Readers are aware of an ongoing issue where Revenue-initiated emails in MyEnquiries can be overlooked if the email has been sent to an unattended or inappropriate email address. In response to the Institute’s representations at the Tax Administration Liaison Committee (TALC), Revenue is now providing a facility in MyEnquiries for users to mark a designated email address as the priority email address for sending Revenue-initiated queries. This enables practice staff with permissions to access that email address to ensure correspondence is not overlooked. Revenue has provided instructions to assist practitioners in assigning a priority email address for MyEnquiries if they choose to do so. Revenue will issue a revised Tax and Duty Manual (37-00-36A) in due course.

As recommended by the NI Tax Committee in a letter last August to the Financial Secretary to the Treasury and subsequently in the Institute’s evidence submission to the House of Lords Finance Bill Sub-Committee, the draft Finance Bill clause which would have retrospectively applied the change to the geographical scope of agricultural property relief (“APR”) for Inheritance Tax (“IHT”) has been removed from the most recent Finance Act. From 6 April 2024, APR, and woodlands relief (“WR”) is only available in respect of UK assets.  In accordance with draft Clause 1(7)(b), this change would have applied “in relation to transfers of value made before 6 April 2024, for the purposes of any charge to tax, or to extra tax, which arises on or after that date”.   This would have meant that lifetime gifts in the seven years prior to 6 April 2024 would have been impacted by the removal of APR and WR for non-UK assets had the settlor died within seven years of the original lifetime gift or made a further lifetime gift into trust within seven years of one made in the seven-year window prior to 6 April 2024. The original APR and WR would longer be available resulting in a decrease in the available nil rate band and potentially a 40 per charge to IHT.  The Institute recommended that the draft Finance Bill clauses be rewritten in a way that removed any damaging retrospective impact, as this would have otherwise threatened the principle of legitimate expectation.   HMRC confirmed the change when it published an updated policy paper on the amended Finance Bill clauses. The change is now reflected in Section 11 of the Finance (No. 2) Act 2024 which received Royal Assent last month. 

Do you complete expenses and benefits returns? Or do you complete online filing for employment related securities? If so, you have a key role to play in ensuring returns are submitted by the 2023/24 filing deadline of 6 July 2024 and payments are made on time. By way of reminder, from 6 April 2023, forms P11D and P11D(b) can only be submitted online by employers (except for the digitally excluded). Also, since 6 April 2023, an online service is available for employers and their agents to apply for a PAYE Settlement Agreement (“PSA”). The 2023/24 deadline to apply for a PAYE settlement agreement is 5 July 2024, with payments due by 22 October 2024 (19 October 2024 if not paying electronically).  HMRC is running a webinar later this week on 27 June on how to use the PAYE online service to submit forms P11D and P11D(b). The webinar will provide an overview of these forms, examine the benefits of submitting them online, and consider payrolling of expenses and benefits. However, it will not cover how to calculate the value of benefits. You can book onto the webinar here.  It should also be noted that where Enterprise Management Incentive (“EMI”) options are granted on or after 6 April 2024, although the statutory reporting deadline is 6 July following the end of the tax year, some plan rules require the employer to notify HMRC within 92 days of grant. If this is the case, failure to report within the deadline can lead to the option lapsing or becoming non-tax advantaged. We recommend that employers check any EMI plans urgently to ensure this deadline is not missed.   Here’s a reminder of the key deadlines next month:  6 July 2024 - deadline for submitting all 2023/24 P11D(b) and P11D forms - and the employee must receive their copy of the P11D;  6 July 2024 – deadline for online reporting of the 2023/24 annual return in respect of employment related securities;  19 July 2024 - deadline for non-electronic payment of Class 1A National Insurance Contributions (NIC) for 2023/24; and  22 July 2024 - deadline for electronic payment of Class 1A NIC for 2023/24. 

Our last update on HMRC services covered the announcement by the Financial Secretary to the Treasury before the dissolution of Parliament of an additional £51 million in funding for HMRC to help deal with the pressures on its phonelines and address declining service levels. Earlier this month, the Institute attended a bespoke meeting with HMRC during which HMRC advised that it is working to source additional resources using this £51 million.   This will take some time and we therefore remind you that HMRC previously advised that even if additional funding was received, quarters one and two of 2024/25 are likely to see a further decline in services. HMRC’s longer term strategy is still to move most taxpayers to digital services.   At the above bespoke meeting, the Institute and the other Professional Bodies discussed and highlighted a number of pain points in the UK tax system and in particular pointed out the lack of agent service for areas such as changes to tax codes.   The Institute will continue to monitor this issue and engage with HMRC and the new Government as it considers the way forward. We welcome your feedback at any time on HMRC services by email.  

Ahead of next month’s election, the Institute for Fiscal Studies recently published an article on reform of Inheritance Tax and an assessment of the previous government’s record on tax between 2010 and 2024. HMRC is currently conducting taxpayer education research and its 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. And finally, Belarus has unilaterally suspended its Double Tax Agreement with the UK, although the UK considers it to still be in force.  Institute for Fiscal Studies publications  The Institute for Fiscal Studies (“IFS”) has published an article on options to make inheritance tax (“IHT”) fairer which it says would also raise more revenue. In the article, the IFS notes that despite the highest rate being 40 percent, the availability of reliefs and exemptions means that the effective rate of IHT peaks at 25 percent for estates worth between £3 million and £7.5 million and declines to just 17 percent on estates worth £10 million or more.   The article also considers the potential impact of removing the special treatment of AIM shares, imposing a cap on agricultural and business property relief, and ending the tax-free passing-on of pension pots.  The IFS has also published an assessment of the government’s record on tax between 2010 and 2024. Not surprisingly, it notes that a common theme has been a move towards greater complexity. Since 2010, more than a dozen new taxes have been introduced and many existing taxes have been made more complicated. The IFS notes that, taken together, the changes have ‘made the tax system harder to understand and harder for taxpayers to navigate’.   HMRC taxpayer education research  HMRC has recently updated its guidance on genuine HMRC contact to flag that it is currently conducting a new research initiative. As a result, taxpayers may be contacted by HMRC or by People for Research with an invitation for them to take voluntarily participate in a focus group to understand how HMRC can improve education for taxpayers.   Belarus unilaterally suspends Double Taxation Agreement with the UK  Last month, HMRC confirmed in an update on GOV.UK that Belarus Council of Ministers has unilaterally suspended provisions of many of its Double Tax Agreements, including the 2017 UK-Belarus Double Taxation Convention. 27 countries have been impacted with provisions affected from 1 June 2024.   The Council Resolution has suspended provisions relating to dividends, interest, and capital gains. The same Resolution also introduces discriminatory taxes on dividends and other income in respect of businesses located in one of the 27 countries with effect from 1 April 2024. This means that Belarus is not honouring agreed limits on what it may tax at source and has placed other restrictions on the conduct of business by non-Belarusians in Belarus.  The UK-Belarus Convention does not permit this unilateral action. The UK Government views this action with utmost seriousness and has asked Belarus to reverse its action. It considers the treaty to remain in force and is continuing to comply with its terms. Next steps are being considered and more information will be provided in due course. 

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 Officer Borders bulletins are also available. The Windsor Framework Democratic Scrutiny Committee has published another report, this time on Regulation (EU) 2024/1252 which aims to establish a framework for ensuring a secure and sustainable supply of critical raw materials.  Windsor Framework Democratic Scrutiny Committee report  The most recent Brexit and Beyond Bulletin from the NI Assembly’s EU Affairs team features the Windsor Framework Democratic Scrutiny Committee's report on Regulation (EU) 2024/1252 that aims to establish a framework for ensuring a secure and sustainable supply of critical raw materials.  According to the Committee, most of the regulation does not fall within the scope of the Windsor Framework, although some articles of it do make technical amendments to a number of EU Regulations that do apply under it.   However, the Committee concluded that having considered its commissioned legal advice, the replacement EU act does not significantly differ, in whole or in part, from the content or scope of the regulations which it amends.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Submit a claim using the second-hand motor vehicle payment scheme if you do not have a UK business establishment;  Reference Document for The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023;  Check if you can pay less duty if your goods are imported into authorised use;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs ;Declaration Service;  Software developers providing entry summary declaration support;  Search the register of customs agents and fast parcel operators;  CDS Declaration Completion Instructions for Exports;  List of customs training providers;  Attending an inland border facility; and  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service. 

We have compiled the latest updates to various HMRC VAT publications, briefs, and guidance. Pay the VAT due on your One Stop Shop VAT Return;  Updates on VAT appeals;  Help with VAT apportionment of consideration — GfC2 Guidelines for Compliance;  Food products (VAT Notice 701/14);  VAT on movements of goods between Northern Ireland and the EU;  VAT Assessments and Error Correction;  Revenue and Customs Brief 7 (2024): VAT Treatment of Voluntary Carbon Credits;  VAT Assessments and Error Correction;  Appoint a tax representative if you are a non-established taxable person registering for VAT in the UK;  Cancelling your VAT registration (VAT Notice 700/11);  Group and divisional registration (VAT Notice 700/2);  Draft regulations: amendments to the VAT (Refund of Tax to Museums and Galleries) Order 2001;  VAT Flat Rate Scheme;  VAT Registration;  Forms for claiming a VAT refund if your business is registered in a country outside the UK;  Get your postponed import VAT statement; and  VAT Assessments and Error Correction. 

The Five Ways to Wellbeing was developed by the New Economics Foundation in 2008, where their project collated research from around the world on proven actions that can help us feel good. Wellbeing is a term that has gained popularity in recent years but in its simplest form it is a state of being comfortable, healthy, or happy. In a broader sense, it’s how satisfied you are with life, your sense of purpose, and how in control you feel. The framework is used globally in various ways to build more awareness on our collective wellbeing and help people take action to improve it. Each action can make a positive impact in our lives and most of us will engage with these activities without being aware of it. To get the most from the five steps, it is important to incorporate all of them on a daily basis. Why not try the five today? Connect Social connection is extremely important for our wellbeing. We are social animals, and our need for connection can help us feel happier, increase our feelings of security and safety and gives us a greater sense of belonging and purpose. Make time to connect with others each day. Nurture and invest in your relationships with loved ones.  This could be talking to someone rather than sending an email, speaking to someone new - possibly chatting to another in your local coffee shop or supermarket or taking time out to ask a loved one how they are truly feeling. Be Active Look for ways to be active each day. This doesn’t mean spending hours in the gym though; find an activity you can enjoy and try to incorporate it into your everyday life. Physical activity is intrinsically linked with lower rates of depression and anxiety. Why not take the stairs rather than the lift, go for a walk at lunch, or explore your local park – little changes can reap huge rewards. Take Notice Simply put, be in the moment. Being aware of the now can help you feel calmer and reduce stress. Take stock of what is around you and paying attention to the present – to your own thoughts, feelings and to the world around you. Keep Learning Be curious and ever learning! Continuing to learn throughout life can help boost our self-confidence and self-esteem. As adults, we can be time poor with other day-to-day responsibilities but simple activities such as learning a new recipe, getting around to that DIY project, doing a puzzle or setting yourself a new challenge can help achieve a higher level of wellbeing. Give Giving to others makes us feel good. When we give or help others, it activates parts of the brain associated with trust, social connection and pleasure. It provides a sense of meaning, improves our life satisfaction and mood, and can even reduce stress. Giving up your time to others can also help strengthen relationships or build new ones. Try to complete a small act of kindness today. Research into actions for improving happiness has shown that committing an act of kindness once a week over a six-week period is associated with an increase in wellbeing. And there you have it, the five ways to wellbeing! If you are struggling with your mental or emotional wellbeing, Thrive can help you on your journey to better emotional health. For wellbeing advice, contact the team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294.

Bad days happen. We all have them, those days when we feel a bit down or low and nothing seems to go our way. It’s normal to have a few down days every now and then but you don’t have to resign yourself to a bad day or let a bad mood dominate you. Here the Thrive wellbeing team shares some quick strategies for an instant lift in mood and help put a smile on your face.  Understand and observe your mood To manage our mood, we need to observe them and understand why we are feeling that way. If you are having a bad day, take note of your feelings – are you feeling sad, angry, frustrated?  Reflect on what happened that led you to feel like this and whether the day got worse or better. Observe where your mood is steering you and tell yourself that you can master and control your mood. Music Listening to music can have a major impact on how you are feeling. Research shows that music can influence our emotions as it can boost the production of dopamine and serotonin in the brain, which evokes feelings of happiness, relaxes the mind and body, and relieves stress. There are countless mood-boosting playlists on Spotify if you are looking for inspiration. Move Endorphins trigger a positive feeling in the body which helps instantly boost your mood. So, get those endorphins pumping by engaging in some movement – dance, shake your body, do some jumping jacks, or get outside for a walk. Any movement will help lift your mood and calm you down. Smile It sounds cheesy but it is amazing what smiling can do. Research has indicated that the simple act of smiling activates mood-boosting hormones and can literally ‘trick’ your brain into a state of happiness and improve your positivity. It can even boost your immune system. This applies to genuine and not-so-genuine smiles, so fake it ‘til you make it!  Release the emotions Suppressing or holding onto your emotions can lead to further negative thinking, it can even lead to physical stress on the body. So, it is always best to let it out. If you feel sad, allow yourself to cry. Feeling angry, scream. Feeling overwhelmed, mediate. Whatever outlet you choose, it is important to release the emotion and let go of the negative energy. Do something new Routine is good for us but switching it up from time to time and adding something that is out of the norm for us can really brighten up a day. Studies suggest that those who engage in a variety of experiences are more likely to retain positive emotions. Try a different coffee order, add a pastry with it, take a different route home, go to the cinema or even wear something you wouldn’t normally wear. Anything that challenges our routine a little will give you a lift. Do something nice for someone else A quick good deed or small act of kindness can go a long way to helping us feel more positive. Taking the focus away from yourself and doing something nice for someone else can make your feel good and instantly boost your happiness. Good Company Having a conversation with a friend or loved one is another great way to combat a low mood. Vent if you need to, as sharing can make you feel better and take the weight out of your feelings. A fun, light-hearted conversation will help put a smile on your and take your mind away from whatever is causing a low mood. If you find a low mood is persistent and impacting your day-to-day, you may consider seeking support. The Thrive Wellbeing Hub offers confidential wellbeing support such as a one-to-one listening service, wellbeing coaching, and professional counselling.   We also host a wealth of insightful and practical wellbeing webinars that may help you in your efforts, you can visit our Help & Guides page to view. For more advice, contact the team by email at: thrive@charteredaccountants.ie  or by phone: (+353) 86 0243294.

Charities can reclaim a portion of their VAT costs based on non-public funding ahead of the 30 June deadline. Liam Farrell explains how to do it Charities are entitled to claim a refund of a proportion of their VAT costs based on the level of non-public funding they receive, but the deadline to submit the application – 30 June – is fast approaching. Making a claim Where the total amount of eligible claims from all charities in each year exceeds the capped amount, claims will be paid on a pro-rata basis. The cap on this has increased to €10 million from 1 January 2024. To qualify for this scheme, a charity must, at the date of claim and at the time the qualifying expenditure was incurred: be registered with Revenue and hold a charitable tax exemption (CHY) under section 207 Taxes Consolidation Act (TCA) 1997; and be registered with the Charities Regulatory Authority (CRA). For a charity to submit a claim, they must have: a tax registration number issued by Revenue; bank account details; and a registered Charity Number (issued by the Charities Regulatory Authority). A claimant must also hold a current tax clearance certificate when making a claim. Claims for VAT compensation must be submitted through e-Repayments on Revenue’s Online System (ROS). These claims, along with any supporting documentation, must adhere to the required format and meet the deadlines specified by Revenue. Claims can be submitted annually between 1 January and 30 June for eligible VAT paid in the previous calendar year. Claimants may amend their claims until 30 June of the submission year, but not thereafter. The maximum claim amount is €1,000,000, the minimum claim amount is €500, and the minimum repayment is €5. Additionally, claimants must declare and certify that all information provided is correct. To support a claim, detailed documentation is required, including a breakdown of total income, qualifying income and qualifying expenditure. VAT records, such as invoices and receipts, must be retained by charities for six years. There must be evidence that the goods and services claimed were used for charitable purposes, that the VAT was paid in the relevant year, and that the income used for calculations was received in that year. The most recent set of audited accounts, corresponding to the financial year of the claim or the claim submission year, is also necessary. Furthermore, claimants must provide evidence that the charity was not entitled to a VAT deduction or refund under other legislation and must show compliance with the VAT Consolidation Act 2010, the Taxes Consolidation Act 1997, the Stamp Duties Consolidation Act 1999, and related secondary legislation. Qualifying income The proportion of a charity’s income that is privately funded is known as ‘qualifying income’. This excludes publicly funded income and income already excluded from the total income calculation. To calculate qualifying income, a charity should deduct from its total income for the year to which the claim relates all non-qualifying income. Some examples of non-qualifying income are Charitable Donations Scheme repayments, Charities VAT Compensation Schemes refunds, county council grants and charity shop income, among others. Qualifying expenditure Expenditure in respect of which a VAT refund may be sought under this scheme is described as “qualifying expenditure”. Conditions apply to the calculation of qualifying expenditure are as follows: compensation may be sought in respect of VAT which was paid in the State on certain expenditures and in the year to which the claim relates; that expenditure must have been for goods or services used by the charity only for its charitable purpose; and if a charity is entitled to receive any relief, refund, repayment or deductibility under any other scheme or legislation administered by Revenue, it may not include that amount in the calculation of a claim. What next? Applications under the scheme should be submitted by 30 June 2024 in respect of calendar year 2023. It is important to note that claims submitted after the 30 June deadline will not be accepted under any circumstances. Liam Farrell is Director of Accounts & Business Advisory Services at Azets

As entities prepare for the introduction of the Digital Operational Resilience Act, IT security and compliance will be front of mind for many, writes Jackie Hennessy With the Digital Operational Resilience Act (DORA) on the way, entities must move from preparation to implementation and take steps towards demonstrating how their practices comply. Financial entities will need to demonstrate appropriate security and resilience of critical information and communication technology (ICT) systems and applications to comply with DORA. The level of compliance efforts will vary depending on the size and complexity of your entity. A risk-based approach, appropriate security and resilience testing are necessary to address potential vulnerabilities and to prove compliance in meeting the evidence requirements of the European Supervisory Authorities. By focusing on long-term resilience, entities can establish a resilient foundation, which will aid them in their steps towards DORA compliance. Resilience means learning from the past, to improve the present, and to prepare for the future.  To make entities ready for DORA, there are five key actions to assist those in the preparation phase. These actions will enable entities to effectively manage their digital operational resilience. 1. Determine strategic priorities To enhance business practices, organisations must aim to achieve a transformation towards a resilient end-to-end IT and operations environment. To ensure strong risk management, a focus should be placed on achieving a broad agile transformation that takes into account risks associated with ICT suppliers and continuity measures. Additionally, it is necessary to aim to increase your organisation's agility in serving digital channels by implementing strong business continuity management (BCM) measures. 2. Implement resilience and incident management measures To ensure effective implementation of your DORA program, it is crucial to ensure leadership support, as well as translation of strategic and regulatory requirements into operational measures. It is essential to enable control owners and line management to manage compliance requirements in a risk-based way, including the automation of controls related to digital resilience, to manage the complexity of (compliance) requirements effectively. Think big and start small – for example, by organising a workshop with relevant middle-management players to align and agree on the implementation strategy of your DORA program. 3. Manage third-party risks To ensure effective management of ICT risk related to third-party providers, it is essential to conduct complete monitoring of all ICT-related third-party risks throughout all relationship phases. This involves the classification and analysis of providers and their management bodies, record-keeping of relevant information, managing proportionality, managing compliance and creating a third-party risk assessment process risk strategy. By undertaking these steps, comprehensive management of ICT risk in relation to third-party providers can be ensured. 4. Test digital operational resilience To ensure operational resilience, it is crucial to test critical functions more frequently than non-critical, at least once per year. The program for testing digital operational resilience must be based on relevant threat scenarios. Best practice is to implement an appropriate test set-up for each threat, to test the resilience effectively. Moreover, every three years, entities are required to perform threat-lead penetration testing that simulates a realistic and advanced cyber-attack. This simulation helps organisations to prepare and train for real cyber-attacks. 5. Implement measures for resilience and ICT incidents To establish strong operational resilience measures and incident management, it is essential to accomplish resilience testing from a wider perspective, which – beyond technical security testing – includes regular crisis simulations. It is important to improve business continuity plans and ICT crisis scenarios to ensure that uncontrolled disruptions are avoided due to slow and ineffective incident management. Moreover, accomplishing mature threat intelligence and assessing top continuity risk scenarios is crucial to enhancing resilience and preparedness in critical situations. By understanding these measures, strong operational resilience can be established, ensuring smooth and uninterrupted operations. Jackie Hennessy is a Partner at KPMG 

Scammers are targeting victims with new tactics, causing financial loss and mental distress. Ola Opoosun explains how organisations can protect themselves with the SCAM checklist From convincing phone calls and text messages requesting financial information to elaborate online scams, scammers are always looking for new ways to catch people off guard.   In 2023 alone, UK Finance reported that scammers stole £1.17 billion through unauthorised and authorised fraud. In fact, scammers target those who they perceive as more vulnerable, including the elderly, with data showing that an older person falls victim to fraud every 40 seconds.   While the financial impact of scams can be costly, they can also leave people feeling embarrassed and unsettled and can have a lasting impact on our confidence, especially in a workplace situation.  Three in ten (29%) say that being a victim of fraud has harmed their mental health, leading them to seek help with anxiety and depression.   How can organisations stay alert to scams and prevent them from happening to themselves and their clients? The golden rule of avoiding scams is to be vigilant.   Knowing what to look out for and feeling confident enough to check or challenge what you're being asked to do, especially where something doesn't feel quite right, is very important.    If you ever find yourself in a situation where you’re unsure what to do, our handy acronym “SCAM” can help you put together a quick checklist to help you work out if a request for financial and personal information is genuine or not.  S – Sender  If you receive a message out of the blue, ask yourself: is it a complicated email address, or one that's familiar yet not quite right? An unknown phone number?  Don’t assume that an email address, postal address, website or phone number is always authentic.   Always stop and check the sender’s address or number to make sure it’s legit. C – Chasing  If you get a call out from someone requesting sensitive or urgent information relating to their account, it could be a scam. Time pressure can be an obvious red flag as scammers might use tactics to convince you to make a hasty decision without thinking things through. However, a trusted organisation would never rush you into make an important decision such as transferring money or sharing credit card numbers.   Remember to stop and take the time to think through your decision and question if it seems like suspicious activity.   A – Action  An online, phone or email scammer will likely try one of a number of ways to get you to send money or personal information but it’s important to remember that a genuine organisation would never ask you for security details, especially out of the blue.   M – Mistakes  Scammers impersonate trusted companies, organisations and even people. If you receive an email or text with spelling errors or strange wording, these are tell-tale signs that can be a big giveaway that it’s a scam.  Scammers are hoping that people will overlook typos. You should carry out an online search of the number or email address to see if it's legitimate before replying to the message.   Falling victim to a scam  It’s important to remember that anyone can fall victim to a scam. Falling victim to a scam is nothing to be embarrassed about.   If you’re worried that you have been scammed online or through another method, your organisation’s financial security has been compromised, or you spot any fraudulent activity on accounts, involve your leadership team as soon as possible so they can contact the proper authorities and minimise risk to the company. With scams becoming increasingly sophisticated, it’s important to be more vigilant and feel confident to check or challenge what you're being asked to do.   Trust your instincts and remember “SCAM” to protect yourself and your organisation.   Ola Opoosun is Head of Support Services at caba