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.

Readers will be aware that in recent weeks the Institute has written to Ministers in Dublin and Belfast outlining the tax and compliance challenges affecting cross-border workers on the island of Ireland. It seems the timing of our letters was prescient given the commitment announced last week by the Irish and UK Governments to reach a decision in principle this year on a bilaterial Ireland-UK approach to address the concerns affecting hybrid cross-border workers. In a joint statement issued by Taoiseach Micheál Martin and Prime Minister Sir Keir Starmer following the conclusion of the UK-Ireland Summit in Cork last Friday, both leaders acknowledged the decision and also committed to reviewing the Irish-UK Double Tax Agreement as part of the work. A bilateral agreement has the potential to reshape the labour market on the island to make it compatible with hybrid working models that have proliferated following the Covid pandemic. Following our recent correspondence with Ministers in Ireland and Northern Ireland, the Institute has received feedback from several of the Ministers and we will be engaging with officials in the coming weeks. When drafting our recommendations, we naturally had the possibility of a bilateral agreement as the potential silver bullet that could significantly reduce and even eradicate the substantial complexity currently faced by employers of hybrid cross-border workers. It is particularly encouraging that Westminster will be engaging directly with officials in Dublin on the matter. Naturally, this work will require the engagement and input from Ministers and officials in Stormont. As such, the overall work to address the long-standing complexities may also open opportunities for the leaders in Dublin, Belfast and London to consider measures to support the economic development of Northern Ireland even beyond the labour market.

In Irish news, the Fiscal Monitor for February 2026 has been published, and Revenue has announced plans to issue a customer services survey on its Estimated Response Time feature. In UK news, the Institute has reacted to last week’s Spring Forecast, and the latest Finance Bill is now at report stage in Parliament. In International news this week, CFE Tax Advisers Europe publishes a Charter of Rights and Obligations on the ethical use of artificial intelligence by tax advisers. Ireland 1. The Department of Finance and the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation have published the Fiscal Monitor for February 2026 which confirms an Exchequer deficit of €1.8 billion to the end of February.   2. Revenue is seeking feedback on the Estimated Response Time (ERT) feature in MyAccount and ROS. UK 3. Read the Institute’s reaction to the Spring Forecast announced by the UK Chancellor of the Exchequer last week. 4. The UK Finance Bill has reached the report stage following completion of the committee stage last month. International 5. Read about the recent publication on a Charter of Rights and Obligations on the ethical use of artificial intelligence by tax advisers. 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.  

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. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Amendment of CNEN to Heading 2309 — Animal feed (Tariff notice 3), EUR1 and EUR-MED movement certificate, Customs civil penalties, External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service (CDS), Simplified Customs Declaration Process, Notice to exporters 2026/04: transmission issues between LITE/SPIRE and CDS, Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service, and Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020.  

Last week the Institute responded to the consultation Draft Budget 2026-2029/30 and took the opportunity to highlight a range of Northern Ireland (NI) specific issues of tax policy that are impacting on the region. The potential to activate a lower rate of corporation tax for NI also featured in the submission together with the need for affordable childcare. Overall, the submission highlighted that NI’s competitiveness depends on an economy that attracts investment, supports entrepreneurs, enables cross-border labour mobility, and expands workforce participation through affordable childcare. The Institute has therefore urged the Executive to prioritise and consider the following issues as part of its Budget setting process:  The need for progress on entrepreneurial tax supports, How barriers in tax policy are impacting on the all island labour market, The economic benefits of activating the Assembly’s devolved powers on corporation tax, and The need for investment in affordable childcare.  Together these actions would increase productivity, stimulate job creation, and strengthen the region’s long term fiscal sustainability. These should therefore be considered as key objectives in the current budget setting process.  

After a month of no movement, the latest Finance Bill (officially titled Finance (No. 2) Bill 2024-26) has begun moving again following completion of Committee stage last month. A number of  government amendments were tabled last week ahead of report stage and the Bill’s third reading. This is scheduled for Wednesday 11 March 2026 during which these amendments will be debated and are expected to be agreed. The tabled amendments cover a wide variety of areas and include the planned changes to Inheritance Tax for unused pension pots and agricultural property relief and business property relief, the tax treatment of carried interest, and temporary non-residence of individuals, amongst others.

Revenue has made several updates to its guidance on donations to approved sport bodies to reflect a number of Finance Act 2025 changes. The changes are as follows: Paragraph 3 now includes a reference to the inclusion of an approved project number on the certificate issued by the Minister of Culture, Communications and Sport. Paragraph 5.1.2 has been updated as follows: It notes that when a self-assessed individual chooses to either claim the personal tax relief on the donation or to surrender the relief to the approved sports body, this decision is irrevocable, when claiming the relief personally the individual must provide the approved project number and (if available) the unique receipt number on their Form 11, and To clarify that a donation under section 847A TCA 1997 is not taken into account in calculating “net relevant earnings” for purposes of the individual’s maximum tax relieved pension contribution to occupational schemes, RACs, PRSAs and PEPPs. Paragraph 5.2.2 has been updated to give the same updates for PAYE-only taxpayers as are given in Paragraph 5.1.2 for self-assessed individuals. Paragraph 6 has been reviewed to state that receipts issued for relevant donations by an approved sports body must also include the approved project number and unique receipt number.

It may be the time for some spring cleaning, however last week’s Spring Forecast was little more than a light dusting when the Chancellor set out in her speech to the House of Commons details of the latest economic and fiscal forecasts by the Office for Budget Responsibility (OBR). Just days after conflict erupted again in the Middle East, one could be forgiven for arguing that the forecasts are already out of date, albeit the OBR did recognise in its forecasts that significant risks from the conflict could impact the UK economy. Nevertheless, last week the Chancellor kept to her pledge that there would be no tax or policy announcements on the day of the forecast. However, in her speech the Chancellor highlighted that her second Mais lecture, which is expected to take place next week, will set out three major choices ‘that will determine the course of our economy into the future’. The Institute reacted to the Spring Forecast in a Press Release which overall calls on the UK Government to address the tax barriers that are hampering business growth in the UK. After the fiasco in November when the OBR’s economic and fiscal outlook was leaked before the Chancellor’s Autumn 2025 Budget speech, HM Treasury (HMT) was taking no chances that this would happen again when they published the OBR’s forecasts first on GOV.UK. This may mean a permanent move for future fiscal events by HMT to publish the OBR’s forecasts on GOV.UK. The Institute for Fiscal Studies and Institute for Government have both published their responses to the Spring Forecast. Meanwhile, the Treasury Committee has opened an inquiry into the Spring Forecast, with the Chancellor scheduled to provide oral evidence later this week. In other fiscal events news, the House of Commons Library has published an updated research briefing on the Budget and the annual Finance Bill. The briefing examines the way that Parliament scrutinises the Government’s proposals for taxation set out in the annual Budget statement. A research briefing has also been published by the Library on the Spring Forecast. On the devolved nations front, last week the Scottish Government published the Scottish Budget which sets out its proposed spending and tax plans for 2026/27 as presented to Holyrood. 

Revenue has updated its guidance on Expression of Doubt (Full Self-Assessment ) IT/CT/CGT with an additional section outlining that in cases where a taxpayer has made a genuine expression of doubt, the extended tax due date applies to the matter on which doubt has been expressed. A Finance Act 2025 change provides that the due date for the payment of tax is to be determined in isolation on a second or subsequent amendment of the assessment. The means that where an assessment is amended for the first time after a genuine expression of doubt and that assessment is subsequently amended again for whatever reason, the tax due and payable will not benefit from the extended due date for payment under 949AU(2) TCA 1997 and instead reverts to the original due date. Interest and penalties, where applicable, will also be applied from the original due date. Section four now incorporates material previously contained in a footnote, explaining that expressions of doubt are not available where a chargeable person is unsure of an individual’s employed or self‑employed status.