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 

Would you like to know more about 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 .   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.  

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.

As part of the CAW's Global Wellbeing Taskforce, Thrive is delighted to introduce our revamped wellbeing toolkit for managers.  At Chartered Accountants Worldwide, we acknowledge the profound impact of mental health on work performance, relationships, and the overall quality of life. We delve into the importance of fostering employee wellbeing in our fast-paced industry. Depression and anxiety, prevalent mental health conditions, exert a significant economic toll, amounting to US$ 1 trillion each year on the global economy. Download CAW's Wellbeing Toolkit for managers in the accountancy profession. The Gallup Global Employee Survey paints a concerning picture, revealing that less than a quarter of the world's employees feel they are thriving at work, underscoring the urgency to address this growing challenge. The McKinsey Health Institute's extensive survey across 15 countries and 15,000 employees unearths a stark reality - 59% of the workforce grapples with mental health challenges, highlighting the imperative for employers to intervene and support their teams. This holds true for the Chartered Accountancy profession as well, where stress and burnout are issues, affecting over half of Chartered Accountants. Managers within this industry play a pivotal role in shaping a conducive work environment that fosters mental, emotional, and physical health. Recognising the direct link between comprehensive support and heightened engagement and productivity, it becomes both an ethical and strategic responsibility to manage wellbeing effectively. The Chartered Accountants Worldwide global wellbeing taskforce acknowledges this imperative and is proud to introduce our revamped wellbeing toolkit for managers. This toolkit stands as a comprehensive guide, arming managers with crucial insights, strategies, and best practices to cultivate a thriving and dynamic team. Above all, it emphasises the critical need to build resilience and purpose within the workplace, contributing to a more productive, rewarding, and compassionate work environment. Together, let's pave the way towards a brighter future for the Chartered Accountancy profession by prioritising mental health and fostering a culture of holistic wellbeing. Download CAW's Wellbeing Toolkit for managers in the accountancy profession.

Six Nations Ticket Giveaway Thanks to our event sponsor Sage, the Official Insights Partner of Six Nations Rugby, we have two tickets to the Ireland v Italy game in the Aviva Stadium to give away to a lucky member. Book your tickets to the Leinster Society Rugby Lunch before 5pm on Monday 5 February to be in with a chance of winning the tickets. Those who have already booked their tickets/table at this point are automatically entered in the giveaway. We will be announcing the winner of the tickets on Tuesday 6 February. Rugby lunch details:   The Leinster Society is looking forward to hosting our Annual Rugby lunch at the Aviva Stadium next month! Join us for a sit-down lunch, followed by a Six Nations analysis from a panel of well-known speakers from the Irish rugby world, including Alan Quinlan as our MC. The rest of the panel will be announced over the coming weeks! We are also delighted to be raising money for the IRFU Charitable Trust at this event.   When: Thursday 22 February Where: Aviva Stadium What time: 12.30pm - 4pm How much: €90 per person, €900 for a table of 10    Email LeinsterSociety@charteredaccountants.ie to book your spot at the event. This event is sponsored by Sage.

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Many of you will be aware that the 2022/23 online self-assessment (“SA”) filing deadline is later this week on Wednesday 31 January 2024 which is also the deadline for paying any balancing payment of income tax and Class 4 National Insurance for 2022/23 and the first payment on account for 2023/24. HMRC has issued a reminder that taxpayers can enter into a payment plan to arrange time to pay their outstanding tax bill (broadly, this can be used where the taxpayer owes less than £30,000). The guidance on self-assessment for postmasters affected by the Horizon scandal has also been updated. Reminder: we’d still like to hear from you about the impact of HMRC’s helpline restrictions on filing 2022/23 SA returns by the deadline. Please get in touch when you get the opportunity to do so as we will be accepting feedback into the early weeks of February 2024. 

The minutes from the 124th Joint Vat Consultative Committee meeting, which Chartered Accountants Ireland is represented on, have been published. HMRC has introduced a new form for appealing corporation tax penalties and we update you below on using the agent reference number when a payment is to go to a nominee. HMRC has published initial information on how employers and employees can claim back national insurance contributions previously paid as a result of a recent Upper Tribunal decision (see below) and a consultation has been opened on the draft IR35 (off-payroll working rules) legislation changes which aims to enable taxes already paid by individuals to be deducted when recovering the tax due under PAYE. In Scotland, the Scottish Government has published a draft Statutory Instrument to amend the Land and Buildings Transaction Tax. See also a message from HMRC about agent authorisation duplication of letters.  The agent reference number and nominations  We remind you that from 26 February 2024, if a payment is to be made to a nominee, the agent reference number (“ARN”) must be used on all P87 employment expenses and marriage allowance transfer claim forms submitted to HMRC. The ARN is a unique identifier for each legal entity registered with HMRC as an agent and previously was used by HMRC mainly for internal purposes. However, going forward the ARN will be used more frequently when agents contact or are dealing with HMRC.   Claims for overpaid National Insurance Contributions (“NICs”)  The decision in Laing O’Rourke Services Ltd and Willmott Dixon Holdings Ltd vs HMRC case, which HMRC is not appealing, opens up claims for refunds of employee and employer NICs by way of disregarding part of the car allowance from earnings for NICs purposes if an employee has undertaken or claimed business mileage at less than the maximum 45p a mile.   In two recent Bulletins (November 2023 Agent Update and December 2023 Employer Bulletin) HMRC has provided initial information ahead of full guidance on how employees and employers can backdate claims for refunds.  For a claim to be successful all the existing rules still apply. The disregard should be based on “quantified and evidenced business miles driven”. As a result, claims will not be successful if evidence cannot be provided. No disregard is available on payments made that are within the definition of relevant motoring expenditure if salary is sacrificed from an individual’s pay.   Changes to Scotland’s land and buildings transactions tax (“LBTT”)  The Scottish Government recently published a draft Statutory Instrument which will amend the LBTT.   The changes will introduce a new exemption from LBTT for local authorities and there are various amendments to the additional dwelling supplement (“ADS”), which adds an extra 6 percent supplement to the LBTT paid in Scotland.   The legislation will take effect from 1 April 2024 once approved by the Scottish Parliament.  Duplication of agent authorisation letter  HMRC has advised us that some newly registered agents may receive a copy of their authorisation letter at least twice, if not more. HMRC apologises for this confusion and advises that that there is no need to contact them if duplicate authorisation letters are received.    

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 available. We remind you that the first phase of the UK’s Border Target Operating Model for imports into Great Britain commences later this week from 31 January 2024. And finally, the conclusions of last year’s 2023 Civil Society Forum (“CSF”) between the UK and the EU have been published (Chartered Accountants Ireland participates in the UK Domestic Advisory Group which feeds into the annual UK and CSF meeting). UK Border Target Operating Model (“BTOM”) first phase commences from 31 January 2024  In just two days’ time, the UK’s BTOM commences when new border requirements come into effect when importing certain commodities, including some food, into Great Britain. This marks the start of the introduction of the UK’s new BTOM. Two reminder emails have been sent to us by the UK Government (one from HMRC and one sent on behalf of the Department for the Environment, Food and Rural Affairs) setting out the changes in more detail. You can also read more about the first phase of the BTOM in an article in Accountancy Ireland’s Briefly.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Bringing commercial goods into Great Britain in your baggage; Taking commercial goods out of Great Britain in your baggage; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Declare commercial goods you’re taking out of Great Britain in your accompanied baggage or small vehicles; Report payments and view your allowance for non-customs state aid and customs duty waiver claims; What you can do if things are seized by HMRC or Border Force; The Taxation (Cross-border Trade) (Miscellaneous Amendments) Regulations 2024 and The Ship’s Report, Importation and Exportation by Sea (Amendment) Regulations 2024; Customs declaration completion requirements for Great Britain; Search the register of customs agents and fast parcel operators; Customs Declaration Service communication pack; Appendix 21: Import Declaration Category Data Sets; and Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS).

This month’s tidbits cover guidance on how to confirm the identity of HMRC representatives and a range of corporation tax return forms have been updated.   

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.