Budget 2027

In this special Budget 2027 Update, we highlight the key measures announced and consider what they may mean for individuals and businesses. Our aim is to cut through the headlines and provide a clear, practical overview of the changes, helping you understand their potential impact and identify any opportunities or areas where forward planning may be required.

Budget 2027 delivers a broad package of tax changes, increased supports and public investment, with a focus on easing cost-of-living pressures and supporting households and businesses. Positives include changes to income tax, increased social welfare payments, lower childcare costs and enhanced supports for renters, first-time buyers and investment. The new Savings Scheme was probably the only significant new announcement and while welcomed, still requires further detail to fully assess.

However, the Budget also presents challenges, particularly for small businesses facing continued cost pressures and higher employment costs. Overall, Budget 2027 provides welcome measures across a number of areas, although the longer-term impact will depend on implementation and economic conditions.

Income Tax & Capital Gains Tax  

Main Tax Credits -  The Personal Tax Credit, Employee (PAYE) Tax Credit, and Earned Income Tax Credit all increase by €125 from €2,000 to €2,150.

Standard Rate Cut-Off Point - The 20% tax band threshold increases by €2,500. For a single worker, the entry point to the 40% higher rate moves from €44,000 to €46,500. Proportionate band increases apply to married couples and civil partners

USC - The 3% band for USC will increase by €1,600, bringing the threshold from €28,700 to €30,300.

Rental Tax Credit -  The credit has increased to €1,250 for a single renter and €2,500 for a married couple

Home Carer Credit - Increased by €100, bringing the credit allowance up to €2,050.

Minimum Wage - Effective from 1 January 2027, the minimum wage will increase by €0.79 to €14.94 per hour.

Rent-a-Room Relief - The annual tax-free earnings threshold increases to €16,000 and will be extended to include newly installed detached auxiliary dwellings built after 27 July 2026.

Standard Rate of Capital Gains Tax  -  will decrease by 2% from 33% to 31% for disposals after 7 October 2026. The separate 33% CGT rate applying to disposals of development land will remain unchanged.

Entrepreneur Relief - The lifetime limit for qualifying gains under the Revised Entrepreneur Relief will increase from €1.5m to €5m for disposals made on or after  1 January 2027.

Investment Undertaking Tax and Life Assurance Exit Tax - The tax rate applicable to Irish and equivalent offshore funds and foreign life assurance products will be reduced from 38% to 35%.

Capital Acquisitions Tax

Inheritance tax-free thresholds are widened across all tax groups with effect from 7 October 2026

Group A (Child) Rises from €400,000 to €420,000.

Group B (Sibling/Niece/Nephew)  Rises from €40,000 to €44,000.

Group C (Non-relatives)  Rises from €20,000 to €22,000.

Business Taxation

Employer PRSI - The employer PRSI threshold is raised from €552 to €600 per week.

Changes to Preliminary Corporation Tax – The preliminary corporation tax rules will be amended, including an increase from €200,000 to €350,000 in the threshold used to determine whether a company is regarded as a small company.

Research & Development (R&D) - The threshold for first-year refunds under the R&D tax credit scheme will increase from €87,500 to €105,000 to support smaller projects.

Start-up Companies - Corporation tax relief for start-up companies is being extended to 31 December 2030

Professional Services Withholding Tax – Will be reformed through the introduction of personalised withholding tax rates in place of the existing flat 20% rate.

Property Measures

Help to Buy Scheme - The maximum amount a first-time buyer can claim will increase by €5,000, to €35,000, with immediate effect.

A new Derelict Property Tax (DPT) - A preliminary register of dereliction properties will be published on 1 September 2027 and Revenue have confirmed the rate of tax will be 7 per cent.  

Residential Zoned Land Tax (RZLT) - Landowners will have a further opportunity to apply to have the zoning of land changed, provided there is no extant planning permission or current planning application for residential development. The deadline is likely to be 30 April 2027, effectively removing the Residential Zoned Land Tax (RZLT) charge for 2027.

Other Measures

New investment account - A new investment account will be available from 1 July 2027. It will have a tax-free threshold of €50,000 and a 1% tax on amounts above that. Up to €12,000 can be contributed per year, with no minimum.

Further and higher education -  The annual student contribution fee will decrease from €2,500 to €2,350, effective immediately. Students who have already paid their fees for this year will be able to request a refund in January 2027. The threshold for tax relief for qualifying tuition fees for approved third-level courses has decreased.

VRT - Extension of €5,000 VRT relief for electric vehicles extended to 31 December 2028. There will be a 1% increase in VRT rates for cars in bands 3 to 20 with higher emissions.

How MBSL Can Support You     

As more details and clarifications emerge in the coming days, we will continue to monitor developments closely. If you would like to discuss how any of the measures in Budget 2027 may affect your personal or business circumstances, please get in touch with our team.

We are here to support you with clear, practical advice so that you can plan with confidence for the year ahead. For tailored advice or to schedule an appointment, please contact Kieran O'Brien  +353 1 2984366 or at Kieran.OBrien@mbsl.ie 

Co-Sourcing: How Leading Companies Navigate Compliance, Control Costs & Unlock Growth.

Stop choosing between a stretched internal Team and traditional outsourcing. Here is how modern Leadership Teams get the best of both. 

Running a finance department used to be straightforward: you built an internal Team and brought in external help once a year for the audit. 

 Today, that model is breaking under pressure. Between fierce local competition for senior accounting talent, tightening tax reporting windows, and the sheer pace of modern business, internal Teams are spending all their energy simply keeping the lights on; leaving zero capacity for real strategic planning. 

Clunky tax setups, late compliance filings, and poor cash flow visibility create severe stress for CEOs and senior management – undermining organisational health. It is now obvious that finance functions is no longer just a cost-cutting tactic; it has become a strategic growth driver.

 The solution isn't replacing your team or handing total control over to a traditional third-party agency. 

It's CO-SOURCING - a high-impact model that plugs specialised technical horsepower directly into your existing setup.    

What Co-Sourcing Looks Like in Practice

Think of co-sourcing as an agile extension of your desk. Your internal team keeps ownership of daily company operations and culture, while external specialists seamlessly plug your operational gaps:

• Real-Time Financial Visibility: Cloud-integrated accounting pipelines deliver live reporting and rolling cash flow dashboards, ending the era of waiting 15 days after month-end for outdated figures.

• Complex Tax & Statutory Compliance: Senior tax & company secretarial specialists handle specialized Corporation Tax, VAT, RCT, BIK reviews, and R&D credit filings - eliminating risk without burning out your internal staff.

• Agile Fractional CFO Support: Access high-level capital planning, board-pack creation, and growth modeling on demand, giving you executive-level clarity without a full-time executive price tag.

• Watertight Payroll & Pension Administration: Offload complex payroll management, confidential executive payroll and pension auto-enrolment logistics to dedicated experts equipped with direct compliance workflows.

3 Signs Your Business is Ready for Co-Sourcing

1. Your team is drowning in compliance: If your top financial minds are spending 80% of their time on tax filings and administrative processing rather than commercial growth, you are overpaying for administration.

2. Key-person dependency is a constant threat: If one unexpected resignation could stall your entire reporting function, you need built-in operational redundancy.

3. You are preparing to scale: Whether entering new markets, raising capital, or navigating complex tax hurdles, co-sourcing gives you enterprise-grade infrastructure overnight.

Co-sourcing gives your business the agility, deep technical expertise, and operational security required to win in today's market - all while keeping your internal team focused on what they do best.     

Is Your Finance Team Reaching Its Limit?   A 5-Point CEO Checklist     

1.  The "10th of the Month" Test (Reporting Velocity)

• Question: Are your monthly management accounts and cash-flow forecasts ready within 5–7 business days after month-end?

• Red Flag: If board packs routinely take until mid-month or later, your internal team is likely drowning in manual transactional processing rather than driving strategy.

2.  The Tax & Statutory Compliance Trap (Risk Exposure)

• Question: Is your senior internal accountant spending valuable hours handling routine VAT, Corporation Tax, BIK, or pension auto-enrolment filings?

• Red Flag: Relying on key internal staff to constantly keep up with changing tax and compliance legislation diverts high-value focus and increases the risk of filing errors and/or penalties.

3.  Key-Person Dependency (Operational Resilience)

• Question: If your Financial Controller or Payroll Manager gave notice tomorrow, could your business seamlessly maintain daily operations and statutory deadlines?

• Red Flag: Single-point-of-failure risk is high in lean in-house teams. Co-sourcing creates instant, enterprise-grade redundancy without extra full-time salaries.

 4.  Cost of Specialised Technical Talent (Budget Efficiency)

• Question: Are you delaying strategic initiatives—like R&D tax credit claims, cross-border VAT structuring etc, because hiring full-time specialists is budget-prohibitive?

• Red Flag: The competitive hiring environment makes recruiting full-time specialists costly. Co-sourcing grants instant access to certified senior experts on an as-needed basis.

 5.  Strategic Alignment vs. Administrative Grind (ROI of Focus)

• Question: Is your finance leader actively involved in commercial decisions, pricing strategy, and growth initiatives, or are they consumed by administrative reporting?

• Red Flag: If more than 30% of your finance lead's week is spent on routine admin, you are overpaying for execution and missing out on commercial direction.

Evaluating Your Results

0–1  Red Flags 

Your finance operation is balanced and performing well in-house 

2-3 Red Flags 

Your team is operating near capacity. Co-sourcing key functions (e.g., tax compliance or payroll) will unlock immediate strategic bandwidth 

4–5 Red Flags  

Your finance desk is at high risk of burnout, key-person failure, or compliance drift. A co-sourced partnership should be prioritised to de-risk operations     

If you would like to find out more on how co-sourcing can help your business please contact, Ayo Laiyemo +353 1 2984366 or at Ayo.Laiyemo@mbsl.ie

Auto-Enrolment: Opt-Out Window Approaching

Ireland's auto-enrolment pension scheme has now been operating for six months and, by all accounts, the rollout has been smoother than many anticipated. Significant preparation took place throughout 2025 involving employers, payroll providers and the various bodies responsible for implementing the scheme. 

While there were some initial teething issues, the transition has generally been successful, with employers adapting quickly to the new requirements.  As we approach the six-month mark, attention is now turning to the next important milestone – the opening of the first employee opt-out window.

Don't Miss the Opt-Out Window

One of the most common misconceptions surrounding auto-enrolment is that employees can opt out at any time. In reality, participation in the scheme is mandatory for the first six months following enrolment. Once an employee has completed this initial six-month period, they will have a two-month window in which they may choose to opt out of the scheme.

For employees who were enrolled at the commencement of the scheme, the first opt-out opportunities will begin to arise from July 2026 onwards. If an employee is considering opting out, it is important that they understand the relevant deadlines. Missing the designated opt-out period means remaining in the scheme until the next available opportunity arises.

Where an employee opts out during the designated opt-out period, contributions deducted during the participation period may be refunded in accordance with the scheme rules.

Employers Should Prepare Now

One of the key learnings from the first six months of auto-enrolment is that employee awareness remains lower than many expected. While most employees are aware that deductions are appearing on their pay slips, many are still unclear on how the scheme operates, what contributions are being made on their behalf and when they may exercise their right to opt out. As a result, employers should expect an increase in employee queries as opt-out windows begin to open. We recommend that employers: Remind employees of the upcoming opt-out period; Encourage employees to familiarise themselves with the scheme rules and deadlines; Be prepared for an increase in employee queries over the coming months; and ensure payroll processes are in place to deal with opt-out notifications accurately and on time.

What Happens Next?

The upcoming opt-out period will provide the first meaningful indication of how employees feel about the scheme in practice. A low level of opt-outs may suggest broad acceptance of auto-enrolment and the long-term benefits it offers. Conversely, higher levels of opt-outs could indicate affordability concerns or a continuing lack of awareness around retirement savings. Either way, the next few months will provide valuable insight into how the scheme is bedding down and how employees are responding to it.

How MBSL Can Support You

At MBSL, our team of tax and payroll specialists is on hand to assist you in:

• Assessing exemption eligibility under AE,

• Reviewing and upgrading payroll systems for compliance,

• Liaising with pension providers and legal advisors,

• Crafting a communication strategy for your workforce.

If you have any questions regarding auto-enrolment, employee eligibility, payroll processing or the upcoming opt-out periods, please contact a member of the MBSL team who will be happy to assist.

If you would like to find out more on how AE will impact your business please contact, Elaine Ryan +353 1 2984366 or at Elaine.Ryan@mbsl.ie 

We look forward to the opportunity to support your business in achieving its full potential.

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Happy Christmas from all at MBSL

On behalf of the entire MBSL Team, we extend our warmest wishes to our clients, partners, friends and their families for a very Happy Christmas and a peaceful New Year. We sincerely thank you for your valued business in 2025 and your continued support throughout the year.

Our office will be closed on Wednesday 24th December and reopen on Tuesday 30th December. We will be closed again on Thursday 1st January, reopening on Monday 5th January 2026.

This year, in lieu of Christmas gifts and cards, we are proud to support Focus Ireland through a charitable donation.

Thank you for being part of our journey in 2025. 

We look forward to working with you in 2026.

Best Company to WorK For🎉

MBSL Celebrates Winning “Best Company to Work For” at the 2025 Dún Laoghaire–Rathdown County Business Awards 🎉

We’re absolutely delighted to announce that MBSL has been awarded “Best Company to Work For” at the 2025 Dún Laoghaire–Rathdown County Business Awards 2025, hosted by the DLR County Chamber at the Royal Marine Hotel on Wednesday 22nd October 2025.

This recognition means a great deal to us. At MBSL, we believe that success starts with our people — their talent, teamwork, and dedication are what make MBSL not just a great company, but a great place to work.

We’d like to thank the DLR County Chamber for hosting such an inspiring event and for celebrating the incredible businesses that make Dún Laoghaire–Rathdown a dynamic and thriving hub of enterprise. From innovation and sustainability to community engagement and customer excellence, these organisations continue to lead the way and inspire others.

Thank you to our amazing team at MBSL — this award is yours.

Congratulations also to all the other Winners, Highly Commended Shortlisted Nominees who joined in the celebrations on the night.

We’re thrilled by this recognition, and we’re more motivated than ever to continue building a workplace that stands out for culture, opportunity and support. We look forward to what comes next – growing, learning and succeeding together.