Oct 5

2026

Irish Budget 2027 for businesses: what cross-border firms should prepare for

Ireland’s Budget 2027 was delivered on 6 October 2026 by Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers. It was built around a package of roughly €8.5 billion, with about €7 billion of spending and tax measures reported at around €1.65 billion. For cross-border businesses, the practical task is the same whatever the headlines say: work out which Irish costs, reliefs and compliance changes apply to your entities, model them in euro, and line them up against the UK Autumn Budget on 28 October.

What is already fixed before the Finance Bill

Some changes do not depend on the Budget speech. Under the PRSI roadmap, PRSI rates increased by 0.15 percentage points from 1 October 2026, according to the Department of Social Protection’s advance notice. That is already a cost for any business with Irish staff.

The R&D tax credit rose from 30% to 35% in Budget 2026, and the first-year refundable limit went from €75,000 to €87,500, as set out in KPMG’s Budget 2026 summary. Irish VAT registration thresholds are currently €85,000 for goods and €42,500 for services, although cross-border sales can create separate VAT obligations depending on how and where supplies are made.

How should cross-border businesses prepare for Budget 2027?

List the measures that touch your Irish entities, work out the cost or saving in euro, and compare it with your UK position. Most Budget announcements only become law once the Finance Bill is enacted, usually before the end of the year, so avoid restructuring on the strength of a headline alone.

Practical steps this week

• Read the Budget measures with your accountant and note the start date for each, because some excise and indirect tax changes can apply immediately.
• Update your forecasts for the October PRSI increase and any new employer cost changes.
• Review whether intra-group charges and loans between your UK and Irish companies still make sense. Our guide to setting up a company in both the UK and Ireland explains how structures affect this.
• Check how you track sterling and euro books, as exchange rate swings can distort your results.
• Ask whether group size could affect external audit requirements in either jurisdiction.
• Revisit VAT registration, especially if you sell from Northern Ireland or the wider UK into Irish customers.

Two Budgets in three weeks

The UK Autumn Budget follows on 28 October. Our summary of business tax changes to watch covers the UK side, and a combined view matters more than either Budget alone. A measure that looks small in Ireland can become material once you add UK payroll, VAT, finance costs and exchange rate movements.

If higher costs squeeze cash, a 13 week cash flow forecast shows the pressure early. When pressure becomes serious, a company voluntary arrangement or advice from an insolvency practitioner may be worth considering.

Frequently asked questions

When was Irish Budget 2027?

Budget 2027 was delivered on Tuesday 6 October 2026. Many tax measures are expected to take effect from 1 January 2027, but the Finance Bill and commencement dates need to be checked.

Do Budget announcements apply immediately?

Mostly no. Some measures, such as excise changes, can apply straight away, but most tax measures only become law when the Finance Bill is enacted or when a commencement order brings them into effect.

Does the Irish Budget affect Northern Ireland businesses?

Yes, if you employ staff in Ireland, sell to Irish customers, own an Irish company or hold assets there. Costs such as PRSI, VAT and Irish tax reliefs apply to the Irish activity, not simply to the UK group as a whole.

Do I need to register for Irish VAT?

It depends on your supplies, customer type, turnover and sales structure. The domestic thresholds are €85,000 for goods and €42,500 for services, but cross-border rules can apply differently, so take advice before you start selling or change your model.

Plan ahead with SCC

If you trade on both sides of the border, talk to our cross-border team about cross-border accounting and tax before the Finance Bill is published. You can also contact your local office through SCC Chartered Accountants.