HMRC regularly publishes information on additions to the lists of territories that have qualifying income inclusion rules and qualifying domestic top-up taxes for the purpose of the UK’s Pillar Two Multinational Top-up Tax. These have recently been updated as set out below. The full list of territories is included in the Multinational Top-up Tax and Domestic Top-up Tax manual. The latest update was last month  when Hong Kong and Qatar were added to all three lists and Bahrain was added to lists 1.2 (qualifying domestic top-up taxes) and 1.3 (accredited qualifying domestic top-up taxes).

In just three weeks’ time, Making Tax Digital (MTD) for Income Tax kicks off. As a result, HMRC has sent an email rounding up the latest news which we have set out below, in addition to some other updates. Together with the other Professional Bodies, the Institute is participating in a new Professional Body led forum which is escalating issues on MTD for Income Tax directly to HMRC. Members are encouraged to share queries with the Institute which can then be raised with HMRC directly via this forum. You can also visit our MTD for Income Tax hub for guidance and assistance. And finally, later this week the MTD for Income Tax service, which allows agents to sign up clients, will be closed for maintenance from 5pm on Friday 20 March 2026 until 1pm next Tuesday 24 March 2026. Penalties Updated guidance on late submission and payment penalties has now been published by HMRC. Late submission penalties use a points system so that a financial penalty is only charged where deadlines are repeatedly missed and the late payment penalties are based on the time taken to pay the tax due. According to HMRC, these changes support the introduction of MTD for Income Tax for voluntary and mandated taxpayers ahead of the extension of these new penalty rules to all individual Income Tax Self-Assessment taxpayers from April 2027. Exemptions HMRC continues to receive applications for exemption from MTD for Income Tax. The following updated guidance pages explain more about this process:  Find out if you can get an exemption from Making Tax Digital for Income Tax: this now contains the full list of exemptions, and Apply for an exemption from Making Tax Digital for Income Tax: this fully explains the process of applying for exemptions if one is not automatically available.  HMRC has also advised that if a taxpayer or agent writes to HMRC to request an exemption, you should use one of the following subject titles on your letter to avoid delays:  ‘Making Tax Digital for Income Tax — digitally excluded application’ if applying for a digitally excluded exemption, or ‘Making Tax Digital for Income Tax — exemption application’ if applying for any other exemption.  In recent months HMRC has also iterated the exemptions guidance to provide clarity on the other exemptions and deferrals that are in place for 2026/27.  Based on some of the applications received to date, HMRC has asked us to highlight the following: The guidance states ‘if you have an agent, friend or family member applying for exemption on your behalf, the exemption will still be based on your personal circumstances’. Whilst agents can make the application based on their client’s circumstances, the exemption will only be available for that one client, the agent cannot then apply this exemption to themselves or other clients each of whom must apply for an exemption separately, and The guidance states that HMRC will not accept an application for an exemption if the only reason for applying is one of the following:  you previously filed a paper return, or you are unfamiliar with accountancy software, or you have a small number of digital records to create each tax year, or it will take extra time or cost for you to sign up to and use MTD for Income Tax. The guidance is designed to offer clear and comprehensive detail on exemptions and will continue to  be iterated and updated where necessary.   The Agent Dedicated Line   HMRC’s advisers on the Agent Dedicated Line are available to assist agents with queries on MTD for Income Tax. Agents will now hear the following recorded message:  ‘Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. From April 2026, sole traders and landlords must use it if their income from self-employment and property combined is over £50,000. To get started, go to GOV.UK and search MTD for Income Tax Agent Step by Step.’ There will then be an option to press 3 to access HMRC’s dedicated MTD team. Agents can also contact HMRC via agent webchat to discuss an MTD query. If the query is considered too complex to discuss over webchat, the agent will be offered a callback.  On Wednesday 4 March, HMRC also activated a new text message service for agents contacting HMRC by mobile phone. If an agent contacts HMRC via mobile, the system now recognises their number and then provides them with an option to receive a single SMS with a link directing them to the MTD for Income Tax agent toolkit and outreach support service. Software choices design page HMRC will also be launching an updated software choices page in the coming weeks. The page will reflect HMRC’s latest thinking on how to enhance the agent and client journey, whilst improving clarity for users, and ensuring the information presented is consistent and easy to navigate. This will include:    a list of all available software to be viewed, the ability for users to search  for a specific software product and check if it is compatible,  an agent journey, and a randomised list of software. Mandation letters to taxpayers Readers may recall that in November 2025 HMRC began sending MTD for Income Tax taxpayer mandation letters to those who had filed their 2024/25 tax return by 1 August 2025. HMRC is now sending letters based on 2024/25 returns filed after 1 August 2025 to those that it believes will be mandated to use MTD for Income Tax from 6 April 2026. The letters have been sent in batches as follows: Batch 1 contained letters for those who filed their 2024/25 tax return between 1 September 2025 and 30 November 2025; these letters were issued last month, and Batch 2 is expected to begin dispatching from the middle of this month for those who filed their 2024/25 tax return between 1 December 2025 and 31 January 2026. Each batch of letters is being sent over a 2-week period. Like the letters sent in November 2025, each letter will advise the taxpayer that based upon the latest data held by HMRC, they will be required to use MTD for Income Tax from April 2026.  

All EU Member States were required to transpose two separate Directives related to VAT measures into national law by 31 December 2024. Spain is the only Member State that has not done so. As a result, the Commission is to refer Spain to the Court of Justice of the European Union (CJEU) seeking the imposition of financial sanctions.

Revenue has reorganised its guidance on social welfare benefits.  The general guidance on the tax treatment of certain benefits payable under the Social Welfare Acts has been updated to include the information previously included in the guidance on the tax treatment of the Carer’s Support Grant and in the guidance on Disability Allowance and Disabled Person’s Rehabilitation Allowance. The guidance on the Disability Allowance and Disabled Person’s Rehabilitation Allowance has been archived as the remainder of the contents of this manual in relation to Disabled Person’s Rehabilitation Allowance is no longer relevant

Revenue has updated its guidance on the market capitalisation stamp duty exemption applying to the transfers of stocks and marketable securities introduced in Finance Act 2025. The updated guidance outlines the circumstance in which Revenue will share details of valid notifications with central securities depositories.

Revenue has updated its guidance on the Special Assignee Relief Programme (SARP) to reflect Finance Act 2025 changes. These changes included the extension of the relief for a further five years to 31 December 2030 and introducing, from 1 January 2026, a requirement for first time claimants to have a minimum annual salary of €125,000. A new paragraph 2.3 has been added to the guidance providing an overview of the deadlines for employer certification for the purposes of the relief. Finance Act 2025 provided that an employee will qualify for relief where the employer certification is made between 90 and 180 days after the employee’s arrival in the State. However, in these cases, the relief will not apply in the first year of entitlement and will instead begin the following year, for a maximum of four consecutive tax years. The manual includes the following updates: Paragraph 7 (Thresholds) has been updated to reflect the various employment income thresholds that apply to SARP from 2026 to 2030. Paragraph 16.2 has been updated to reflect the revised annual employer return filing deadline of 30 June which applies from 2026 onwards. Appendix 1 has been updated to include examples of the various changes applying to SARP from 1 January 2026.  

Revenue has updated section two of its guidance on the emergency income tax and universal social charge regulations to include an introductory paragraph outlining the income tax emergency basis. Information has also been provided on addressing a situation where an individual has a PPSN but is not registered for PAYE.  

Revenue has updated its guidance on the Foreign Earnings Deduction to reflect the Finance Act 2025 amendment removing the requirement that a ‘qualifying day’ must be one of at least three consecutive days in a relevant country. The guidance provides additional detail on the ‘reasonable requirement test,’ particularly on how time spent in a relevant jurisdiction mainly for personal reasons affects the relief. The guidance has also been refreshed as follows: Paragraph two has been updated to bring together the key definitions underpinning the relief and to add a table of ‘relevant states’. The examples have been revised and combined in the appendix.

The Central Statistics Office has issued the Quarterly National Accounts and the International Accounts for the last quarter of 2025. The accounts show that although seasonally adjusted  GDP fell by 3.8 percent in the fourth quarter of 2025, GDP grew by 12.3 percent in 2025.  Modified Domestic Demand, a broad measure of underlying domestic activity that covers personal, government, and investment spending rose by 1 percent in the quarter and by 4.9 percent in the year. Personal spending on goods and services, which is seen as a key measure of domestic economic activity, grew by 0.9 percent in Q4 2025 and was up 2.9 percent in the year. Overall, the multinational-dominated sector grew by 25.1 percent in 2025, with domestic sectors up by 0.9 percent. The Balance of Payments current account recorded a surplus of €12.8 billion in transactions with the rest of the world in Q4 2025. Commenting on the figures, Tánaiste and Minister for Finance, Simon Harris said: “Today’s figures confirm that, despite external headwinds, the domestic economy grew strongly last year, with Modified Domestic Demand expanding by almost 5 per cent for the year as a whole. “While the headline figures may somewhat overstate the economy’s underlying growth, I am encouraged that consumer spending grew by a solid 3 per cent last year. This reflects rising real incomes and the strength of our labour market, with a record 2.83 million people in employment at the end of 2025”.

Last week, the Tánaiste and Minister for Finance, Simon Harris and Minister for Health Jennifer Carroll MacNeill jointly confirmed that the existing tax relief available for health expenses will be extended to health care provided by pharmacists under the Common Conditions Service. The necessary legislative amendments are expected to be introduced in the Finance Bill later this year, while a Revenue administrative practice will allow taxpayers to claim tax relief for health expenses for relevant health expenses incurred under the Common Conditions Service in the interim. The Common Conditions Service, launched earlier this year, allows community pharmacists to advise and provide expanded treatment options for certain common conditions. Tax Relief for Health Expenses will now also cover the cost of pharmacist consultations and any medications prescribed under this service. Commenting on the announcement, Tánaiste and Minister for Finance, Simon Harris said: “I am expanding tax relief for health expenses to cover costs incurred by individuals who avail of health care through the Common Conditions Service. This will ensure that these individuals will be able to claim the same tax relief as they are currently able to avail of when visiting their GP. This new Service is an important part of our Programme for Government commitment to further expand the services provided by pharmacists, recognising Irish pharmacists as highly trained, well-educated healthcare professionals”.

Last week Revenue launched an information campaign encouraging PAYE taxpayers to file their 2025 Income Tax return. As of 6 March 2026, over 806,000 PAYE returns for 2025 had already been processed with close to 82 percent of the returns resulting in a refund of tax. Revenue is reporting a continuing increase in the use of Revenue’s my Account service to file tax returns. Of the returns processed, an underpayment of tax arose in almost 12 percent of cases with the remainder of the returns in a balanced position. Where an underpayment of tax arises, Revenue has indicated that it will engage with the taxpayers to collect the tax due through a suitable payment option, including the opportunity of reducing tax credits over a four-year period. In its communication, Revenue noted an increase in the number of claims across several tax credits, including the rent tax credit, flat‑rate expenses, remote working relief, and health expenses. Taxpayers are reminded that they have four years to claim any additional refunds and should review and finalise their tax position for 2022, 2023, and 2024 if they have not already done so. Detailed guidance, including step-by-step videos on how to submit a PAYE Income Tax Return and information on the wide range of tax credits and reliefs available, can be found on myAccount and on the dedicated PAYE campaign page at www.revenue.ie/paye⁠.

The Institute made representations on behalf of members at last week’s meeting of the Tax Administration Liaison Committee (TALC) Collections sub-committee. Among the issues discussed, Revenue provided an update on 2026 Local Property Tax returns and confirmed that certain issues with the 2025 Form 11 have now been resolved. Minutes of the meeting will be available in due course here. Local Property Tax (LPT) Revenue provided an update on LPT returns filed in respect of the 2026-2030 valuation period. The filing rate is in the region of 81 percent and LPT payment compliance is at approximately 92 percent. Revenue expressed concern that there are payment arrangements in place by 240,000 property owners who have yet to file their LPT tax return for 2026-2030. Practitioners are reminded that outstanding LPT returns for taxpayers subject to income tax, capital gains tax, or corporation tax may trigger surcharges on the filing of the relevant returns under section 38 Local Property Tax Act 2012. Outstanding LPT returns may also give rise to interest charges and can impact on tax clearance applications. The deadline for paying 2026 LPT in full was 9 January 2026. Where a taxpayer has arranged to pay in full using an Annual Debit Instruction, payment will be taken on 20 March 2026. After this date Revenue will commence its payment compliance campaign, writing to all those with outstanding LPT payments for any year. Form 11 2025 – Age Tax Credit and PRSI issues For 2025 Form 11 returns filed before 19 January 2026, the Age Tax Credit was incorrectly calculated as zero and Revenue has confirmed it will amend affected returns to apply the correct credit. For returns filed since 19 January, the Age Tax Credit was correctly included in the computation but did not appear on the Notice of Assessment. Revenue confirmed it will issue corrected assessments for those cases. This display issue was resolved following a ROS release last week. Revenue confirmed it reviewed filings made prior to 19 January as the Form 11 2025 did not reflect PRSI updates from October 2025. Following a review of submissions, Revenue noted that the number of cases impacted was limited. Revenue will be in contact with the relevant agent/taxpayer and raise an assessment to correct the returns. New Agent e-Linking access to historical information: As newly linked agents have access to outstanding returns, Revenue confirmed that a new agent linked in 2026 will have access to 2025 Form 11 data where the 2025 return has not been filed. For historical information filed before the new agent link was authorised, the agent will have to request that information, with the taxpayer’s permission, via MyEnquiries if the information is not available from the taxpayer directly. ROS digital certificates interaction with CRO filings Revenue is aware of an issue relating to the signing of Companies Registration Office (CRO) filings using ROS digital certificates. It emerged that the digital certs failed a CRO validation check because the company name on ROS was truncated. Revenue has advised that while its system limits the company name on ROS to 70 characters, it is the first 70 characters of the company name as per the CRO that should be entered for the validation check to be successful, rather than manually truncating the company name. Central Register and Beneficial Ownership of Trusts (CRBOT) Revenue will be conducting outreach visits in 2026 regarding Central Register and Beneficial Ownership of Trusts (CRBOT). Advisers to trusts are expected to be aware of the obligation for trusts to maintain an internal beneficial ownership register and to register this information on the CRBOT. Outstanding tax returns Revenue intends to update its system to include the taxpayers’ names in the list of outstanding tax returns it sends to their agents. Expiry of ROS Debit Instruction mandates Revenue confirmed that where a direct debit mandate is approaching its three-year expiry date, and there is a payment instruction active in the system, the mandate won’t expire for the purpose of that payment. Tax Registration for Appointees & Executors (TR4) Revenue informed practitioners that a new tax registration form (TR4) is now available for Appointees or Executors who are not represented by an agent and need to register an estate for a deceased individual for income tax or capital gains tax purposes. Guidance will be made available in due course.