Latest Tax news

Revenue has published a further warning of fraudulent emails, SMS (text messages) and phone calls seeking personal information from taxpayers. Revenue has updated its website to assist taxpayers identify fraudulent communications. Taxpayers who have provided Revenue account details in response to an email, SMS or phone call are advised to reset their password immediately. Taxpayers are advised to contact their bank or credit card provider if they have provided bank or card details.

At the most recent meeting of the Tax Administration Liaison Committee (TALC) Collection sub-committee, Revenue acknowledged that recent changes to ROS resulted in error reports when returns where completed using third party software packages. To avoid any such future occurrences, Revenue is setting up a technical forum to facilitate better communication between software providers, and Revenue IT technicians. If you provide software solutions for tax practitioners, please email us at tax@charteredaccountants.ie with relevant contact details if you wish to participate in the forum.

Last Tuesday HMRC held its Annual Stakeholder Conference in London which the Institute was represented at by our UK Tax Manager, Leontia Doran. Under the conference theme ‘Navigating the future together: the Transformation Roadmap in Action’, attendees heard more from HMRC’s new CEO and First Permanent Secretary, JP Marks, about the ambitious plans in its Transformation Roadmap, which we previously provided an update on in July. Attendees also took part in a series of workshops, all of which were themed around the roadmap, and which provided the Institute with a key opportunity to directly engage with several senior leaders in HMRC. In his speech, JP Marks spoke frankly about the challenges which lie ahead but importantly also recognised the need for greater openness and transparency. He set out his vision for even greater collaboration between agents and HMRC in which he sees both groups working together as stewards and custodians of the UK tax ecosystem. It is clear that Mr Marks sees co-creation and collaboration as key to achieving HMRC’s goals in the future. The Institute recently wrote a letter of introduction to Mr Marks ahead of the conference setting out four key issues on our agenda. These are as follows: The Institute’s campaign for a lower rate of corporation tax in Northern Ireland, The tax burden and complexity arising from cross-border and remote/hybrid working, Tax simplification and the lack of progress in this area, and Making Tax Digital for Income Tax and the implementation of mandatory tax adviser registration from 1 April 2026. Building on previous annual conferences, the tone of the conference was ultimately collaborative and optimistic with a clear focus on innovation and partnership. Simplification of tax administration was another key theme, one which the Institute has been vocal about for some time. As HMRC strives to make administration largely digitalised and user-friendly, the protection of taxpayer data from cyber threats is also a top priority. Attendees heard in person from the new Exchequer Secretary to the Treasury (XST), Dan Tomlinson MP, who in his speech spoke about his role’s three key priorities, which are unchanged from those of his predecessor, and how these fit with the roadmap. The XST also shared updates on the expansion of HMRC’s compliance and debt management teams and his speech confirmed that he has taken up the role of Chair of the HMRC Board. As a reminder, the three key priorities of the XST are: Improving day-to-day performance and the overall taxpayer experience, Closing the tax gap, and Driving reform and modernisation of the UK’s tax and customs system.

Last week the Institute launched its latest survey on Making Tax Digital (MTD) for Income Tax. With just over six months to go to commencement, we  are inviting tax agents and businesses to take our short eight question survey. Take the survey now. We also remind readers that HMRC recently launched a new MTD for Income Tax direct support campaign for agents.

In the last week, the Institute has responded to three technical consultations on draft legislation launched on L-day in July. Two of the consultations focus specifically on the behaviour of tax agents and fall under HMRC’s ‘Raising standards in the tax advice market’ project: ‘Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance’ and ‘Modernising and Mandating Tax Adviser Registration’. In both submissions, the Institute is recommending that the proposals therein are delayed until at least 1 April 2027. The Institute also responded to the consultation ‘Making Tax Digital for Income Tax and penalty reform’. Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance This consultation contains draft legislation to enhance HMRC’s powers against agents who facilitate non-compliance and includes the following measures which are currently scheduled to commence from 1 April 2026: Issuing file access notices to advisers suspected of facilitating non-compliance (the behaviour involved is reduced from dishonest conduct to deliberate behaviour), Significantly increased penalties where there is evidence of such behaviour, and Publication of details of advisers subject to any HMRC agent sanction. The key recommendations in the Institute’s submission are that implementation should be paused to commence no earlier than 1 April 2027 given our concerns about the lack of effective safeguards in the draft legislation. A range of new safeguards have therefore been proposed, in addition to citing the need for HMRC to revisit the highly disproportionate penalties in the draft legislation (which are currently based on the potential lost revenue to the Exchequer of the agent’s client). Modernising and Mandating Tax Adviser Registration This consultation examines the proposal that from 1 April 2026, subject to a three month transition period, all tax advisers who interact with HMRC on behalf of their clients must register with HMRC and will not be registered unless they meet ‘minimum standards’. The requirement to register will not initially apply to those who already have an Agent Services Account. Anyone who is not registered will be unable to represent their clients. Registration applications will require the name and address of the tax adviser and each ‘senior manager’ (essentially those at the highest level in the business, though not just those working in tax), together with confirmation that the eligibility conditions are met. To be eligible, the tax adviser and each senior manager must meet certain conditions including, inter alia, that they have no outstanding tax returns or payments and that they meet certain standards expected of tax advisers (which will be set and published by HMRC). There are also powers for HMRC to monitor eligibility and compliance with the rules on an ongoing basis and hefty sanctions for agents who fail to comply. The Institute made the following recommendations in its submission: Given concerns that the proposals are a form of quasi-regulation of members of Professional Bodies who are already subject to heavy regulation, registration should be delayed to no earlier than 1 April 2027 to allow for more in depth consultation, The definition of ‘senior manager’ should only apply to those who provide tax services, and, Further detailed consultation is required on the proposed sanctions in the draft legislation, given the link to the potential for the agent’s details to be published under the consultation on ‘Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance’. Making Tax Digital (MTD) for Income Tax and penalty reform This consultation legislates for the changes announced in March at the Spring Statement. In our submission, the Institute’s key ask remains that the Government monitors readiness and progress and listens to and acts on feedback from stakeholders. Although our main objective is to drive the MTD readiness of our members ahead of time, the Institute will continue to listen to and share members concerns as April 2026 approaches, and where appropriate, seek mitigations from this policy change. The Institute is flagging early that there is a high likelihood there will need to be some form of ‘soft landing’ for taxpayers, given the significance of this once in a generation change. HMRC should consider this and announce any soft landing, in particular it’s format, application, and parameters, as early as possible. The Institute raised concerns across a range of other areas including the ability of HMRC to cancel/ reset penalties/penalty points, exemptions, the calendar quarters election, and the definition of digital records. We also took the opportunity to raise concerns about the extension of MTD to those with qualifying income less than £30,000 from April 2028.

Revenue has commenced an information campaign on the upcoming revaluation period for Local Property Tax (LPT) and confirmed it will be corresponding with property owners over the next few weeks to outline the relevant compliance obligations.  Revenue has also updated its Local Property Tax (LPT) portal to enable property owners to update their property valuations in advance of the filing deadline of 7 November 2025. A revaluation of properties for LPT purposes is required on 1 November 2025 and will apply for the years 2026 to 2030 inclusive. Property owners are required to: Value the property as at 1 November 2025, Submit the property valuation to Revenue and file a return by 7 November 2025, and Confirm the preferred payment arrangement for 2026. Agents are encouraged to check LPT compliance with their clients in advance of the income tax filing deadlines to avoid unnecessary delays and exposure to the LPT surcharge. Further details are available in a previous news item outlining the changes announced in the General Scheme of Finance (Local Property Tax) (Amendment) Bill 2025.

In this week’s detailed miscellaneous updates which you can read more about below, HMRC has published the latest Agent Update and this week several webinars are taking place looking at internships and the National Minimum Wage. In other news this week: The House of Lords Finance Bill Sub-Committee has launched a call for evidence into the latest Finance Bill, which the Institute will be responding to, The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and Check HMRC’s online services availability page for details of planned downtime and the online services affected. Latest Agent Update Agent Update: Issue 135 is available now. Get the latest guidance and information on: Guidelines for Compliance: help ensure documents filed with HMRC are correct and complete, Final reminder: UK businesses in climate change agreements to report annual tax subsidy awards to HMRC by‌‌‌ 30‌‌‌ September‌‌‌ 2025, Update on winter fuel payments recovery through the tax system, Opportunity for agents to join HMRC forums, and 'Tax Help for hustles' campaign: new resources for agents and their clients. Internships and the National Minimum Wage new live webinars Are your clients accidentally underpaying their workers? Join a HMRC webinar to find out more. Many employers think 'interns' can work for free, but in the majority of cases they are workers for National Minimum Wage (NMW) purposes. That’s exactly why so many businesses unintentionally fall short, even when they think they’re doing everything right. HMRC’s NMW team are delivering brand-new live webinars this week looking at internships and the NMW. You’ll learn: How to determine whether an intern is a worker for NMW purposes, Scenarios and common pitfalls that could be affecting your payroll right now, and What to do if an underpayment occurs. Plus, get your burning questions answered live. HMRC’s expert panel will be on hand to answer questions. Whether you’re an employer wanting to stay compliant or an accountant advising clients, these sessions will give you the confidence and knowledge to navigate NMW requirements with more certainty. Secure your spot now, because getting it right the first time is always better than fixing it later. Book onto a webinar now: Tuesday‌‌‌ 23‌‌‌ September‌‌‌ 2025, and Thursday‌‌‌ 25‌‌‌ September‌‌‌ 2025.  

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Lord Murphy of Torfaen has now completed his Independent Review of the Windsor Framework and the UK Government has sent an email setting out details of the new export health certificate which took effect last month. Independent Review of the Windsor Framework Earlier this month Lord Murphy of Torfaen published his report on the Independent Review of the Windsor Framework (WF). Despite the disparate views of local political parties on the WF, the report sets out that the parties have put forward important and practical suggestions on how improvements to its operation could be made.  The key elements of the report can be summarised as follows: Small and medium-sized companies are struggling with the new rules and processes, Some gaps remain in how Northern Ireland can meaningfully influence EU laws that apply to it, and The recent sanitary and phytosanitary agreement between the UK and EU is a significant advancement which promises practical improvements to NI-GB trade. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Using a special procedure without a prior authorisation, Apply to pay less duty on goods you import for specific uses, Sailing a pleasure craft into the UK temporarily for private use, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Appendix 2 C21e: Data Element 1/11: Additional Procedure Codes, Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS), and Withdraw funds from your Customs Declaration Service cash account.

The FISC Subcommittee on Tax Matters will hold a public hearing on the tax implications of the Trump administration’s policies next week on Tuesday 23 September 2025. The hearing is an opportunity to both consider the evolving dynamics of EU-U.S. tax relations and to reflect on how the EU can safeguard its interests in a rapidly changing global context.

The OECD has published its annual report on Tax Policy Reforms for 2025. The report covers the tax policy reforms introduced or announced in 2024 in 86 member jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which includes all OECD countries.

Revenue has restructured its guidance on Capital Acquisitions Tax (CAT) and has published two new manuals, the CAT Administration Manual and the CAT Manual which replace the existing guidance. Apart from minor changes, the contents in both manuals have been taken directly from pre-existing guidance. Revenue has confirmed that links to the documents in the manuals will be updated over the coming weeks and a table has been provided which lists the titles of the documents in the new CAT manual and indicates the source of the guidance contained in each document. The new CAT Administration Manual contains the following details: CAT Part 01 - Introduction to Capital Acquisitions Tax CAT Part 02 - Statement of Affairs (Probate) Form SA.2 CAT Part 03 - The Self-Assessment Tax Return (Form IT38) CAT Part 04 - Certificates of Discharge Guide to Capital Acquisitions Tax Compliance Intervention The new CAT Manual covers the following topics: Part 02 - Gift Tax Part 03 - Inheritance Tax Part 04 - Value of Property for Tax Part 05 - Provisions relating to Gifts and Inheritances Part 06 - Returns and Assessments Part 07 - Payment and Recovery of Tax, Interest and Penalties Part 09 - Exemptions Part 10 - Reliefs Schedules

Revenue has published the Karshan Disclosure Opportunity Guidance, outlining detailed information regarding possible settlement arrangements arising from the Supreme Court’s decision in Revenue Commissioners v Karshan (Midlands) Ltd. This follows the publication in May 2024 of the Revenue Guidelines for Determining Employment Status for Tax Purposes, which was update to reflect the decision in Karshan. In a recent press release, Revenue notes that “the judgment changed the understanding of the correct legal principles and legal tests to apply in determining whether an employer had correctly classified workers as employees or as self-employed”. Where a business or employer deems that it is necessary to make a disclosure and that disclosure can be treated under the new guidance, the disclosure must be made no later than Friday, 30 January 2026. In the new guidance note, Revenue states the following: “Revenue invites employers impacted by the Supreme Court ruling to make a disclosure in respect of 2024 and 2025. Revenue will treat any adjustment of liability in respect of both years as a “technical adjustment” as provided for in the Code of Practice for Revenue Compliance Interventions. This means that Revenue will not consider liabilities to have arisen from either deliberate or careless behaviour and a tax-geared penalty shall not apply to any liabilities to Income Tax, USC and PRSI in respect of these years. In addition, fixed penalties will not apply.” At the time that the judgment was released, the Institute engaged extensively with Revenue through the Tax Administration Liaison Committee. You can find links to the various meetings where this issue was discussed below: Minutes of TALC Direct and Capital Taxes Sub-Committee - 30 November 2023 Minutes of TALC Direct and Capital Taxes Sub-Committee - 29 February 2024 Minutes of TALC Direct and Capital Taxes Sub-Committee - 25 April 2024 Minutes of TALC Direct and Capital Taxes Sub-Committee Meeting - 12 June 2024 Minutes of Main TALC Meeting - 27 June 2024 As part of our engagement with Revenue through TALC, the Institute, under the auspices of the CCAB-I also provided feedback on the judgment. While our understanding did not reflect Revenue’s interpretation in certain areas, the process provides the appropriate forum for a detailed understanding of the judgment and its implications.