The Institute’s short eight question survey on Making Tax Digital (MTD) for Income Tax remains open for completion and will close on Friday 3 October. With just over six months to go to commencement, we are inviting tax agents and businesses to share their views on this seismic change in UK tax administration. Take the survey now.  HMRC is also holding further in-person MTD for Income Tax events as part of its work to support agents and taxpayers with their preparations. The events will provide an opportunity to discuss technical MTD queries directly with HMRC. There will also be an opportunity  to meet software providers and find out about their products. Events are taking place as follows between now and the end of 2025: Leeds: 28 October, Edinburgh: 11 November, and Belfast: 19 November. Spaces are limited and will be allocated on a first come first served basis to agents who have not previously attended an in-person HMRC event earlier in 2025. Should you wish to attend one of the above events, email mailboxmakingtaxdigital@hmrc.gov.uk to enquire about availability.

Sunday 5 October 2025 is the deadline to notify HMRC of a new source of income or gain for 2024/25 where there is a requirement to register for and file self-assessment returns. Those required to register for self-assessment includes anyone who: is self-employed or a sole trader in a business which commenced in 2024/25, is not self-employed but who had a new source of income or a gain in 2024/25, or became a partner in a partnership or any new partnership which commenced in business in 2024/25.  Failure to register by the deadline can result in HMRC charging a failure to notify penalty.  

In this week’s detailed miscellaneous update which you can read more about below, HMRC has sent an update on the UK’s Pillar Two legislation. In other news this week: The use of AI by a taxpayer to support their appeal has been criticised in the Upper Tribunal case HMRC v Marc Gunnarsson [2025] UKUT 00247 (TCC), Meanwhile, in another Tribunal case, Elsbury v The Information Commissioner [2025] UKFTT 00915 (GRC), the First Tier Tribunal ruled that HMRC must disclose if and when AI was used in cases involving research and development tax reliefs, The House of Commons Library has published a research briefing exploring the National Insurance system, and the debate around integrating National Insurance Contributions with Income Tax, and a briefing which examines the way that Parliament scrutinises the Government's proposals for taxation as set out in the annual Budget statement has also been published, and HMRC has confirmed in an issue briefing that it has recommenced the use of direct recovery of tax debt from bank accounts. Pillar Two update Draft legislation was published in the summer for  amendments to the Multinational Top-up Tax and Domestic Top-up Tax for inclusion in Finance Bill 2025/26. According to HMRC, these amendments aim to ensure that the UK’s Pillar Two legislation is up to date with administrative guidance. The amendments also take into account previous stakeholder comments. A guidance manual was also published on the UK’s Pillar Two rules. More information on the manual is available on the introduction page. HMRC invites any feedback from stakeholders on the manual.

In this week’s cross-border trading corner, the most recent Trader Support Service bulletin is available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also sent a range of updates on the implementation of ICS2, the implementation date for which has been pushed back to 31 December 2025. The minutes and slides from the latest meeting of the Joint Customs Consultative Committee meeting, which the Institute is represented on, are also available. ICS2 update HMRC has sent an email update on the implementation of ICS2. ICS2 is an advance cargo information system designed to improve security in the international transportation of goods and involved supply chains. This confirms that ICS2 must be implemented in full by 31 December 2025 for movements by road/rail from Great Britain to Northern Ireland. Also available is ICS2 operational guidance.

Revenue has confirmed that the Rent Pooling guidance incorporates content previously found in Tax and Duty Manual ‘Part 09-01-06 Rent Pooling’.

The latest UK tax tidbits features the updated guidance across a wide range of areas. Rates and allowances: Inheritance Tax thresholds and interest rates, Inheritance Tax thresholds and interest rates, Annual Tax on Enveloped Dwellings: work out the value of your property, Annual Tax on Enveloped Dwellings: technical guidance, Annual Tax on Enveloped Dwellings, Check genuine HMRC contact that uses more than one communication method, List of approved professional organisations and learned societies (List 3), Income Tax personal allowances and reliefs, Tell HMRC about the end of a qualifying interest in possession because someone has died (IHT100b (death)), Regulations to update the UK’s automatic exchange of information agreements, Cryptoasset Reporting Framework, Negligible value claims and agreements, and Compliance checks: tax advantaged shares schemes — CC/FS1f.

Revenue has published new guidance outlining the tax exemptions available for payments made to former residents of relevant Mother and Baby institutions. The exemptions introduced by the Mother and Baby Institutions Payments Scheme Act 2023 cover payments made to relevant individuals or their personal representatives if the applicant is deceased.

We have compiled the latest updates to various VAT legislation, publications, briefs and guidance. Revenue and Customs Brief 2 (2025): the use of VAT grouping within the care industry, Health professionals and pharmaceutical products (VAT Notice 701/57), VAT Assessments and Error Correction, Road fuel scale charge tables for VAT, VAT road fuel scale charges from 1 May 2025 to 30 April 2026, Refunds of UK VAT for non-UK businesses (VAT Notice 723A), Instruct your bank or building society to pay your VAT by Direct Debit, Transfer a business as a going concern (VAT Notice 700/9), VAT payments on account, Register for VAT by post, Who should register for VAT (VAT Notice 700/1), Apply for an exception from registering for VAT, VAT groups and divisions, Charging and reclaiming VAT on goods and services related to private school fees, Local authorities and similar bodies (VAT Notice 749), Revenue and Customs Brief 3 (2025): VAT treatment of income received from charity fundraising events, Check when you can account for import VAT on your VAT Return, VAT and overseas goods sent to the UK and returned to the seller, Charging VAT when using an online marketplace to sell goods to customers in the UK, Charging VAT when goods are sold if you're an online marketplace operator, Charging VAT on goods sold direct to customers in the UK, Check where an online marketplace seller is established, and Charity fundraising events: exemptions.  

Revenue has updated the guidance on the provision of miscellaneous benefits to reflect Finance Act 2024. The changes introduced mean that from 1 January 2025, an “employer limit” applies to employer contributions to an employee's Personal Retirement Savings Account (PRSA). The “employer limit” is the maximum amount an employer can contribute to an employee's PRSA without the contribution being considered a BIK for the employee. It is also the maximum contribution for that employee for which an employer can claim a deduction for tax purposes. This limit is 100 percent of the employee's emoluments in the year of assessment. Any employer contributions exceeding this limit are treated as a BIK and are therefore taxed as employment income.

Revenue has updated the guidance on the completion of corporation tax returns (Form CT1) for 2023 and 2024 following an update to the text on the iXBRL filing options on Form CT1. The guidance confirms that companies liable to Corporation Tax and whose affairs are managed in either Large Corporates Division or High Wealth and Financial Services Division must continue to file iXBRL financial statements.

Last week, the Economic and Social Research Institute (ESRI) published its Quarterly Economic Commentary. In the press release which accompanied this publication, the ESRI refers to the economy continuing to perform robustly, with recent data show strong growth in consumption expenditure, employment and tax receipts. The ESRI expects this positive situation to continue over the forecast horizon and are estimating modified domestic demand (MDD) to grow by 3.8 percent in 2025 and 3.2 percent in 2026. Although the immediate risk of punitive US tariffs has eased for now, the commentary highlights that a broader shift away from trade liberalisation continues to pose a challenge to Ireland’s economic model. While there was a large increase in exports in Q1, which was most likely a pre-emptive reaction to threatened tariffs, Q2 saw a significant scaling back on this growth rate, although pharmaceutical exports continued to grow strongly year on year in Q2. Data for July 2025 points towards a drop off in pharma exports relative to the same month in 2024 and there is an assumption that this fall back will continue for the rest of 2025.  The ESRI expect exports to grow by 6.1 percent in 2025 and by 0.9 percent in 2026. In terms of employment, the ESRI comments that growth remains positive but some tentative signs of a softening in the labour market is evident in the most recent data. 

Last week, the Minister for Finance, Paschal Donohoe TD, and the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD, met with the Oireachtas Committee on Budgetary Oversight to discuss Budget 2026.  In his opening statement, Minister Donohoe outlined the economic context and fiscal background to  Budget 2026 which will be announced next week. The Minister confirmed a total budget package of €9.4 billion, made up of €1.5 billion in tax and €7.9 billion in expenditure measures. The risks associated with the overreliance by the economy on the FDI sector and corporation tax receipts were noted. The Minister outlined measures to address these risks, including continuing to run budgetary surpluses and building up the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to €16 billion by the end of 2025. In his opening statement, Minister Chambers outlined the ongoing work in terms of the Summer Economic Statement, the Medium Term Expenditure Framework and the National Development Plan.