Ursula von der Leyen has launched the Strategic Dialogue on the Future of Agriculture, a new forum mandated to shape a shared vision for the future of the EU's farming and food system. The European Commission proposes to revise the European Works Councils (EWCs) Directive to further improve social dialogue in the EU. Meaningful information and consultation of employees in key company decisions can help anticipate and manage changes like addressing labour shortages or introducing new technologies. Accountancy Europe has published a factsheet on the Carbon Border Adjustment Mechanism, which is now in enforced in the EU. The factsheet provides an overview of its main provisions. Our last edition of Roundup brought readers some information about the UK’s Economic Crime and Corporate Transparency Act which received royal assent on 26 October 2023. We included a link to an Institute information guide outlining some of the changes which may be of interest to members. In this week’s edition we report that the first changes to UK company law are expected on 4 March Companies House writes that it is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on that date. Click here for a summary of what changes are expected and how you can sign up for e mail newsletters from Companies House. A new study published by Skillnet Ireland and IDA Ireland has highlighted the need to upskill non-IT employees with key digital and data skills as this has become a requirement for all businesses in order to ensure our companies have a strong talent pipeline capable of adapting to the changing demands of digitalisation. Spring 2024 Legislative Programme The Irish Government recently published its legislative programme for Spring 2024. The link to the press release and the contents of the programme were included in our last edition and below are some of the items in draft legislation which might be relevant to members. An interesting one is the Access to Cash Bill. This Bill is listed for priority drafting. Its aim is to preserve access to cash. The Bill will also look at the resilience of the cash system and the manner in which cash travels around the system in Ireland. This involves two main elements – the regulation of ATM operators and the regulation of Cash in Transit companies. Since the publication of the legislative programme the Government has published the general scheme of the Access to Cash Bill and you can find more details of the general scheme here. Since the Autumn legislative programme in October 2023 the Digital Services Bill and the Charities (Amendment) Bill were initiated and are working their way through the legislative process. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is still listed as heads in preparation and is on the priority drafting section. The Co-operative Societies Bill and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 are still in preparation. Heads are in preparation for a National Cyber Security Bill and work is underway on an EU Data Bill which is to give effect to the EU Data Act. This is an EU regulation, but the Department of Enterprise, Trade and Employment has been advised that primary legislation is needed to enact it. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information 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 information. 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 the information 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 herein.  

In Irish news, the CCAB-I responds to the consultation on the taxation of share-based remuneration and Revenue launches a PAYE taxpayer information campaign. In UK news, we remind you that new customs rules for certain imports into Great Britain came into effect this week and HMRC publishes information on claims for overpaid NICs. In International news, the OECD considers changes to the definition of permanent establishment.    Ireland The Institute, under the auspices of the CCAB-I, has responded to the consultation on the taxation of share-based remuneration. Revenue has launched a public information campaign to raise awareness among PAYE taxpayers about claiming the range of tax credits and reliefs available. UK New customs rules for certain imports into Great Britain came into effect this week. HMRC has published information on claims for overpaid National Insurance Contributions. International  The OECD considers changes to the definition of permanent establishment.   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 EU exit corner here.

30 January 2024 – The Irish accountancy profession - comprising the accountancy sector, as well as accountants working across the wider economy - made a €19.8 billion contribution to the Irish economy in 2022, a new report published today by Oxford Economics for the Consultative Committee of Accountancy Bodies (CCAB), has revealed. The report further found that the profession supported over 83,000 jobs in Ireland and generated €1.8 billion in tax revenues in 2022. The profession’s contribution to the Irish economy has increased by 53% since this report was last compiled in 2017.  The profession in the UK and Ireland made a combined €114 billion contribution to the UK and Irish economies in 2022, supporting almost 1 million jobs, and generating €13.7 billion in tax revenues.  Expenditure on external accounting services by businesses in Ireland reached €3.4 billion, and almost £30 billion (£29.3 billion) in the UK in 2022. In both markets, the report estimated that the IT sector was the largest purchaser of accounting services in that year. The same year, the UK also exported £4 billion in accounting services, increasing its share of total UK service exports since 2016 by 0.3% percentage points, despite the changed trading landscape post-Brexit. CCAB said the findings highlight the key role the profession has played supporting businesses over the past five years, helping them to navigate the impacts of the Covid-19 pandemic, Brexit and geo-political crises like the war in Ukraine, as well as the transition to a green economy and new technology.  Julia Penny, CCAB Chair, said  “The significant contributions highlighted in this report underline the value of the accountancy profession to the prosperity of the UK and Ireland.  Accountants are playing a key role in driving economic growth: helping millions of businesses to navigate global challenges and opportunities, as well as leading schemes to boost social mobility and access to the profession.  “It’s not surprising to see that contributions have grown during the past five years given the impact of the pandemic and cost of doing business crisis. Demand for our knowledge and skills remains strong, in part thanks to our expanding roles in dealing with a range of non-financial information. I expect accountants to retain a central role as the profession evolves to further help businesses adapt to the climate emergency and technological advances, issues on which our future economic success and stability depend.” Barry Doyle, Deputy President, Chartered Accountants Ireland said “The figures published today illustrate just how fundamental the accountancy profession is to Ireland’s economic prosperity, something that can be too easy to overlook. It is very encouraging to see both the continued strong growth in demand for the services of the profession, and the extraordinary growth in the scale of the economic contribution to the Irish economy, up 53% since 2017.  “Behind the headline figures are over 83,000 individuals employed by the accountancy profession in Ireland, driving and servicing FDI and Irish business of all sizes and in every single sector of the economy. Accountants play a role in almost every aspect of our economy and society.” Stephen Noonan, Head of ACCA Ireland said “This report highlights the crucial role that the accountancy profession plays in creating a dynamic economy, providing the skillset that supports inward investment, the growth of exports and thriving businesses that create employment across the country. “As the Irish economy evolves and develops in the months and years ahead, with the growth of the renewable and digital economies, the profession will play a key role in supporting business and organisations adapt and grow to a changing environment. To support that, it is incumbent on both the private and public sector to work in partnership to ensure that we retain and recruit the skillset required which will support long term prosperity.”  The report assesses both the economic and wider social impact of the profession to the UK and Ireland, with quantitative analysis supplemented by case studies which provide a snapshot of the positive contributions that accountants are making in the areas of diversity and inclusion; skills; and sustainability.   CCAB is an umbrella organisation for the UK and Ireland’s leading accountancy bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.  Membership of CCAB bodies has grown by 14% since 2017, and these bodies reported more than half a million students registered globally during 2022. Read the full report to discover the breadth of the accountancy profession’s impact and CCAB’s commitment to driving sustainable growth among the organisations, economies, and communities it serves.  ENDS 

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GDP contribution of accountancy profession increased 22% in five years Profession supported almost one million jobs Accountancy generated £11 billion (€14 billion) in tax revenues The accountancy profession - comprising the accountancy sector, as well as accountants working across the wider economy - made a combined £98 billion (€114 billion) contribution to the UK and Irish economies in 2022, a new report published today (Tuesday 30 January) by Oxford Economics has revealed. Commissioned by the Consultative Committee of Accountancy Bodies (CCAB), the report further found that the profession supported over 900,000 jobs (911,800) in the UK and Ireland, and generated £11.4 billion (€13.7 billion) in tax revenues in 2022. The total GDP contribution of the profession in the UK and Ireland grew by approximately 22% between 2017 and 2022, when adjusted for inflation.  Expenditure on accounting services by businesses in the UK reached almost £30 billion (£29.3 billion) in 2022. The same year, the UK also exported £4 billion in accounting services, increasing its share of total UK service exports since 2016 by 0.3% percentage points, despite the changed trading landscape post-Brexit. CCAB said the findings highlight the key role the profession has played supporting businesses over the past five years, helping them to navigate the impacts of the Covid-19 pandemic, Brexit and geo-political crises like the war in Ukraine, as well as the transition to a green economy and new technology. Julia Penny, CCAB Chair, said: “The significant contributions highlighted in this report underline the value of the accountancy profession to the prosperity of the UK and Ireland.  Accountants are playing a key role in driving economic growth: helping millions of businesses to navigate global challenges and opportunities, as well as leading schemes to boost social mobility and access to the profession. “It’s not surprising to see that contributions have grown during the past five years given the impact of the pandemic and cost of doing business crisis. Demand for our knowledge and skills remains strong, in part thanks to our expanding roles in dealing with a range of non-financial information. I expect accountants to retain a central role as the profession evolves to further help businesses adapt to the climate emergency and technological advances, issues on which our future economic success and stability depend.” The report assesses both the economic and wider social impact of the profession to the UK and Ireland, with quantitative analysis supplemented by case studies which provide a snapshot of the positive contributions that accountants are making in the areas of diversity and inclusion; skills; and sustainability.  On sustainability, Tanya Steele CBE, Chief Executive of WWF UK, said in her foreword to the report that she is encouraged to see the accountancy profession taking a leading role in shaping the work ahead. Dr Alan Belfield, Co-Chair of the Professional & Business Services Council (PBSC), added: “The Professional and Business Service professions are a large and vital pillar which supports the prosperity of the UK and Ireland, and accountancy is no exception. The sector provides crucial advice that enables businesses, both large and small, and in every region, to become more productive, profitable and competitive. I am not surprised to see its contribution to the UK and Irish economies has increased in recent years.” CCAB is an umbrella organisation for the UK and Ireland’s leading accountancy bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.  Membership of CCAB bodies has grown by 14% since 2017, and these bodies reported more than half a million students registered globally during 2022. Read the full report to discover the breadth of the accountancy profession’s impact and CCAB’s commitment to driving sustainable growth among the organisations, economies, and communities it serves.