As a leading provider of Mastercard Gift Cards for the Small Benefit Scheme, Allgo Rewards is offering you a free info pack for your clients. Our Accountants Pack provides you with our comprehensive Small Benefit Guide 6th Edition and the Allgo Mastercard brochure. Ideal for sharing with clients! Allgo Rewards Allgo Rewards is an award-winning, guaranteed-Irish company that helps businesses reward staff and save tax. Allgo provides the market-leading tax-free gift card in Ireland, the Allgo Mastercard Gift Card, which is used by over 6,000 Irish businesses of all sizes to reward their employees tax-free up to €1,000 on the Small Benefit Scheme. Allgo also provides a points-based technology platform that manages ongoing incentives and recognition programmes for clients in Ireland, UK, EMEA, & Australia. Founded in 2010, Allgo Rewards employs 40 people in its state-of-the-art offices in the Digital Hub, Dublin 8. See allgo.ie for more details. Click here to download the FREE Accountants Pack Small Benefit Scheme The Small Benefit Scheme (SBS) is a statutory tax relief scheme offered by Irish Revenue that allows employers to provide a tax-exempt benefit to Irish employees of up to €1,000 per year. To provide tax-free rewards to employees under the Scheme, you must adhere to four basic rules: 1. Below the €1,000 threshold The benefit cannot exceed the threshold, which was increased from €500 to €1,000 in Budget 2023. The employer can award an amount of €1,000 or lower, or different amounts to different employees, but no employee can receive more than €1,000 in any one year. 2. Twice per year The benefit can only be given a maximum two times per year up to a total combined value of €1,000. As the tax year in Ireland is 1 January to 31 December, this means that an employer can make a €500 award to an employee in January, and then another €500 award in December without any income tax, PRSI (employer or employee) or USC. 3. Non-cash The benefit must be in non-cash form that cannot be converted into cash. This means that it cannot be paid through payroll, or, for example, on any company expense credit card that could be used at an ATM to withdraw cash. 4. No salary sacrifice The benefit cannot be funded from a deduction in salary from the employee, so the company needs to be invoiced for the total benefit amount and needs to pay for the total value of the rewards from the company’s own funds. Click here to download the FREE Accountants Pack Allgo Mastercard The Allgo Mastercard Gift Card is the use-anywhere gift card that gives you the ultimate freedom to choose where you spend – instore, online and even abroad. And it can be bought by all businesses for their Irish employees completely tax-free up to €1,000 on the Small Benefit Scheme. The physical Allgo Mastercard Gift Card can be spent in-store by swiping through the card machine at checkout or online by first registering the card on our Mastercard portal for 3D Secure. The Digital+ version can be spent online on any e-commerce site worldwide, and can be added to Google Pay and Apple Pay for spending by tap in-store. For full details, and to order online, visit allgo.ie/allgo-mastercard-gift-card Contact Allgo Rewards Web www.allgo.ie Email sales@allgo.ie Tel +353 1 253 0040 Allgo Rewards, Digital Depot, The Digital Hub, Dublin 8, D08TCV4, Ireland (This article is sponsored by Allgo)

In Irish news, the Minister for Finance publishes a roadmap for the introduction of a participation exemption and Revenue issue invitations to webinars on the new Enhanced Reporting Requirements for employers. In UK news, read our update on Making Tax Digital for Income Tax Self-Assessment and this week’s miscellaneous updates includes a request from HMRC for feedback on the impact that the recent closure of the Self-Assessment helpline has had on the work of agents. In International news, the European Commission publishes BEFIT and transfer pricing proposals.  Ireland The Minister for Finance has published a roadmap for the introduction of a participation exemption and has also launched a public consultation on the design of the proposed systems. Revenue is issuing notices to agents’ and employers’ ROS inboxes, inviting them to register for webinars on the new Enhanced Reporting Requirements for employers. UK Read our update on what’s been happening with Making Tax Digital for self-assessment. This week’s miscellaneous updates includes a request from HMRC for feedback on the impact that the recent closure of the Self-Assessment helpline has had on the work of agents. International The European Commission has published two key proposals in the past week; Business in Europe: Framework for Income Taxation (BEFIT) and harmonised transfer pricing rules. 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.  

The UK Government has announced its decision in relation to the reform of the regulation of insolvency practitioners. Originally the government had identified a single regulator as its preferred option but the latest announcement rejects this option and instead details plans to retain the existing four Recognised Professional Bodies and also introduce a package of additional measures. These additional measures include firm regulation, a public register of IPs, granting the Insolvency Service responsibility for standard setting and a compensation scheme. The detailed government response is available here, The future of insolvency regulation: Government Response.

There may not be many miles between Cork and Leeds, but there was certainly a big jump from the family dairy farm to FinOps for Donal Bourke. We caught up with Donal recently to hear more about his career journey.     1. Where did you grow up and where do you live now?  I grew up on a dairy farm in Co. Cork about 30 minutes from Cork City. The majority of my family and extended family worked (and still work) in agriculture, but I have bad hayfever, and a sense of adventure took me to UCC to study commerce. 2. What made you choose to become a Chartered Accountant?  When I finished commerce, I still didn’t know what I wanted to do. The majority of my class were doing interviews with the big-4 accounting firms, and it seemed like the path of least resistance. So, I went along and managed to secure a job with KPMG in the transaction services department. You could imagine my surprise to learn that there was a qualification and exam expectations involved in the path I had chosen! However the firm provided great support and time off to ensure I completed my exams and became an ACA. 3. Can you tell us a little about how you got to where you are today – both the geographical relocation and career path. And, what advice would you give your 20-year-old self? Once I completed my qualification I went to Sydney, Australia (as the majority of my intake did at the time which was 2011). From there I’ve moved to Leeds, back to Cork and finally to Leeds again using my qualification to work in a wide array of industries. I've gone from spuds to drugs, when I moved from being Financial Controller for a potato plantation in South Australia to being a Revenue Reporting Analyst responsible for generating rebate invoices from harnessing millions of lines of generic drug sales data. I now find myself back in Leeds (my wife is from here, so "happy wife = happy life!"), where I have undergone another career pivot working in the field of FinOps for NetApp. This involves analysing customers' public cloud environment (outsourced opex IT spend). The third party providers have different commitment options available for purchasing their services and I am responsible to use the best instruments to deliver the highest savings. The advice I would give my 20-year-old self would be to never stop learning and looking for opportunities to evolve in your career. It was only after being made redundant from a previous role in 2019 that I took ownership of my career and what I wanted to do and I wish I’d done it sooner. 4. What do you value most about your membership of the profession, and how do you think those benefits can be used to support the economy and society? I value the transferability of the membership most. Whenever I have travelled, it automatically sets the bar for the type of roles I will be approached for. An ACA or FCA qualification means recruiters and employers know who they are getting. I think society can benefit from members having a more rounded experience and world view – personally and professionally. It is the unique experiences and mental connections we make which allow us to tackle problems in our own ways. With the pressing challenges of climate change and the uncertain nature of AI (artificial intelligence), our own rounded perspective is more important than ever. 5. As a member living away from Ireland, can you talk to us about how your membership has been of value to you within the UK, and what do you value about it now that you’re living there (and what would you like to see more of)?  I would love to see a more active district society and chartered community with networking opportunities outside of London. 6. What were the most significant/noticeable differences you encountered doing business and networking away from home and back in Ireland? Doing business, I’ve found no real differences between Ireland and the UK. My previous roles in Ireland were fully remote and I continue to work from home. One of the few good things to come out of Covid in my opinion.  In terms of networking, the biggest difference I’ve found is that I now have four small children, so the opportunities to network are limited but I look forward to building on that aspect once the kids become less of a handful. Pictured with Donal are his daughters, (L-R) Ornaith and Evelyn. Donal Bourke is a Cloud Optimisation Consultant with NetApp.

  The Northern Ireland Investment Summit taking place this week is a timely reminder that a lower corporation tax rate for Northern Ireland could further enhance the attractiveness of the region as a place to invest and do business The Summit takes place just months after the UK main rate of corporation tax increased from 19% to 25% To crystallise a lower rate, capitalise on Northern Ireland’s unique trading position under the Windsor Framework, and tackle the many critical issues facing the region, the resurrection of the Northern Ireland Executive continues to be urgently needed Lack of a Northern Ireland Executive continues to hamper companies in the region from fully realising the potential of all the unique opportunities open to them, with many facing a tax bill double that of their counterparts in Ireland where the corporation tax rate is 12.5%, according to Chartered Accountants Ireland. The Institute, which represents over 5,000 members in Northern Ireland, more than two thirds of whom work in business, made these remarks as Northern Ireland this week hosts an Investment Summit exhibiting to business leaders and prospective investors the best that the region has to offer. Commenting, Janette Burns, Chair of the Northern Ireland Tax Committee of Chartered Accountants Ireland said: “In the year of the 25th anniversary of the Good Friday (Belfast) agreement, the Investment Summit taking place this week is an opportunity for over 100 leading investors and international businesses to see first-hand the talent, and expertise that Northern Ireland has to offer, not least in the innovation and technology sectors. “However, we can’t overlook the fact that the cash flow of many companies here is taking a significant hit with corporation tax bills up by almost 32%. Coupled with ongoing inflationary pressures, this ultimately means significantly lower after-tax profits, and less cash for investment to drive company growth and expansion, reward employees, and create high value employment. “The UK Government clearly recognises Northern Ireland’s unique position. Now is the time for our politicians to grasp this additional opportunity.  A rate of 12.5%, matching that in Ireland, would give Northern Ireland companies a real competitive edge in attracting foreign direct investment and energising indigenous businesses to thrive and prosper. “The economic benefits of a lower rate and the steps needed to implement it are well known and were highlighted again recently by the work of the Fiscal Commission. But we need our Executive back in situ to start the ball rolling on this and many other urgent issues in education, childcare, the economy, and health. Northern Ireland’s business leaders want our politicians to get on with this work in order to transform the region into a truly dynamic and attractive place to invest, do business, live, and work”.    Paul Millar, Chairman of Chartered Accountants Ulster Society added: “Last year we met with HM Treasury to discuss the economic benefits that a lower corporation tax rate would bring to the region where we also took the opportunity to highlight the potential for flexibilities to manage the impact of a reduction on Northern Ireland’s block grant. From the end of this month, improved access to the UK’s internal market will also be available under the Windsor Framework via the new green channel arrangements. “Although there have been rumblings from several of the main political parties in recent months about the potential for a lower rate, what we’ve seen so far is not action, but soundbites. This does not help pay the tax bills of Northern Ireland companies, many of whom are in dire need of additional cash flow to enable them to fully realise and capitalise on our unique trading access to both the UK’s internal market and the EU’s single market.” Paul Millar concluded: “Northern Ireland companies have dealt with crisis after crisis in the last few years, but many remain adaptive and resilient. They now need to be given the tools to flourish. As inflation begins to fall, now is the time for our politicians to act and get back into government. We encourage them to grasp this transformative change and take the steps needed to begin implementation of a lower corporation tax rate. “We urge our political parties to set aside party concerns and work together for the benefit of the whole region and its citizens.” Other information:- From 1 April 2023, the main rate of corporation tax in the UK increased from 19 percent to 25 percent, for companies with taxable profits of more than £250,000 Companies with profits between £50,000 and £250,000 now pay corporation tax at the 25% main rate, reduced by marginal relief; The rate remains at 19 percent if taxable profits are £50,000 or less; For companies with associates (broadly companies under common control), the £250,000 and £50,000 limits are reduced, meaning the higher corporation tax rates are payable on lower levels of taxable profits. During 2022, the Independent Fiscal Commission for Northern Ireland reported on the benefits of a lower rate of corporation tax for the region while also recognising the risks, complexities and constructive engagement required from the Northern Ireland Executive and HM Treasury to achieve this.

Last week the Institute attended HMRC’s Making Tax Digital (“MTD”) for Income Tax Self-Assessment (“ITSA”) quarterly forum meeting. The meeting provided an update on what’s been happening with the Small Business Review and also discussed the current MTD for ITSA trial. Small Business Review  HMRC advised that the outcome of this review into landlords and self-employed individuals with turnover less than £30,000 is expected to be announced sometime in the autumn but could not provide further details of when exactly this may be, except to say that any announcement would be to “Ministerial timelines”.   The review is designed to understand this taxpayer population better taking into account the burdens that MTD for ITSA would impose, and pain points, including the potential for easements and simplifications. HMRC also continues to consider the implications of MTD for ITSA on niche incomes such as foster carers. Revised regulations are expected to be published in early 2024 following a technical consultation on these in draft.  Earlier this year, Chartered Accountants Ireland, and several members from a range of practice sizes met with HMRC as part of the Small Business Review. During the meeting we stressed that the MTD for ITSA exemption threshold needs to be more realistic and should be set at the VAT registration threshold. We also expressed concern that agents will not be able to bulk sign up clients, that the trial will only be public from April 2025, and that there is a need for free bridging software to be available.   MTD for ITSA trial  Following the December 2022 announcement of the delay to the introduction of MTD for ITSA and its phasing in from 2026, HMRC then paused new sign-ups to the existing MTD ITSA pilot in order to review its testing approach but confirmed in last week’s meeting that the trial is now open again to new participants. Readers are reminded that strict conditions must be met to participate in the current trial which also is only open to those with a 5 April accounting period end. Non-5 April accounting period ends are expected to be able to join the trial in 2024/25.  A new testing strategy was shared with stakeholders, including this Institute, earlier this year which outlined the revised trial timetable as follows:-  Small private beta testing 2023/24;   Large private beta testing 2024/25; and   Public beta testing 2025/26.   The Institute remains concerned that public beta testing will not commence until 2025/26, which therefore means that one full cycle of testing will not be completed by many taxpayers before mandation for the turnover over £50,000 population from 6 April 2026. We are also concerned at the low number of those currently participating in the trial and that this will cause delays to further elements of the trial.  HMRC is now working with software developers to transition from the previous pilot into private beta testing. Taxpayers who were in the original pilot and wish to continue can be automatically moved into the private beta.   HMRC is also working with developers to identify any new taxpayers who could join the private beta, subject to the necessary conditions being met.   According to HMRC, private beta testing is being enhanced by new support arrangements. Previously, taxpayers were guided through each MTD ITSA submission in live video calls. Taxpayers and their Agents can now make submissions without video support but can access help from a new dedicated support team by email (scmimplementationteam@hmrc.gov.uk) or phone (0300 322 9619 8am-6pm, Monday to Friday).   HMRC has also confirmed that private beta participants with an agent do not need a 64-8 authorisation form if a digital handshake is in place authorising their agent. This is limited to agents contacting the support team. 

This week we bring you a report from HMRC that Russia considers itself to have unilaterally suspended substantially all of its Double Tax Treaty (“DTT”) with the UK, and HMRC is seeking feedback on the impact that the Self-Assessment Helpline closure has had on the work of agents. A reminder has been issued that from 20 July 2023 assignments of income tax repayments are not accepted as valid nominations and minutes are available from the May 2023 Wealthy External Forum meeting which the Institute was represented at. We have also been asked to remind companies of the need to submit the additional information claim form when submitting claims for R&D tax relief. And finally, the House of Lords Finance Bill Sub-Committee has opened an inquiry into the draft Finance Bill 2023/24; the deadline for written evidence submissions is Friday 6 October 2023.  Suspension of UK/Russia DTT  Russia has suspended substantially all material provisions of many of its Double Taxation Agreements by Presidential decree dated 8 August 2023. This action affects 38 countries, including the 1994 UK-Russia Double Taxation Convention, and the UK was notified on 15 August 2023.  The suspension includes the treatment of dividends, interest, royalties, capital gains, business profits, employment income and pensions, together with protection against discrimination. The provision for elimination of double taxation has not been fully suspended. The suspension likely means that Russia will not honour any agreed limits on what it may tax at source, and that only limited relief from double taxation will be available in Russia.  According to the announcement on GOV.UK, the UK-Russia Convention does not permit this unilateral action hence the UK has asked Russia to reverse the suspension, considers the treaty to remain in force, and is continuing to comply with its terms. The government is considering next steps and will provide further information in due course.  Impact of SA helpline temporary closure on agents  HMRC is currently evaluating the impact of the recent closure of its Self-Assessment Helpline which reopened earlier this month following a closure period from 12 June to 4 September 2023. As part of this, HMRC is also seeking to better understand the impact of the closure on agents. If you have any feedback about the impact on agents that you think would be valuable to share, please email external.affairs@hmrc.gov.uk.  Deeds of assignment no longer treated as nominations  From the date of the Spring Budget on 15 March 2023, assignments of income tax repayments were rendered void. However, for a transitional period only, HMRC continued to accept nominations of income tax repayments as non-legally binding nominations.   This transitional period ended in July meaning from 20 July 2023 any assignment of an income tax repayment is no longer accepted as a nomination. As a result, HMRC will repay the taxpayer directly where there is no valid nomination.  Reminder: importance of submitting additional information form with R&D tax relief claims  HMRC has asked us to issue a reminder that from 8 August 2023, R&D tax relief claims by companies will only be considered as valid when accompanied by the additional information form (“AIF”). According to HMRC, nearly half of all R&D tax relief claims received between 8 August and 3 September 2023 did not include the AIF.  As a result, we are aware that HMRC is in the process of writing to companies and/or agents that have submitted claims for R&D tax relief without the AIF. The letter advises that the R&D claim is not valid and as a result has been removed from the company tax return but can be reinstated if the return is amended to include the R&D claim and the AIF, if this is within the time limit to do so.  The letter advises that boxes 656 and 657 of the company tax return should be ticked, where appropriate, to indicate that a R&D claim notification and AIF have both been submitted.   Readers are advised that a known error is preventing some claimants (those claiming under the “large” company R&D expenditure credit scheme) from making an entry in both boxes 655 and box 657.  HMRC advises that if an error appears, the company should not make entries in these boxes and should instead use the white space on the corporation tax return to say that an R&D claim is being made and the AIF has been completed and submitted.  

Today is the deadline to tell us your views on HMRC’s consultation on the taxation of employee ownership trusts and employee benefit trusts. The consultation closes next Monday 25 September 2023 and examines potential proposals to reform the tax treatment of each of these types of trust. Let us know your views by close of business today, Monday 18 September 2023. The aim of this consultation is to ensure that the tax regimes for these trusts remain focused on the targeted objectives of rewarding employees and encouraging employee ownership, whilst preventing tax advantages being obtained through use of these trusts outside of these intended purposes.  

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 and Borders Weekly Stakeholder bulletins are also available. Miscellaneous updated guidance etc.   The following guidance, and publications relevant to EU exit are available:-  Known error workarounds for the Customs Declaration Service (CDS);  Classifying drones and aircraft parts for import and export;  Classifying electrical equipment for import and export;  Classifying tobacco for import and export;  Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service;  Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and  Data Element 2/3: Document and Other Reference Codes: Licence Types – Imports and Exports of the Customs Declaration Service (CDS). 

HMRC’s latest schedule of live and recorded webinars is now 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.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. HMRC has also recently updated the Agent Dashboard which now includes Inheritance Tax. This dashboard is updated on a weekly basis and should be regularly checked to ascertain expected processing dates and HMRC’S current performance and service levels.  All agents, who are a member of a professional body, are also 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.