At last week’s joint ECON and FISC subcommittees meeting, Commissioner Hoekstra acknowledged the committees’ frustrations at the Commission’s stance on the withdrawal of five legislative tax files,  due to the changes in the geo-political and economic climate. This Commission on taxation will prioritise tobacco tax, simplification, the Directive on administrative cooperation, and the energy taxation Directive.

Today is the deadline for you to share your thoughts and feed into our response to the Call for Evidence on tax supports for entrepreneurs which was launched at the 2025 Autumn Budget and is open until 28 February 2026. This call for evidence is focused on how UK tax policy can better support investment in innovative high growth companies. Contact us by email before close of business today  Monday 16 February 2026. According to the Call for Evidence, a shortfall in domestic scale-up capital is causing some of the UK’s most innovative companies and founders to move abroad. To address the issue, views are sought on:  how effective existing tax supports are, any gaps in the tax system for founders and scaling companies, and options and ideas to improve, rebalance, and better target current supports that would allow the Government to fill these gaps where needed.  A number of changes were made to several of the UK’s tax advantaged venture capital schemes in the 2025 Autumn Budget which aim to enable larger and more established companies to continue to qualify to use the schemes. However, the Call for Evidence notes that these changes “take the existing schemes as far as possible within their current design”. As a result, the Government is keen to consider how it could provide more targeted and effective support which also represents good value for money for the taxpayer.   

HMRC has sent information on how winter fuel payments (or pension age winter heating payments in Scotland) will be recovered for taxpayers from 2025/26 onwards.  Recovery of 2025 winter fuel payments  If a taxpayer’s total individual income for 2025/26 is more than £35,000, HMRC recover their 2025 winter fuel payment. If the taxpayer lives in a household with someone else who has also received a payment, HMRC will examine each person’s individual income separately. For example, if person A has total income of £36,000 and person B’s is £22,000, HMRC will claw back the payment from person A, but person B will keep their payment.   HMRC has also provided a calculator to help taxpayers work out if their total income is over £35,000. The calculator also explains how the payment will be recovered if it is. Recovery for PAYE taxpayers  HMRC will automatically collect the payment through a change to the taxpayer’s tax code from April 2026 unless they already file a SA tax return. As a result HMRC will change the taxpayer’s tax code to deduct approximately £17 per month.  These taxpayers do not need to do anything or call HMRC.  In February 2026 taxpayers may receive a notification of their tax code for 2026/2027 which will not yet include the adjustment for their winter payment. They do not need to take any action or call HMRC and should receive an updated tax code, which reflects recovery of their winter fuel payment, in early April 2026.   Recovery for SA taxpayers  HMRC will collect their payment through their 2025/26 SA return. For online filers, where possible HMRC will prepopulate their online SA return which is due by 31 January 2027 with the 2025 payment. Taxpayers should check that their winter fuel payment has been included and if it has not been included they must add it themselves. Anyone filing on paper by 31 October 2026 will need to include it themselves. Opting out of future payments  Anyone who expects their total individual income from their private pension, state pension, and any other sources to be over £35,000 can opt out of future payments. Taxpayers in England, Wales and Northern Ireland will be able to opt out of receiving future winter payments via  an online form on GOV.UK which will be available from April 2026. Anyone in Scotland should contact Social Security Scotland by phone if they want to opt out for future years.  In-year collection from 2027/28 HMRC will begin collecting the payment in the tax year starting from 2027/28. This means that the 2026 winter fuel payment will not be collected until 2027/28. As a result in 2027/28, two amounts of winter fuel payment will be collected (the payments for 2026 and 2027) therefore PAYE taxpayers who receive winter fuel payments will see approximately £33 per month deducted, up from £17 a month.  From 2028/2029, the PAYE system will collect the winter fuel payment for winter 2028 during the tax year it is paid in, which means this will return to a monthly deduction of approximately £17.  HMRC has included this information in guidance and will also incorporate this in communications activity ahead of 2027/28.  Information and guidance An explainer video outlining how payments will be recovered is available on HMRC’s YouTube channel. Further information on HMRC’s recovery approach can also be found on GOV.UK.  General information is also available at the following links: www.gov.uk/winter-fuel-payment, and www.mygov.scot/pension-age-winter-heating-payment. 

Revenue has reported that ongoing difficulties with the Relevant Contract Tax screens on ROS have been occurring since 8 December 2025, necessitating customers to clear their browser cache in order to access services. The Information & Communications Technology and Logistics Division within Revenue are currently investigating the issue.

In this week’s detailed miscellaneous updates which you can read more about below, the UK’s draft legislation on the carbon border adjustment mechanism is open for consultation and a new HMRC research opportunity is seeking the assistance of tax agents and intermediaries who regularly interact with HMRC systems to design and develop HMRC services. In other news this week: The guidance on how to complain about HMRC or the Valuation Office Agency to the Adjudicator’s Office has been updated, The Institute for Fiscal Studies has published ‘Tax and disability in the UK: review of trusts and other savings options’, and A recorded HMRC webinar about the transfer of assets abroad: the motive defence is available to view. This webinar is aimed at agents who have a reasonable knowledge of the transfer of assets abroad legislation but who want more information on the exemptions. The recording gives an overview of the exemptions, known as the ‘motive defence’, and information on HMRC’s approach to these. Carbon border adjustment mechanism draft legislation The Government has now published the draft secondary legislation on the UK’s carbon border adjustment mechanism (CBAM)  for technical consultation, together with supporting notices which have force of law. This technical consultation seeks to ensure that the primary legislation delivers the policy correctly and effectively and is not therefore a further consultation on the policy design.  The consultation invites views from interested parties, including importers and their agents, other businesses, individuals, tax advisors, and trade and professional bodies. Feedback on the draft secondary legislation should be emailed to cbampolicyteam@hmrc.gov.uk before midnight on 24 March 2026 using the subject line ‘CBAM technical consultation response’ and clearly referencing the relevant parts of the legislation.  In addition to the draft secondary legislation and notices, the Government has also published a CBAM policy summary which provides an overview of the CBAM in order to provide clarity for businesses who will be impacted.  The Government has reiterated its commitment to working closely with all interested stakeholders as we progress towards implementation from 1 January 2027.  If you would like to learn more about the UK’s CBAM legislation, you can register for a webinar in early March which is being delivered by UK CBAM policy officials and which will provide an opportunity for questions. Details of the webinars are as follows: Session title Date Time Sign up link CBAM draft secondary legislation overview 3 March 2026 9:00 –10:30 (GMT) Sign up here. CBAM draft secondary legislation overview 3 March 2026 15:00 – 16:30 (GMT) Sign up here. CBAM draft secondary legislation overview: carbon price relief deep dive 5 March 2026 9:00 – 10:30(GMT) Sign up here. CBAM draft secondary legislation overview: carbon price relief deep dive 5 March 2026 15:00 – 16:30 (GMT) Sign up here. Agent research opportunity GOV.UK One Login is a new centralised sign-in system for government services. Over time it will replace all other sign in routes including Government Gateway. HMRC has started the process of moving individual taxpayers to One Login. This will follow with the move to One Login for all taxpayers, which will also include agents and intermediaries.  As part of this move HMRC is preparing for a series of research activities to gather insights from tax agents on sign-up/sign-in, credential management, and upcoming changes related to One Login. HMRC is looking to speak with tax agents and intermediaries who regularly interact with HMRC systems. Your input will directly influence the design and development of future HMRC services, helping HMRC create solutions that work for you and your clients. If you are interested in taking part contact HMRC by email before 18 February 2026 for more information or to sign up.

The Department of Social Protection issued a press release last week with an update on the Automatic Enrolment Retirement Savings System, My Future Fund. Since its inception on 1 January 2026, at least 763,000 employees have been automatically enrolled in MyFutureFund, with over an additional 5,000 employees joining the scheme voluntarily. To date, more than €60 million in contributions has been invested across the scheme’s three contracted investment managers. In the medium term, the Department of Social Protection has indicated that, in collaboration with National Automatic Retirement Savings Authority (NAERSA), it intends to develop policy positions on several areas. These include enabling Additional Voluntary Contributions, allowing transfers of existing pension pots into MyFutureFund, creating drawdown options for individuals reaching retirement age, and exploring the potential to extend the scheme to additional groups. Commenting on the issue of the press release, Minister for Social Protection, Dara Calleary TD, said: “My Future Fund is truly revolutionary in terms of pensions for Ireland. It will benefit so many hardworking people over the coming years and decades, making sure they have more money in retirement than they otherwise would. This positive outcome is reflective of the huge effort made by my Department and other stakeholders in advance of the launch of MyFutureFund, including employers and payroll providers, and I’d like to thank all of those for their intense engagement and diligent cooperation with us over that time. I am extremely proud as Minister for Social Protection to have delivered this transformative change.”

Revenue released a press release last week confirming that a VAT registered business established or with a fixed establishment in Ireland and whose tax affairs are handled by the Large Corporates Division (LCD) in Revenue is within the scope of phase one of the roll out of the VAT modernisation programme in Ireland. From 1 November 2028, such businesses will be required to implement mandatory eInvoicing and report a subset of relevant data for domestic business-to-business (B2B) transactions. Revenue has outlined its commitment to providing extensive support during the transition phase and will write to identified large corporates in the coming weeks to confirm their inclusion in phase one of the rollout. Crucially, from 1 November 2028, all businesses, not just large corporates, must be able to receive structured eInvoices. Large corporates are being encouraged to begin preparations now by reviewing systems for eInvoicing capability, engage software providers to ensure technical readiness and plan for system and process changes. The European VAT in the Digital Age (ViDA) Directive requires businesses to issue eInvoices which are compliant with European Standard EN16931. PDFs, paper scans, or other unstructured formats will not be acceptable. Revenue will continue to engage with businesses, industry and professional bodies, software providers and other stakeholders as ViDA and VAT Modernisation progress and we will keep members updated on developments as they arise.  Relevant enquiries can be sent to vatmodernisation@revenue.ie Further details on Revenue’s plans for implementing domestic eInvoicing in advance of ViDA are included in the report VAT Modernisation: Implementation of eInvoicing in Ireland which was published in October 2025 and in our related newsletter item.

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. You can also read an email from the APHA Borders Directorate Communications Team about the frequency rates for physical checks on certain goods entering the EU. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: NATO form 302 and customs procedures for military movements in and out of the UK, UK armed forces declaration process and associated customs procedures for military freight movements into and out of the UK, Making an indirect export from Northern Ireland, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Apply to use simplified declarations for imports you entered in your records without authorisation, Safety and security declarations, Safety and security import requirements: entry summary declarations, Report a problem using the Customs Declaration Service, and HMRC email updates, videos and webinars about importing and exporting.  

The OECD Forum on Harmful Tax Practices (FHTP) has completed its fifth annual monitoring process for the effectiveness in practice of the substantial activities requirements in no or only nominal tax jurisdictions. Ireland was one of the three newly introduced regimes examined, and was assessed as not harmful.

On Tuesday, 24 February 2026, the European Parliament Subcommittee on Tax Matters will host two public hearings to discuss how to address the equity-debt bias in taxation and the feasibility of a 28th tax regime and its potential to support EU competitiveness. The subcommittee will also discuss the draft report on a coherent tax framework for the EU's financial sector. The draft report addresses the fragmentation of the EU financial sector and calls for a fair contribution of the sector.

On 16 and 17 March 2026, the European Commission and the European Parliament will co-host the fourth EU Tax Symposium. The event is to bring together finance ministers, politicians, policymakers, academics and others to discuss the future of EU tax systems under the theme The future of taxation: Inequality and growth in the global economy. Registration is now open for the symposium which will take place in Brussels and will also be livestreamed.

At the informal EU summit in Limburg yesterday, the proposed EU Savings and Investments Union (SIU) moved firmly to the centre of the competitiveness debate. Taoiseach Micheál Martin confirmed that Ireland is “ready to progress” the initiative, describing the Government’s position as “more positive now”, while recognising sensitivities around supervisory integration and Ireland’s financial services sector.  A reported €11 trillion EU household savings remain on deposit rather than invested in productive enterprise. In Ireland, an estimated €170 billion sits in domestic deposits rather than invested in business to support innovation, SMEs and long-term growth.  We have written to the Minister for Finance to discuss the considerable opportunities that the activation of these household deposits represents for the Irish economy.  Chartered Accountants Ireland has consistently engaged in this space on members’ behalf: In our response to the Ireland for Finance 2026–2030 strategy consultation, we called for full implementation of the Funds Sector 2030 Review recommendations to strengthen Ireland’s investment ecosystem and enhance retail participation in capital markets. We emphasised the need for a competitive, modernised tax framework that supports long‑term saving and investment. Specifically, we advocated for the introduction of a personal investment savings scheme for Ireland. Such a scheme would deepen domestic capital markets, encourage greater retail participation, and create a more sustainable investor base for Irish SMEs and listed companies. On Budget Day, we were disappointed at the absence of progress on ETF deemed disposal reform, noting that meaningful capital‑market development requires coherent and aligned tax policy. In our recent submission on Ireland’s priorities for its upcoming EU Presidency, we further emphasised the importance of progressing the EU Savings and Investments Union agenda – positioning Ireland to lead constructively on capital markets reform while ensuring domestic measures support that ambition. Last week we launched our 2026 Investment Tax Guide in partnership with Goodbody. At the webinar launch the panel discussed the landscape of investment taxation in Ireland including the Government’s renewed focus on encouraging retail investment – the commitments arising from the Funds Sector Review and the anticipated roadmap for simplifying Ireland’s complex retail investment tax framework. The panel also outlined how proposals such as removing the 8‑year deemed disposal rule on funds could support long‑term savers. For any members who missed the webinar, you can watch it back here.   Savings and investments reform will form a core pillar of our pre‑Budget 2027 campaign and we look forward to updating members on this in the coming weeks and months.