Revenue's New Tax Refund Rules in 2025

Tax refunds have always been an important part of the Irish tax system. For thousands of people each year, they represent money back in their pockets - whether from medical expenses, work-related costs, or simply from overpayment of tax during the year. Traditionally, many individuals relied on tax agents to secure these refunds, often on a “no rebate, no fee” basis.

But in 2025, Revenue changed the rules. These changes may seem administrative on the surface, but they have major implications for how people claim tax refunds, how agents charge for their services, and ultimately, how much clarity you have as a taxpayer.

At Irish Tax Hub, we see this as a welcome change. We are proud to already offer a flat-fee, transparent alternative that puts you in control.

What Exactly Has Changed?

Previously, when you engaged a tax agent to claim a refund, the process looked like this:

1. The agent calculated your refund and submitted your claim to Revenue.
2. Revenue processed the claim and sent the refund directly to the agent’s bank account.
3. The agent deducted their fee from the refund and passed the balance on to you.

This system meant that the taxpayer didn’t have to pay anything upfront. The agent got paid only if a refund was issued, and their fee was deducted automatically.

However, in 2025, Revenue changed the process:

• Refunds are now paid directly to the taxpayer, not the agent.
• Agents can no longer deduct their fee at source.
• Instead, they must separately invoice the taxpayer after the refund has been issued.

Why Does This Matter?

At first glance, you might think this is just a minor administrative tweak. But in practice, it raises some big issues:

1. Uncertainty around fees

Many taxpayers are no longer sure what their agent will charge until after the refund lands. This lack of transparency creates confusion and can lead to disputes.

2. Smaller refunds may be overlooked

Because agents now have to chase clients separately for payment, they may deprioritise smaller claims. That could leave taxpayers out of pocket for refunds they’re fully entitled to.

3. More responsibility on taxpayers

You’re now in the middle of the process. You receive the refund directly but also have to pay the agent separately. This adds an extra step - and, for many, an extra hassle.

The Problem with Commission-Based Models

Most agents in the old system worked on a commission-based model — for example, charging 10–15% of whatever refund you received. While this seemed fair (“no rebate, no fee”), it actually had a few hidden downsides:

• Disproportionate fees – If you received a large refund, the fee could be hundreds of euro, even if the actual work involved was the same as a smaller claim.
• Conflict of interest – The agent’s incentive was tied to the refund size, not the quality of service.
• Unclear costs – Clients rarely knew in advance what they’d pay.

Now that refunds are going directly to taxpayers, this model looks even less sustainable. Taxpayers want predictability, and agents need a better way to provide value.

Irish Tax Hub’s Transparent Flat-Fee Approach

At Irish Tax Hub, we’ve always done things differently. We believe tax services should be simple, predictable, and transparent. That’s why we use a flat-fee model for all rebate and compliance services.

Here’s what that means in practice:

• Clear costs upfront – You know exactly what you’ll pay before we start. No surprises.
• Fairness across the board – Whether your refund is €100 or €1,000, our fee is the same. You’re paying for the work, not the size of your rebate.
• Full ownership of your refund – The entire rebate goes straight to you, exactly as Revenue intended.
• Every claim matters – Because our fee isn’t tied to the refund size, we give equal attention to all claims, big or small.

This approach not only makes the process more transparent, but also builds trust - you know you’re getting value for money, and we know we’re being paid fairly for our expertise.

Why Flat Fees Are the Future

Revenue’s new system highlights the weaknesses of commission-based tax services. Flat fees solve these problems by offering a model that is:

• Client-friendly – You’re never penalised for having a larger rebate.
• Transparent – There’s no confusion about costs, no hidden deductions, and no surprises.
• Efficient – With fees agreed upfront, both client and adviser can focus purely on the quality of the service.

It’s a win-win: taxpayers get the clarity they deserve, and advisers can provide professional support without conflicts of interest.

A Real-World Example

To see how this plays out in practice, let’s look at two scenarios:

Client A with a €400 refund

• Under a typical commission-based model (15% fee), the client would have paid €60, leaving them with €340.
• With Irish Tax Hub’s flat fee, the client knows exactly what they’re paying upfront - €49. Even though the rebate is small, we still provide the same professional service and the client keeps full control of their refund.
• Result: No confusion, no chasing invoices, and no feeling that the fee ate up too much of the refund.

Client B with a €1,200 rebate

• Under commission-based pricing, a 15% fee would be €180 — nearly the cost of Irish Tax Hub’s entire CGT Review Service. For a relatively straightforward refund claim, that can feel disproportionate.
• With our flat-fee approach, the cost is fixed at €49, regardless of the refund size. Client B kept the full €1,200 rebate in their bank account and paid only the agreed fee.
• Result: Predictability and fairness. The client’s fee is based on the work done, not the size of their refund.

These examples show why, in a post-2025 world where Revenue pays refunds directly to taxpayers, flat fees make far more sense. They align the adviser’s incentive with delivering quality service, not chasing bigger refunds.

Click here to calculate your tax refund.

Final Thoughts

Revenue’s 2025 rebate changes are reshaping the tax landscape. While many agents are now scrambling to adapt their business models, Irish Tax Hub has been ahead of the curve, offering flat-fee, transparent pricing from the start.

For you, the taxpayer, this means:

• Your refund goes directly into your account.
• You know the exact cost of our service before we begin.
• You get peace of mind that every rebate, big or small, will be treated with care.

At Irish Tax Hub, our mission is simple: to make tax compliance clear, fair, and hassle-free. And with the new rebate rules in place, that mission is more important than ever.

👉 Find out more about our flat-fee services here