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The Public Policy staff in the Chartered Accountants Ireland Advocacy and Voice Department write: On 24 December 2020, the EU and UK negotiating teams reached agreement in principle on a Trade and Cooperation Agreement (“the Agreement”), which provides for tariff-free, quota-free trade (where rules of origin criteria are met) and for sectoral cooperation in a number of important areas. The Agreement does not govern trade in goods between Northern Ireland (“NI”) and the EU where the Protocol on Ireland and Northern Ireland will apply. This means that no new procedures will apply to goods moving between NI and ROI (and the other Member States of the EU). We have assembled information on some key areas to help practitioners navigate the new trading environment. You can find further information on any of these areas in our Brexit hub. We continue to engage with UK and EU stakeholders on the changes that Brexit is bringing. For up-to-date information on Brexit developments and technical analysis, sign up for Brexit Digest. Recognition of your Chartered Accountancy qualification The UK’s departure from the EU results in some changes in the standing of the Irish ACA/FCA qualification. Students and Members in ROI who are EU citizens and who have qualified and gained the requisite experience in the EU prior to the end of the transition period, will experience no change in their rights and protections under the EU Qualifications Directive (Directive 2005/36/EU). Students gaining the Irish qualification in NI/UK post Brexit will be receiving a European qualification awarded in a third country. Members who are UK citizens (or other non-EU citizens), who qualified in NI/UK prior to the transition period and who have met the required EU-based experience requirements, will no longer be able to access the rights, among other things, to have their qualification recognised within the EU under the EU Qualifications Directive as they are not EU citizens under this Directive. The Irish ACA qualification continues to be recognised in Irish and UK law and members on both sides of the border continue to have mobility rights under the Common Travel Area (CTA) agreement. Additionally, members of this Institute will continue to have access to practice rights on both sides of the border. More information on the qualification’s standing in terms of Irish and UK law can be found here. VAT on services This section will be of immediate interest to practitioners with cross-border clients, and who need to raise fees for their services. From 1 January 2021, NI continues to follow the EU’s VAT rules for goods. However, as the UK-wide VAT rules for services will apply to NI, NI VAT-registered businesses are required to follow a dual VAT regime from 1 January 2021. The UK continues to levy VAT and the rules relating to UK domestic transactions continue to apply to businesses as before Brexit. VAT procedures for trade in services largely remain the same as those prior to 31 December 2020, but there are some changes to the VAT rules and procedures for transactions between the UK and EU member states. The VAT rules applying for supplying services between the UK and Ireland are now the same as the current rules for supplying services outside the EU. Broadly, the VAT treatment applicable to the supply of most business-to-business (B2B) services between Ireland and the UK will depend on the place of supply (i.e. the place of supply is the place where the business receiving the services is established). Using the example of an ROI business, if it receives services (including accounting services) from a business, including an accountancy firm, based in the UK after the transition period, in general Irish VAT will be due on the services. If an ROI practitioner provides services to a business based in the UK after the transition period, in general, UK VAT will be due on the services. See Revenue guidance and HMRC guidance. For business-to-customer (B2C) supplies of services from 1 January 2021, Irish VAT should not arise on the supply of certain services such as accounting, legal and consultancy work to non-business customers in GB or NI. If a UK business supplies accounting services to non-business consumers outside of the UK, the services are supplied where the customer belongs and are therefore outside the scope of UK VAT. See revenue.ie and gov.uk for more information. VAT on goods This Institute and the NI Tax Committee, chaired by Alan Gourley, have been engaging with HMRC on various Brexit matters, including customs changes and the NI VAT regime, throughout the course of 2020 and extensively on VAT in particular in recent months. We will continue to do so in 2021. For information on the VAT changes under the NI Protocol, VAT registration requirements in NI, VAT reporting obligations and key VAT system changes, distance selling rules and VAT on trade in goods between NI, ROI and GB, see our dedicated VAT information page on the Institute’s Brexit hub. VAT margin scheme on second-hand cars for Northern Ireland In mid-January, it was announced that the UK Government is seeking to reinstate the VAT margin scheme in NI on second-hand cars purchased from GB, in order to avoid a substantial increase in prices. This Institute has been lobbying HMRC to seek a derogation from the EU and reinstate the scheme for such goods and guidance has been released. We are in contact with Irish authorities seeking clarification on the position in ROI going forward and similarly whether the margin scheme can apply when second-hand cars are purchased in NI from GB and then onward sold to a car-dealer in ROI. We will keep members updated. Customs GB has left the EU’s Single Market and Customs Union meaning GB no longer benefits from the free movement of goods within the EU, and customs declarations are now required to move goods. NI remains in the EU’s Single Market and Customs Union for trade in goods only. This means that trade between the EU (and ROI) and NI remains largely unchanged. Members involved with importing/exporting particularly between GB and ROI are recommended to sign up to receive Revenue’s eCustoms notifications by contacting ecustoms@revenue.ie. For detailed information on the new customs rules visit our Brexit web centre. Data flows Cross-border data flows enable trade. We know that many businesses rely on the ability to transfer personal data about their customers or employees in order to offer goods and services. For example, an NI company’s payroll could be processed across the border in ROI. Any restriction on the ability of this data to flow freely would act as a trade barrier. Data protection did not form part of the Agreement but it has been agreed that an adequacy decision by the EU on the UK’s data protection regime will be made within six months i.e. by 30 June 2021. For now, data can continue to flow between the EU and UK as before which is good news in particular if you are outsourcing your IT or payroll function to a cross-border organisation. For more information see our website. Cross border workers The Common Travel Area arrangements will protect the rights of many of the estimated 23,000 to 30,000 cross border workers who live in one part of the island of Ireland and work in the other. While Irish nationals can continue to enter and work in the UK under the Common Travel Area agreement (and vice versa), this does not cover EU nationals living in Ireland and travelling across the border for example. Under the new UK immigration system that came into effect on 1 January 2021, both EU and non-EU nationals will be treated equally. Employers in Northern Ireland in particular should ensure that employees from other EU Member States are aware of, and encouraged to apply for, the EU Settlement Scheme which is open for applications until 30 June 2021. Employers should take action in light of new the post-Brexit immigration system, including verifying qualifications, considering the requirements under the new points-based system, and availing of any possible temporary transitional immigration schemes which may assist. Links to further information on employee mobility post Brexit can be found on our website. Online shopping Brexit was always going to bring new trading rules; and the costly impact of the UK’s departure from the EU has been felt by online shoppers since the start of the year. VAT and customs charges which until now might have earned a brief glance by online shoppers on payment screens, are now causing costs, confusion and even shipping delays. Most notably, consumers in ROI should be aware of the following changes when buying from GB (not NI): • If the good costs more than €22 (the customs value plus transport, insurance and handling charges), Irish VAT will apply. This VAT is generally payable by the buyer, unless like Amazon, the company picks up the bill. The €22 threshold will be abolished from 1 July 2021. • Orders with a value below €150 (including transport, insurance and handling charges) will not be liable to Irish customs charges regardless of where the goods are made. • The free trade agreement states that there will be no customs duties on goods coming to ROI from GB where those goods are made in the UK. However, if you purchase something online that costs more than €150 and it is not made in the UK, customs duties will apply for the buyer and the rate of the charge will depend on the type of product ordered. You can find all the rates in the TARIC database. • See Revenue.ie for more information. For consumers in GB, buying goods online from ROI/EU Goods with a value of STG£135 or less: • If the goods are outside the UK and sold through an online marketplace to customers in GB, the goods will have UK supply VAT charged at the point of sale. • If the goods are outside the UK and EU and sold through an online marketplace to customers in NI, the goods will have import VAT charged. Consignments valued at more than £135 Normal VAT and customs rules will apply on importation of the goods into GB from outside the UK or into NI from outside the UK and EU. This means that the customer will have to pay VAT to Royal Mail for example before the goods can be delivered. Customs The free trade agreement eliminates customs duties on goods coming to GB from ROI where those goods are made in the EU. If this isn’t the case, UK tariffs could apply and the rate will depend on the goods purchased. For more information see gov.uk.

The Northern Ireland Department for the Economy has published guidance on making workplaces safer and a list of priority sectors during the current coronavirus crisis. A Practical Guide To Making Workplaces Safer sets out principles and practical steps for employers and employees to keep themselves and their workplaces safe. The guidance has sections on public health guidelines, safer work practices, mental health and wellbeing, and further help and information. It also highlights the steps to be followed if employers and employees are concerned about safety. (Note: the guide is intended to be universal and does not replace existing legislation or industry-specific guidance.) The guide is accompanied by a 'priority sectors list', an advisory list of priority business sectors, aiming to clarify what constitutes a priority sector at this time, and to support companies to continue their business operations if they can work within social distancing guidelines. The list drawn up by the Engagement Forum on COVID-19 with representatives from business organisations, trade unions, local councils, government, the Health and Safety Executive NI, Public Health Agency and Food Standards Agency.

The use of the term ‘agile’ in the business world has certainly increased in recent times. This has been mainly driven by the fact that many companies have been embracing AGILE methodologies and tools, originally used in the area of software design, to improve overall business efficiencies and effectiveness. There is no doubt that we are operating in an environment of relentless deadlines and pressure where it feels like we are constantly racing to just stand still. This has often been referred to as the ‘VUCA’ world meaning volatile, uncertain, complex and ambiguous. In this hectic world in which we operate there is very often little or no time for real thinking, reflection and contemplation, never mind thinking with agility. However in a rapidly changing world, one of the few things that you can control is how you think. Other aspects of the VUCA world are beyond our control but you can manage how you think and respond.  Increasing your ability to manage how you think and respond can have significant benefits for your career and life in general. So what do we mean when we refer to thinking with agility? It essentially refers to the way in which we think and consequently act. It relates to our flexibility and adaptability when we are in a position where we have to think and act quickly. It is our ability to be nimble and flexible and to respond to situations that arise including those that are completely unexpected for example if you are asked to present at a management meeting at short notice and you have not had time to prepare. How do we improve our ability to think with agility? Know your thinking style A good starting point is to initially increase your awareness of the way in which you think. In other words what is your thinking style? For example, ask yourself if you are more of a creative and innovative thinker or indeed are you an analytical or practical thinker? Also consider how well your thinking style has served you in the past. We all have patterns of thinking and we have a tendency to revert to old habits when we are under pressure. What are your thinking patterns? Another way in which to consider this is to reflect on whether you typically ‘react’ or ‘respond’ in various situations. What you do in certain situations will be indicative of your thinking style. Reviewing how you dealt with those situations in the past can help you to identify your thinking style and any patterns that exist. Challenge your thinking As the famous quote states ‘if you do what you always did, y0u will get what you always got’. Be mindful not to become entrenched in the same modes of thinking or indeed the same behaviours. Challenge yourself and others to think differently and to consider other options. Don’t automatically revert to the previous ways of doing things. Be brave and consider new options and alternatives. A way in which to challenge your thinking and that of others is to ask more questions and to ensure that they are probing and powerful questions. The ‘5 whys’ for example can be a useful tool. Your thinking ripples into other areas How you think is reflected not only in the decisions that you make but also in the way you behave and act, in how you communicate as well as in your own levels of self-belief. If you alter and shift your thinking even in the smallest of ways it can have a significantly positive impact on your life and career. A few moments can make all the difference When faced with a challenging decision that requires the ability to think with agility always try to take even a short pause before committing to a final decision. Even this split second can help you to tune into your reasoning and can support more agile thinking. Thinking skills and not technical skills that will determine success The art of thinking with agility is learning to flex your reasoning and deliberation depending on the situation that you are faced with and knowing when to do so. As your career progresses and you take on more senior level roles it will be your ability to adapt your thinking style and not necessarily your technical capabilities that will determine the level of your career success. Be Brave and start a new habit Experiment with flexing your thinking and review what impact it has. What different outcomes are you experiencing? Your brain is like a muscle and the more you flex your fresh way of thinking the better it will become at implementing this new habit. With practice new neuropathways will develop in your brain that will help you to become a more agile thinker. What resources can help? Stress has been proven to reduce our capacity to think clearly. Reducing stress in general can help in terms of improving your ability to think with agility. Exercise and mindfulness can support the reduction of the stress hormone cortisol and the impact that stress has on your body. Reducing your stress levels will improve cognitive ability and agility. Overview The essential skill of thinking with agility can be learned and enhanced as you progress your career. Improving your self-awareness is essential to improving your thinking style combined with the desire and confidence to challenge the status quo and to try new ways of thinking. - Karin Lanigan Karin is the Head of Member Experience with Chartered Accountants Ireland