Revenue Tax Refund Changes in 2025 & 2026

From 2025, Revenue is phasing out the long-standing system where PAYE tax refunds could be sent to your tax agent’s bank account (the “A2 process”). By 2026, all refunds will go directly to taxpayers, and agents will have to charge their fees separately.

This article explains:

• What changed in 2025
• What’s changing again in 2026
• How the rules differ for new vs existing customers of tax agents
• Why we believe flat, transparent fees are the best fit under the new rules

1. Quick Overview – 2024 vs 2025 vs 2026

Up to December 31st 2024

• Many PAYE taxpayers signed a form (A2) that allowed Revenue to send tax refunds to Tax Agent’s bank accounts.
• The agent kept their fee and passed the balance on to the client.

From 1 January 2025 – Stage 1 (New Customers)

• If you become a new client of a tax agent on or after January 1st 2025, Revenue will not allow your refund to go to the agent’s bank account.
• Instead, all refunds are paid to your own bank account (the details on your myAccount record).

During 2025 – Stage 2 (Existing Customers)

• Revenue is winding down the A2 process for people who were already with an agent before 2025.
• All agent bank account details are being removed from customer records by December 31st 2025.

From 1 January 2026 – Everyone

• The A2 process is gone for all PAYE taxpayers.
• Every refund goes directly to the taxpayer’s bank account.
• Agents can still file your return and manage your claim – they just can’t be the payee for the refund.

2. How the Old System Worked (Up to 2024)

Under the old A2 setup, the usual flow looked like this:

1. You hired a tax agent to review your taxes and claim any refund.
2. Revenue processed the claim and sent the refund to the agent’s bank account.
3. The agent deducted their fee (often a percentage of the refund) and passed on the remainder.

This felt convenient – you didn’t pay anything upfront, and the agent only got paid if a refund actually came through. But there were downsides:

• You often didn’t know the exact fee until after the refund was issued.
• Large refunds could mean very large commissions, even where the work was relatively standard.
• In rare cases, if an agent couldn’t contact a client, refunds might sit unclaimed or delayed.

Revenue’s view is that refunds should be paid directly to the person who actually overpaid the tax in the first place – the taxpayer.

3. Revenue’s Two-Stage Change: 2025 and 2026

Revenue is not flipping the switch overnight – it’s a two-stage rollout.

Stage 1 – From January 1st 2025: New Customers

From January 1st 2025:

• If you sign up as a new client of a tax agent, that agent cannot have your refunds paid into their own bank account.
• Any overpayments of Income Tax or USC will be refunded directly to you, using the bank details on your myAccount/Revenue record.
• Your agent will still prepare your tax return and deal with Revenue, but they will charge their fee separately, usually by invoice or card payment.

Stage 2 – By December 31st 2025: Existing Customers

If you were already using a tax agent before 2025:

• Revenue is gradually removing the A2 arrangement during 2025.
• By December 31st 2025, all agent bank account details will be removed from customer records.
• From that point on, no refunds will be sent to agents, even for long-standing clients.

From January 1st 2026: New Rules for Everyone

From the start of 2026:

• The A2 process is fully withdrawn.
• All refunds of Income Tax/USC go directly to the taxpayer’s bank account (or by cheque if no bank details are on file).
• Agents continue to play an important role in helping clients stay compliant – they just no longer handle the money from Revenue.

4. New vs Existing Customers – What Actually Happens to Your Refund?

Here’s a simple way to think about it.

If you’re a new customer (you appoint an agent on or after January 1st 2025)

2025 onwards:

• Every refund that arises from the returns your agent files (for 2021–2024 or later years) is paid straight to you by Revenue.
• Your agent cannot nominate their own bank account for those refunds.
• You pay the agent’s fee separately, according to whatever fee arrangement you agree with them.

If you’re an existing customer (you were with your agent before January 1st 2025)

Early 2025:

• Some refunds may still flow through the old A2 setup, depending on how your agent and Revenue handle the transition.

By the end of 2025:

• Revenue removes agent bank account details from your record.
• Any refunds processed from that point on are sent to your bank account instead.

From 2026:

• You’re treated exactly the same as a new customer – all refunds go directly to you, and your agent invoices you separately.

5. Why the Change Matters

On the surface this might look like a small administrative tweak – but it has real-world implications:

Transparency

• Because refunds now bypass the agent, there’s no “automatic deduction” of a fee.
• You can (and should) agree in advance what you’ll pay, and then see your full refund land in your bank account.

Smaller refunds shouldn’t be ignored

• Under commission models, smaller claims could be less attractive to agents, because the potential fee was tiny compared with the admin involved.
• When fees are fixed, the focus shifts back to making sure the client claims everything they’re entitled to, regardless of size.

More responsibility on the taxpayer

• You must make sure your own bank details in myAccount are correct and up to date, so Revenue can pay you promptly.
• You also need to keep an eye out for invoices from your agent, instead of assuming your fee has been handled already.

6. Why We Use Flat Fees

The new Revenue rules highlight the weaknesses of percentage-based, “no rebate, no fee” models:

• The work involved in a simple refund claim isn’t always linked to the final refund amount.
• With percentage fees, clients with larger refunds can end up paying hundreds of euro more for essentially the same service.
• It’s harder to know upfront what your final bill will be.

A flat-fee model solves a lot of this:

• You know exactly what you’ll pay before we start.
• You keep 100% of whatever Revenue sends you – the refund is yours, not ours.
• Every claim – big or small – gets the same level of attention, because our fee isn’t tied to the size of your rebate.

In a world where Revenue always pays refunds directly to taxpayers, flat fees are a natural fit: the money trail is clean, and the pricing is clear.

7. What You Should Do Now

A few simple steps will help you get ready for 2025 and 2026:

Check your bank details with Revenue

• Log in to myAccount and confirm your bank details are correct and in your own name. That’s where any refund will go.

Ask your agent about fees

• Make sure you understand how you’ll be charged under the new system – commission, fixed fee, minimum fee, etc.
• Get it in writing so there are no surprises after your refund is paid.

Don’t ignore smaller refunds

• Even modest claims (medical, flat-rate expenses, rent credit, etc.) can add up over 4 years. The fact that your agent has to invoice separately shouldn’t mean you miss out.

8. Final Thoughts

Revenue’s 2025 and 2026 changes are reshaping how PAYE tax refunds are paid. The key shift is simple:

Refunds will go straight to taxpayers. Agents will be paid separately and transparently.

For taxpayers, that means more control and clarity. For agents, it means adapting business models so they’re no longer dependent on sitting in the middle of the payment flow.

Click here to learn more about our flat fee model.