From FAE Exams to Senior Associate – Suvi Inkinen explains how she is navigating the post-exam transition from student to full member of Chartered Accountants Ireland I started my three-and-half-year training contract with PwC in September 2020. I had exemptions from the CAP1 exams due to my qualifications from my college degree, leading me to complete my CAP2 exams in my first year and my FAEs in my second.  I was over the moon when I passed my FAE exams in 2022. It’s an outstanding achievement to pass this set of exams, but it also meant I wouldn’t have to study again if I didn’t want to. It was such a fun and bizarre feeling – I hadn’t had a break from exams since pre-college.  It’s a strange feeling to return to work after passing your FAEs. If you’re like me, you didn't think much about life post-exams once you joined your training organisation. Knowing you no longer have exams to complete, no more study leave to take, and no exam workshops and lectures to attend feels foreign. However, the lingering stress of an upcoming exam is also gone, and that feels amazing. When I returned to work after passing my FAEs, I had been out of the office for around four months (three months of study leave and one month of annual leave), and, as an Associate 3, I received a lot more responsibility.  For my first engagement post-exams, I was seconded to the finance department of a large technology company. The content I had studied for my FAEs – which I had spent hours learning, looking over and studying – was precisely what I needed to know for this posting. All the effort was immediately worth it. Over a year after passing my FAEs, I am now a Senior Associate at PwC, which has been a considerable step up from being an Associate 3. I find it challenging but also more fulfilling. This is my first time being a senior on an engagement and delegating work to other associates. It can be pretty daunting, but I’m enjoying it, and I wouldn’t have been able to do it without my two years of lectures and training contract.  Beyond the liberating gift of a little free time and peace of mind, conquering your exams and going through your training contract opens up opportunities to get involved with the Chartered Accountant Student Societies.  In my case, my involvement in the Dublin and Ireland committees expanded after I passed my exams. I urge anyone, particularly those caught in the whirlwind of membership transition with some extra moments to spare, to dive into this community. It’s an experience that can enrich your professional journey. I’m currently on the exciting path of becoming a member of Chartered Accountants Ireland. There are two crucial steps ahead: submitting my CA diary and completing my graduation. This journey has been very fulfilling, and I take immense pride in how far I’ve come, all while contributing my expertise to PwC.

In its response to the International Accounting Standards Board’s (IASB) Request for information on the Post-implementation review of IFRS 15 Revenue from Contracts with Customers, the Institute’s Financial Reporting Technical Committee agreed that IFRS 15 has achieved its objectives and is working well, with some aspects challenging to apply. IFRS 15 became effective for periods commencing on or after 1 January 2018, and in June 2023 the IASB issued their request for information to form part of the post-implementation review process. The objective of a post-implementation review is to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors and regulators are those the IASB intended when it developed the requirements. Whilst supporting the strong framework provided by the five-step framework in IFRS 15, the Institute made some recommendations and comments in its submission, including; Further guidance is required to support the standard in some instances. This is particularly required in response to the fact that some entities have changed the way in which they operate since IFRS 15 was initially issued. The benefits of the standards outweigh the costs of implementing it. Further guidance is needed in relation to the identification of performance obligations of a contract in certain scenarios (eg. Software as a service contracts, distinct vs indistinct services and software updates). Further guidance is needed in relation to accounting for sales based taxes due to diversity in accounting practices being applied. Principal vs Agent considerations are one of the more challenging aspects of IFRS 15 to apply and further clarifications and guidance are needed, particularly in the area of the clarification of the concept of control. Further guidance is needed in relation to the interaction of IFRS 15 with other standards, including IFRS 3 Business Combinations IFRS 9 Financial Instruments IFRS 16 Leases IFRS 10 Consolidated Financial Statements The Institute believes that the level of convergence achieved to date on IFRS 15 and US GAAP is important and any changes to US GAAP or IFRS 15 should be monitored in this regard.

97% of parents surveyed by Chartered Accountants Ireland report that their career or working pattern has been impacted by childcare responsibilities. The findings show that 16% reduced their working hours, one quarter (27%) requested to work flexible hours, and one in five (19%) are currently considering adjusting their working hours. The survey, which gathered responses from chartered accountants in the Republic of Ireland has shed light on the significant challenges facing parents seeking childcare in Ireland. It highlights the crucial issues of cost barriers and their impact on career progression, while calling for increased childcare support. Chartered Accountants Ireland represents over 32,000 professional accountants, two thirds of whom work in business. When asked what they saw as the main barriers to securing appropriate childcare in Ireland, members highlighted both cost and capacity as being the biggest issues facing working parents. The financial burden is clear, with one third of members paying up to €1,000 a month per child on childcare, and one third paying between €1,000 and €2,000 per month. Commenting Cróna Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said “The significant cost burden is one element of the problem, but even accessing places in childcare facilities in the first instance is a big barrier. As most of us know, this process begins long before a child is even born. Members are clear that both cost and the lack of available spaces need to be addressed by Government in order to better support working parents.”  This month’s Budget announcement provided for an increase in the national childcare subsidy (NCS) from €1.40 to €2.14 as well as extending the NCS to certain childminders, but the Institute argues that while this will help with the cost of childcare, it will not address capacity constraints within the market. Clohisey continued “A longer-term strategy for tackling ongoing capacity issues in the sector is critical – quite simply more places need to be made available but that can only happen with appropriate funding so that staff are adequately paid and therefore attracted and retained. We have an economy at full employment, and our members are overwhelmingly reporting childcare as a barrier to their full participation in the market. “While a government commitment was made to address supply issues through core funding, this funding must go beyond just keeping the sector from collapse. We are asking government to recognise that childcare provision is part of the critical infrastructure necessary for a functioning economy. The crisis needs to be addressed with a long-term strategy with children at the forefront, that adequately funds the sector, increases capacity, and supports working parents.”  

In Irish news, Revenue issues a press release following the Supreme Court judgment on key factors when classifying employment status for income tax, offers advice for taxpayers adversely impacted by Storm Babet and outlines the ROS permissions required by employers and agents for the Enhanced Reporting Requirements of employers. In UK news, read this week’s miscellaneous updates which features the latest bulletins published by HMRC. In International news, the EU Commission publishes a study on the VAT gap for 2021. Ireland Revenue has issued a press release following the Supreme Court judgment on key factors when classifying employment status for income tax. Revenue offers advice for taxpayers adversely impacted by Storm Babet. Revenue has outlined the ROS permissions required by employers and agents for the Enhanced Reporting Requirements of employers. UK Read this week’s miscellaneous updates which features the latest bulletins published by HMRC. International The ‘VAT Gap’ in the EU is narrowing according to the EU 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 EU exit corner here.        

In a recent study analysing the VAT gap published by the European Commission, the VAT lost by Member States in 2021 was €61 billion, over €30 billion less than the comparable figure in 2020. The VAT gap is a measure of the difference between what should be collected and what is actually collected. The unprecedented year-on-year improvement is likely due to a variety of factors, although the uplift in electronic payments and online shopping in 2021 is likely a significant driver. The rate of VAT compliance tends to be greater online and with e-payments.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes.

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.

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.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the UK’s departure from the EU. VAT: Introducing a new zero rate to extend the scope of patient group directions; Revenue and Customs Brief 7 (2023): change to the VAT treatment of drugs and medicines supplied under patient group directions; Interpretation of VAT and excise legislation; Buildings and construction (VAT Notice 708); Revenue and Customs Brief 6 (2023): VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd; Fuel and power (VAT Notice 701/19); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994 Insolvency (VAT Notice 700/56); Register to report and pay VAT on distance sales of goods from Northern Ireland to the EU; Notice in accordance with paragraph 8(2) of Schedule 9ZD to the Value Added Tax Act 1994; and Insolvency (VAT Notice 700/56).

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit and the latest Trader Support Service bulletin is also available. We also remind you to that the Institute will be attending the next UK Domestic Advisory Group meeting on Monday 6 November and would welcome your feedback by Friday 3 November on specific areas of concern which arise in relation to the Trade and Co-operation Agreement. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Importing bananas you have to pay duty on into the UK; Authorisation type codes for Data Element 3/39 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); and Upload documents and get messages for the Customs Declaration Service.

This week we bring you news about planned outages to certain HMRC services over this coming weekend and updated guidance is available for companies claiming the super-deduction or special rate first year allowances. HMRC has also published its most recent performance reports and HMRC’s Insolvency Team is commissioning a series of surveys to obtain feedback from insolvency practitioners. Planned outages to HMRC services Read the below message from HMRC about outages to some services over this coming weekend. “From 10:30pm on Friday 3rd November until 07:00am on Monday 6th November 2023 HMRC is making planned upgrades to some of our IT, moving our internal systems that support our tax credits work, and other services that rely on this infrastructure, to cloud-hosting. This means a small number of internal and external services will be either fully unavailable or have limited functionality during the migration. This will take place from 10:30pm on Friday 3rd November until 07:00am on Monday 6th November and will improve the reliability, resiliency, and security of the service. As per our business opening hours, there’s no impact across our telephone lines as they are closed for the weekend. Our Customs and International Trade line is open and this migration has no impact. The webchats that are operational during this weekend (Saturday only) and may be impacted are listed below.  Depending on the query, our advisors may only be able to provide generic advice. Needs Extra Support Online Services Helpline Self-Assessment Customer-facing impact  Impacted digital services detailed below will have suitable messaging explaining that the services is unavailable either on GOV.UK, PTA or HMRC’s App and will advise customers to check back from Monday at 07:00am. Services: Marriage Allowance Employee Expenses Tax Credits Service Help to Save PAYE Income Tax History SA – Set up a Payment Plan EPAYE – Set up a Payment Plan VAT - Set up a Payment Plan Exercise Environment Insurance Transport Taxes Service (amendments) Online Tax Registration Service Services and internal operational impacts are subject to change. We do expect services to be up and running by midday on Sunday 5th November if the migration is successful.” Super deduction and special rate first year allowance guidance The guidance on claiming the super-deduction or special rate first year allowance (“FYA”) on plant or machinery costs for companies has been updated. Readers are reminded that these capital allowances incentives came to an end on 31 March 2023 but were replaced by full expensing and a new 50% FYA for special rate and long life assets. The updated guidance on the super-deduction and 50% FYA is still relevant to companies making claims in respect of such expenditure incurred up to 31 March 2023 and will also be relevant thereafter to disposals of such assets in accounting periods either straddling 31 March 2023 or falling wholly after that date. HMRC performance reports HMRC’s has published its most recent monthly performance reports and specifically the report for August 2023.. From 2 October, HMRC is no longer aiming to operate to a 10-minute service level on the Agent Dedicated Line. The Institute regularly discusses HMRC performance at stakeholder forum meetings and welcomes your feedback at any time. HMRC’s performance continues to be under pressure due to ongoing budgetary constraints and high inflation Insolvency survey HMRC’s Insolvency Team announced in its September 2023 edition of Insolvency Guidance that it is commissioning a series of surveys to obtain feedback from insolvency practitioners. The first survey, which is now open, examines the experiences of insolvency practitioners’ in contacting HMRC’s VAT helpline and will remain open until 1 December 2023. 

Today, Tuesday 31 October 2023, is the self-assessment paper filing deadline for 2022/23 to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (search GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2022/23 paper filing deadline is extended to 31 January 2024. A reasonable excuse claim should accompany such returns.