On 31 August 2026, Grant Thornton Ireland released an employment tax update covering key legislative changes effective in 2026 for both Ireland and the United Kingdom. The update details increases in Pay Related Social Insurance (PRSI) contributions, modifications to the Special Assignee Relief Programme (SARP), revisions to Benefit-in-Kind (BIK) rules, and new Enhanced Reporting Requirements. Additionally, the update addresses the impending introduction of pension auto-enrolment in Ireland. These changes impose immediate compliance obligations on employers operating in both jurisdictions.
Key Takeaways
- PRSI and SARP Changes: Employers face higher PRSI contribution rates and must review SARP eligibility criteria for qualifying employees, impacting cost projections for international assignees and local hires alike.
- BIK and Enhanced Reporting: Revised BIK valuation rules for company cars and other benefits require updated payroll processes, while Enhanced Reporting Requirements mandate more frequent and detailed submissions to Revenue authorities.
- Pension Auto-Enrolment Preparation: Irish employers must prepare for mandatory pension auto-enrolment, including system updates, employee communications, and contribution calculations, with phased implementation expected to begin in late 2026.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement