Compliance & Regulation
Incorpro
09 Oct 2026 · 7 min read
In the run-up to the Budget, most of the talk was about the cost of living. For people running a business, there's a second pressure building: the cost of doing business. The Government is spending €125.6 billion next year, alongside what it calls the largest capital investment plan in the history of the State. The Irish Fiscal Advisory Council has warned that, with record numbers already in work, that ambition risks pushing up costs.
Budget 2027 helps on some fronts: wider tax bands, start-up relief extended to 2030, and a higher pay threshold before the top rate of employer PRSI applies. On others it adds cost. The minimum wage rises by 79 cents an hour, PRSI went up on 1 October and is due to rise again in October 2027, and auto-enrolment pension contributions are now running through payroll for eligible staff. Whether your business comes out ahead depends on how many people you employ and what you pay them. That's why we think the cost of doing business deserves as much attention this year as the cost of living.
Budget 2027 was announced on Tuesday 6 October 2026, and many summaries since have listed every measure in the order the Government announced them. That's useful if you want the full picture. It's less useful if you run a small company and want to know which parts touch your business.
This guide works the other way round. It starts with the changes most likely to affect a small Irish company and its owners, and leaves the rest at the end.
One thing to keep in mind throughout: most of these are announcements. The tax changes only become law when Finance (No. 2) Bill 2026 is passed, so some of the details could still change. Where something already applies, we say so.
For newer companies, this is the measure that matters most.
The relief for start-up companies (section 486C) is being extended by four years, to 31 December 2030.
This relief gives a new company relief from corporation tax on its trading income (and certain capital gains) for its first five years of trading. It applies in full where the company's corporation tax is under €40,000, with partial relief up to €60,000. It is also capped by reference to certain PRSI the company pays, which links the relief to employment.
For many small companies, the €40,000 limit isn't the issue. The parts worth checking are the PRSI cap and the five-year window.
What to do: if your company started trading in the last few years, check whether the relief is being claimed on your corporation tax return. If we prepare your return, we look at this for you.
If you pay yourself through payroll as a director, or you're self-employed, these apply for 2027:
PRSI is moving the other way. All PRSI rates rose by 0.15 percentage points on 1 October 2026, taking employee and self-employed PRSI from 4.2% to 4.35%. That was agreed earlier under the Government's PRSI roadmap rather than in this Budget, and the next step, to 4.5%, is due on 1 October 2027.
What it adds up to: in the Department of Finance's own worked example, a single person with no children earning €50,000 is €691 a year (approximately €13 a week) better off in 2027. That's the case whether they're on PAYE or self-employed.
For most small employers, wage costs are the bigger story this year.
Minimum wage. The minimum wage rises by 79 cents, from €14.15 to €14.94 an hour. The Low Pay Commission recommended the new rate from 1 January 2027. The Government has also removed the 2029 timeline for moving to a living wage.
Employer PRSI. The weekly pay level at which the higher rate of employer PRSI applies rises from €552 to €600, so staff earning between €552 and €600 a week will move to the lower rate. The start date hasn't been published yet.
Reporting tax-free payments. From 1 January 2027, employers can report items like small benefits and travel expenses to Revenue by the 14th of the following month, as an alternative to reporting on or before the day they're paid. It's a small change, but it gives employers more flexibility.
Auto-enrolment. Not a Budget change, but worth keeping in mind as wage costs rise. Auto-enrolment pension contributions through payroll started on 1 January 2026. Our auto-enrolment guide explains who is included and what employers need to do.
What to do: check which of your staff are paid below €14.94 an hour today, and plan for the new rate before January rather than after. If staff are already paid a little above the minimum, think about whether they'll expect to stay ahead of it.
Three changes to preliminary corporation tax were announced, and they all relate to larger companies: the "small company" threshold rises from €200,000 to €350,000, there's a wider top-up rule, and a fix to how instalments are treated. If your company's corporation tax last year was €200,000 or less, none of this changes how you pay preliminary tax.
If a State body or health insurer pays you for professional services, 20% of each payment is currently held back as Professional Services Withholding Tax. You get credit for it against your tax for the year, or in some cases you can claim an interim refund from Revenue.
The Budget confirmed that the flat 20% is going and that each business will get its own deduction rate. Revenue hasn't published the detail or a start date yet, because the change needs a Commencement Order first, so the exact rates aren't known.
What we expect, based on how the same idea already works for subcontractors in construction, is that your rate will follow your record with Revenue. If you're up to date on every return and payment, you should sit at the low end. If there are gaps in your compliance record, more could be held back than today.
What to do: keep your returns and payments up to date. Your record with Revenue is likely to be what sets your rate when the new system starts.
The Finance Bill will turn the tax measures into law over the coming months, and some details will be filled in along the way. We'll update this guide as they are.
If we look after your payroll or your returns, we'll apply these changes as they come into force, and you don't need to do anything for that. If you're planning to take on staff, sell shares or property, or make a research and development claim in 2027, it's worth talking to us first.
Not working with an accountant yet, or thinking of switching? Get in touch or email info@incorpro.ie, and we'll tell you what Budget 2027 means for your company.
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