The EU has published an updated list of ten non-cooperative tax jurisdictions. The Council has removed three countries, Fiji, Samoa and Trinidad and Tobago from the list and it has also added two new jurisdictions, Viet Nam and Turks and Caicos Islands.

The Research and Development (R&D) tax credit is one the most successful tax-based incentives in modern times with almost all 38 members of the Organisation for Economic Cooperation and Development (OECD) having some form of tax-based incentive for companies that engage in R&D. Indeed, in a recent review of the R&D tax credit published by the Department of Finance, it was reported that Ireland’s R&D tax credit ranks amongst the most attractive across OECD countries. Last week, the Department of Finance published its ‘Research and Development Tax Credit and Innovation Compass’ (“the R&D Compass”). This fulfils a commitment made both to stakeholders who contributed to last year’s public consultation (which the Institute responded to here), as well as to the wider electorate in the Government’s ‘Action Plan on Competitiveness and Productivity’. The R&D Compass identifies four broad directions for future policy work: Qualifying Expenditure, Capital Expenditure, Administration and Simplification, and Supports for Innovation. These four broad areas have been used to identify nine specific measures which will be examined under the R&D Compass. These include a holistic review and examination of the sub-contracting provisions, determining whether there is merit to including additional categories of qualifying activities, examining options to accelerate the payment of the R&D tax credit, and a review of the Knowledge Development Box (KDB). It is clear that the R&D tax credit will remain a cornerstone of our tax code for some time to come, and the R&D Compass will provide a foundation for the next phase of development and review of the R&D tax credit in Ireland. The relief is integral to Ireland’s overall economic model, not least of all in incentivising the R&D activities of the key multinational enterprises that operate from Ireland. However, we consistently receive feedback and indeed provide feedback that the administrative burden for smaller enterprises needs to be examined as a matter of priority. The data consistently shows that while small and medium enterprises (SMEs) account for the vast majority of claims in terms of number (typically between 85 to 90 percent of total claims), they account for about a quarter of the overall cost to the Exchequer annually. While this aligns with corporation tax data on the nature of receipts generally, it does beg the question on what could be done to further incentivise SMEs to engage in higher-value R&D. The R&D Compass does include commentary in this regard, including encouraging public-private collaborations and enhancing the opportunity to engage sub-contractors. It is worth commenting on the possibility of a relief that will reward innovation. This acknowledges that some innovative activities, while central to our economy, do not resolve uncertainty in the manner required for the purposes of the R&D tax credit. Therefore, an innovation-based relief would enable the Oireachtas to target specific areas where innovation should be supported but where there is no scientific uncertainty to be resolved. It is therefore likely that an innovation-based relief will be broad-based in terms of qualifying activities but narrow-based in terms of the specific sector or industry targeted. A clear focus of any such relief should be toward decarbonisation and green objectives or the digital transformation. When publishing the R&D Compass, the Tánaiste and Minister for Finance, Simon Harris noted that the “Compass identifies areas that will be reviewed further over the term of this Government, with the specific direction of travel in each of those areas to be determined as relevant analysis is completed”. As such, time will tell what will be first on its list of priorities, and what can be achieved with enough ambition and courage to support R&D activities on the island and as always Chartered Accountants Ireland will be engaging with Government each step of the way.

Last week Chartered Accountants Ireland represented members at the Department of Enterprise, Tourism and Employment’s Cost of Business Advisory Forum. The most recent session focused on the cost of regulation, reporting and compliance. In our submission ahead of that meeting, we continued to voice our concerns with the real-time reporting requirement for information reportable under the Enhancement Reporting Requirements (ERR). We continue to raise the point that the information required relates to expenses and benefits which are non-taxable and therefore, should not form part of payroll data. Instead, employers should be able to provide periodic information returns to Revenue in line with practices that had been established prior to the implementation of ERR. We maintain that there has never been an adequate analysis on the benefits to government in receiving this information in real time versus the compliance burden placed on businesses. A simple, periodic deadline for returning in-scope information would be sufficient in our view and in the experience of our members.

The European Commission has launched a Call for Evidence for an impact assessment on the Omnibus on taxation. The initiative aims to simplify the EU’s direct taxation framework to support competitiveness in the internal market, while reducing reporting and compliance burdens and improving the application of tax rules and procedures. The deadline for responding to the Call for Evidence is Monday 16 March 2026.

The OECD has published its Amount B Pricing Frequently Asked Questions (FAQs). These FAQs have been developed in response to technical questions raised by stakeholders and aim to ensure a consistent application of the Amount B simplified and streamlined approach.

In Irish news, Revenue has issued a press release with details of phase one of the implementation of the VAT modernisation programme in Ireland and the Department of Social Protection has provided an update on My Future Fund. In UK news this week, read about HMRC’s plans to recover winter fuel payments, and we outline details of HMRC’s invitation to tax agents and intermediaries to assist in the design and development of HMRC services. In International news, the European Commissioner for taxation acknowledges MEPs frustration over the withdrawal of certain legislative tax files.  Ireland 1. Revenue has published details of the businesses included in phase one of the rollout of the VAT modernisation programme in Ireland. 2. Read an update from the Department of Social Protection on My Future Fund, the Automatic Enrolment Retirement Savings System, outlining progress since its introduction on 1 January 2026. UK 3. Read about HMRC’s plans to recover winter fuel payments. 4. This week’s miscellaneous updates, includes information on HMRC’s request for tax agents and intermediaries, who regularly use its systems, to contribute and provide input into the design and development of its services. International 5. The European Parliament has issued a press release following a joint meeting of the ECON and FISC subcommittees, where proposals to withdraw certain legislative tax files were discussed. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s Cross-border developments and trading corner here.

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.”